One-glance verdict
Undervalued
$229.52 our estimate vs market $7.45
Wall Street consensus: $13.93 (-93.9% lower than our fair-value estimate)
97% below our estimate, below the bear case
Fundamentals snapshot
Arvinas, Inc.
ARVN · NMS · Healthcare · Biotechnology
Current price
$7.45
52-week range
$6.97 - $14.51
Market cap
$480.68M
Balance sheet
Healthy
-1,185.00x Concerning
Net cash $559.90M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
View details ↓What this company does
Arvinas, Inc.
Arvinas, Inc. develops new medicines that use the body's natural processes to get rid of proteins causing diseases like cancer and Parkinson's. Their main money comes from selling these experimental treatments and from partnerships with larger drug companies. This matters because if their drugs prove effective and get approved, they could help many patients and generate significant revenue.
How the company got here
Arvinas was founded in 2013, emerging from pioneering research at Yale University focused on a novel approach to drug development called targeted protein degradation. The company's core innovation lies in PROTACs (proteolysis targeting chimeras), which are designed to harness the body's natural systems to break down disease-causing proteins. Arvinas went public in 2018, raising capital to fund its clinical development programs. Since then, it has focused on translating its scientific platform into potential therapies, primarily for cancer, and has established collaborations with major pharmaceutical companies.
What it actually does
Arvinas is a biotechnology company that develops medicines designed to eliminate disease-causing proteins. Instead of just blocking a protein's function, their approach uses a technology called PROTACs (proteolysis targeting chimeras) to tag these harmful proteins for destruction by the body's own cellular machinery. This innovative method aims to tackle diseases, particularly cancers, by addressing the root cause of protein malfunction.
Vepdegestrant (Breast Cancer Therapy)
Arvinas's most advanced program is vepdegestrant (also known as ARV-471), which is being developed with Pfizer. This therapy is designed to treat a specific type of breast cancer: estrogen receptor-positive (ER+), HER2-negative, and estrogen receptor 1 (ESR1)-mutated advanced or metastatic breast cancer. It works by degrading the estrogen receptor protein, which fuels the growth of these cancer cells. Vepdegestrant has received U.S. FDA approval and is being further evaluated in late-stage clinical trials, representing a significant part of Arvinas's development efforts.
ARV-766 (Prostate Cancer Therapy)
Arvinas is developing ARV-766, an investigational oral therapy designed to treat prostate cancer. This drug targets the androgen receptor protein, which is a key driver in many prostate cancers, especially in cases that have become resistant to other treatments. ARV-766 is a PROTAC designed to degrade the androgen receptor, aiming to stop cancer cell growth. This program is a key focus for Arvinas's wholly-owned pipeline, demonstrating the company's ability to develop therapies beyond its initial breast cancer focus.
Other Pipeline Programs
Beyond its lead programs in breast and prostate cancer, Arvinas is exploring other therapeutic areas. This includes ARV-102, a PROTAC designed to degrade the LRRK2 protein for neurodegenerative diseases like Parkinson's disease, and ARV-393, which targets the BCL6 protein for certain types of non-Hodgkin lymphoma. The company is also investigating ARV-6723 for solid tumors, aiming to leverage its PROTAC technology across a broader range of diseases and targets, including in the immuno-oncology space.
What management is betting on now
Arvinas's current strategy centers on advancing its most promising drug candidates through clinical development, particularly in oncology and neurology. Management is prioritizing internal investment in programs where they believe they can create differentiated therapies, such as vepdegestrant for breast cancer and ARV-766 for prostate cancer. The company is also focusing on its LRRK2 degrader (ARV-102) for neurodegenerative diseases, while seeking partnerships for other assets that may require broader development resources. This approach aims to maximize the value of their PROTAC platform and deliver innovative treatments to patients.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-128.70M
FY2024 Q4
$-84.40M
FY2025 Q1
$-89.30M
FY2025 Q2
$-96.60M
FY2025 Q3
$-59.20M
FY2025 Q4
$-30.60M
FY2026 Q1
$-70.50M
FY2026 Q2
$-48.50M
Revenue
$249.70M
Net income
$169.40M
Diluted EPS
2.58
Operating cash flow
$-48.30M
Free cash flow
$-48.50M
Fetching…
Sources
Revenue
$15.60M
Net income
$-57.60M
Diluted EPS
-0.90
Operating cash flow
$-69.20M
Free cash flow
$-70.50M
Fetching…
Sources
Revenue
$9.50M
Net income
$-67.40M
Diluted EPS
-0.96
Operating cash flow
$-30.40M
Free cash flow
$-30.60M
Fetching…
Sources
Revenue
$41.90M
Net income
$-35.10M
Diluted EPS
-0.48
Operating cash flow
$-59.10M
Free cash flow
$-59.20M
Fetching…
Sources
Revenue
$22.40M
Net income
$-61.20M
Diluted EPS
-0.84
Operating cash flow
$-95.40M
Free cash flow
$-96.60M
Fetching…
Sources
Revenue
$188.80M
Net income
$82.90M
Diluted EPS
1.14
Operating cash flow
$-88.90M
Free cash flow
$-89.30M
Fetching…
Sources
Revenue
$59.20M
Net income
$-45.10M
Diluted EPS
-0.63
Operating cash flow
$-84.10M
Free cash flow
$-84.40M
Fetching…
Sources
Revenue
$102.40M
Net income
$-49.20M
Diluted EPS
-0.68
Operating cash flow
$-128.00M
Free cash flow
$-128.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $229.52 vs current price $7.45
Wall Street consensus is the average analyst price target: $13.93 (-93.9% lower than our fair-value estimate).
Our most-likely fair value is $229.52 a share — about 2,980.8% above today's price of $7.45, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $559.9M - more cash than debt. Interest coverage -1185.0x.
Net debt
$-559.90M
Interest coverage
-1,185.00x
Arvinas, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
ARVN
BASELINE
Arvinas, Inc.
Total debt $8.00M Interest coverage -1,185.00x This is the baseline the peer rows are being compared against.
What you should know
The case for and against ARVN
2 Rewards
0 Risks
Rewards
-
Revenue grew 20.6% last year.
-
Free cash flow was positive in 1/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.65x
Forward P/E
-2.31x
P/B
0.87x
P/S
1.52x
EV/EBITDA
7.35x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
97.2%
Operating margin
66.4%
Net margin
2.9%
ROE
1.6%
ROA
-1.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
7.91x
Quick ratio
7.54x
Total debt
$8.00M
Total cash
$567.90M
Growth
How the business has been compounding
Revenue TTM
$316.70M
Revenue 5Y CAGR
48.8%
EPS TTM
0.26
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-207.00M
Free CF TTM
$-275.70M
FCF margin
-87.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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