Intel stock spikes after report of possible US government stake
On Wednesday, BTIG analysts upheld their Buy rating on Arvinas Inc. (NASDAQ:ARVN) with a steady price target of $69.00, following the release of clinical trial results. Arvinas, in collaboration with Pfizer , announced topline data from the Phase 3 VERITAC-2 trial for ER+/HER2- breast cancer. The trial did not meet its primary endpoint in the overall intent-to-treat (ITT (NYSE:ITT)) population but demonstrated efficacy in patients with ESR1 mutations, with a hazard ratio (HR) exceeding 0.6. According to InvestingPro data, BTIG’s target represents significant upside potential, with the stock currently trading at $8.30, near its 52-week low of $7.91.
Despite the study’s partial success, Arvinas shares plummeted by 52%, which was unexpected given that the stock was trading close to its cash value before the data release. InvestingPro data shows the stock’s RSI indicates oversold conditions, with the company maintaining a strong financial position with more cash than debt and a healthy current ratio of 4.64. Market sentiment had seemingly placed more weight on the broader patient population, which includes both ESR1 mutant and wild-type (WT) patients, despite the company’s management indicating that success in the ESR1 mutant population was their base case scenario.
BTIG’s analysis continues to value Arvinas based on the ESR1 mutant population in the second line and beyond (2L+) treatment setting. The firm is looking forward to more detailed progression-free survival (PFS) data and adverse event (AE) profiles from the trial, which will be presented at an upcoming medical conference. This information will be crucial to evaluate the differentiation of vepdegestrant, Arvinas’s investigational drug, from other Selective Estrogen Receptor Degraders (SERDs).
With Arvinas holding approximately $1 billion in cash and the stock currently trading at a negative enterprise value (EV), BTIG sees an opportunity for the stock’s valuation to improve. This optimism is also supported by the anticipated clinical data from Arvinas’s LRRK2 and BCL6 programs expected to be released this year. BTIG reiterated their Buy rating and $69 price target, signaling confidence in the stock’s potential for recovery.
In other recent news, Arvinas Inc. announced results from its Phase 3 VERITAC-2 clinical trial, conducted in collaboration with Pfizer Inc. (NYSE:PFE) The trial met its primary endpoint for patients with estrogen receptor 1 mutations, showing a statistically significant improvement in progression-free survival. However, the trial did not achieve statistical significance in the broader intent-to-treat population, which has raised concerns among investors. Following the announcement, Citi adjusted its price target for Arvinas, lowering it from $19 to $10, while maintaining a Neutral rating, due to anticipated limited market reception for the treatment. Oppenheimer also downgraded Arvinas from Outperform to Perform, citing the trial’s failure to meet the intended-to-treat endpoint as a key factor. Despite these challenges, UBS maintained a Buy rating with a $74 price target, expressing confidence in the potential of vepdegestrant as a promising treatment option. The company’s collaboration with Pfizer aims to address unmet needs in ER+/HER2- metastatic breast cancer, and both firms plan to present detailed results at a medical conference in 2025. Investors are closely monitoring these developments, particularly the potential for vepdegestrant to provide significant benefits over existing treatments.
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