Following a significant breakthrough with its star drug Vyvgart Hytrulo, argenx, a biopharmaceutical company, has successfully raised over $1 billion in cash through a combination of American depositary shares (ADS) and ordinary shares to bolster its operations.
The company is set to sell approximately 1.59 million new American depositary shares at a price of $490 per share. Additionally, around 664,000 new ordinary shares will be offered at a price of 436.37 euros per share in the European private placement. The closing of both the U.S. offering and the European private placement is expected to take place on Monday.
The recent fundraising initiative comes on the back of argenx’s groundbreaking announcement on July 17th. The company revealed that Vyvgart Hytrulo successfully met its primary endpoint in a phase 2 study involving adults with chronic inflammatory demyelinating polyneuropathy (CIDP). This rare and serious autoimmune disease saw patients treated with Vyvgart experiencing a 61% reduction in the risk of relapse compared to those on placebo. The company plans to present the complete data from the study at an upcoming medical meeting.
Prior to this major study win, argenx had made significant investments, spending $102 million to acquire a priority review voucher. This voucher was intended to support a future filing with the U.S. Food and Drug Administration (FDA) for its “pipeline-in-a-product.” The CEO of argenx, Tim Van Hauwermeiren, previously stated that the drug showed promising potential in four autoimmune diseases, and the company aimed to expand its presence into 15 disease targets by the year 2025.
Vyvgart had already received its initial FDA approval in 2021 for the treatment of generalized myasthenia gravis (gMG) in adults who test positive for the anti-acetylcholine receptor antibody. In its first full year on the market, the drug generated an impressive $400 million in sales. Notably, the intravenous version of Vyvgart was responsible for the majority of sales in 2022.
However, the company achieved another milestone when the subcutaneous version of the drug, known as “Hytrulo,” received its own FDA approval. This version was the one that succeeded in the ADHERE study, focusing on patients with CIDP.
Beyond gMG and CIDP, argenx has completed registrational studies of Vyvgart in primary immune thrombocytopenia and is actively conducting studies in various phases for several other diseases.
Overall, the successful fundraising and continued progress with Vyvgart demonstrate argenx’s dedication to advancing treatments for autoimmune diseases and expanding its presence in the biopharmaceutical industry. With promising results and further developments in its pipeline, argenx appears to be on a path towards making a substantial impact in the medical field.