Argenx SE Stock (ARGX) Great Growth and Good Value in Q1 2025

Argenx SE (NASDAQ: ARGX), a leading immunology-focused biopharma company, delivered a blockbuster Q1 earnings report. Revenue nearly doubled, while profitability surged from losses to robust earnings per share. These results, combined with a strong balance sheet and favorable analyst outlook, underscore ARGX as a compelling growth investment, one that remains reasonably valued despite its recent run-up. In this article we will dive into Argenx recent earnings, stock performance & valuation, growth potential, and the risks investor should consider.

About Argenx

Founded in 2008 and dual-listed on Euronext Amsterdam and NASDAQ, Argenx is a Dutch biopharma powerhouse. It specializes in antibody-based therapies targeting severe autoimmune and inflammatory diseases. Its flagship product, VYVGART (efgartigimod), launched in January 2022 for generalized myasthenia gravis and later introduced the subcutaneous version, VYVGART Hytrulo, enhancing patient convenience. The company's rich pipeline spans both discovery and proof‑of‑concept stages across a variety of immune-mediated disorders.

Argenx Financial Performance

In Q1 2025, Argenx reported revenue of $807.37 million, nearly doubling from $412.51 million in Q1 2024, an impressive 95.72% year-over-year increase. This surge was driven primarily by the expanding global adoption of its flagship product, VYVGART, supported by strong commercial execution across key markets. Even more striking was the turnaround in profitability, Argenx posted earnings per share (EPS) of $2.58, a dramatic improvement from a loss of –$1.04 in the same quarter last year, representing a 348.08% year-over-year increase.

On a trailing twelve-month (TTM) basis, the story is equally compelling, with TTM revenue reaching $2.64 billion, up from $1.45 billion a year ago, an 82.13% YoY increase while TTM EPS skyrocketed to $15.94 from –$5.64, marking an extraordinary 382.27% improvement. Argenx is not merely growing, it is growing profitably. The company posted a gross profit margin of 49.59% and a net profit margin of 40.26%. Additionally, its Return on Assets (ROA) of 17.16% and Return on Equity (ROE) of 22.18% reflect highly efficient capital utilization. Its Debt to Equity ratio of 0.01 underscores a virtually debt-free balance sheet, providing ample flexibility to fund future R&D or Acquisition.

If we look at the financial performance over the past five years, Argenx has been growing very fast. Its revenue has been growing at a 141.9% CAGR, while net income turned positive in 2024 and is still growing rapidly with high margins.

Argenx Fiscal 2025 Financial Forecast

Looking ahead, analysts remain extremely bullish on Argenx’s prospects. They forecast 2025 revenue of $3.66 billion, representing a 64.15% increase from $2.23 billion in 2024, and expect Non-GAAP EPS to rise to $13.72, a massive 733.36% jump over $1.65 last year. Analyst sentiment remains positive, with a consensus price target of $759.02, implying a 30.05% potential upside, and the highest target of $1,072.99, suggesting an 83.87% upside, indicating that Wall Street analyst still sees substantial room for the stock to run, even after its stellar gains.

ARGX Stock Price Performance and Valuation

Argenx SE’s stock has been a stellar performer, delivering substantial gains to long-term investors while continuing to outpace the broader market. At the time this article was written, the stock was trading at $583.62 per share, the stock has surged 53.8% over the past year, handily outperforming the S&P 500, which advanced just 11.9% during the same period. Looking further back, Argenx has returned an impressive 171.3% over the past five years, again outperforming the S&P 500’s 97.1% gain. This consistent outperformance reflects both the company's rapid financial growth and increasing market confidence in its long-term potential.

In terms of valuation, Argenx trades at a price-to-sales (P/S) TTM ratio of 13.41 and a forward P/S of 9.81, both reasonable metrics for a biotech company delivering hyper-growth and expanding margins. On an earnings basis, the stock carries a Non-GAAP price-to-earnings (P/E) TTM ratio of 114.11, which may appear high at first glance. However, the forward Non-GAAP P/E of 42.71 suggests that as profitability scales further, the valuation multiple is expected to normalize quickly.

Argenx Growth Potential

Argenx growth prospect remains strong, driven by several factors.

• Strong VYVGART Performance
  Argenx reported robust revenue growth in Q1 2025, with global product net sales of $790 million for VYVGART and VYVGART Hytrulo, a 99% year-over-year increase. This strong performance highlights successful commercialization and widespread market adoption of VYVGART across its approved indications: generalized myasthenia gravis (gMG), primary immune thrombocytopenia (ITP), and chronic inflammatory demyelinating polyneuropathy (CIDP).
  The growth reflects Argenx’s ability to penetrate key markets, supported by the launch of the VYVGART Hytrulo pre-filled syringe, enhancing patient access. With approvals in over 30 countries and ongoing expansion into new regions, Argenx is well-positioned to sustain this momentum, reinforcing its leadership in treating severe autoimmune diseases and driving long-term revenue growth through innovative therapies.
• Market Expansion
  Argenx has significantly expanded its global presence, with VYVGART approved in over 30 countries for generalized myasthenia gravis (gMG) and in the U.S., Japan, and China for chronic inflammatory demyelinating polyneuropathy (CIDP). The launch of the VYVGART Hytrulo pre-filled syringe (PFS) for self-injection in the U.S. and Germany has improved patient access and convenience, with 50% of PFS prescriptions for new VYVGART patients, boosting market penetration.
  Regulatory approvals for the PFS are anticipated in Japan and Canada by year-end 2025 and in the EU for CIDP by mid-2025. These milestones, combined with ongoing reimbursement agreements in several European countries, position Argenx for sustained commercial growth and deeper market reach in autoimmune disease treatment.
• Pipeline Development
  Argenx is advancing a robust pipeline with 10 registrational (Phase 3/4) and 10 proof-of-concept (Phase 2) trials across its core platforms: VYVGART (efgartigimod), empasiprubart (C2 inhibitor), and ARGX‑119 (MuSK agonist). Near-term catalysts include Phase 3 ADVANCE‑SC results in seronegative gMG (2H 2025), the ongoing Phase 3 ADHERE trial of empasiprubart in CIDP, and Phase 1b/2a trials of ARGX‑119 in congenital myasthenic syndromes (late 2025) and ALS (H1 2026).
  These trials aim to expand VYVGART’s approved uses into earlier treatment stages and complementary autoimmune conditions, potentially increasing its total addressable market to 60,000 patients in the U.S. by 2030. The robust pipeline underscores Argenx’s strategy to solidify its leadership in autoimmune therapeutics through innovation and label expansion.

Risks to Consider

Despite its growth prospect, we should remain mindful of potential risks.

• Dependence on Clinical Trial Success
  Argenx’s pipeline, including VYVGART (efgartigimod), empasiprubart, and ARGX-119, faces clinical trial uncertainties. Negative results in trials for indications like myositis, thyroid eye disease, or Sjögren’s disease could delay approvals, reduce market potential, and cause significant stock price drops. These outcomes are critical for expanding VYVGART’s indications and advancing Argenx’s portfolio. Trial failures may erode investor confidence and heighten competition, making clinical success pivotal for Argenx’s growth and market position.
• Regulatory Approval Challenges
  Despite successful trials, regulatory bodies like the FDA, EMA, or China’s NMPA may delay or deny approvals for Argenx’s new indications or formulations. Adverse decisions could hinder revenue growth and erode investor confidence. While Vyvgart Hytrulo gained approvals for generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy, future submissions face potential scrutiny, posing risks to Argenx’s market expansion and financial performance, making regulatory outcomes critical for sustained growth.
• Reimbursement and Pricing Pressures
  Vyvgart and future Argenx products rely on securing favorable payer reimbursement. Shifts in healthcare policies or pricing pressures in key markets like the U.S., Japan, China, and Europe could reduce profitability. Unfavorable reimbursement decisions may limit market access and revenue potential, impacting Argenx’s financial performance. Ensuring competitive pricing and navigating diverse healthcare systems are critical for sustaining growth and maximizing the commercial success of Argenx’s portfolio.

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Conclusion

Argenx SE (ARGX) is demonstrating all the hallmarks of a top-tier growth stock. The company’s Q1 2025 financial results highlight not only explosive revenue and earnings growth, but also a seamless transition to consistent profitability with strong margins and an exceptionally healthy balance sheet. While investors should remain mindful of typical biotech risks, including regulatory hurdles and competitive pressures, Argenx’s strong fundamentals, financial flexibility, and strategic execution make it a highly compelling investment opportunity.