Arvinas (ARVN) investors couldn’t have asked for a better start to the week. ARVN stock hit the ground running as shares surged nearly 150% over the past two trading sessions.
The uptick came after the company announced positive developments for 2 of its potential cancer treatments.
Interim data from the Phase 1 trial for ARV-471 in heavily pretreated patients with locally advanced or metastatic ER positive / HER2 negative breast cancer, displayed evidence of anti-tumor activity and signs of strong efficacy. The data showed three PRs (partial responses), of which one was confirmed, and a 42% clinical benefit rate.
Oppenheimer analyst Mark Breidenbach calls the data “highly encouraging.” The analyst added, “Estrogen receptor (ER) degradation approached 90% in some patients, and responses were observed in patients with prior SERD (selective estrogen receptor degrader) exposure […] While early, we think these results point to best-in-class potential for ‘471 relative to competing, orally available SERDs…”
A Phase 1B combination trial of ARV-471 and Ibrance, should kick off later this month and a Phase 2 expansion group for ARV-471 is mooted for 1H21.
The company also released an update from the dose escalation segment of ARV-110’s Phase 1 trial in men with metastatic castration-resistant prostate cancer (mCRPC).
There have been positive results from the study so far. The treatment continues to show evidence of anti-tumor activity and benefits in heavily pretreated prostate cancer patients, with the last reported cohort showing PSA (prostate-specific antigen) reductions over 50% at doses higher than 280 mg.
Breidenbach believes the data justifies “continued development, especially in an earlier treatment setting,”
However, Breidenbach believes ARV-110 could face “stiff competition from next-generation anti-androgens as well as from investigational drugs that are active in AR-independent tumors.”
On the other hand, the analyst has high hopes for ARV-471.
“We see blockbuster potential for ARV-471, which we believe could be utilized in two ER+/HER2- breast cancer settings: (1) as a monotherapy in patients who have failed or developed resistance to available therapies, including endocrine therapies and CDK 4/6 inhibitors; and (2) in combination with CDK4/6 inhibitors such in an earlier-line setting.”
All in all, the news has caused a rejig to the analyst’s ARVN model. Breidenbach upgraded Arvinas’ rating from Perform (i.e. Hold) to Outperform (i.e. Buy) and set the price target at $80. (To watch Breidenbach’s track record, click here)
2 other analysts have recently reviewed Arvinas’ prospects and both have reached the same conclusion – Buy. ARVN’s Strong Buy consensus rating is backed by a $97.80 average price target, suggesting ~32% of upside over the next 12 months. (See ARVN stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
