Argenx soars on CIDP shot approval

Investing.com - Argenx (NASDAQ:ARGX) stock soared premarket Monday after the Dutch biotech’s Vyvgart Hytrulo shot gained U.S. approval to treat a rare nervous system disorder.

The drug received gained approval to treat chronic inflammatory demyelinating polyneuropathy (CIDP), a condition that leads to muscle weakness and loss of sensation in the arms and legs.

At 09:15 ET (13:15 GMT), Argenx ADRs traded 10% higher premarket at $435.50 on the Nasdaq exchange.

“The label for Vyvgart CIDP represents the best case scenario in management's view,” said analysts at UBS, in a note dated June 24. “The label is for broad CIDP patients without any line restrictions, with weekly dosing in line with the P3 trial.”

˜Argenx believes the total addressable market for CIDP includes 41,000 patients (diagnosed CIDP patients), with 24,000 patients currently being treated in the U.S. 

However, the company guides for 12,000 as the initial U.S. target patient number as these patients are not well managed on current therapies, but this number may grow in the future.

Argenx expects annual net revenue per patient per year of around $450,000 for U.S. CIDP patient. 

UBS keeps a ‘neutral’ rating for now, but lifts its 12-month target price to $430 from $410.

 Wells Fargo has also lifted its price target, to $542 from $478, keeping an ‘overweight’ rating.

“We like the setup for shares as we expect Vyvgart's launch in CIDP to ramp quickly and would be buyers at these levels. Vyvgart secured a broad label in CIDP and the higher net pricing in this indication should offer upside to Street models,” analysts at Wells Fargo said, in a note dated June 23.

The U.S. bank expects the CIDP launch to exceed expectations, with  Vyvgart likely to come close to $2 billion in sales in the 2024 financial year. 

“While we also expect ARGX's pipeline to notch some wins, the key for upside in the near term will be commercial execution on the CIDP launch and upward revisions to Street estimates.”