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argenx: The Upside Is Still There

Mar. 04, 2020 3:45 PM ETargenx SE (ARGX)JNJ, MNTA1 Comment
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Healthcare on the Move


  • Efgartigimod is set to change treatment paradigm in MG indication.
  • Efgartigimod has also demonstrated promising efficacy in additional indications.
  • Collaboration with Janssen Pharmaceutical has added significantly to the company's cash balance.
  • Investors should consider risks such as R&D failure risk, regulatory risks, and market uncertainty risks.

Today, we will see why argenx (NASDAQ:ARGX) is an attractive pick in March 2020.

Company overview

Argenx is a late-stage immunology company focused on the development of differentiated antibody-based therapies for the treatment of severe autoimmune diseases and cancer. The company's SIMPLE Antibody Platform involves sourcing V-regions of the antibody from the immune system of "outbred" llamas. These V (variable) regions of the Y-shaped proteins called antibodies are used to bind to harmful agents or antigens. The upper Y part of the antibody works to identify the foreign bodies, while the Fc region, at the base of the Y, alerts and attracts cells from the immune system to eliminate the pathogens. The SIMPLE Antibody Platform is leveraging the virtually identical nature of the V-regions of llama and human antibodies. The company is also deploying its three antibody engineering technologies, NHance, ABDEG, and POTELLIGENT, to enhance the therapeutic index of its investigational antibody therapies.

Argenx's lead asset, Efgartigimod, is a first-in-class investigational antibody being developed for severe autoimmune diseases associated with high levels of pathogenic IgG (immunoglobulin G) such as MG (myasthenia gravis), ITP (immune thrombocytopenia), and skin blistering diseases. The company in collaboration with Janssen is studying cusatuzumab, an investigational SIMPLE Antibody targeting immune checkpoint target CD70, in AML (acute myeloid leukemia) and MDS (myelodysplastic syndromes) indications.

How Efgartigimod works in MG?

According to HealthLine, "MG is a neuromuscular disorder that's usually caused by an autoimmune problem. Autoimmune disorders occur when your immune system mistakenly attacks healthy tissue. In this condition, antibodies, which are proteins that normally attack foreign, harmful substances in the body, attack the neuromuscular junction. Damage to the neuromuscular membrane reduces the effect of the neurotransmitter substance acetylcholine, which is a crucial substance for communication between nerve cells and muscles. This results in muscle weakness."

In MG,

This article was written by

Healthcare on the Move profile picture
I am an MBA in finance and an engineering graduate. I have also completed the CFA certification.I am involved in international trade and have been passionately tracking global equity markets for more than 7 years. I mainly focus on spotting long-term value investments in biotechnology, pharmaceutical, hospital, and medical device sectors. In the last two years, I have also been studying cannabis and hemp sectors.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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