Argenx upgraded at UBS; sees $20B peak sales in Vyvgart

UBS has upgraded argenx SE's stock rating from Neutral to Buy, reflecting its higher expectations for the company's flagship drug Vyvgart. The analyst, Xian Deng, highlighted the successful launch and label expansion of Vyvgart, which has significantly contributed to argenx's growth. The stock has more than tripled in value over the past five years and recently experienced a 44% increase over the past year, reaching $1,019.49.

UBS predicts that Vyvgart will achieve around $20 billion in peak sales, based on recent positive Phase 3 myositis readout data. This optimism is further supported by multiple Phase 3 readouts scheduled for 2026 and 2027, including the anticipated trial for empasiprubart, argenx's first non-Vyvgart drug. UBS projects the success of the multifocal motor neuropathy trial, which addresses concerns about argenx being a single-drug company.

The price target of $1,400 has been raised from the previous $960, driven by the peak sales forecast for Vyvgart and the promising non-Vyvgart pipeline. Argentx SE has also recently made a significant acquisition, purchasing Forte Biosciences for $77 per share, valued at approximately $2.2 billion. This acquisition represents a 41% premium to Forte's previous closing price and is expected to be finalized in the third quarter.