Argenx setback may refocus investor interest in IL-6 class, says Guggenheim

After Argenx (ARGX) announced that its ADDRESS study of efgartigimod in pemphigus failed to meet both the primary endpoint and secondary endpoints and that it would discontinue development of subQ efgartigimod in that indication, Guggenheim analyst Yatin Suneja argued that these data, along with the negative ITP data, raise concerns about the broad applicability of the FcRn mechanism across autoimmune disease. The firm thinks that alternative mechanisms, like the anti-IL6 from Tourmaline Bio (TRML) that has shown steroid-sparing potential, may be more applicable for diseases like thyroid eye disease, or TED, and argues that FcRn setbacks, combined with the empirical data from anti-IL-6 antibody in TED, may refocus investor interest in the space. Guggenheim has a Buy rating on Tourmaline shares.