NASDAQ$ARVN

Arvinas Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Arvinas reported financial results for the first quarter ended March 31, 2023 and provided a corporate update.

Arvinas reported revenues of $32.5 million and a net loss of $81.9 million for the quarter ended March 31, 2023. The company's cash, cash equivalents, restricted cash and marketable securities were $1,129.0 million as of March 31, 2023, which is expected to fund operations into 2026.

  • Multiple vepdegestrant (ARV-471) studies enrolling globally, including Phase 1, 2, and 3 studies
  • Preliminary data from the Phase 1b combination trial of vepdegestrant + palbociclib suggests potential clinical benefit in a heavily pretreated patient population
  • The safety lead-in is on-track to initiate in 2H 2023 to evaluate the best starting dose of palbociclib (100 mg or 75 mg) in combination with vepdegestrant 200 mg once daily
  • Initiate a global Phase 3 trial with bavdegalutamide in mCRPC for patients with AR T878/H875 tumor mutations (2H 2023).

Headline financials

Total Revenue

$32.5M

Previous: $24.2M+34.3%
EPS (adj)

-$1.54

Previous: -$1.20-28.3%
Capital Expenditures

-$1.1M

Previous: -$2.1M+47.6%
Free Cash Flow

-$83M

Previous: -$65.5M-26.7%
Net Income

-$81.9M

Previous: -$63.4M-29.2%
Operating Income

-$87.7M

Previous: -$60M-46.2%
Gross Profit

$32.5M

Previous: $24.2M+34.3%
Cash & Equivalents

$130M

Previous: $62.3M+109.0%
Total Assets

$1.18B

Previous: $1.49B-21.0%
Stock-Based Comp

$19.9M

Previous: $16.6M+19.9%

Revenue & EPS history

Arvinas · Revenue · Quarterly

$32.5M

Q1 2023+34.3%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Arvinas · $30.3M total across 1 segment · Q3 2022

  • Collaboration Revenue
    $30.3M+225.8%

Forward guidance

Arvinas believes its cash, cash equivalents, restricted cash and marketable securities as of March 31, 2023, is sufficient to fund planned operating expenses and capital expenditure requirements into 2026.

Tailwinds

  • Initiate the safety lead-in to identify the dose of palbociclib for the planned Phase 3 trial with vepdegestrant + palbociclib as a first-line treatment in patients with ER+/HER2- locally advanced or metastatic breast cancer (2H 2023).
  • Submit and present additional data from the Phase 1b combination trial with palbociclib (ClinicalTrials.gov Identifier: NCT04072952) at a medical congress (2H 2023).
  • Initiate additional arms of the Phase 1b combination umbrella trial (TACTIVE-U: ClinicalTrials.gov Identifiers: NCTC05548127 and NCTC05573555) with other targeted therapies (2H 2023).
  • Complete enrollment for VERITAC-2 Phase 3 monotherapy trial (ClinicalTrials.gov Identifier: NCT05654623) in patients with metastatic breast cancer (2H 2024).
  • Share data from the Phase 1 dose escalation trial with ARV-766 in metastatic castration-resistant prostate cancer (mCRPC) (2Q 2023).

Headwinds

  • Our and Pfizer, Inc.’s (“Pfizer”) performance of our respective obligations with respect to our collaboration with Pfizer
  • Whether we and Pfizer will be able to successfully conduct and complete clinical development for vepdegestrant
  • Whether we will be able to successfully conduct and complete development for bavdegalutamide, ARV-766 and our other product candidates, including whether we initiate and complete clinical trials for our product candidates and receive results from our clinical trials on our expected timelines or at all
  • Obtain marketing approval for and commercialize vepdegestrant, bavdegalutamide, ARV-766 and our other product candidates on our current timelines or at all
  • Whether our cash and cash equivalent resources will be sufficient to fund our foreseeable and unforeseeable operating expenses and capital expenditure requirements

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-2.4%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-0.6%

Avg return

30 days after

30%

9 / 30 earnings

Positive

+11.8%

Q1 2019

Best reaction

-24.8%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.4%-10.2%
Q4 2025+5.2%+4.7%-7.4%
Q3 2025+0.5%+17.3%+34.1%
Q1 2025-24.8%-27.8%-25.2%
Q4 2024-6.8%-3.5%-54.9%
Q3 2024-3.9%-2.5%-2.8%
Q2 2024-1.0%-7.0%-6.3%
Q1 2024+0.3%-2.5%-14.1%
Q4 2023-5.8%-3.1%-15.4%
Q3 2023-2.5%-11.5%+93.1%
Q2 2023+2.1%+6.8%+12.8%
Q1 2023+4.9%+3.0%-1.2%
Q4 2022-7.0%-10.8%-23.0%
Q3 2022-4.0%+17.9%-12.5%
Q2 2022+3.8%+4.5%-19.3%
Q1 2022-16.4%-22.6%-19.0%
Q4 2021-2.6%-4.4%-5.4%
Q3 2021+4.9%+1.2%-18.8%
Q2 2021-4.3%-8.9%-13.4%
Q1 2021-4.0%-9.1%-1.7%
Q4 2020-1.0%-8.0%-15.6%
Q3 2020-3.6%+4.3%+18.6%
Q2 2020-5.0%-11.1%-23.0%
Q1 2020-0.9%-6.0%-17.7%
Q4 2019-3.2%-1.8%+14.2%
Q3 2019+3.3%+17.6%+79.4%
Q2 2019-4.6%-0.2%-1.5%
Q1 2019+11.8%+11.1%+0.8%
Q4 2018-3.0%-6.9%+42.9%
Q3 2018-0.1%+7.3%-13.6%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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