On Monday, Citi has increased the stock price target for argenx SE (NASDAQ: ARGX) to $512 from the previous $463, while retaining a Buy rating for the stock. The adjustment comes after the company's recent approval of Vyvgart Hytrulo for Chronic Inflammatory Demyelinating Polyneuropathy (CIDP), which has been met with positive market reception.
The approval of Vyvgart Hytrulo encompasses a wide patient group, including those who have previously received treatment and those who have not. This broad label is expected to benefit argenx as they plan to implement value-based agreements with payors, akin to strategies used for their myasthenia gravis (gMG) treatments. The anticipated annual net revenue per patient is estimated to be around $450,000, aligning with projections.
Argenx aims for a phased initial launch, predicting that it will take approximately two quarters to establish payor policies. The company's initial commercial efforts will target around 12,000 diagnosed CIDP patients who are not responding well to standard of care treatments, such as IVIg and steroids.
Despite anticipating competitive dynamics in the CIDP market, Citi foresees several favorable factors for the launch of Vyvgart, especially once payor agreements are established. Consequently, the firm has increased the probability of success (PoS) in CIDP for argenx to 100% from the previous 90%, leading to an upward revision of the revenue forecast and the price target to $512 per share, a $49 increase.
In other recent news, argenx SE has made significant strides with the approval of its drug Vyvgart Hytrulo for Chronic Inflammatory Demyelinating Polyneuropathy (CIDP). This development has led to several analyst firms revising their price targets and ratings for the company.
Truist Securities raised its target to $480, while TD Cowen, Wells Fargo, Piper Sandler, Scotiabank, and H.C. Wainwright maintained positive ratings with respective price targets of $514, $542, $535, $416, and $448.
The approval of Vyvgart Hytrulo is expected to significantly impact argenx SE's financial performance, considering the drug's potential to reach a substantial market of refractory patients. The company's recent financial performance has been noteworthy, with an 83% rise in total operating income to $413 million, largely propelled by the expansion of Vyvgart.
These recent developments underscore the potential of argenx SE's strategic positioning and the expected market performance of its approved indications for Vyvgart Hytrulo. The company's proactive measures in scaling its salesforce demonstrate a commitment to capitalizing on the expanded prescriber base and addressing the needs of patients with CIDP.
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