- Enrollment on track for Phase 3 ADAPT trial of efgartigimod in
gMG patients with topline results expected in 2H20
- Two efgartigimod trial initiations expected in 4Q19: Phase 2
proof-of-concept trial in CIDP patients and Phase 3 ADVANCE trial
in primary ITP patients
- Data from Phase 1 HV trial of ENHANZE® SC formulation of
efgartigimod expected by YE19
October 24, 2019 Breda,
the Netherlands / Ghent, Belgium – argenx (Euronext &
Nasdaq: ARGX), a clinical-stage biotechnology company developing a
deep pipeline of differentiated antibody-based therapies for the
treatment of severe autoimmune diseases and cancer, today announced
its financial results for the third quarter ended September 30,
2019 and provided a business update.
“We have had another strong quarter of execution
across our development pipeline and look forward to a busy
remainder of the year that should set the stage for an exciting
2020. With efgartigimod, we are planning for three upcoming
readouts, including Phase 3 ADAPT data in generalized myasthenia
gravis, which remains on track with enrollment and for data readout
in the second half of 2020; Phase 2 data in pemphigus vulgaris in
the first half of 2020; and Phase 1 healthy volunteer data from the
ENHANZE® SC formulation of efgartigimod by the end of this year,
which will guide our subcutaneuous development path forward. In
tandem, we plan to initiate new trials of efgartigimod, cusatuzumab
and ARGX-117 as we continue to build a multitude of opportunities
across our pipeline and strengthen our focus within important
therapeutic franchises,” commented Tim Van Hauwermeiren, CEO of
argenx.
THIRD QUARTER 2019 AND RECENT
HIGHLIGHTS argenx is executing on its “argenx 2021” vision
to become a fully integrated, global immunology company, which
includes its anticipated first commercial launch of efgartigimod in
generalized myasthenia gravis (gMG) in 2021 and the building of two
potential commercial franchises in neuromuscular and hematology
with its three core assets: efgartigimod, cusatuzumab and
ARGX-117.
Efgartigimod: First-in-class opportunity
with potential across range of high-value autoimmune
indicationsEfgartigimod is a human IgG1 Fc fragment
engineered for optimal blocking of FcRn. Treatment with
efgartigimod is intended to result in a targeted reduction of IgG
autoantibodies. argenx is evaluating efgartigimod across four
indications where IgG autoantibodies are directly pathogenic,
including:
- Generalized Myasthenia Gravis
- Global, multi-center Phase 3 ADAPT clinical trial, including
ADAPT+ one-year open-label extension study, currently ongoing
- Based on current enrollment, argenx continues to expect topline
data from ADAPT in second half of 2020
- Primary Immune Thrombocytopenia (ITP)
- Global Phase 3 program to include two registrational trials to
be run concurrently
- First trial, ADVANCE, on track to start in second half of 2019
and will evaluate 10mg/kg intravenous (IV) efgartigimod on top of
standard of care medication
- Second trial to evaluate 10mg/kg IV efgartigimod to induce IgG
antibody reduction and clinical response followed by fixed dose
330mg subcutaneous (SC) injectable efgartigimod to maintain
clinical benefit
- Pemphigus Vulgaris (PV)
- Interim data from ongoing Phase 2 proof-of-concept clinical
trial expected in first half of 2020
- Chronic Inflammatory Demyelinating Polyneuropathy (CIDP)
- Phase 2 proof-of-concept clinical trial on track to start in
second half of 2019
- Key opinion leader (KOL) event planned for December 5, 2019 to
present Phase 2 trial design and market opportunity in CIDP
argenx
is developing three formulations of efgartigimod to address the
needs of patients, physicians and payors across indications and
geographies, including IV efgartigimod and two SC formulations.
- A standalone SC formulation of efgartigimod as part of argenx’s
collaboration with Halozyme enabling co-formulation of efgartigimod
with Halozyme’s proprietary ENHANZE® drug delivery technology
- Data from Phase 1 healthy volunteer (HV) trial expected by end
of 2019
- After Phase 1 HV trial data are available, argenx to disclose
path forward for testing in patients for ENHANZE® SC formulation of
efgartigimod, including potential bridging strategy in gMG
- argenx has exclusive access to ENHANZE® technology for FcRn
target
- A fixed 330mg SC injection to be dosed as maintenance treatment
following IV induction; this formulation to be evaluated in second
Phase 3 ITP trial
Cusatuzumab: First-in-class opportunity
with potential in hematological malignanciesCusatuzumab is
an anti-CD70 monoclonal antibody being developed under an exclusive
global collaboration and license agreement with Janssen for the
treatment of acute myeloid leukemia (AML), high-risk
myelodysplastic syndromes and other hematological malignancies.
- Phase 2 and registration-directed clinical trial of cusatuzumab
currently enrolling up to 150 patients with previously untreated
AML who are not eligible for intensive chemotherapy
- In two-part trial, patients will first be randomized to receive
one of two dose levels of cusatuzumab (10mg/kg and 20mg/kg) in
combination with azacytidine (75mg/m2) followed by an expansion
cohort to evaluate efficacy of the selected dose of
cusatuzumab
ARGX-117: First-in-class anti-C2 antibody expected to
enter clinic in first quarter 2020
ARGX-117 is a complement-targeting antibody
against C2 with potential therapeutic applications in multiple
autoimmune diseases. A Clinical Trial Application (CTA) is on track
to be filed by end of 2019 with first-in-human trial expected to
start in first quarter of 2020.
UPCOMING MILESTONES
- Before the end of 2019, argenx expects:
- Data from Phase 1 HV trial of ENHANZE® SC formulation of
efgartigimod after which argenx will communicate on path forward
for testing in patients with this co-formulation
- Start of first Phase 3 ADVANCE trial of efgartigimod in primary
ITP
- Start of Phase 2 proof-of-concept trial of efgartigimod in
CIDP
- In 2020, argenx expects:
- Data from Phase 2 proof-of-concept trial of efgartigimod in PV
in first half
- First-in-human Phase 1 trial to start with ARGX-117 in first
quarter
- Data from global Phase 3 ADAPT trial of efgartigimod in gMG in
second half
- Announcement of fifth indication with efgartigimod and new
pipeline asset ARGX-119
- Update from ongoing cusatuzumab development
FINANCIAL OUTLOOK
- Based on current development plan, argenx expects that its
cash, cash equivalents and investments will fund planned operating
and capital expense requirements up to the expected launch of
efgartigimod in gMG in 2021. This development plan excludes any
potential upcoming milestone payments under existing
collaborations.
- With the advancement of development of efgartigimod across
indications, build-out of the argenx commercial organization,
commitment to fund 40% of the development plan for cusatuzumab, and
the expansion of its business plan, argenx expects operating and
capital expense requirements to continue to increase
year-over-year.
THIRD QUARTER 2019 FINANCIAL
RESULTS
|
|
Nine months ended |
|
|
|
|
September 30, |
|
|
in thousands of € |
2019 |
|
2018 |
Variance |
Revenue |
€ |
52,264 |
|
€ |
19,924 |
€ |
32,340 |
Other operating income |
|
8,914 |
|
|
4,594 |
|
4,320 |
Total operating
income |
|
61,178 |
|
|
24,518 |
|
36,660 |
Research and development
expenses |
|
(122,800) |
|
|
(53,550) |
|
(69,250) |
Selling, general and
administrative expenses |
|
(41,734) |
|
|
(18,245) |
|
(23,489) |
Operating
loss |
€ |
(103,356) |
|
€ |
(47,278) |
€ |
(56,078) |
Financial income |
|
10,874 |
|
|
1,983 |
|
8,891 |
Financial expenses |
|
(85) |
|
|
— |
|
(85) |
Exchange gain/(losses) |
|
26,943 |
|
|
8,826 |
|
18,117 |
Profit/(Loss) before
taxes |
€ |
(65,624) |
|
€ |
(36,469) |
€ |
(29,155) |
Income tax expense |
€ |
(4,433) |
|
€ |
32 |
€ |
(4,465) |
Profit/(Loss) for the
period and total comprehensive loss |
€ |
(70,057) |
|
€ |
(36,436) |
€ |
(33,621) |
Weighted average number of
shares outstanding |
|
37,882,282 |
|
|
32,566,929 |
|
|
Basic and diluted
profit/(loss) per share (in €) |
|
(1.85) |
|
|
(1.12) |
|
|
|
|
|
|
|
|
|
|
Net increase in cash, cash equivalents and current financial
assets compared to year-end 2018 and 2017 |
|
358,679 |
|
|
222,506 |
|
|
Cash, cash equivalents and current financial assets at the end
of the period |
|
923,248 |
|
|
582,281 |
|
|
Details of Financial Results
Cash, cash equivalents and current financial
assets totaled €923.2 million on September 30, 2019, compared to
€564.6 million on December 31, 2018 and €582.3 million on September
30, 2018. The increase in the cash balance on September 30, 2019
resulted primarily from the closing of the exclusive global
collaboration and license agreement for cusatuzumab with Janssen
which resulted in a $300 million upfront payment and a $200 million
equity investment in January 2019.
Total operating income increased by €36.7
million for the nine months ended September 30, 2019 to reach €61.2
million, compared to €24.5 million for the nine months ended
September 30, 2018. Revenue increased by €32.3 million, which was
primarily related to the partial recognition of the upfront payment
received and the recognition of research and development (R&D)
service fees under the Janssen collaboration agreement. Other
operating income increased by €4.3 million, resulting mainly from
an increase in payroll tax rebates for employing certain R&D
personnel and an increase in R&D tax incentives.
R&D expenses increased by €69.2 million for
the nine months ended September 30, 2019 to €122.8 million,
compared to €53.6 million for the nine months ended September 30,
2018. The increase resulted primarily from higher external R&D
expenses and personnel expenses, reflecting higher clinical trials
costs and manufacturing expenses related to the development of
argenx’s product candidate portfolio and the recruitment of
additional employees to support R&D activities.
Selling, general and administrative (SG&A)
expenses totaled €41.7 million and €18.2 million for the nine
months ended September 30, 2019 and 2018, respectively. The
increase of €23.5 million in SG&A expenses primarily resulted
from higher personnel expenses and consulting fees related to
preparation for potential commercialization of argenx’s lead
product candidate efgartigimod.
For the nine months ended September 30, 2019,
financial income amounted to €10.9 million, compared to €2.0
million for the nine months ended September 30, 2018. The increase
of €8.9 million related primarily to an increase in interest
received on cash, cash equivalents and current financial
assets.
Exchange gains totaled €26.9 million for the
nine months ended September 30, 2019, compared to the €8.8 million
for the nine months ended September 30, 2018. The increase was
mainly attributable to unrealized exchange rate gains on the cash,
cash equivalents and current financial assets position in U.S.
dollars due to the favorable fluctuation of the EUR/USD exchange
rate in the first nine months of 2019.
Income tax expense totaled €4.4 million for the
nine months ended September 30, 2019. In August 2019, the Belgian
tax authority issued an assessment for the year ended December 31,
2016 in the amount of €4.9 million, including penalties, but
excluding interest. argenx expects to file a formal protest letter
against this tax assessment.
Total comprehensive loss for the nine months
ended September 30, 2019 was €70.1 million, compared to a total
comprehensive loss of €36.4 million for the nine months ended
September 30, 2018.
EXPECTED 2020 FINANCIAL
CALENDAR
- February 27, 2020: FY 2019 financial results and business
update
- May 14, 2020: Q1 2020 financial results and business
update
- July 30, 2020: HY 2020 financial results and business
update
- October 22, 2020: Q3 2020 financial results and business
update
About argenxargenx is a
clinical-stage biotechnology company developing a deep pipeline of
differentiated antibody-based therapies for the treatment of severe
auto-immune diseases and cancer. The company is focused on
developing product candidates with the potential to be either
first-in-class against novel targets or best-in-class against
known, but complex, targets in order to treat diseases with a
significant unmet medical need. argenx’s ability to execute on this
focus is enabled by its suite of differentiated technologies. The
SIMPLE AntibodyTM Platform, based on the powerful llama immune
system, allows argenx to exploit novel and complex targets, and its
three complementary Fc engineering technologies are designed to
expand the therapeutic index of its product candidates.
www.argenx.com
For further information, please
contact: Joke Comijn, Director Corporate Communications
& Investor Relations (EU)+32 (0)477 77 29 44+32 (0)9 310 34
19jcomijn@argenx.com
Beth DelGiacco, Vice President, Investor Relations (US)+1 518
424 4980bdelgiacco@argenx.com
Forward-looking StatementsThe
contents of this announcement include statements that are, or may
be deemed to be, “forward-looking statements.” These
forward-looking statements can be identified by the use of
forward-looking terminology, including the terms “believes,”
“estimates,” “anticipates,” “expects,” “intends,” “may,” “will,” or
“should” and include statements argenx makes concerning its
financial condition, results of operation and business outlook; the
sufficiency of its cash, cash equivalents and current financial
assets; its 2019 and 2020 business and financial calendar and
related plans; the clinical data of its product candidates; the
intended results of its strategy; the momentum of its product
candidate pipeline as well as argenx’s, and its collaboration
partners’, advancement of, and anticipated clinical development,
data readouts and regulatory milestones and plans, including the
timing of planned clinical trials and expected data readouts; and
interaction with regulators, including the potential approval of
its current or future drug candidates. By their nature,
forward-looking statements involve risks and uncertainties and
readers are cautioned that any such forward-looking statements are
not guarantees of future performance. argenx’s actual results may
differ materially from those predicted by the forward-looking
statements as a result of various important factors, including
argenx’s expectations regarding its the inherent uncertainties
associated with competitive developments, preclinical and clinical
trial and product development activities and regulatory approval
requirements; argenx’s reliance on collaborations with third
parties; estimating the commercial potential of argenx’s product
candidates; argenx’s ability to obtain and maintain protection of
intellectual property for its technologies and drugs; argenx’s
limited operating history; and argenx’s ability to obtain
additional funding for operations and to complete the development
and commercialization of its product candidates. A further list and
description of these risks, uncertainties and other risks can be
found in argenx’s U.S. Securities and Exchange Commission (SEC)
filings and reports, including in argenx’s most recent annual
report on Form 20-F filed with the SEC as well as subsequent
filings and reports filed by argenx with the SEC. Given these
uncertainties, the reader is advised not to place any undue
reliance on such forward-looking statements. These forward-looking
statements speak only as of the date of publication of this
document. argenx undertakes no obligation to publicly update or
revise the information in this press release, including any
forward-looking statements, except as may be required by law.
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