Novo Nordisk, Eli Lilly fall after Trump comments on weight loss drug pricing
Investing.com - H.C. Wainwright has reiterated its Buy rating and $18.00 price target on Arvinas Inc. (NASDAQ:ARVN), currently trading at $7.72 with a market cap of $567 million, following the company’s decision to out-license its vepdegestrant drug to a third party rather than pursue co-commercialization with Pfizer. The stock has seen significant volatility, having declined nearly 60% year-to-date.
The research firm views this strategic shift as a "win-win situation" for both companies, noting that it de-risks Arvinas financially by eliminating the need to build a commercialization team while still securing potential upfront cash, milestones, and royalties. According to InvestingPro data, Arvinas maintains a strong liquidity position with a current ratio of 5.64 and holds more cash than debt on its balance sheet.
For Pfizer , H.C. Wainwright indicates the move represents portfolio optimization, allowing the company to avoid committing to a niche product launch while potentially retaining royalty economics and redeploying investments toward other pipeline programs. Analyst consensus data from InvestingPro shows a wide range of price targets from $7 to $110, reflecting the market’s mixed outlook on the company’s strategic decisions. Get access to 8 more exclusive ProTips and comprehensive analysis in the Pro Research Report.
H.C. Wainwright also highlighted Arvinas’s recently announced $100 million share buyback authorization, suggesting it would be most effective if executed near current price levels of approximately $7 per share.
At that price point, the firm calculates Arvinas could retire around 14 million shares, representing nearly 20% of the float, which would maximize per-share exposure to the pipeline as key catalysts approach.
In other recent news, Arvinas Inc. and Pfizer Inc. have announced plans to out-license the commercialization rights of their investigational breast cancer drug, vepdegestrant, to a third party. This decision comes as the drug is under FDA review, with a PDUFA date set for June 5, 2026. Barclays has responded to this development by lowering its price target for Arvinas to $15 while maintaining an Overweight rating. Similarly, Stephens adjusted its price target to $14 from $16, citing the update on the Pfizer partnership but also maintaining an Overweight rating.
Meanwhile, Cantor Fitzgerald reaffirmed its Overweight rating on Arvinas, reflecting optimism despite the changes in their partnership with Pfizer. Barclays also initiated coverage on Arvinas with an Overweight rating, setting an initial price target of $16. The decision to seek a third-party partner aims to maximize the commercial potential of vepdegestrant in treating ESR1-mutant, ER+/HER2- advanced or metastatic breast cancer. These developments highlight significant strategic shifts for Arvinas as it navigates its partnership and drug commercialization efforts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.