← Back

Argenx: Argenx's Strong Financial Performance Driven by VYVGART Growth

Argenx reported a strong financial performance, with total operating income of $967 million, comprising $949 million in product net sales and $19 million in other operating income. The company delivered 19% quarter-over-quarter growth, with $802 million in US sales, $52 million in Japan, and $83 million in other markets. Gross to net increased from 12% to 20% due to Medicare Part D redesign, but net revenue per patient remains consistent. As stated by Karl Gubitz, CFO, "The revenue growth is outpacing the OpEx growth, resulting in incremental profit quarter-over-quarter." The company's actual EPS came out at $2.58, surpassing estimates of $2.36. With a P/E Ratio of 59.85 and a P/S Ratio of 19.38, the company's valuation appears to be pricing in its strong growth prospects.

ARGX.BR

EUR 745

2.53%

A-Score: 4.0/10

Publication date: July 31, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • VYVGART Sales Growth Achieved 97% year-over-year growth with $949 million in product net sales.
  • Patient Expansion Treated 15,000 patients globally, including 2,500 CIDP patients.
  • Revenue Breakdown $802 million in US sales, $52 million in Japan, and $83 million in other markets.
  • Cash Balance $3.9 billion at the end of the quarter, up from $3.4 billion at the beginning of the year.
  • Gross to Net Increase Increased from 12% to 20% due to Medicare Part D redesign.

Commercial Performance and Pipeline Updates

Argenx's commercial performance was driven by the growth of VYVGART, with 15,000 patients globally being treated, including 2,500 CIDP patients. The company is expanding its pipeline, with three Phase III assets, including efgartigimod, empasiprubart, and ARGX-119. The immunology innovation platform is advancing, with four new molecules in Phase I studies. The company expects data from six Phase III and six Phase II trials over the next 18 months, with potential to expand into new patient populations. With a strong balance sheet and growing cash reserves, the company is well-positioned to invest in its pipeline and drive future growth.

Valuation and Growth Prospects

Argenx's valuation metrics suggest that the company's strong growth prospects are priced in. The company's P/B Ratio of 9.08 and EV/EBITDA of 5403.81 indicate a premium valuation. However, with analysts estimating 29.0% revenue growth next year, the company's valuation may be justified. The company's ROE of 16.83% and net debt to EBITDA of -189.75 also suggest a strong financial position. As the company continues to execute on its growth strategy, investors will be watching closely to see if the company can maintain its momentum and justify its valuation.

Pipeline and Innovation

Argenx's pipeline is a key driver of its growth prospects, with several promising assets in development. The company's Phase IV IPIg to efgartigimod switch study in CIDP is enrolling, and the company is monitoring all adverse events in the real world. The company is also investing in its supply chain and business development, with a focus on delivering on the promise of VYVGART and expanding its pipeline. With a strong innovation platform and a commitment to creating lasting value for shareholders, partners, and patients, Argenx is well-positioned for long-term success.

Argenx's A-Score