Morgan

Morgan asked about the sustainability of VYVGART's growth profile, given its $4.2 billion net sales and 90% year-over-year growth in 2025, resulting in the first year of operating profitability, as penetration deepens in MG and CIDP.

Answer

Karl Gubitz, Chief Financial Officer, emphasized building a long-term, sustainable business where revenue growth is expected to exceed OpEx growth, leading to increasing operating margins over time. He highlighted the company's strong balance sheet, with $4.4 billion in cash, which is expected to continue growing, supporting capital allocation priorities.

Morgan asked for argenx's thoughts on Johnson & Johnson announcing a head-to-head trial for Amavi versus VYVGART in gMG. She also requested guidance on OpEx for the next 12 months, considering the numerous pipeline indications and ongoing trials.

Answer

Luc Truyen, Chief Medical Officer, stated that the J&J head-to-head trial would not provide significant new information for patients due to its primary endpoints and timing, as the return of IgGs to baseline after stopping FcRn antagonists is already known. He emphasized that the study design does not align with real-world VYVGART usage and offers no meaningful differentiation. Tim Van Hauwermeiren, Chief Executive Officer, highlighted VYVGART's 60% MSE rate with 85% sustained for at least eight weeks. Karl Gubitz, Chief Financial Officer, reiterated the current year's OpEx guidance of $2.6-$2.7 billion, stating that while next year's guidance is not yet available, the increases seen in Q3 are expected to continue.

Morgan from Morgan Stanley asked for argenx's thoughts on Johnson & Johnson's announced head-to-head trial comparing Amavi to VYVGART in gMG. She also requested OpEx guidance for the next 12 months, considering the numerous pipeline indications and ongoing trials.

Answer

Luc Truyen, Chief Medical Officer, stated that the J&J head-to-head trial design would not provide significant new patient value due to chosen primary endpoints and timing, as VYVGART's real-world use involves individualized dosing. Karl Gubitz, Chief Financial Officer, reiterated the year-end OpEx guidance of $2.6-$2.7 billion, confirming continued single-digit expense growth for future investments without providing specific 12-month guidance.

Morgan asked about the increase in average ACV for customers spending $1 million and above, which grew from $3.6 million to $3.9 million. She sought to understand the key actions that led to this increase and how Schrödinger plans to continue growing this average ACV exponentially.

Answer

Richie Jain, CFO, explained that the $1 million threshold signifies a customer's adoption of Schrödinger's technology at scale. The 16% growth in average ACV within this cohort (including top 20 pharma and key biotechs) was driven by introducing new products, growing relationships, and closing adoption gaps among top 20 pharma customers. Ramy Farid, CEO, added that the variance within this cohort presents a significant opportunity for customers currently spending below the average to increase their spend, as some already spend considerably more.