Arvinas stock price target lowered to $15 at Barclays on licensing plans

Investing.com - Barclays lowered its price target on Arvinas Inc. (NASDAQ:ARVN) to $15 from $16 while maintaining an Overweight rating on the stock. The company’s shares, currently trading at $7.72, have declined nearly 70% over the past year, according to InvestingPro data.

The adjustment follows Arvinas and partner Pfizer’s announcement of plans to select a third party for out-licensing the commercial and future development rights to vepdegestrant, their estrogen receptor degrader, ahead of the drug’s potential FDA approval in breast cancer with a PDUFA date of June 5, 2026.

Arvinas also announced a workforce reduction, primarily affecting teams involved in vepdegestrant commercialization efforts, which together with cost-saving measures announced in May are expected to result in over $100 million in savings compared to fiscal year 2024.

The company has additionally introduced a $100 million share buyback program as part of its strategic adjustments.

Barclays’ revised model now reflects risk-adjusted royalties for vepdegestrant and accounts for both the cost savings measures and share buyback program, resulting in the slight reduction of the price target.

In other recent news, Arvinas Inc. reported its second-quarter 2025 financial results, providing updates on its drug development pipeline, particularly focusing on vepdegestrant, an estrogen receptor PROTAC degrader for metastatic breast cancer. The company, in collaboration with Pfizer , announced plans to out-license the commercialization rights for vepdegestrant to a third party, marking a significant development in their partnership. The FDA has set a PDUFA action date of June 5, 2026, for this investigational treatment. Barclays initiated coverage on Arvinas with an Overweight rating and a price target of $16.00, despite recent challenges, including disappointing Phase 3 data for vepdegestrant. Cantor Fitzgerald also reaffirmed its Overweight rating, highlighting the strategic move with Pfizer. Meanwhile, Stephens and Guggenheim adjusted their price targets for Arvinas to $14.00 and $15.00, respectively, while maintaining positive ratings. These developments reflect a dynamic period for Arvinas as it seeks to maximize the commercial potential of its breast cancer treatment.

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