Education
About Us
Working with TipRanks
Follow Us
Arvinas Holding Company (ARVN)
NASDAQ:ARVN
Top Page
Arvinas Holding Company
(NASDAQ:ARVN)
44Neutral
Positive Factors
Financial Position
The company reported $1,039mn in cash and cash equivalents, which the company indicated will provide cash runway into 2027.
Market Potential
Vepdeg achieves statistical significance in ESR1 mutant patients, supporting approval pursuit.
Negative Factors
Market Sentiment
Investor sentiment around ARVN's PROTAC platform and SERDs have remained negative and implies anything less than a benefit in the ESR1 wild-type patients of the VERITAC-2 study is failure.
Regulatory Challenges
Possible additional layers of regulatory scrutiny are anticipated given the missed ITT primary.
Arvinas Holding Company (ARVN) vs. S&P 500 (SPY)
Market Cap
$1.21B
Dividend YieldN/A
Average Volume (3M)1.21M
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth-39.92%
EPS Growth7.38%
CountryUS
Employees430
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-5.17
Shares Outstanding68,771,866
10 Day Avg. Volume1,328,494
30 Day Avg. Volume1,210,397
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.77
Price to Cash Flow (P/CF)-3.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$47.62Price Target Upside473.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Arvinas Holding Company Business Overview & Revenue Model
Company DescriptionArvinas, Inc. is a biopharmaceutical company, which engages in the discovery, development and commercialization of therapies to degrade disease-causing proteins. Its lead products include ARV-110 and ARV-471. The company was founded in February 2013 and is headquartered in New Haven, CT.
How the Company Makes MoneyArvinas makes money through a combination of drug development and strategic collaborations. The company's primary revenue streams include milestone payments and royalties from partnerships with major pharmaceutical companies, as well as potential sales revenue from proprietary drugs developed in-house. Arvinas collaborates with industry-leading pharma companies to co-develop and commercialize its PROTAC technology, which allows it to share the risks and costs of drug development while benefiting from milestone payments upon achieving certain development stages. Additionally, Arvinas may earn royalties from successful commercial products resulting from these collaborations. The company's revenue is also bolstered by research and development funding from its partners, further supporting its advancement in drug discovery and development.
Arvinas Holding Company Financial Statement Overview
Summary
Arvinas Holding Company exhibits strong revenue growth but struggles with profitability and cash flow management. Despite low debt levels presenting a low financial risk, the negative return on equity and poor margins suggest operational inefficiencies. Improvements in cost management and cash flow generation are necessary to enhance financial health.Income Statement
Arvinas Holding Company has seen a significant improvement in revenue, with a growth rate of 235.5% from 2023 to 2024. However, despite the revenue increase, the company remains unprofitable, with a net profit margin of -75.5% and EBIT margin of -95.0% in 2024, indicating challenges in controlling costs or achieving operational efficiency.45
Neutral
Balance Sheet
The company's balance sheet shows moderate leverage with a debt-to-equity ratio of 0.02 in 2024, which is quite low, indicating low financial risk from debt. However, the equity ratio is 51.5%, reflecting a balanced funding structure between debt and equity. Return on equity is negative at -35.4%, pointing to challenges in generating shareholder returns.55
Neutral
Cash Flow
The cash flow statement reveals a concerning trend with a negative free cash flow in 2024, despite a growth in free cash flow compared to 2023. The operating cash flow to net income ratio is 1.30, showing that cash generated from operations does not cover net losses completely. The company needs to focus on improving cash flow generation from operating activities.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 263.40M | 78.50M | 131.40M | 46.70M | 21.80M | Gross Profit |
| 263.40M | 78.50M | 123.20M | 40.70M | 21.80M | EBIT |
| -250.20M | -401.50M | -263.20M | -195.30M | -124.86M | EBITDA |
| -250.20M | -394.80M | -256.90M | -183.60M | -117.60M | Net Income Common Stockholders |
| -198.90M | -367.30M | -271.90M | -183.20M | -111.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.04B | 1.26B | 1.21B | 1.50B | 688.53M | Total Assets |
| 1.09B | 1.30B | 1.27B | 1.58B | 717.37M | Total Debt |
| 9.10M | 3.20M | 5.50M | 5.00M | 4.04M | Net Debt |
| -91.40M | -308.50M | -75.80M | -103.30M | -584.33M | Total Liabilities |
| 529.70M | 644.60M | 703.90M | 799.90M | 75.11M | Stockholders Equity |
| 561.70M | 660.00M | 564.90M | 781.70M | 642.26M |
| Cash Flow | Free Cash Flow | |||
| -261.10M | -350.70M | -280.30M | 554.70M | -96.20M | Operating Cash Flow |
| -259.30M | -347.80M | -273.50M | 559.40M | -89.76M | Investing Cash Flow |
| 34.70M | 203.50M | 242.80M | -1.31B | 164.25M | Financing Cash Flow |
| 7.90M | 374.70M | 4.70M | 278.60M | 504.67M |
Arvinas Holding Company Technical Analysis
Negative
8.30
Price Trends
17.99
Negative
21.26
Negative
23.95
Negative
Market Momentum
-0.98
Positive
21.43
Positive
48.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARVN, the sentiment is Negative. The current price of 8.3 is below the 20-day moving average (MA) of 17.20, below the 50-day MA of 17.99, and below the 200-day MA of 23.95, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 21.43 is Positive, neither overbought nor oversold. The STOCH value of 48.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARVN.
Arvinas Holding Company Risk Analysis
Arvinas Holding Company disclosed 69 risk factors in its most recent earnings report. Arvinas Holding Company reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arvinas Holding Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $53.64M | 1.70 | -58.97% | ― | 36.45% | ― | |
52 Neutral | $5.54B | ― | -31.26% | ― | 104.04% | 87.80% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
48 Neutral | $2.14B | ― | -36.38% | ― | -40.11% | -17.79% | |
44 Neutral | $1.21B | ― | -35.41% | ― | -39.92% | 7.38% | |
44 Neutral | $1.05B | ― | -53.22% | ― | -29.15% | -9.10% | |
37 Underperform | $2.82B | ― | -198.83% | ― | ― | -65.63% |
* Healthcare Sector Average
Performance Comparison
ARVN
Arvinas Holding Company
8.30
-37.18
-81.75%
BPMC
Blueprint Medicines
87.76
-1.94
-2.16%
CTMX
CytomX Therapeutics
0.62
-1.53
-71.16%
NRIX
Nurix Therapeutics
13.90
-0.48
-3.34%
KYMR
Kymera Therapeutics
33.27
-8.58
-20.50%
BHVN
Biohaven Ltd.
29.41
-29.17
-49.80%
Arvinas Holding Company Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -56.25% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Arvinas, with strong financial results, significant pipeline advancements, and strategic initiatives in place for future growth. Although there are some challenges, such as increased expenses and a leadership change, the overall progress and strategic positioning outweigh these concerns.Highlights
Strong Financial Position
Arvinas is in a strong financial position with over $1 billion in cash, cash equivalents, and marketable securities, sufficient to support operations into 2027.
Significant Revenue Growth
Revenue for Q4 2024 was $59.2 million, a major increase compared to a negative $43.1 million in Q4 2023. The full year 2024 revenue was $263.4 million, up from $78.5 million in 2023.
Advancement of Vepdegestrant Program
Phase 3 topline data from VERITAC-2 expected this quarter, with plans for two additional Phase 3 combination trials in 2025.
Progress in Neuroscience Program
ARV-102, a LRRK2 degrader, shows promise in early trials with data to be presented at the AD/PD conference.
Pipeline Expansion
Plans to file an investigational new drug application for KRAS G12D degrader, with ongoing progress in BCL6 degrader and other PROTAC programs.
Lowlights
Increased General and Administrative Expenses
G&A expenses increased to $34.1 million in Q4 2024, up from $27 million in Q4 2023, attributed to commercial operations and personnel costs.
Decreased Research and Development Expenses
R&D expenses decreased to $83.3 million in Q4 2024 from $95.2 million in Q4 2023, influenced by out-licensing of ARV-766.
Leadership Change
Chief Commercial Officer John Northcott left the company due to personal reasons, although the transition was handled smoothly with Alex Santini stepping in as interim.
Company Guidance
During the Arvinas Fourth Quarter 2024 Earnings Conference Call, the company provided extensive guidance on its pipeline and financial outlook. Key metrics highlighted include the anticipation of the first Phase 3 topline results for the VERITAC-2 trial expected later this quarter, which will be pivotal for submitting a new drug application. The company is advancing its vepdegestrant (vepdeg) program with plans to initiate Phase 3 trials in first-line and second-line settings in 2025, in collaboration with Pfizer. Financially, Arvinas reported $263.4 million in revenue for 2024, with a strong cash position of over $1 billion, sufficient to support operations into 2027. Additionally, the company aims to present first-in-human data from its ARV-102 LRRK2 degrader in April, marking significant progress in their neuroscience pipeline. Arvinas also plans to file an investigational new drug application for its KRAS G12D degrader this year, indicating robust development activities across oncology and neuroscience.Arvinas Holding Company Corporate Events
Business Operations and Strategy
Arvinas Holding Company Adjusts Real Estate Strategy
Neutral
Jan 22, 2025
On January 15, 2025, Arvinas Operations, Inc., a subsidiary of Arvinas, Inc., entered into a Lease Termination Agreement with Science Park Development Corporation. The agreement effectively terminated the lease for premises in Science Park Building 4, New Haven, Connecticut, as of December 31, 2024. As part of the agreement, Arvinas Operations is responsible for vacating the property by January 21, 2025, transferring specific lab furniture to the new tenant, and is relieved from paying rent or other charges from the termination date onward. The landlord is required to return the security deposit within ten business days after the surrender date. This development marks a significant change in the company’s operational logistics and may impact its future real estate strategies.
Product-Related AnnouncementsBusiness Operations and Strategy
Arvinas Announces Updates on Clinical Trials Progress
Positive
Jan 10, 2025
Arvinas announced updated guidance for its Phase 3 clinical trials involving vepdegestrant, a PROTAC ER degrader co-developed with Pfizer, targeting ER+/HER2- breast cancer. The company plans to present data from multiple clinical trials and initiate new trials in 2025, marking significant development milestones and potential value for patients and stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.