Arvinas stock rises as Cantor Fitzgerald reaffirms Overweight rating

Investing.com - Arvinas Inc. (NASDAQ:ARVN) stock rose after Cantor Fitzgerald reiterated its Overweight rating on the biopharmaceutical company following a significant development in its partnership with Pfizer. According to InvestingPro data, analysts have set price targets ranging from $7 to $110, with 10 analysts recently revising earnings estimates upward.

The companies announced Wednesday they would jointly out-license their estrogen receptor PROTAC vepdegstrant to a third party, concluding their 50/50 partnership. Vepdegstrant currently has a PDUFA date of June 5, 2026, for second-line ESR1-mutated ER+/HER2- metastatic breast cancer.

Under the agreement, no economics will be exchanged between Arvinas and Pfizer . Both companies will equally split any proceeds from the potential new licensing deal.

Cantor Fitzgerald noted this development "removes a major overhang for Arvinas" and represents "the first step towards monetizing vepdeg, and a reset of the company."

The firm also highlighted Arvinas’s cost reduction initiatives and newly announced $100 million share repurchase program as positive steps to address concerns about operational expenses while returning cash to shareholders.

In other recent news, Arvinas Inc. reported its second-quarter 2025 earnings, revealing a mixed outcome. The company’s earnings per share (EPS) exceeded expectations, posting -$0.84 compared to the forecasted -$0.94, marking a positive surprise of 10.64%. However, revenue significantly underperformed, reaching only $22.4 million against the anticipated $34.42 million, a shortfall of 34.92%. In collaboration news, Arvinas and Pfizer announced they are seeking a third party to commercialize their breast cancer drug, vepdegestrant, which is under FDA review with a PDUFA action date set for June 5, 2026. Following this announcement, Stephens adjusted its price target for Arvinas to $14 while maintaining an Overweight rating. Guggenheim also revised its price target for the company to $15 due to partnership concerns, although it kept a Buy rating. Additionally, Barclays initiated coverage on Arvinas with an Overweight rating and a price target of $16, despite recent challenges in their drug development pipeline.

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