Shares of argenx NV fell on Tuesday after Berenberg downgraded the biotech company from "buy" to "hold," citing stretched valuation despite a positive clinical update for its flagship drug Vyvgart.
The German bank maintained its price target at €925, up from €900 set in July, following the inclusion of preliminary Phase 3 ALKIVIA study results in myositis. Those results supported expanding Vyvgart’s label to treat the rare muscle disorder, reinforcing Berenberg’s peak sales forecast of $14 billion.
Berenberg’s decision reflects valuation concerns rather than a change in argenx’s fundamentals. The bank had upgraded argenx to "buy" in March, a move that preceded a nearly 50% rally in the stock. On Tuesday, argenx shares rose 1.2% to €874.60 after a 4.2% decline in the prior session.
The downgrade underscores the tension between strong clinical progress and elevated valuations in biotech. Berenberg’s updated analysis follows its July upgrade, when it raised the price target to €900 based on Vyvgart’s expanding commercial opportunity in myositis and multifocal motor neuropathy.
