SVB Sees Strategic Value In This Stock As M&A Target In Autoimmune Space

  • SVB Securities initiated coverage on Argenx SE ARGX with an Outperform rating and a $404 price target.
  • Argenx's Vyvgart (efgartigimod) is a neonatal Fc-Receptor (FcRn) antagonist that selectively reduces IgG levels and has the potential to address numerous IgG-mediated autoimmune diseases. 
  • According to the analyst, Argenx has demonstrated strong early launch execution for Vyvgart in generalized myasthenia gravis (gMG) following its December 2021 FDA approval
  • Vyvgart reported over $21 million in revenues during the first full launch quarter. SVB models peak unadjusted revenues of ~$2.7 billion for efgartigimod in MG.
  • Also See: Argenx's Vyvgart Meets Primary Goal In Late-Stage Bleeding Disorder Study.
  • The analyst views gMG alone as representing a potential multi-blockbuster sales opportunity for Vyvgart and see a clear path to significantly expand the total addressable market for efgartigimod by the end of 2024 with expected product launches into chronic inflammatory demyelinating polyneuropathy (CIDP), immune thrombocytopenia (ITP), and pemphigus vulgaris and foliaceus (PV & PF)
  • SVB thinks Argenx could provide significant strategic value to an acquirer looking to bolster its presence in autoimmune diseases.
  • Price Action: ARGX shares are down 1.89% at $312.08 during the market session on the last check Tuesday.
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