Argenx put up another strong quarter for immunology drug Vyvgart on Tuesday, but the biotech stock pulled back from more bullish gains.
Vyvgart treats generalized myasthenia gravis, a progressive autoimmune neuromuscular disease. Sales nearly tripled year over year to $329.1 million, beating expectations for $309 million, according to FactSet. Argenx lost $1.25 per share, but that narrowed vs. the year-ago period. Analysts expected a steeper loss of $1.45 a share.
"This marks yet another strong quarter of commercial execution and Vyvgart remains a launch to own, in our view," Leerink Partners analyst Thomas Smith said in a report.
On the stock market today, the biotech stock rose 1.2% to close at 469.57. Earlier, shares surged as much as 3.3%.
Biotech Stock Continues Outperforming
Wedbush analyst David Nierengarten said this marks "the seventh straight quarter of outperformance."
"Revenue growth continues to be driven by consistent growth in new patient starts and penetration into earlier (stage patients)," he said in a report.
He kept his outperform rating on the biotech stock.
Argenx believes Vyvgart could treat a number of autoimmune conditions. The company is now testing it in patients with a blood disorder called immune thrombocytopenia, or ITP, and pemphigus. Pemphigus causes skin blistering.
The "highly anticipated pivotal results" in ITP are expected in the fourth quarter with pemphigus test results due by year-end, Leerink's Smith said.
Further, Argenx expects to ask the Food and Drug Administration to approve Vyvgart in patients with chronic demyelinating polyneuropathy, or CIDP, before the end of the year. CIDP is a neurological disease that causes progressive weakness and reduced senses in the arms and legs.
Argenx shares have a strong Relative Strength Rating of 90, though that has fallen from the 94 the biotech stock notched just a month ago, according to IBD Digital.
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