Street Calls of the Week
Investing.com - Stephens lowered its price target on Arvinas Inc. (NASDAQ:ARVN) to $14.00 from $16.00 on Thursday, while maintaining an Overweight rating following the company’s announcement about its collaboration with Pfizer . According to InvestingPro data, the stock has fallen nearly 70% over the past year, with analyst targets ranging from $7 to $110.
Arvinas announced Wednesday that it will out-license commercialization rights for vepdegestrant (vepdeg) to a third party and has begun the partner search process. The company had been co-developing the drug with Pfizer (NYSE:PFE).
The biopharmaceutical company plans to reduce vepdegestrant-related expenses, cut approximately 15% of its workforce, and reallocate capital to other pipeline candidates including ARV-102, ARV-393, and ARV-806.
These operational changes are expected to generate annual cost savings of over $100 million compared to fiscal year 2024. Arvinas’ Board of Directors has also authorized a share repurchase program of up to $100 million, funded from working capital.
Stephens noted that while predictable, this development highlights execution risk as Arvinas must secure a partner, preferably before vepdegestrant’s June 5, 2026 PDUFA date, to avoid potential delays in the drug’s rollout.
In other recent news, Arvinas Inc. reported its second-quarter 2025 financial results, showing a mixed performance. The company’s earnings per share (EPS) exceeded expectations at -$0.84, compared to the forecasted -$0.94, representing a positive surprise of 10.64%. However, revenue fell short, coming in at $22.4 million, which was 34.92% below the anticipated $34.42 million. In a strategic move, Arvinas and Pfizer announced plans to out-license their investigational breast cancer drug, vepdegestrant, currently under FDA review, to a third party for commercialization. This decision follows disappointing Phase 3 data for the drug. Analysts have shown varied responses to these developments, with Barclays initiating coverage on Arvinas with an Overweight rating and a price target of $16.00. Meanwhile, Guggenheim reduced its price target to $15.00, maintaining a Buy rating, citing partnership concerns. These recent developments highlight the challenges and strategic shifts facing Arvinas in its ongoing efforts to advance its drug pipeline.
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