Argenx Earnings: Shares Remain Undervalued as Vyvgart’s CIDP Launch Looks on Track for 2024

Argenx reported third-quarter results that were relatively in line with our expectations, and we’re not making any changes to our $574 per ADS/EUR 543 fair value estimates. Argenx reported sales of myasthenia gravis drug Vyvgart and its subcutaneous version, Vyvgart Hytrulo, amounting to $329 million in the third quarter, with roughly two thirds of these sales stemming from the U.S. market. This represents 22% quarter-over-quarter growth, and we think strong continued patient uptake will allow sales of the drug to surpass $1.1 billion in 2023. We think shares look undervalued given the potential for Vyvgart to gain approval in multiple additional autoimmune indications, but we do not yet assign the firm an economic moat, given the uncertainty around the breadth of the drug’s potential as well as its profile relative to emerging competition.