Intel stock spikes after report of possible US government stake
On Wednesday, H.C. Wainwright maintained a Buy rating and an $81.00 price target on Arvinas Inc. (NASDAQ:ARVN) shares, despite the stock’s recent 52% decline over the past week to $8.30. According to InvestingPro data, the stock is currently trading significantly below its Fair Value, with analyst targets ranging from $26 to $110. The firm’s analyst, Andrew Fein, provided insights following the announcement of Phase 3 VERITAC-2 study results by Arvinas and Pfizer (NYSE:PFE) on March 11. The study evaluated the effectiveness of the investigational drug vepdeg in patients with ESR-1 mutant breast cancer. While the company faces near-term challenges, InvestingPro analysis shows it maintains a strong financial position with a current ratio of 4.64 and minimal debt-to-equity of 0.02.
Fein highlighted that the top-line results showed a statistically significant and clinically meaningful response in patients with the ESR-1 mutation. However, the drug did not achieve statistical significance in the overall intent-to-treat (ITT (NYSE:ITT)) population. The analyst emphasized that the results support the mechanism of action of ER Protacs and oral SERDs, particularly in ESR-1 mutants, which respond better due to receptor dependency.
Despite the lack of statistical significance in the overall ITT population, the hazard ratio (HR) response in the ESR1 mutant group exceeded the prespecified threshold of 0.60. Fein suggested that the strong response in the mutant patient population might not have been sufficient to offset the response in the wild type post CDK4/6 resistant population, which included around 590 patients.
The analyst noted that overall survival (OS) data is still pending, and progression-free survival (PFS) data may be presented at a future medical meeting. Arvinas and Pfizer are planning to pursue regulatory discussions, which could lead to potential approval for the use of vepdeg in ESR1 mutant patients, similar to elacestrant.
Fein concluded that market adoption, if approved, would likely be influenced by the differentiation in final PFS, early response rate to vepdeg compared to elacestrant, and safety profile. The safety appears consistent with what has been observed in earlier trials. Based on these considerations, H.C. Wainwright reiterated its Buy rating and $81 price target on Arvinas stock. For deeper insights into Arvinas’s financial health, valuation metrics, and 14 additional ProTips, visit InvestingPro, where you’ll find comprehensive research reports and expert analysis.
In other recent news, Arvinas Inc. announced results from its Phase 3 VERITAC-2 clinical trial, which showed success in patients with the ESR1 mutation but failed to meet the primary endpoint in the broader intent-to-treat population. Despite the trial’s partial success, the stock experienced a sharp decline, drawing attention from analysts. BMO Capital Markets significantly reduced its price target for Arvinas from $82 to $20, maintaining an Outperform rating, citing the limited market opportunity for their drug vepdeg in patients without the ESR1 mutation. Meanwhile, BTIG maintained a Buy rating with a $69 price target, expressing optimism about Arvinas’s cash position and potential future data from their LRRK2 and BCL6 programs. Citi also revised its price target down to $10 from $19, maintaining a Neutral rating, and highlighted concerns about the drug’s potential in the first-line metastatic breast cancer treatment setting.
Oppenheimer downgraded Arvinas from Outperform to Perform, reflecting skepticism about the company’s ability to differentiate its product in a competitive market. Despite the challenges, Arvinas CEO John Houston emphasized the trial’s significance as the first PROTAC degrader to demonstrate clinical benefit in a Phase 3 trial. Arvinas plans to present detailed trial results at a medical conference in 2025 and engage with regulatory authorities for potential filings. The collaboration with Pfizer continues, with both companies sharing costs and profits for the development of vepdegestrant, which has received Fast Track designation from the FDA. Investors remain focused on the broader trial results and the implications for Arvinas’s market position.
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