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Argenx's Impressive Journey From $25 To $140


The stock market is designed to transfer money from the Active to the Patient." - Warren Buffett

A long-term, patient investing approach do bear fruits. argenx SE (ARGX) is a typical example of how a long-term investing strategy has produced good returns.

argenx was trading around $25 when we alerted our premium subscribers to the stock on November 23, 2017, in our report titled "A Catalyst-rich Year Ahead!". Yesterday (July 1, 2019), ARGX touched an all-time high of $143.56 in intraday trading before closing at $142.84.

Netherlands-based argenx is a clinical-stage biotechnology company developing differentiated antibody-based therapies for the treatment of severe autoimmune diseases and cancer.

The Company's lead drug candidate is Efgartigimod (ARGX-113), which is designed to work by binding to the protein Neonatal Fc receptor, or FcRn, thereby blocking the recycling of disease-causing immunoglobulin G, or IgG, leading to an elimination of IgG antibodies. The reduction of circulating IgG antibody levels results in clinically meaningful outcomes in autoimmune diseases.

Efgartigimod is being explored in the indications of generalized myasthenia gravis, immune thrombocytopenia, pemphigus vulgaris and chronic inflammatory demyelinating polyneuropathy.

Clinical Programs:

** A phase III trial of Efgartigimod in generalized myasthenia gravis, dubbed ADAPT, including one-year open-label extension study is ongoing, with topline data expected in 2020.

** An open-label extension study from a completed phase II proof-of-concept clinical trial of Efgartigimod in immune thrombocytopenia is expected to close in mid-2019 in preparation for the start of phase III development program.

** A phase II proof-of-concept clinical trial of Efgartigimod in pemphigus vulgaris is underway, with data expected in 2020.

** A phase II clinical trial of Efgartigimod in chronic inflammatory demyelinating polyneuropathy expected to start in the second half of 2019.

Also in the pipeline is Cusatuzumab, a potential foundational, novel therapy for acute myeloid leukemia.

A phase II study of Cusatuzumab in newly diagnosed acute myeloid leukemia patients unfit for intensive chemotherapy is expected to start in the second half of 2019.

argenx is developing Cusatuzumab in partnership with Cilag International, an affiliate of Janssen Pharmaceutical Companies of Johnson & Johnson (JNJ).

The deal signed in December 2018, entitled argenx to receive an upfront payment of $300 million from Janssen. As part of the deal, J&J's venture capital subsidiary, Johnson & Johnson Innovation (JJDC), purchased $200 million of newly issued shares representing 4.68% of argenx's outstanding shares at a price of €100.02 per share ($113.19).

argenx is also eligible to receive potentially up to $1.3 billion tied to achieving certain milestones, and double-digit royalties from Janssen.

In addition to the above-mentioned wholly-owned compounds, the Company also has a couple of partnered drug candidates.

argenx ended March 31, 2019 with cash, cash equivalents and current financial assets totaling €961.6 million.

Shares of argenx have gained 47% so far this year. With the party just getting started, it might be worth adding argenx to your watch list if this stock hasn't caught your eyes yet.

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