PGIM Jennison Health Sciences Fund recently released its third quarter 2024 investor letter. A copy of the letter can be downloaded here. Given concerns regarding the decreasing pace of U.S. employment and the associated concerns that U.S. interest rates may have been maintained at levels higher than necessary to moderate the pace of inflation, U.S. equity markets fluctuated during the summer and partially reversed their year-to-date gains. The S&P 1500 Health Care Index appreciated 6.1% in the third quarter, outperforming the S&P 500, which gained 5.9%. While the fund advanced in the quarter, it underperformed the index. Stock selection within medtech and pharmaceuticals contributed to the most value. Relative performance was negatively impacted by security selection in biotechnology and health care providers and services, as well as underweights in life sciences tools and services. In addition, please check the fund’s top five holdings to know its best picks in 2024.
PGIM Jennison Health Sciences Fund highlighted stocks like Argenx SE (NASDAQ:ARGX) in the Q3 2024 investor letter. Argenx SE (NASDAQ:ARGX) is a biotechnology company focused on autoimmune diseases. The one-month return of Argenx SE (NASDAQ:ARGX) was 1.82%, and its shares gained 30.36% of their value over the last 52 weeks. On December 11, 2024, Argenx SE (NASDAQ:ARGX) stock closed at $605.87 per share with a market capitalization of $36.74 billion.
PGIM Jennison Health Sciences Fund stated the following regarding Argenx SE (NASDAQ:ARGX) in its Q3 2024 investor letter:
“Argenx SE (NASDAQ:ARGX) develops antibody-based medicines for autoimmune diseases and cancer. Its flagship drug is Vyvgart (efgartigimod), a first-in-class anti-FcRn approved in the U.S., E.U., and other key geographies globally for the treatment of myasthenia gravis (MG). The launch has far exceeded expectations, speaking to the unmet need in this category, and the company (and we) now expect MG to be a far bigger opportunity than initially modeled, generating in excess of $5b in peak sales. The recent approval of a subcutaneous formulation of Vyvgart should sustain and accelerate these strong growth trends. Vyvgart is a true “pipeline in a product,” posting very strong Phase III results in chronic inflammatory demyelinating polyradiculoneuropathy (CIDP), which should add another $4b to peak sales. The company’s antibody discovery platform is also advancing several earlier-stage assets, with the first Phase 2 for their next potential “pipeline in a product,” empasiprubart, reading out in 2024. With both an attractive pipeline and commercial opportunity, Argenx’s near term focus has been on the global Vyvgart launch and the potential to expand on both the drug formulation (subQ) and indication sides (CIDP approval and launch in 2024, and several other autoimmune-mediated indications in trials). The company also has a partnership with Zai Lab to market Vyvgart in China, providing upside to long-term peak sales potential. Argenx also has multiple readouts for additional Vyvgart indications in 2024/2025 and relatively lower pipeline readout binary risk at this stage of the development story, given the first major indication of MG is already on the market and the second major indication of CIDP has begun to ramp in utilization. We believe Vyvgart is on track to grow sales from $2B in 2024 to approximately $8B into the early 2030’s on MG and CIDP alone. This attractive sales growth and a lean organization structure should allow the company to achieve above average growth rates for the next several years. Argenx has also recently unveiled additional molecules that we think have significant long-term potential, especially their second program, empasiprubart, which could be another blockbuster pipeline in a product and is already in mid-stage trials for its lead indication, rare neurological disease multifocal motor neuropathy, or MMN.”
A lab setting filled with scientific equipment and researchers in lab coats working together to develop new therapies for autoimmune diseases.
Argenx SE (NASDAQ:ARGX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Argenx SE (NASDAQ:ARGX) at the end of the third quarter which was 52 in the previous quarter. While we acknowledge the potential of Argenx SE (NASDAQ:ARGX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Argenx SE (NASDAQ:ARGX) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.