An Argenx drug beat Wall Street's expectations in a study of patients with a progressive nerve disorder and ARGX stock catapulted to a record high.
On today's stock market, Argenx shares soared 27.8% to close at 484.43, putting shares at their highest ever point. Shares broke out of a flat base with a buy point at 423.99, according to MarketSmith.com.
The company is breaking into the multibillion-dollar market for chronic inflammatory demyelinating polyneuropathy, or CIDP. This neurological disorder leads to progressive weakness in the arms and legs.
Over the 48-week study, patients who received Argenx's Vyvgart Hytrulo had a 61% reduction in the risk of relapse vs. placebo recipients. Halfway through the study, 26% of Vyvgart patients relapsed compared with 54% of placebo patients. At the end the study, the relapse rates were 34% and 60%, respectively.
SVB Securities analyst Thomas Smith lists ARGX stock as one of his top picks for 2023.
"We believe these results provide further validation and de-risking for Vyvgart in the multibillion-dollar CIDP market, and expect these results will drive meaningful fundamental value and increased perception of strategic optionality for Argenx," he said in a note to clients.
ARGX Stock: A Pipeline In A Product
Argenx's Vyvgart is already approved generalized myasthenia gravis, an autoimmune disease that causes weakness in the skeletal muscles. But a spokeswoman told Investor's Business Daily in May that the drug could treat the underlying cause of more than 100 autoimmune diseases.
Vyvgart works by blocking a specific receptor in the body that interacts with immunoglobulin G, or IgG. This antibody helps project against infection. But it's also at the center of numerous diseases.
Wedbush analyst Laura Chico says the market for CIDP treatments is worth more than $4 billion a year. She expects Vyvgart to eventually capture up to half of that. It will take on intravenous immunoglobulin, or IVIG, a standard treatment for the disease. IVIG requires a lengthy infusion whereas Vyvgart is an injection under the skin.
Chico kept her outperform rating and 454 price target on ARGX stock.
Safety Results Outperform Standard Drug
Overall, she notes 67% of patients responded to Vyvgart in the study. That rate improved to 78% when accounting for patients who received four or more injections. By comparison, 54% of patients responded to IVIG in its pivotal study, Chico said in a report.
"Last, but not least, 91% of eligible patients chose to enroll in the open-label extension study, pointing to Vyvgart's excellent tolerability profile and patient satisfaction," she said.
SVB's Smith noted IVIG is associated with flu-like symptoms, headache and a heavy treatment burden. In comparison, a low percentage of patients experienced injection-site reactions with Vyvgart, Argenx said in its news release.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
