Wedbush Starts Arvinas At Outperform, Says Lead Assets Could Have Successful Trials

Arvinas Inc's ARVN two lead assets have a “high likelihood of success” in their respective indications, according to Wedbush.

The Analyst

Robert Driscoll initiated coverage of Arvinas with an Outperform rating and $38 price target.

The Thesis

The market seems to underappreciate Arvinas’s PROTAC platform, which can be applied to previously “undruggable” indications, Driscoll said in the Tuesday initiation note.

The indications being targeted by the company’s lead candidates had a "high degree of clinical validation," the analyst said. 

Arvinas has two lead assets: ARV-110 and ARV-471. The prior candidate selectively targets the androgen receptor (AR), which plays a key role in prostate cancer, Driscoll said. 

The company has already demonstrated ARV-110’s anti-tumor activity in preclinical prostate cancer models that are insensitive or resistant to second-generation AR antagonists, the analyst said.

The initial data from the candidate’s clinical trials in metastatic castration-resistant prostate cancer patients is expected in the fourth quarter this year.

ARV-471 targets the estrogen receptor (ER) for degradation. Driscoll said that this candidate had recently entered clinical trials in ER-positive/HER2-negative breast cancer patient and that initial data is expected in 2020.

Price Action

Shares of Arvinas were up 2.7% to $24.31 at the time of publication Wednesday.

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