Argenx ((ARGX)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Argenx’s recent earnings call painted a picture of robust financial health and strategic success, despite some challenges. The company reported strong financial performance and successful product launches, particularly with the prefilled syringe (PFS), alongside significant pipeline progress. Although there were setbacks in certain pipeline developments and increased operating expenses, the positives of revenue growth and successful commercial strategies outweighed the negatives.
Record-Breaking Revenue and Growth
Argenx achieved a milestone in Q3 2025 by reporting total product net sales of $1.13 billion, marking the first time VYVGART sales surpassed $1 billion in a single quarter. This impressive figure represents a 19% growth from the previous quarter and a remarkable 96% growth year-over-year, underscoring the company’s strong market presence and demand for its products.
Successful PFS Launch
The launch of the prefilled syringe (PFS) has been a significant success for Argenx, driving increased demand. Over 50% of new patients have started on PFS, expanding the prescriber base with over 260 new prescribers writing their first VYVGART prescriptions. This innovation has been pivotal in broadening the reach and accessibility of Argenx’s offerings.
Strong Performance Across Geographies
Argenx’s product net sales were robust across various geographies, with $964 million generated in the U.S., $60 million in Japan, $94 million in other global markets, and $9 million from product supply to Zai Lab in China. This geographical diversification highlights the company’s successful global strategy and its ability to capture market share internationally.
Pipeline Progress
The company continues to advance its pipeline, with three first-in-class molecules in Phase III development. Argenx plans to initiate Phase III studies for Graves’ disease early next year, demonstrating its commitment to expanding its therapeutic offerings and addressing unmet medical needs.
Positive Data in MG
VYVGART has shown promising results in treating myasthenia gravis (MG), with up to 60% of patients reaching minimum symptom expression and 83% maintaining it for at least 8 weeks. Additionally, over 55% of patients reduced steroid use to below 5 mg/day after 18 months, indicating the drug’s potential to improve patient outcomes.
Discontinuation of Empasiprubart in Dermatomyositis
Argenx decided to discontinue the development of Empasiprubart in dermatomyositis due to operational challenges with study enrollment. Despite this setback, the company remains committed to addressing dermatomyositis and exploring other therapeutic avenues.
Decision Not to Advance Efgartigimod in Lupus Nephritis
Based on Phase II data, Argenx chose not to advance efgartigimod into a registrational study for lupus nephritis, although the drug was well-tolerated. This decision reflects the company’s strategic focus on prioritizing projects with the highest potential for success.
Increased Operating Expenses
The company’s total operating expenses increased by 5% in Q3 compared to Q2, with R&D expenses rising by 9% and SG&A expenses by 4%. This increase reflects Argenx’s continued investment in research and development and its commitment to supporting its growing operations.
Forward-Looking Guidance
Looking ahead, Argenx provided guidance indicating significant growth and strategic developments. The company anticipates five registrational readouts next year and expects single-digit expense growth for the remainder of the year. Combined R&D and SG&A expenses are projected to be between $2.6 billion and $2.7 billion, reflecting a strategic approach to managing costs while pursuing growth opportunities.
In conclusion, Argenx’s earnings call highlighted a period of strong financial performance and strategic success, with record-breaking revenue and successful product launches. Despite some challenges in pipeline development and increased operating expenses, the company’s positive growth trajectory and forward-looking guidance suggest a promising future.