Guggenheim lowers Arvinas stock price target to $15 on partnership concerns

Published 07/08/2025, 12:46
Guggenheim lowers Arvinas stock price target to $15 on partnership concerns

Investing.com - Guggenheim has reduced its price target on Arvinas Inc. (NASDAQ:ARVN) to $15.00 from $16.00 while maintaining a Buy rating following the company’s second-quarter financial results. According to InvestingPro data, the stock has experienced significant volatility, with notable price declines over the past week, month, and six months.

The biotechnology company reported its 2Q25 financial results on Thursday, along with updates on its drug development pipeline, particularly regarding vepdegestrant, its estrogen receptor PROTAC degrader for metastatic breast cancer. InvestingPro analysis reveals that while Arvinas maintains strong liquidity with cash exceeding debt, the company is rapidly burning through its cash reserves. Get access to 10+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Arvinas management expressed continued confidence in vepdegestrant’s Phase 3 clinical trial data in ESR1-mutated metastatic breast cancer, but indicated it hopes to renegotiate its 50/50 co-development and co-commercialization partnership with Pfizer (NYSE:PFE).

The company aims to avoid building out commercial capabilities for vepdegestrant, especially given Pfizer’s "significantly reduced development commitment," according to Guggenheim’s research note. Management stated that if Pfizer declines to take on commercialization in exchange for renegotiated economics, Arvinas would seek another partner.

Guggenheim identified Arvinas’s early clinical-stage pipeline as a potential source of long-term value, including ARV-102 for Parkinson’s disease, ARV-393 for non-Hodgkin lymphoma, and ARV-806 for KRAS G12D mutations, with data readouts for the first two expected in the second half of 2025. While analysts don’t expect profitability this year, the company maintains healthy liquid assets exceeding short-term obligations. For deeper insights into Arvinas’s financial health and growth prospects, explore the detailed Pro Research Report available on InvestingPro.

In other recent news, Arvinas Inc reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company’s earnings per share (EPS) exceeded expectations, coming in at -$0.84 compared to the forecasted -$0.94, which represented a positive surprise of 10.64%. Despite this EPS beat, Arvinas faced a significant shortfall in revenue, reporting $22.4 million against the anticipated $34.42 million, marking a 34.92% miss. These earnings results are crucial for investors as they assess the company’s financial health and strategic direction. Additionally, there were no reported mergers or acquisitions involving Arvinas, nor were there any analyst upgrades or downgrades in the recent developments. The company continues to navigate its financial landscape amidst these mixed results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.