Summary of ARGX Q3 2025 Earnings Call

1Key Financial Results and Metrics

Total Product Net Sales: $1.13 billion, a historic milestone surpassing $1 billion for the first time in a single quarter.

Quarter-over-Quarter Growth: 19% ($178 million increase).

Year-over-Year Growth: 96% ($554 million increase).

Regional Breakdown:

U.S.: $964 million

Japan: $60 million

Rest of World: $94 million

China (Zai Lab): $9 million

Operating Expenses: $805 million, a 5% increase from Q2.

R&D Expenses: Increased by 9% ($28 million).

SG&A Expenses: Increased by 4% ($11 million).

Operating Profit: $346 million.

Net Profit: $344 million for the quarter, with a year-to-date profit of $759 million.

Cash Position: $4.3 billion, a nearly $1 billion increase since the start of the year.

2Strategic Updates and Business Highlights

Product Development: VYVGART is now approved in most major markets, with a focus on two blockbuster indications: Myasthenia Gravis (MG) and Chronic Inflammatory Demyelinating Polyneuropathy (CIDP).

Pipeline Progress:

Three first-in-class molecules in Phase III development.

Four new molecules expected in Phase I by year-end.

Positive data from studies supporting VYVGART's efficacy and safety, including significant improvements in MG-ADL scores.

Commercial Strategy:

The prefilled syringe (PFS) has driven new patient adoption, with over 50% of new patients starting on PFS.

Expansion into new indications and markets, including plans for label expansions in seronegative MG and ocular MG.

3Forward Guidance and Outlook

Operating Expenses: Expected to grow in the single digits for the remainder of the year, with combined R&D and SG&A expenses projected to exceed $2.5 billion.

Upcoming Milestones: Anticipating five registrational readouts in 2026, including ocular MG, myositis, and thyroid eye disease (TED).

Long-Term Vision: Committed to Vision 2030, focusing on sustainable growth and expanding the pipeline.

4Bad News, Challenges, or Points of Concern

Discontinuation of Programs: Stopped development of empasiprubart in dermatomyositis due to enrollment challenges, and decided against advancing efgartigimod into a registrational study for lupus nephritis based on Phase II results.

Competitive Pressures: Notable competition from other companies, including a head-to-head trial announced by J&J for a competing product in MG.

Enrollment Challenges: Concerns regarding enrollment in certain trials, particularly for empasiprubart in dermatomyositis and the need for robust data to support new indications.

5Notable Q&A Insights

Formulation Mix: The PFS is driving growth, but other formulations (IV and Hytrulo) continue to contribute positively.

Market Dynamics: Strong demand for CIDP and MG treatments, with a significant number of new prescribers adopting VYVGART.

Seronegative MG Opportunity: Confidence in the commercial potential based on positive trial results, with a focus on addressing the needs of underserved patient populations.

Future Indications: Discussions around potential for VYVGART in Graves' disease and TED, with excitement about the commercial opportunity in these areas.

Patient Experience: Positive feedback from patients and prescribers regarding the convenience of the PFS and its impact on treatment adherence and quality of life. Overall, ARGX reported a strong quarter with significant sales growth, strategic advancements in its pipeline, and a clear focus on expanding its market presence, despite facing challenges related to competitive pressures and certain program discontinuations.