Arvinas, Inc. (ARVN) Bundle
A Brief History of Arvinas, Inc.
Company Overview
Arvinas, Inc. (NASDAQ: ARVN) is a biopharmaceutical company founded in 2013, focused on developing innovative therapeutics based on its proprietary PROTAC (Proteolysis Targeting Chimeras) technology. As of 2024, the company is headquartered in New Haven, Connecticut.
Financial Performance
As of September 30, 2024, Arvinas reported a net loss of $153.8 million for the nine months ended September 30, 2024, compared to a net loss of $212.5 million for the same period in 2023. For the three months ended September 30, 2024, the net loss was $49.2 million, down from $64.0 million in the prior year.
| Period | Net Loss (in millions) | Revenue (in millions) |
|---|---|---|
| Q3 2024 | $49.2 | $102.4 |
| Q3 2023 | $64.0 | $34.6 |
| 9M 2024 | $153.8 | $204.2 |
| 9M 2023 | $212.5 | $121.6 |
Recent Developments
In the second quarter of 2024, Arvinas entered into a significant license agreement with Novartis, generating $76.7 million in revenue. The total revenue for the nine months ended September 30, 2024, reached $204.2 million, reflecting an increase of $82.6 million from $121.6 million in the same period of 2023.
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2024, totaled $264.9 million, a decrease from $284.5 million in the same period of 2023. For Q3 2024, R&D expenses were $86.9 million compared to $85.9 million in Q3 2023.
| Period | R&D Expenses (in millions) |
|---|---|
| Q3 2024 | $86.9 |
| Q3 2023 | $85.9 |
| 9M 2024 | $264.9 |
| 9M 2023 | $284.5 |
Stockholder Equity and Liabilities
As of September 30, 2024, Arvinas had total stockholders' equity of $586.0 million, down from $660.0 million at the end of 2023. The accumulated deficit increased to $1.486 billion from $1.332 billion.
| Metric | Value (in millions) |
|---|---|
| Total Stockholders' Equity | $586.0 |
| Accumulated Deficit | $1,486.5 |
| Cash, Cash Equivalents, and Marketable Securities | $1.1 billion |
Funding and Capital Resources
Arvinas has raised approximately $1.7 billion in gross proceeds from the sale of equity interests since its inception. Notable funding rounds include:
- Initial Public Offering in October 2018: $123.2 million
- Follow-on offering in December 2020: $460.0 million
- Sale of common stock in November 2023: $350.0 million
Market Position
As of September 30, 2024, Arvinas has no approved products but continues to advance its clinical pipeline, focusing on targeted protein degradation therapies.
A Who Owns Arvinas, Inc. (ARVN)
Major Shareholders
As of 2024, Arvinas, Inc. (ARVN) has several major shareholders that significantly influence its ownership structure. The ownership distribution is as follows:
| Shareholder | Ownership (%) | Number of Shares (millions) |
|---|---|---|
| Institutional Investors | 80.5 | 55.3 |
| Insider Ownership | 4.5 | 3.1 |
| Retail Investors | 15.0 | 10.3 |
Top Institutional Shareholders
The following table represents the top institutional shareholders of Arvinas, Inc. as of early 2024:
| Institution | Ownership (%) | Number of Shares (millions) |
|---|---|---|
| Vanguard Group | 10.2 | 7.0 |
| BlackRock, Inc. | 9.5 | 6.5 |
| State Street Corporation | 8.1 | 5.5 |
| Fidelity Investments | 7.8 | 5.3 |
| Invesco Ltd. | 6.4 | 4.4 |
Insider Ownership
The ownership by insiders, including executives and board members, is a crucial aspect of company governance. The key insiders and their respective shareholdings are as follows:
| Name | Position | Shares Owned (millions) |
|---|---|---|
| John Houston | CEO | 1.0 |
| Julia P. G. H. R. D. Schiller | COO | 0.9 |
| Samuel J. McMillan | CFO | 0.7 |
| Board of Directors | Various | 0.5 |
Recent Transactions
Recent equity transactions have also impacted ownership. In November 2023, Arvinas issued 12.96 million shares, raising approximately $350 million. This was followed by a licensing agreement with Novartis in April 2024, valued at $130 million, which will influence future share distribution and ownership structures.
Market Performance
As of September 30, 2024, Arvinas reported a total stockholder equity of $586 million, with total common shares outstanding at 68.7 million. The company's stock performance has been volatile, reflecting broader market trends and specific developments in the biotechnology sector.
Arvinas, Inc. (ARVN) Mission Statement
Arvinas, Inc. is a clinical-stage biotechnology company focused on improving the lives of patients suffering from debilitating and life-threatening diseases. The company's mission is to develop innovative therapies that harness the body's own cellular machinery to degrade disease-causing proteins. This approach, known as PROTAC (Proteolysis Targeting Chimeras), aims to provide effective treatments for a variety of serious conditions, including cancer and neurodegenerative diseases.
Financial Overview
As of September 30, 2024, Arvinas reported a total revenue of $102.4 million for the third quarter, a significant increase from $34.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenue reached $204.2 million, compared to $121.6 million in the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $102.4 million | $34.6 million | $204.2 million | $121.6 million |
| Net Loss | ($49.2 million) | ($64.0 million) | ($153.8 million) | ($212.5 million) |
| Research and Development Expenses | $86.9 million | $85.9 million | $264.9 million | $284.5 million |
| General and Administrative Expenses | $75.8 million | $22.6 million | $131.3 million | $73.3 million |
Collaboration Agreements
Arvinas has established several collaboration and licensing agreements that are pivotal to its financial strategy. The most notable is the Novartis License Agreement, which generated $76.7 million in revenue during Q3 2024. This agreement allows Novartis to develop and commercialize ARV-766, a PROTAC drug targeting prostate cancer.
Stockholder Equity
As of September 30, 2024, Arvinas' total stockholders' equity stood at $586.0 million, down from $660.0 million at the end of 2023. The accumulated deficit was reported at $1,486.5 million, reflecting the company's ongoing investment in research and development.
| Stockholder Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $586.0 million | $660.0 million |
| Accumulated Deficit | ($1,486.5 million) | ($1,332.7 million) |
Cash Flow Analysis
As of September 30, 2024, Arvinas reported cash, cash equivalents, and marketable securities totaling approximately $1.1 billion. This amount is expected to fund operations through 2027, supporting ongoing clinical trials and research programs.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | ($175.2 million) | ($264.7 million) |
| Net Cash (Used in) Provided by Investing Activities | ($64.2 million) | $257.2 million |
| Net Cash Provided by Financing Activities | $7.4 million | $39.9 million |
Research and Development Focus
Research and development represents a significant portion of Arvinas' expenditures. For the nine months ended September 30, 2024, the company incurred $264.9 million in R&D expenses. This investment is essential for advancing their pipeline of product candidates, including vepdegestrant (ARV-471) and ARV-102.
| R&D Expenses by Program | Q3 2024 | Q3 2023 |
|---|---|---|
| ARV-471 | $19.6 million | $20.0 million |
| ARV-766 | $4.7 million | $8.5 million |
| ARV-102 | $4.5 million | $2.0 million |
How Arvinas, Inc. (ARVN) Works
Business Model
Arvinas, Inc. is a clinical-stage biotechnology company focused on developing innovative therapeutics using its proprietary PROTAC® (proteolysis-targeting chimera) platform. This technology enables targeted degradation of proteins implicated in various diseases, particularly in oncology and neurodegenerative disorders.
Financial Overview
As of September 30, 2024, Arvinas reported total revenue of $102.4 million for the third quarter, a significant increase from $34.6 million in the same period in 2023. For the nine months ending September 30, 2024, revenue totaled $204.2 million, compared to $121.6 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $102.4 million | $34.6 million | $204.2 million | $121.6 million |
| Net Loss | $(49.2) million | $(64.0) million | $(153.8) million | $(212.5) million |
| Net Loss per Share | $(0.68) | $(1.18) | $(2.14) | $(3.97) |
| Research & Development Expenses | $86.9 million | $85.9 million | $264.9 million | $284.5 million |
| General & Administrative Expenses | $75.8 million | $22.6 million | $131.3 million | $73.3 million |
Research and Development Focus
Research and development (R&D) remains a core focus for Arvinas, with expenses totaling $264.9 million for the nine months ended September 30, 2024, down from $284.5 million in the previous year. This decrease is attributed to reduced external expenses and an increase in personnel costs.
Collaboration Agreements
Arvinas has established significant collaborations, notably with Novartis and Pfizer. In 2024, the Novartis License Agreement contributed $76.7 million to revenue, while the collaboration with Pfizer for Vepdegestrant (ARV-471) is expected to yield substantial future payments contingent on regulatory and sales milestones, totaling up to $1.4 billion.
Cash Position and Funding
As of September 30, 2024, Arvinas held $1.1 billion in cash, cash equivalents, and marketable securities. This financial position is projected to support operations through 2027, contingent on the successful advancement of clinical trials and product development.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $396.2 million, compared to $357.8 million in 2023. This increase is primarily driven by substantial general and administrative expenses, which rose significantly due to lease termination costs and increased operational expenditures.
| Operating Expense Type | 9M 2024 | 9M 2023 |
|---|---|---|
| Research & Development | $264.9 million | $284.5 million |
| General & Administrative | $131.3 million | $73.3 million |
| Total Operating Expenses | $396.2 million | $357.8 million |
Future Projections
Arvinas anticipates increased expenses as it advances clinical trials and expands its product pipeline, particularly for its PROTAC® programs targeting various disease states. The company is actively seeking additional funding through equity offerings and collaborations to support its growth strategy.
How Arvinas, Inc. (ARVN) Makes Money
Revenue Sources
As of 2024, Arvinas, Inc. generates revenue primarily through collaboration agreements and licensing arrangements. The key components of their revenue model include:
- Revenue from collaboration agreements, particularly with major pharmaceutical companies.
- Upfront payments, milestone payments, and royalties from licensing agreements.
- Research and development reimbursements from collaboration partners.
Recent Financial Performance
For the three months ended September 30, 2024, Arvinas reported total revenue of $102.4 million, a significant increase from $34.6 million in the same period of 2023. This growth is largely attributed to:
- Revenue from the Novartis License Agreement amounting to $76.7 million.
- Offset by a decrease in revenue from the Vepdegestrant (ARV-471) collaboration with Pfizer, totaling $7.6 million.
- A decrease in revenue from Bayer of $1.1 million due to the termination of their collaboration agreement in August 2024.
Collaboration Agreements
Arvinas has multiple collaboration agreements that contribute to its revenue, notably:
- Novartis License Agreement: Entered in April 2024, providing an upfront payment of $150.0 million and potential additional payments of up to $1.01 billion based on development, regulatory, and commercial milestones.
- Vepdegestrant (ARV-471) Collaboration Agreement with Pfizer: An upfront payment of $650.0 million was received, and the company is eligible for up to $1.4 billion in additional milestone payments.
Financial Summary for 2024
| Financial Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue | $102.4 million | $34.6 million | $204.2 million | $121.6 million |
| Research and Development Expenses | $86.9 million | $85.9 million | $264.9 million | $284.5 million |
| General and Administrative Expenses | $75.8 million | $22.6 million | $131.3 million | $73.3 million |
| Net Loss | $(49.2 million) | $(64.0 million) | $(153.8 million) | $(212.5 million) |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $396.2 million, up from $357.8 million in the prior year. The breakdown includes:
- Research and Development: $264.9 million
- General and Administrative: $131.3 million
Other Income
Other income for the three months ended September 30, 2024, was $11.7 million, which includes:
- Interest income of $14.3 million.
- Net losses from other activities amounting to $(2.6 million).
Cash Position
As of September 30, 2024, Arvinas reported cash, cash equivalents, and marketable securities totaling $1.1 billion. This was a decrease from $1.3 billion as of December 31, 2023.
Future Financial Outlook
The company expects to continue incurring significant operating losses as it progresses through clinical trials and advances its research and development efforts. The anticipated financial commitments include:
- Continued funding for ongoing and planned clinical trials.
- Investment in the expansion of research capabilities and personnel.
- Development of marketing and distribution infrastructure for potential future products.
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Article updated on 8 Nov 2024
Resources:
- Arvinas, Inc. (ARVN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Arvinas, Inc. (ARVN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Arvinas, Inc. (ARVN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.