Sumary of Why Arvinas Jumped 10% Today:
- The two companies will co-develop and then co-market Arvinas’ ARV-471, currently in trials as a treatment for certain forms of breast cancer.
- In addition to a $350 million equity investment in the $4 billion organization, Pfizer is also awarding Arvinas with an upfront payment of $650 million in exchange for shared rights to assist in the development and eventual marketing of ARV-471. Image source: Getty Images.
- The drug in question is currently in phase 2 trials as a therapy for estrogen receptor-positive and human epidermal growth factor receptor 2-negative breast cancers.
- But Pfizer’s upfront payment and purchase of Arvinas — in addition to $1.4 billion worth of additional milestone awards — suggests the evidence of efficacy thus far is better than average.
- Better still, given that the poorly served $20 billion breast cancer market could be worth twice as much in just a matter of years, at the very least Pfizer’s interest makes Arvinas a compelling prospect.