ARVN - Arvinas And Novartis Partnering On Prostate Cancer Protein Degrader Is A Win-Win Situation

2024-04-11 15:50:52 ET

Summary

• Arvinas' shares have experienced a significant increase, up more than 75% since November 2023, due to the success of its lead asset, vepdegestrant, in breast cancer studies.
• Arvinas entered into a strategic license agreement with Novartis for the development and commercialization of ARV-766, its second-generation PROTAC androgen receptor degrader for prostate cancer.
• Novartis is a force in prostate thanks to its recently-approved drug pluvicto, which has multi-billion peak revenue potential. As such, Arvinas may have found its perfect partner.
• There's plenty of risk involved in backing Arvinas - less so backing Novartis, a profitable global pharma - but I believe this deal can be win-win for both parties.
• Also, Arvinas has partnered with Pfizer for the development of vepdegestrant, receiving an upfront payment of $650 million and additional milestone payments which could exceed >$1bn.

Investment Overview - Arvinas's Shares Buoyant As Vepdegestrant / Ibrance Combo Study Initiated

I covered the "protein degradation" specialist drug developer Arvinas ( ARVN ) in a deep dive note for Seeking Alpha back in late November last year, giving the company's stock a "Buy" recommendation....

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