Argenx SE Experiences a Decline Amid Phase 3 Trial Halt
Argenx SE's stock fell by 6.69% midday on December 15, following the halt of the Phase 3 UplighTED study for the subcutaneous efgartigimod in thyroid eye disease due to futility. Despite modest trading volumes, the stock's year-to-date gain remains positive.
Significant Drop Post-Trial Halt Announcement
Argenx SE recorded a 6.69% decline to €702.80 by midday on Monday, December 15, down from the previous close of €753.20. This downturn follows the 7:00 AM announcement of the discontinuation of the Phase 3 UplighTED studies evaluating subcutaneous efgartigimod in the treatment of thyroid eye disease, based on a recommendation from an independent data monitoring committee for futility. Trading volumes were modest, with only 0.05% of capital traded, indicating a measured investor reaction despite the significant drop. Over the week, the Belgian biotech has now seen a cumulative decline of 8.85%, erasing some of its annual progress which remains positive at 21.01%. This decline contrasts with the optimism of analysts who had recently raised their price targets. On December 4, Morgan Stanley increased its target from $1,070 to $1,110, while KBC Securities upgraded its recommendation from accumulate to buy with a target raised from €690 to €900. These revisions, prior to today's announcement, were based on the growth prospects of the flagship treatment VYVGART in other indications, including generalized myasthenia gravis and chronic inflammatory demyelinating polyradiculoneuropathy.
Technical Breakdown Below Support Level
Technically, the stock is now trading below its identified support level of €709.80, marking a level break that could lead to further sell-offs if this floor is not quickly reclaimed. The Relative Strength Index (RSI) stands at 38 points, in a territory of weakness but not yet reaching the strict oversold zone under 30 points. This setup suggests that the stock still has downside room before entering a technical opportunity zone for buyers. The MACD histogram shows a negative value of -6.37, with a MACD line at 3.58 below its signal line at 9.94, confirming short-term selling pressure. This bearish divergence reinforces the caution signal for investors looking for an entry point, especially as the stock is now below its 20-day moving average of €783.55. However, the stock remains above its 50-day (€743.94) and 200-day (€592.53) moving averages, preserving an underlying bullish trend despite the ongoing correction.
Continued Potential Despite Setback
Although efgartigimod has shown a favorable safety and tolerance profile without new safety signals, the failure in thyroid eye disease represents a setback for the group's expansion strategy. Argenx, however, continues several promising registration programs, with results expected in the first half of 2026 for ocular myasthenia gravis and in the second half of 2026 for primary immune thrombocytopenia. The consensus estimates a profit per share of €13 for 2025 and a revenue of €3.4 billion, up 59% year-over-year, highlighting the robustness of the business model centered on VYVGART. The negative Chaikin Money Flow at -0.07 indicates a slight capital outflow but remains within a neutral range that does not reflect a panic movement. The contained monthly volatility at 6.30% and the nearly zero beta of -0.05 confirm that the stock operates relatively independently of the European market. By 2030, Argenx aims to treat 50,000 patients across 10 labeled indications, an ambition that could offset the occasional discontinuation of a clinical trial in a specific therapeutic segment.
