Why Is ARGX Stock Plunging Today?

Argenx said it would discontinue its Phase 3 Unity study of Efgartigimod SC in adults with moderate-to-severe Sjögren’s disease, an autoimmune condition.

• An independent monitoring committee recommended stopping the study after an interim analysis found the drug was unlikely to meet the main goal.
• Argenx announced positive Phase 2 results from an experimental celiac disease treatment.
• Argenx acquired Forte Biosciences for $2.2 billion in August.

Shares of Argenx (ARGX) plummeted nearly 15% in pre-market trading on Thursday after the biotech company announced it would discontinue development of its autoimmune disease treatment after a late-stage trial showed disappointing results.

ARGX shares are on track for their worst single-day performance since December 2023. If the pre-market levels hold after the opening bell, the stock would fall below its 200-day moving average (200-DMA) for the first time in more than two months.

Sjögren’s Disease Trial Discontinued

On Thursday, Argenx said it would discontinue its Phase 3 Unity study of Efgartigimod SC in adults with moderate-to-severe Sjögren’s disease, an autoimmune condition that causes dry eyes, dry mouth, fatigue and joint pain. The trial was testing whether weekly injections of Efgartigimod could reduce disease activity after 48 weeks compared with a placebo.

However, an independent monitoring committee recommended stopping the study after an interim analysis found it was unlikely to meet its main goal. Argenx said there were no new safety concerns and plans to analyze the results to better understand what went wrong.

Argenx is currently studying the therapy for other autoimmune conditions, including Graves’ disease and immune thrombocytopenia.

Positive Results From Celiac Disease Trial

The selloff came despite Argenx separately announcing positive results from an experimental celiac disease treatment. Celiac disease occurs when gluten triggers an immune reaction that damages the small intestine.

The 126-patient study met its primary endpoint, finding that FB102 significantly reduced gluten-induced intestinal damage compared with placebo. Other measures of intestinal inflammation and symptoms also supported the findings, while no new safety concerns were reported.

The company plans to advance FB102 into Phase 3 development while continuing to study its potential in other autoimmune diseases, including Vitiligo and Alopecia Areata.

Argenx acquired FB102 through its $2.2 billion acquisition of Forte Biosciences in August.

Retail Flags Valuation Concerns

Despite the pre-market crash, retail sentiment on Stocktwits surrounding ARGX turned ‘bullish’ from ‘neutral’ a day earlier.

However, one user was skeptical about Argenx’s valuation and added that they would buy in if the stock fell further.

View this Stocktwits post

The stock is down around 7% so far this year.

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