Tuesday, Truist Securities updated its outlook on Argenx SE (NASDAQ: ARGX), increasing the price target to $440 from the previous $370 while sustaining a Buy rating on the stock. The revision reflects the firm's optimism about the biopharmaceutical company's prospects, particularly regarding its treatments for chronic inflammatory demyelinating polyneuropathy (CIDP) and Sjogren's syndrome.
The analyst from Truist Securities highlighted the upcoming Prescription Drug User Fee Act (PDUFA) date scheduled for June 21, 2024, for Argenx's CIDP treatment, followed by an anticipated market launch. Additionally, positive results from studies of nipocalimab in Sjogren's syndrome were cited as reasons for maintaining a bullish stance on the company's shares.
In the report, the analyst noted that argenx management appears to be deprioritizing Thyroid Eye Disease (TED) as a target indication for efgartigimod, despite it being part of the same disease spectrum as Grave's disease. This strategy was described as unusual, especially when competitors are actively pursuing treatments for both Grave's disease and TED with their FcRn inhibitors.
The competitive landscape for TED is also becoming more complex with the entry of IL-6 inhibitors into the market. The analyst's discussions with investors suggest that Postural Orthostatic Tachycardia Syndrome (PC-POTS) is not considered a commercially viable indication, and the analyst concurred with this market sentiment.
Truist's revised price target of $440 represents a significant increase of $70 from the previous target, indicating a strong confidence in Argenx's potential for growth driven by its innovative therapies in the pipeline.
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