argenx Stock (ARGX): VYVGART Sales Jump 60% and It’s Now PROFITABLE — Here’s Why We Say BUY

argenx SE (ARGX) Q2 2026 — argenx (ARGX), the Dutch-Belgian immunology biotech behind the blockbuster VYVGART franchise (efgartigimod, an FcRn blocker), reported a strong Q2 2026: global product net sales of $1.5B (+60% YoY, +17% QoQ), operating profit more than doubled to $494M, net profit rose 93% to $472M, and diluted EPS nearly doubled to $7.32. The company is now solidly profitable and cash-generative — H1 operating cash flow flipped to +$0.7B (from -$0.4B) — with $5.2B cash and no debt. It expanded the U.S. VYVGART label to all gMG serotypes, is ramping CIDP, and has near-term pipeline readouts (ALKIVIA myositis in 3Q26, EMPASSION/empasiprubart in 4Q26). The stock jumped ~7% to ~$910, ~4% below its $953 high. At ~30x forward earnings our owner-earnings DCF lands a base fair value near $1,090 (~20% upside), with the pipeline-compounder path past $1,350. Our call: BUY, 3/5 — aligned with the Street's Buy (~$1,124 avg target), disciplined on the one-molecule concentration. argenx is one of biotech's rare double threats — a company that is BOTH hyper-growth AND already profitable. Its FcRn-blocking antibody efgartigimod, sold as VYVGART and VYVGART Hytrulo, has become one of the fastest drug launches in history, and Q2 2026 showed the model inflecting: product net sales of $1.5B (+60% YoY, +17% QoQ), operating profit up 146% to $494M, net profit up 93% to $472M, and diluted EPS of $7.32 (nearly double). The engine is indication expansion — one molecule approved in more and more autoimmune diseases: generalized myasthenia gravis (now all serotypes, including seronegative), CIDP (ramping fast via the subcutaneous Hytrulo), with ocular MG, myositis, ITP, Sjogren's and Graves' behind it. The balance sheet is a fortress: $5.2B cash, no debt, and H1 operating cash flow that swung positive to +$0.7B, so the entire 10-molecule pipeline is self-funded. The debate isn't quality — it's price. At ~$910 (up ~7% on the print, near its $953 high) the stock trades ~30x forward earnings and ~9x sales. But because argenx now generates real cash, we can value it on owner earnings: our base-case DCF (9% quality-adjusted discount, franchise path) lands near $1,090 — about 20% above the price — with the pipeline-compounder path pointing past $1,350. Our call: BUY, 3/5. It's a wonderful, first-in-class franchise with genuine optionality and a fair (not fat) margin of safety. Why only a 3? Because a single molecule still carries essentially all the revenue at a premium multiple, and J&J's nipocalimab is circling. We're aligned with the Street's bullish Buy (~$1,124 average target, 31 of 36 analysts) — but we get there with a disciplined DCF, not momentum. Own it for the quality, add on weakness toward the mid-$800s, and watch the ALKIVIA and EMPASSION readouts. Not financial advice. THE CALL: BUY (3/5, A RARE PROFITABLE-GROWTH BIOTECH — QUALITY WITH REAL OPTIONALITY, AT A FULL BUT FAIR PRICE) — base-case value ~$1090 vs ~$910 today. What to watch: clean wins from the near-term pipeline readouts — the ALKIVIA myositis study (3Q26) and the EMPASSION/empasiprubart trial (4Q26) — plus continued CIDP ramp, which would confirm the platform thesis and justify paying up further and an upgrade; the risk to respect is a pipeline miss, an unexpected VYVGART safety signal, or J&J's nipocalimab taking real share in gMG, which at ~30x earnings on a one-molecule revenue base could re-rate the stock hard Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.