UBS upgraded Argenx to Buy from Neutral on Monday, lifting its price target to $1,400 from $960 as the firm highlighted the potential of the company’s flagship drug Vyvgart and its expanding pipeline.
Shares of the Belgian biotech, listed in Brussels under ticker ARGX, advanced 2.8% in early trading. UBS analyst Xian Deng cited better-than-expected Phase 3 results for Vyvgart in myositis as a key driver of the upgrade, alongside an "underappreciated" pipeline beyond the drug, which is already approved for multiple indications.
The firm raised its probability-adjusted peak sales estimate for Vyvgart to $18 billion, about 15% above consensus. UBS also modeled adjusted peak sales for myositis subtypes at $5.5 billion, nearly double the $2.6 billion consensus. Vyvgart’s total peak sales potential remains pegged at roughly $20 billion, according to UBS.
Argenx’s pipeline includes a Phase 3 trial for Sjogren’s disease expected in the second half of 2027, based on Phase 2 data. The company is also advancing empasiprubart, with a Phase 3 readout for Multifocal Motor Neuropathy (MMN) due in the fourth quarter of 2026 following positive Phase 2 results. Analyst Deng expressed high conviction in the MMN readout, noting it would represent the first non-Vyvgart drug launch for Argenx.
The upgrade follows Argenx’s $2 billion acquisition of Forte, which added an early-stage anti-CD122 drug targeting rare diseases such as vitiligo. UBS values Argenx using a 50/50 blend of discounted cash flow-based sum-of-the-parts analysis and peer multiples, reflecting the company’s diversified asset base and de-risked clinical progress.
