Argenx's market cap takes $6.3 bln hit after failed drug study (updated)

Immunovant

20/12/2023 13:17

(Adds analyst comment in paragraph 7 and updates share move in
paragraph 2)
       Dec 20 (Reuters) - Shares in argenx  ARGX.BR  fell as
much as 34% in Brussels on Wednesday after its autoimmune drug
failed a study testing it in patients with two skin conditions,
marking the treatment's second straight clinical setback in less
than a month.
        By 1235 GMT, the stock was down 23.8% and was on track
to erase about 5.8 billion euros ($6.3 billion) from the
company's market value. The slump dragged Belgium's blue-chip
BEL20  .BFX  index down more than 2.5%. 
  
        The company's therapy, which is already approved under
the brand name Vygart to treat to treat a neuromuscular
disorder, failed to help significantly more patients with
pemphigus vulgaris (PV) and pemphigus foliaceus (PF) achieve
remission, compared with a placebo. 
    Shares of rival Immunovant  IMVT.O  fell about 11% to $37
after the trial failure. Immunovant is also developing an
under-the-skin injection to potentially treat autoimmune
diseases. 
    The two common types of the disorder cause blisters on skin
and mucous membranes, with pemphigus vulgaris being painful but
not itchy, while the other being more itchy than painful. 
        The drug, also known as efgartigimod, recently 
    failed to meet
     the main and secondary goals of another study, testing it
in patients with a blood disease called immune thrombocytopenia.
  
        "Following two phase 3 failures in a row, the question
now is what's next for argenx and efgartigimod?" Stifel analyst
Alex Thompson wrote in a note. 
  
        The company said it would not pursue additional
development in pemphigus and plans to prioritize clinical
development of the drug candidate in its ongoing severe
autoimmune indications.

($1 = 0.9145 euros)

 (Reporting by Danilo Masoni in Milan and Pratik Jain in
Bengaluru; Editing by Anil D'Silva)
 ((Danilo.Masoni@TR.com; Reuters Messaging:
danilo.masoni.thomsonreuters.com@reuters.net))