Arvinas Shares Rise 10% After Collaboration Deal With Pfizer

By Chris Wack

Arvinas Inc. shares were up 10% to $85.17 Thursday after the company said it and Pfizer Inc. entered into a global collaboration to develop and commercialize ARV-471, an investigational oral Proteolysis Targeting Chimera estrogen receptor protein degrader, a well-known disease driver in most breast cancers.

The companies said ARV-471 is currently in a Phase 2 dose expansion clinical trial for the treatment of patients with estrogen receptor positive/human epidermal growth factor receptor 2 negative locally advanced or metastatic breast cancer.

Under the terms of the agreement, Pfizer will pay Arvinas $650 million upfront. Pfizer will also make a $350 million equity investment in Arvinas. The companies will equally share worldwide development costs, commercialization expenses, and profits.

ARV-471 currently is being evaluated as a treatment for metastatic breast cancer in a Phase 1 dose escalation study, a Phase 1b combination study with Pfizer's Ibrance palbociclib, and a Phase 2 monotherapy dose expansion study. Arvinas and Pfizer expect to initiate two additional trials of ARV-471 in 2021, including a second Phase 1b combination trial with everolimus and a trial in the neoadjuvant setting.

Arvinas is also eligible to receive up to $400 million in approval milestones and up to $1 billion in commercial milestones, in addition to sharing profits on ARV-471 worldwide.

Truist Securities raised its price target for Arvinas to $170 from $150 a share, while maintaining its buy recommendation.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

July 22, 2021 13:09 ET (17:09 GMT)

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