HBM-backed Argenx has biotech industry’s most valuable unpartnered R&D asset
Dutch/Belgian antibody company Argenx (Euronext & Nasdaq:ARGX), a top ten holding for Swiss-listed HBM Healthcare (HBMN, 2.9% of NAV), has the biotech industry’s most valuable unpartnered R&D asset in the form of its lead compound efgartigimod for myasthenia gravis and other autoimmune diseases, according to industry consultancy Evaluate. Based on consensus sell-side forecasts, Evaluate calculates efgartimod has an net present value of $6.4bn or more than twice its market capitalisation.
Argenx is fast approaching an important catalyst in the form of a Phase II readout for efgartigimod in immune thrombocytopaenia, which is due in September. The company plans shortly to start a Phase III programme for efgartigimod in myasthenia gravis. The trial is expected to enrol around 150 patients. The prior Phase II study of efgartigimod in MG showed clinical improvement on the Myasthenia Gravis Activity-of-Daily-Living (MG-ADL) score (p=0.0356), with 75% of patients treated with efgartigimod had a clinically meaningful and statistically significant improvement in MG-ADL versus 25% of patients on placebo (p=0.0391).
Surprisingly, Argenx has a second product in the Evaluate’s top 15 unpartnered pipeline product table – the only company to do so – in the form of cusatuzumab, which is in Phase II cutaneous T-cell lymphoma and acute myeloid leukemia. The sell-side has effectively placed a value of $3bn upon this product.
Argenx has five partnered programmes, two of which are in clinical trials: gerilimzumab, an IL-6 antibody is partnered with Genor Biopharma for the Chinese market and is in development for rheumatoid arthritis, and ARGX-112, an IL-22 receptor antibody, partnered with Leo and in development for skin diseases.
Argenx’s market cap is €2.5bn.