Argenx SE (ARGX) shares declined even as the biotechnology company reported sharply higher third-quarter sales and profit, driven by continued momentum for its lead treatment VYVGART. The stock fell 1.00% to $881.15, losing $8.90 during trading. Shares recovered from early lows before renewed selling emerged near the $890 level in a volatile session.

VYVGART Sales Up 54% to $1.72 Billion

Argenx reported $1.72 billion in product sales for the third quarter of 2026, an increase of 54% from a year earlier. Sales also rose 13% sequentially as demand grew across major treatment areas. The company markets VYVGART for autoimmune conditions, including generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy. VYVGART, a neonatal Fc receptor (FcRn) blocker, works by reducing the IgG antibodies that drive both diseases, in which the immune system attacks the connections between nerves and muscles or the peripheral nerves themselves.

Total operating income reached $1.75 billion, up from $1.15 billion one year earlier. Quarterly operating profit rose to $486 million from $346 million in the comparable period. Net profit increased to $506 million from $344 million, while basic earnings reached $8.07 per share.

Nine-month VYVGART sales totaled $4.53 billion, compared with $2.87 billion a year earlier. Operating profit doubled to $1.37 billion over the nine-month period, reflecting stronger commercial activity. The company, however, has also increased spending to support development, marketing, and operations.

Rising Expenses Offset Part of the Growth

Third-quarter operating expenses climbed to $1.27 billion from $805 million a year earlier. Research and development costs increased to $503 million as Argenx advanced clinical programs across multiple diseases. Selling, general and administrative expenses reached $598 million, compared with $336 million last year.

Administrative spending included approximately $150 million in costs related to the Forte Biosciences acquisition, for which Argenx paid about $2.1 billion net of acquired cash. Combined cash and current financial assets totaled $3.7 billion in September, down from $4.4 billion in December.

Argenx now expects combined research, development, and administrative expenses of roughly $4 billion for 2026. That estimate includes Forte acquisition costs and ongoing commercial expansion, reflecting spending on the company's pipeline alongside worldwide VYVGART sales growth.

Pipeline Milestones on the Horizon

Argenx has submitted a U.S. Food and Drug Administration (FDA) application to expand VYVGART treatment into ocular myasthenia gravis, a form of the disease concentrated in the eye and eyelid muscles. The FDA also granted priority review for pediatric generalized myasthenia gravis, targeting February 2027; priority review sets a six-month review goal for the agency rather than the standard ten. In addition, the company expects a VYVGART Hytrulo autoinjector launch during the second half of 2027, adding a subcutaneous administration option alongside existing formulations.

Positive Phase 3 ALKIVIA results supported further development in immune-mediated muscle diseases, and Argenx expects to file an application for immune-mediated necrotizing myopathy before year-end 2026. Meanwhile, the company's empasiprubart Phase 3 study in multifocal motor neuropathy is expected to report results in December.

Argenx also plans Phase 3 development of FB102, the lead program from the Forte Biosciences acquisition, in celiac disease following promising earlier results. Under its Vision 2030 strategy, the company targets 50,000 treated patients, 10 approved indications, and five candidates in registrational development.

Despite the sales growth and clinical progress, ARGX shares faced continued selling pressure.

Source: Blockonomi