Is Argenx SE (ARGX) The Most Profitable Biotech Stock To Buy Right Now?

Insider Monkey
02 Apr

We recently published a list of 7 Most Profitable Biotech Stocks To Buy Right Now. In this article, we are going to take a look at where Argenx SE (NASDAQ:ARGX) stands against other most profitable biotech stocks to buy right now.

With improved market conditions, innovative breakthroughs, and more investor interest, the biotechnology industry is gaining new traction. The sector has bounced back from a difficult 2024 and is set to grow significantly, thanks to developments in AI-driven drug discovery, personalized medicine, and the rising demand for biologics. The global biotech market was expected to grow by a robust 13%, from $483.0 billion in 2024 to $546.0 billion in 2025, according to MarketsandMarkets. The sector’s resilience and growth potential are demonstrated by this expansion.

One of the main causes of this upturn is the expected change in the Federal Reserve’s interest rate policies. Because biotech involves expensive R&D and clinical testing, it is susceptible to shifting rate patterns. According to Genetic Engineering and Biotechnology News, lower rates increase the amount of cash available, which aids biotech companies in growing, attracting venture capital, and accelerating drug development. Analysts predict that a rate decline might free up billions of dollars in investment money set aside for nascent biotech companies seeking stable funding.

The global biotechnology sector is undergoing transformative growth in 2025, driven by scientific breakthroughs and shifting market dynamics. Key trends, treatments, financial metrics, and the US regulatory landscape significantly impact the industry.

Key Trends Shaping 2025’s Biotech Landscape

Genetic engineering is becoming a dominant force in biotech, with CRISPR-based therapies like Casgevy—approved for sickle cell disease and beta-thalassemia—expanding into polygenic disorders such as diabetes. Synthetic biology is also projected to experience tremendous growth, with expectations to reach $100 billion by 2030, enabling sustainable pharmaceutical and biofuel production. Another important development is AI-driven drug discovery, which has reduced drug discovery costs by 30-50% while accelerating timelines. Startups are increasingly leveraging machine learning for precision oncology and protein design.

The RNA therapeutics sector is also booming, particularly following the success of mRNA vaccines, which paved the way for RNA interference (RNAi) therapies like Fitusiran. Fitusiran has shown an impressive 89.9% reduction in bleeding events in hemophilia A/B patients. Regenerative medicine is also advancing, with innovations such as 3D bioprinting and CAR-T cell therapies entering clinical trials for organ repair and cancer treatment. The regenerative medicine market is expected to reach $37.27 billion by 2031.

Biotech Breakthroughs Fuel Market Growth

Several biotech therapies are showing significant efficacy across various medical conditions, driving both medical advancements and investor enthusiasm. CRISPR-Cas9 treatments, aimed at genetic disorders, have over 1,200 clinical trials ongoing. mRNA vaccines, used for infectious diseases and cancer, have already administered more than 29 million doses globally by 2024. Imdelltra, a treatment for small cell lung cancer, has achieved a 40% objective response rate. It is estimated that 90,000 patients globally use gene and cell therapies annually. The biotech sector continues to thrive with groundbreaking treatments, including Imdelltra, which is projected to generate $2.1 billion in sales by 2030. Meanwhile, analysts at William Blair foresee significant potential for zanzalintinib, estimating it could reach $5 billion in net U.S. sales by 2033. This promising drug is expected to target multiple indications, such as renal cell carcinoma, colorectal cancer, neuroendocrine tumors, and head-and-neck cancer, further solidifying its blockbuster status.

As these groundbreaking innovations reshape the medical landscape, they are also fueling a surge in investor interest in biotech equities, positioning the industry as a high-growth space despite its inherent volatility. Leading investment banks, including Goldman Sachs, see biotech as an “undervalued opportunity” with strong fundamentals, improved clinical outcomes, and favorable regulations. JPMorgan analysts anticipate a rebound in biotech funding, with signs of stability in manufacturing and research. Declining interest rates could also reopen the IPO window for biotech firms. Meanwhile, innovations in gene editing, AI-powered drug discovery, and precision medicine are driving biotech’s expansion, revolutionizing treatments for genetic disorders, autoimmune diseases, and cancer.

Our Methodology

For our methodology, we screened for biotech companies with a market capitalization of over $10 billion and a net income exceeding $100 million. From that group, we identified the stocks with the highest net income and ranked them accordingly.

At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

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)

Latest Net Income: $833.04 million 

Argenx SE (NASDAQ:ARGX) stands fifth among the most profitable stocks. It is a biotechnology company specializing in antibody-based therapies for autoimmune diseases and cancer. Its flagship product, VYVGART, treats conditions like myasthenia gravis and chronic inflammatory demyelinating polyneuropathy. What sets the company apart is its proprietary SIMPLE Antibody technology, which enhances therapeutic antibody functionality, enabling the development of innovative treatments that target immune system pathways.

Argenx SE (NASDAQ:ARGX) delivered strong financial results for Q4 2024 and the full year, reporting $737 million in product net sales for Q4 and $2.2 billion for the year. Total operating income reached $761 million in Q4 and $2.3 billion for the year, while net profit stood at $774 million in Q4 and $833 million for 2024. The company ended the year with a solid cash position of $3.4 billion.

Argenx SE (NASDAQ:ARGX) expanded its reach to over 10,000 patients globally across three approved indications, which was driven by a 98% year-over-year growth in product net sales. Its flagship product, VYVGART, has had a major impact on the treatment of generalized myasthenia gravis (gMG) and is seeing strong early adoption for chronic inflammatory demyelinating polyneuropathy (CIDP).

Looking ahead, the corporation is advancing its Vision 2030 strategy with ambitious goals: treating 50,000 patients, securing 10 labeled indications, and progressing five pipeline candidates to Phase 3. The company currently has 20 active clinical trials, including 10 Phase 3 and 10 Phase 2 studies, positioning it for sustained growth.

Argenx SE (NASDAQ:ARGX) expects 2025 to be its first profitable year, with projected R&D and SG&A expenses of $2.5 billion, reflecting its commitment to innovation. Regulatory progress continues, with a positive CHMP recommendation for the VYVGART pre-filled syringe in the EU and an FDA decision expected by April 10, 2025, potentially broadening market reach and improving treatment accessibility.

Overall, ARGX ranks 5th on our list of most profitable biotech stocks to buy right now. While we acknowledge the potential of biotech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ARGX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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