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Argenx (ARGX) Moves 11.2% Higher: Will This Strength Last?

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argenx SE (ARGX - Free Report) shares rallied 11.2% in the last trading session to close at $396.88. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10.8% loss over the past four weeks.

Share price rose after Japan-based Chugai Pharmaceutical posted disappointing results from a late-stage study evaluating Enspryng (satralizumab) as a potential treatment for generalized myasthenia gravis (gMG). This drug has been developed in collaboration with Roche.

These results benefit argenx, which markets Vyvgart (efgartigimod), approved by the FDA in December 2021 to treat adults with gMG who test positive for the anti-acetylcholine receptor (AChR) antibody.

Since commercial launch in 2022, Vyvgart sales have been encouraging. argenx recorded $1.19 billion from product sales in 2023, compared to $400.7 million in 2022. With many companies evaluating their own pipeline candidates in gMG indication, the failure of a potential competitor will likely lift some pressure off of argenx and reaffirm its position as a market leader in gMG indication.

This company is expected to post quarterly loss of $0.79 per share in its upcoming report, which represents a year-over-year change of -51.9%. Revenues are expected to be $400.64 million, up 74.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For argenx, the consensus EPS estimate for the quarter has been revised 13.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ARGX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

argenx is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Ascendis Pharma A/S (ASND - Free Report) , finished the last trading session 1.4% higher at $146.19. ASND has returned -8.2% over the past month.

For Ascendis Pharma, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.58. This represents a change of +25.5% from what the company reported a year ago. Ascendis Pharma currently has a Zacks Rank of #2 (Buy).


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