Arvinas stock downgraded by BofA as Pfizer partnership shifts

Published 24/09/2025, 08:26
Arvinas stock downgraded by BofA as Pfizer partnership shifts

Investing.com - Arvinas Inc. (NASDAQ:ARVN) was downgraded from Buy to Neutral by BofA Securities on Wednesday, with its price target reduced to $10.00 from $12.00. The stock, which has fallen nearly 70% over the past year and currently trades at $7.53, remains volatile with a beta of 2.39. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.

The rating change follows an announcement that Arvinas and Pfizer plan to find a third-party partner to develop and commercialize vepdegestrant (vepdeg), their metastatic breast cancer drug candidate.

BofA Securities noted this decision introduces "significant uncertainty" regarding the timing of commercialization and which entity will ultimately bring the drug to market.

The drug is currently under FDA review for second-line ER+/HER2- ESR1m metastatic breast cancer, with a regulatory decision expected by June 5, 2026.

BofA’s new price target of $10 primarily reflects Arvinas’ net cash position of approximately $12 per share, as the firm has discounted the value of vepdeg due to the likelihood that economics from any out-licensing deal would be split 50/50 with Pfizer . Notably, while analyst targets range from $7 to $110, detailed financial analysis and additional insights are available in the comprehensive Pro Research Report on InvestingPro.

In other recent news, Arvinas Inc. announced a strategic decision to out-license its breast cancer drug, vepdegestrant, to a third party, ending its co-development partnership with Pfizer. This move is seen as a financial benefit for Arvinas, as it eliminates the need for a commercialization team while securing potential upfront cash, milestones, and royalties. Analysts at H.C. Wainwright reiterated a Buy rating with an $18 price target, viewing the decision as a "win-win situation." Meanwhile, Barclays adjusted its price target for Arvinas to $15 from $16, maintaining an Overweight rating on the stock. Stephens also lowered its price target to $14 from $16, following the same strategic update, but kept an Overweight rating. Cantor Fitzgerald reaffirmed its Overweight rating, noting the significance of the development with Pfizer. The drug vepdegestrant is under FDA review with a PDUFA date set for June 5, 2026, for treating ESR1-mutant, ER+/HER2- metastatic breast cancer. Arvinas and Pfizer are actively searching for a partner to maximize the drug’s commercial potential.

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