The company’s FcRn inhibitor Vyvgart grew 17% quarter-over-quarter, reigniting confidence it will hit its ambitious goals despite a string of clinical setbacks in recent months.
Argenx posted its second-quarter 2024 financial results on Thursday, touting strong growth in its overall sales and in the uptake of its myasthenia gravis medication Vyvgart (efgartigimod alfa).
In Q2, argenx made nearly $478 million in net product sales, up from almost $270 million during the same time period the year prior. In the first six months of this year, argenx posted sales of around $876 million, whereas the company earned only $487 million the first half of 2023.
Almost all of this revenue and growth was attributed to Vyvgart, which won its first FDA approval in June 2023 and secured a label expansion last month, allowing its use in chronic inflammatory demyelinating polyneuropathy. Other operating income, which include R&D tax incentives, only amounted to $12 million in the second quarter and $23 million in the first six months of 2024.
In an investor call on Thursday, COO Karen Massey said that Vyvgart’s sales grew 17% quarter-over-quarter, driven by a continuous increase in patients starting the therapy, and in prescribers that recommended Vyvgart to their patients.
Argenx is also enjoying “strong momentum” in the overseas market, Massey said, particularly in Europe, the Middle East and Africa(EMEA). Vyvgart is now available in EMEA countries representing around 82% of generalized myasthenia gravis (gMG) patients in the region.
William Blair analyst Matt Phipps in a note to investors said that argenx “continues to drive impressive commercial execution,” with Vyvgart “substantially beating consensus heading into future quarters.” Still, there is much room for argenx to grow, especially as Vyvgart expands into other indications, according to Phipps.
With this promising market performance, argenx is “in a very strong position today to generate substantial value across our business,” CEO Tim Van Hauwermeiren said during Thursday’s investor call, noting that the biotech is also in a good place to hit its ambitious Vision 2030 goal.
Announced during the biotech’s R&D Day last week, argenx’s Vision 2030 roadmap outlines its long-term plans to deliver not just value for its shareholders but also transformative treatments for autoimmune diseases. The company aims to achieve this by “strengthening its leadership in neonatal Fc receptor (FcRn) biology,” according to Thursday’s announcement.
Argenx will work toward 10 label indications across all of its assets, though the biotech will likely achieve this primarily through Vyvgart. However, in recent months, argenx’s star asset has hit a couple of clinical snags. In November 2023, the FcRn inhibitor failed the Phase III ADVANCE-SE study in primary immune thrombocytopenia, unable to significantly improve sustained platelet counts in patients.
In December 2023, Vyvgart again suffered a late-stage flop, this time for pemphigus vulgaris and pemphigus foliaceus.
In addition to accruing 10 indications, argenx is also looking to reach 50,000 patients globally with its medicines and take five new molecules into Phase III development.
