Arvinas Swings to Profit on Rigel Licensing
Second-quarter revenue reached $249.7 million as VEPPANU licensing payments reshaped results.
The targeted-protein-degradation drug developer Arvinas (ARVN) swung to second-quarter net income of $169.4 million as its Rigel Pharmaceuticals agreement converted deferred revenue and milestone payments into earnings.
The quarter marked a sharp turn from Arvinas’s first-quarter net loss of about $57.6 million and its $61.2 million loss a year earlier. Operating income was $164.1 million, compared with losses of about $63.8 million in the prior quarter and $71.5 million a year earlier.
Revenue rose more than elevenfold from $22.4 million a year earlier and accelerated from about $15.6 million in the first quarter. The total included $126.4 million of remaining deferred revenue recognized upon the Rigel licensing, $62.5 million from the agreement and a $50.0 million milestone tied to Food and Drug Administration approval of VEPPANU.
Arvinas completed the exclusive global out-licensing of VEPPANU to Rigel after winning FDA approval and selecting its partner in the first quarter. The transaction brought in $35.0 million of cash proceeds and triggered a new $9.0 million cost-of-license-revenue charge for obligations under a Yale license.
Research-and-development expense fell 23% from a year earlier to $52.6 million, reflecting an $11.0 million reduction in personnel costs and lower vepdegestrant spending. Investment increased in ARV-806, ARV-027 and ARV-393, while general-and-administrative expense declined 5% from a year earlier but rose sequentially because of professional fees tied partly to the Pfizer amendment and Rigel license.
Cash, cash equivalents and marketable securities declined to $567.9 million at June 30 from $685.4 million at year-end, primarily because Arvinas used $114.3 million in operations after accounting for the Rigel proceeds. The company maintained its forecast that available funds will support operations into the second half of 2028.
The clinical pipeline continued to advance. ARV-027 completed single-ascending-dose cohorts and began multiple-dose enrollment, with initial muscle androgen-receptor degradation data targeted for the first half of 2027. Arvinas expected ARV-6723 to begin enrolling patients in the third quarter of 2026, while ARV-806 remained on schedule for initial data in the second half; further dose-expansion or combination studies for ARV-806 depend on an out-licensing agreement.