argenx SE (ARGX): A Bull Case Theory

Yahoo

07-05-2025

We came across a bullish thesis on argenx SE (ARGX) on Substack by FluentInQuality. In this article, we will summarize the bulls' thesis on ARGX. argenx SE (ARGX)'s share was trading at $629.51 as of April 29th. ARGX's trailing and forward P/E were 49.26 and 90.91 respectively according to Yahoo Finance.
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A biopharmaceutical facility with technicians working on a manufacturing line of treatments and preventions.
argenx SE (ARGX) is emerging as a transformative force in the autoimmune space, not as a traditional biotech chasing one-off blockbuster drugs, but as a platform company methodically scaling a repeatable, high-leverage model. Its core strength lies in a single mechanism—FcRn inhibition—which is being deployed across a range of autoimmune conditions. The flagship therapy, Vyvgart, a first-in-class FcRn blocker, has already been approved for generalized myasthenia gravis (gMG), with promising expansion into chronic inflammatory demyelinating polyneuropathy (CIDP) and trials underway in autoimmune hematology, dermatology, and nephrology. This strategic expansion isn't random—it reflects a deliberate, pipeline-as-platform approach where each successful indication unlocks adjacent markets, accelerating scale and reach.
What makes argenx particularly compelling is the chronic nature of the diseases it targets. Autoimmune conditions don't resolve; they require long-term management, translating into durable, recurring revenue. Vyvgart has already crossed €1 billion in annualized revenue, aided by the introduction of a subcutaneous formulation that enhances ease of access and adherence. As global rollout efforts continue across Europe, Japan, and China, and new indications come online, the addressable market keeps expanding. This isn't one-time therapy revenue—it's foundational, high-margin income in largely underserved, fragmented markets.
Beyond Vyvgart, argenx is leveraging its FcRn-focused antibody platform to build a deep pipeline, including multiple efgartigimod variants targeting new autoimmune indications, with preclinical efforts also branching into oncology and nephrology. This diversification, grounded in a single, validated biological mechanism, reduces risk with each subsequent success. It's a textbook example of platform biotech, where discovery scale and efficiency create significant long-term optionality—far beyond the narrow view of being a 'single-asset' or 'rare disease' player.
Financially, while current R&D investments remain substantial, they are the fuel driving platform expansion. As revenues scale, manufacturing efficiencies and global reach are set to unlock meaningful operating leverage. Argenx is now transitioning from the heavy investment phase to one where margins are expected to expand materially.