Core Viewpoint - Baron is an asset management firm that specializes in growth equity investment solutions, emphasizing a long-term and fundamental approach to investing [1] Company Overview - Founded in 1982, Baron has established a reputation for its active growth investing strategy [1] - The firm originated as an equity research company, which remains central to its operations [1] Communication Note - The account mentioned is not managed or monitored by Baron Capital, and inquiries should be directed through official channels [1]

Financial Data and Key Metrics Changes - Total operating income for Q2 2025 was $967 million, reflecting a 97% year-over-year growth, driven by significant unmet needs in MG and CIDP [14][20] - Product net sales were $949 million, with a quarter-over-quarter growth of 19% or $158 million compared to Q1 2025 [14][15] - Gross to net increased from 12% at the end of 2024 to approximately 20% by the end of Q2 2025, with net revenue per patient remaining consistent [17][76] Business Line Data and Key Metrics Changes - Plinab achieved a year-over-year growth of 97% across all approved indications, with 15,000 patients globally treated with Vipcart [6][7] - The introduction of the prefilled syringe (PFS) has driven new patient starts, with 50% of PFS patients being new to the product [25][49] - In the U.S., product net sales reached $802 million, with 18% quarter-over-quarter growth driven by strong performance in gMG and CIDP [15][16] Market Data and Key Metrics Changes - The contribution of non-U.S. markets now represents over 15% of global product net sales, with growth seen across all regions except for supply to China [15][16] - The U.S. market specifically saw strong growth across all three presentations of the product, indicating a robust demand [16][17] Company Strategy and Development Direction - The company is focused on long-term value creation through its Vision 2030 roadmap, aiming to expand its pipeline and market reach [6][8] - There is a commitment to innovation, with multiple registrational trials initiated in large market opportunities and a robust late-stage pipeline [6][8] - The company is expanding its immunology innovation platform, with four new molecules in Phase I studies targeting high unmet needs [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential within MG and CIDP, emphasizing the transformative impact of their treatments [31][32] - The company anticipates data from six Phase III and six Phase II trials over the next eighteen months, which could unlock new patient populations [32][33] - Management acknowledged the competitive landscape but believes their innovative approach positions them well for continued leadership [58][59] Other Important Information - The company has a strong cash position of $3.9 billion, up from $3.4 billion at the beginning of the year, driven by operating cash flow [20][88] - Total operating expenses for Q2 were $766 million, reflecting a disciplined investment in innovation [18][19] Q&A Session Summary Question: How have your cycles per year in MG evolved? - Management confirmed that they continue to guide for five cycles per year on average for an MG patient, with high utilization and adherence expected due to the convenience of PFS [38][39] Question: Can you provide a breakdown of the PFS switches between Hytrula and IV? - Management indicated that 50% of PFS patients are new to Vivgut, with the strategy focused on market expansion rather than just switching existing patients [44][45] Question: How much of the gMG patient adds were due to the prefilled syringe? - Management noted that the prefilled syringe significantly contributed to the strong quarter in MG, expanding the prescriber base and allowing for earlier lines of treatment [49][50] Question: What are your thoughts on increasing competition? - Management acknowledged the competitive dynamics but emphasized their commitment to raising treatment expectations and maintaining leadership in the market [58][59] Question: Can you comment on the CIDP launch and patient dynamics? - Management reported strong growth in CIDP, with 85-90% of patients coming from IVIG switches, indicating a long growth trajectory ahead [69][72] Question: What is the outlook for gross margin? - Management expects gross margin to remain around 11%, with decreasing costs offset by increasing royalties [67][68]

Financial Data and Key Metrics Changes - Total operating income for Q2 2025 was $967 million, reflecting a 97% year-over-year growth, driven by significant unmet needs in MG and CIDP [13][14] - Product net sales were $949 million, with a quarter-over-quarter growth of 19% or $158 million compared to Q1 2025 [13][14] - The gross to net ratio increased from 12% in 2024 to approximately 20% by the end of Q2 2025 [16][75] - The company reported a profit after tax of $245 million for the quarter, with a year-to-date profit of $415 million [20] Business Line Data and Key Metrics Changes - Plinab achieved a remarkable year-over-year growth of 97% across all approved indications [4] - The company is treating 15,000 patients globally with Vipcart, including 2,500 CIDP patients just one year post-launch [5] - The introduction of the prefilled syringe (PFS) has driven new patient starts and prescriber demand, with 50% of PFS patients being new to the product [24] Market Data and Key Metrics Changes - In the U.S., product net sales reached $802 million, with an 18% quarter-over-quarter growth [14][15] - The contribution from non-U.S. markets now represents over 15% of global product net sales, indicating successful expansion [14] - The company is seeing strong growth in Japan and Germany, with both markets off to a fast start following recent launches [61] Company Strategy and Development Direction - The company’s Vision 2030 roadmap aims for long-term value creation, with a focus on expanding labeled indications and advancing a robust late-stage pipeline [4] - The strategy includes a commitment to innovation, with multiple registrational trials initiated in large market opportunities [4][6] - The company is expanding its immunology innovation platform, with four new molecules in Phase I studies targeting high unmet needs [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential within MG and CIDP, emphasizing the transformative impact of their treatments [30] - The company anticipates data from six Phase III and six Phase II trials over the next eighteen months, which could unlock new patient populations [31] - Management acknowledged the competitive landscape but remains committed to leading through innovation and maintaining high treatment standards [56] Other Important Information - The company has a strong cash position of $3.9 billion, up from $3.4 billion at the beginning of the year, primarily driven by operating cash flow [20][88] - The effective tax rate for the year to date is reported at 15% [19] Q&A Session Summary Question: How have your cycles per year in MG evolved? - Management confirmed that net revenue per patient remains consistent despite a higher gross to net ratio, with no price increases in 2025 [36][37] Question: Can you provide a breakdown of the PFS switches between Hytrula and IV? - Management indicated that Hytrulo is driving the majority of growth, with 50% of PFS patients being new to the product [42] Question: How much of the gMG patient adds were due to the prefilled syringe? - Management noted that the prefilled syringe significantly contributed to patient growth, with a strong prescriber base established [47] Question: What are your thoughts on increasing competition? - Management acknowledged the competitive dynamics but emphasized their commitment to innovation and maintaining leadership in the market [56] Question: Can you comment on the CIDP launch and patient dynamics? - Management reported strong growth in CIDP, primarily from IVIG switches, and noted that they are still early in the launch curve [68][70] Question: What is the outlook for gross margin? - Management expects gross margin to remain around 11%, with offsetting factors affecting cost of sales [66] Question: Can you provide an update on the FDA spares update from June? - Management stated that they are monitoring the situation and have not observed a significant change in the benefit-risk ratio [98][100]

Financial Performance - Product net sales for Q2 2025 reached $949 million, demonstrating a 97% growth compared to Q2 2024[13, 14, 15] - US product net sales in Q2 2025 were $802 million, a 97% increase from $407 million in Q2 2024[15] - Japan's product net sales grew significantly to $52 million in Q2 2025, a 138% increase compared to $20 million in Q2 2024[15] - Rest of World (RoW) product net sales increased to $83 million in Q2 2025, a 119% increase from $37 million in Q2 2024[15] - Total operating income for Q2 2025 was $967 million, compared to $489 million in Q2 2024[18] - The company ended Q2 2025 with $3.9 billion in cash, including $2.1 billion in cash and cash equivalents and $1.8 billion in current financial assets[19, 33] Strategic Goals and Pipeline - The company aims to reach 50,000 patients globally across 10 labeled indications by 2030 as part of its Vision 2030 strategy[4, 8] - The company is advancing three new molecules into Phase 1 clinical trials[8] - The company has approximately 15,000 patients treated globally[8] - The company is focused on expanding the addressable market for MG (myasthenia gravis) to up to 60,000 patients by 2030[4, 25, 26]

Financial Performance - Global product net sales for the first six months of 2025 reached $1,739 million, representing a 98% operational growth year-over-year from $876 million in the same period of 2024[8]. - Total operating income for the six months ended June 30, 2025, was $1,775 million, compared to $902 million for the same period in 2024[9]. - Profit for the period of six months ended June 30, 2025, was $415 million, compared to a loss of $33 million for the same period in 2024[13]. - Cash flow from operating activities for the first half of 2025 was $362 million, compared to a cash outflow of $126 million in the same period of 2024[13]. - For the six months ended June 30, 2025, product net sales reached $1,738,644, a significant increase from $875,918 in the same period of 2024, representing a growth of 98.3%[25]. - Total operating income for the same period was $1,774,557, compared to $901,941 in 2024, indicating an increase of 96.5%[25]. - The company reported an operating profit of $340,001 for the first half of 2025, a turnaround from an operating loss of $138,882 in the prior year[25]. - Profit for the period attributable to owners of the parent was $414,827, compared to a loss of $32,531 in the same period of 2024[25]. - The total assets as of June 30, 2025, amounted to $7,175,592, up from $6,202,522 at the end of 2024, reflecting an increase of 15.7%[22]. - Cash and cash equivalents increased to $2,085,976 as of June 30, 2025, compared to $1,499,936 at the end of 2024, marking a growth of 39.1%[22]. - Operating profit for the first half of 2025 reached $340,001, compared to a loss of $138,882 in the same period of 2024, indicating a significant turnaround[10]. - Total cash and cash equivalents increased to $2,085,976 as of June 30, 2025, up from $1,499,936 at the end of 2024, reflecting a cash position improvement of approximately 39%[41]. - Trade receivables rose to $1,126,445 as of June 30, 2025, compared to $817,707 at the end of 2024, representing a 38% increase[38]. - The cost of inventories recognized under "Cost of sales" was $119 million for the first half of 2025, up from $76 million in the same period of 2024, marking a 56% increase[37]. - Total inventories decreased to $340,621 as of June 30, 2025, from $407,233 at the end of 2024, indicating a reduction of approximately 16%[37]. - Share-based payments recognized during the first half of 2025 amounted to $110,794, compared to $102,381 in the same period of 2024, reflecting an increase of about 8%[10]. - The company’s share capital increased to $7,264 as of June 30, 2025, with a total of 61,166,252 shares outstanding, up from 60,760,957 shares at the end of 2024[43]. - The company recorded an income tax expense of $74 million for the six months ended June 30, 2025, compared to an income tax benefit of $57 million for the same period in 2024[67]. - Trade payables increased to $532.0 million as of June 30, 2025, from $342.2 million as of December 31, 2024[57]. Research and Development - Research and development expenses for the first half of 2025 were $637 million, up from $450 million in the same period of 2024[10]. - External research and development expenses amounted to $416.4 million for the six months ended June 30, 2025, compared to $286.0 million for the same period in 2024, reflecting a 45.6% increase[64]. - Total research and development expenses for the six months ended June 30, 2025, were $636.8 million, up from $450.3 million in the same period of 2024, indicating a 41.3% increase[64]. - The company plans to advance four new pipeline molecules and generate sustainable value through continued investment in its innovation pipeline[16]. - Six registrational and six proof-of-concept readouts are expected by the end of 2026, indicating a robust pipeline for future growth[5]. - Topline results from ongoing studies in various autoimmune diseases are expected between late 2025 and 2027, showcasing the company's commitment to innovation[9]. - The anticipated clinical development includes topline results for seronegative gMG expected in the second half of 2025 and for ocular and pediatric MG expected in the first half of 2026[16]. - The registrational EMPASSION study in MMN is expected to yield topline results in the second half of 2026, with the study starting in the first half of 2025[17]. Strategic Goals - The company aims to treat 50,000 patients globally with its medicines and secure 10 labeled indications across all approved medicines by 2030[6]. - The company aims to reach 50,000 patients globally across 10 labeled indications by 2030 as part of its Vision 2030 strategy[16]. - The company has entered a strategic collaboration with Unnatural Products to enhance its discovery capabilities in the oral peptide space[9]. - The company has outstanding commitments for efgartigimod under commercial supply agreements totaling $456 million as of June 30, 2025[76].

Core Insights - argenx SE has reported significant progress in its product VYVGART, with over 2,500 patients currently receiving treatment globally, and aims to expand its market presence in myasthenia gravis (MG) and chronic inflammatory demyelinating polyneuropathy (CIDP) [1][2] - The company is advancing its Vision 2030 strategy, targeting treatment for 50,000 patients globally and securing 10 labeled indications across its medicines by 2030 [3] Financial Performance - In Q2 2025, argenx generated global product net sales of $949 million, reflecting a 97% year-over-year growth from Q2 2024 and a 19% increase from Q1 2025 [4][18] - Total operating income for the first half of 2025 was $1.775 billion, compared to $901 million in the same period of 2024 [17] - The company reported a profit of $245 million for Q2 2025, compared to a profit of $29 million in Q2 2024, and a profit of $414 million for the first half of 2025, compared to a loss of $33 million in the same period of 2024 [20] Product Development and Pipeline - VYVGART is approved for three indications: generalized myasthenia gravis (gMG), primary immune thrombocytopenia (ITP) in Japan, and CIDP in multiple regions including the U.S. and EU [4] - The company has six registrational and six proof-of-concept readouts expected by the end of 2026, with ongoing studies in various severe autoimmune diseases [6][12] - ARGX-119 is set to advance to a registrational study in congenital myasthenic syndromes (CMS) following positive proof-of-concept data [1][12] Strategic Initiatives - argenx is focused on expanding the global opportunity for VYVGART and has launched the VYVGART SC prefilled syringe, which is expected to drive demand from new patients and prescribers [2][4] - The company has entered a strategic collaboration with Unnatural Products to enhance its discovery capabilities in the oral peptide space, reinforcing its commitment to advancing its pipeline [15] Future Outlook - The company aims to continue its investment in the Immunology Innovation Program (IIP) to drive long-term sustainable pipeline growth, with four new pipeline candidates nominated [10] - Financial guidance for combined research and development and selling, general and administrative expenses remains unchanged at approximately $2.5 billion [22]

Company Overview - argenx is a global immunology company focused on improving the lives of individuals suffering from severe autoimmune diseases [3] - The company is known for developing and commercializing the first approved neonatal Fc receptor (FcRn) blocker, with ongoing evaluations for its potential in various serious autoimmune diseases [3] Upcoming Events - argenx will host a conference call and audio webcast on July 31, 2025, at 2:30 p.m. CET (8:30 a.m. ET) to discuss its half-year 2025 financial results and provide a second-quarter business update [1] - The live call can be accessed via the Investors section of the argenx website, with a replay available for approximately one year [2] Contact Information - Media inquiries can be directed to Ben Petok at bpetok@argenx.com [4] - Investor relations can be contacted through Alexandra Roy at aroy@argenx.com [4]

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud or unlawful business practices involving argenx SE and its officers or directors [1] Group 1: Regulatory Concerns - On June 30, 2025, the FDA issued an alert regarding argenx's Vyvgart Hytrulo product, indicating a potential risk of severe worsening of chronic inflammatory demyelinating polyradiculoneuropathy [3] - Following the FDA alert, argenx's American Depositary Share (ADS) price decreased by $8.92, or 1.59%, closing at $551.22 per ADS on the same day [3] Group 2: Legal Investigation - Pomerantz LLP is actively seeking investors of argenx to discuss potential claims related to the investigation [1] - The firm is recognized for its expertise in corporate, securities, and antitrust class litigation, having a long history of fighting for victims of securities fraud and corporate misconduct [4]

Core Viewpoint - Morgan Stanley's strategy team highlights 15 stocks with short-term catalytic potential, indicating that S&P 500 index earnings growth in Q2 may exceed expectations [1] Earnings Expectations - The market anticipates a 5% year-over-year increase in S&P 500 Q2 earnings per share and over 4% revenue growth, but actual growth may be stronger [1] - The seven major tech companies are expected to see a 14% increase in net profit, while the remaining 493 constituents may experience a 3% decline [1] - Despite analysts lowering earnings expectations from April to May, the earnings revision has rebounded from -25% to approximately 1%, suggesting Q2 earnings will likely exceed expectations, aligning with the historical average of 4%-5% [1] Recommended Stocks - **argenx SE (ARGX.US)**: undervalued R&D pipeline, target price $700 [2] - **Atlassian (TEAM.US)**: continuous revenue growth potential over 20% and expected margin expansion, target price $320 [3] - **Chewy (CHWY.US)**: benefits from marketing and product optimization, expected revenue to maintain or exceed Q1 levels, target price $50 [4] - **CVS Health (CVS.US)**: advantages from competitor store closures and growth in pharmacy benefit management, target price $80 [4] - **DraftKings (DKNG.US)**: potential earnings inflection point in Q2, with actual licensing rates offsetting tax and regulatory pressures, target price $52 [4] - **Eaton Corporation (ETN.US)**: benefits from improved profit margins in U.S. electrical business, target price $375 [5] - **Eli Lilly (LLY.US)**: core products Mounjaro and Zepbound expected to contribute $8.2 billion in revenue, exceeding expectations may lead to 2025 guidance upgrades, target price $1,135 [5] - **F5 (FFIV.US)**: positive outlook due to demand growth in cloud and load balancing products, target price $305 [6] - **NVIDIA (NVDA.US)**: strong end-user demand and accelerated shipments of rack-level products supporting supply-side growth, target price $170 [7] - **Omada Health (OMDA.US)**: operational leverage through technology empowerment and multi-disease sales, target price $25 [8] - **Southwest Airlines (LUV.US)**: potential stock rebound if internal guidance is met and baggage fee impacts are confirmed as limited, target price $38 [9] - **Valley National Bank (VLY.US)**: expected net interest income growth of 3% quarter-over-quarter, target price $11 [10] - **Western Digital (WDC.US)**: undervalued gross margin expansion prospects, target price $85 [11] Cautious Outlook - **National Storage Affiliates Trust (NSA.US)**: cautious due to expected funds from operations (FFO) per share being below market and company guidance, target price $30 [12] - **Teradyne (TER.US)**: revenue and earnings per share forecasts for FY2026 are 7% and 14% below Wall Street expectations, target price $74 [13] Summary - Overall, Morgan Stanley's recommendations combine company fundamentals, industry trends, and market sentiment, providing diversified options for investors [14]

Core Viewpoint - The comparison between Exelixis (EXEL) and argenex SE (ARGX) indicates that EXEL currently presents a better value opportunity for investors based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Estimates - Exelixis has a Zacks Rank of 2 (Buy), while argenex SE holds a Zacks Rank of 3 (Hold), suggesting that EXEL is likely experiencing a more favorable earnings outlook [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, which supports the notion that EXEL is in a stronger position compared to ARGX [3]. Group 2: Valuation Metrics - EXEL has a forward P/E ratio of 16.86, significantly lower than ARGX's forward P/E of 44.10, indicating that EXEL may be undervalued relative to its earnings potential [5]. - The PEG ratio for EXEL is 0.80, while ARGX has a PEG ratio of 0.98, further suggesting that EXEL offers better value when considering expected earnings growth [5]. - EXEL's P/B ratio stands at 5.75, compared to ARGX's P/B of 6.24, reinforcing the view that EXEL is more attractively priced based on its book value [6]. Group 3: Overall Value Grades - EXEL has received a Value grade of B, while ARGX has a Value grade of C, indicating that EXEL is perceived as a better investment option by value investors [6].