argenx SE (NASDAQ:ARGX) agreed to buy Forte Biosciences, Inc. (NASDAQ:FBRX) for about $2.2 billion in cash, paying $77 a share, a roughly 40% premium to Forte’s Friday closing price. The deal adds Forte’s experimental drug FB102, which analysts describe as a first-in-class anti-CD122 antibody, to Argenx’s immunology pipeline. Both companies’ boards have approved the deal, which the companies expect to close in the third quarter of 2026.
Why Argenx Needs a Second Act
argenx SE (NASDAQ:ARGX) has built its business almost entirely around one blockbuster drug, Vyvgart, which treats several autoimmune diseases and continues to see strong demand. However, analysts expect Vyvgart’s growth to peak in the early 2030s. Argenx needs its next act. FB102 has shown early promise in two very different autoimmune conditions, the skin condition vitiligo and celiac disease. Argenx sees potential for it to address multiple autoimmune diseases beyond those.
This makes you wonder: will FB102 become the blockbuster that carries Argenx past Vyvgart’s eventual peak, or is this a $2.2 billion bet on early-stage data that may not pan out?
Argenx’s Bull and Bear Case
Analysts at Van Lanschot Kempen called it “the right deal at the right time,” arguing it sets Argenx up for continued growth once Vyvgart’s peak passes. KBC Securities analysts separately said FB102 has the potential to become a blockbuster in its own right, fitting well with Argenx’s longer-term growth strategy.
However, Argenx shares actually fell as much as 0.9% on the announcement before paring the loss, a lukewarm reaction from investors for the buyer. It’s also not argenx SE (NASDAQ:ARGX) ‘s first pipeline stumble. In December, the company’s shares dipped after it discontinued late-stage trials of Vyvgart for a separate eye condition, a reminder that pipeline expansion doesn’t always pay off.
Forte’s Bull and Bear Case
Forte Biosciences, Inc. (NASDAQ:FBRX) shares soared as much as 42% to $77.86 in premarket trading, essentially matching the offer price, a sign the market is confident this deal will close. The nearly 40% premium and Forte’s early trial success in two separate autoimmune conditions show the market recognizing real value in a small, Dallas-based biotech’s pipeline.
However, as an acquisition target, the $77 a share deal price now caps Forte shareholders’ upside. The transaction still needs to clear customary closing conditions before it closes in the third quarter, leaving some execution risk between now and then.
Insider Monkey’s Hedge Fund Data
Insider Monkey’s hedge fund database shows argenx SE (NASDAQ:ARGX) had 42 hedge fund holders as of Q1 2026, down from 48 the quarter before, while the dollar value hedge funds held in Argenx fell from about $2.33 billion to $1.78 billion, a cooling of hedge fund interest even before this deal. Forte Biosciences, Inc. (NASDAQ:FBRX)had just 23 holders, up from 14, while the dollar value hedge funds held in Forte rose from about $93 million to $129 million, a much smaller but growing hedge fund base typical of a small biotech about to be acquired.
Conclusion
For Argenx, this is a bet that a small biotech’s early data can grow into its next blockbuster before Vyvgart’s growth eventually slows. For Forte shareholders, the deal is basically already priced in.
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Disclosure: None. This article is originally published at Insider Monkey.
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