Arvinas, Pfizer Announce $2.4B Licensing Agreement For Protein-Degrader Based Breast Cancer Therapy

Arvinas Inc ARVN and Pfizer Inc PFE have collaborated to develop and commercialize ARV-471, an investigational oral PROTAC (PROteolysis TArgeting Chimera) estrogen receptor protein degrader.
The estrogen receptor is a well-known disease driver in most breast cancers.
ARV-471 is currently in a Phase 2 dose expansion trial for estrogen receptor ER+/HER2- locally advanced or metastatic breast cancer.
Under the terms of the agreement, Pfizer will pay Arvinas $650 million upfront and make a $350 million equity investment, equivalent to a 7% stake in Arvinas.
The companies will equally share worldwide development costs, commercialization expenses, and profits.
Arvinas is also eligible to receive up to $400 million in approval milestones and up to $1 billion in commercial milestones, in addition to sharing profits on ARV-471 worldwide.
The Companies will initiate two additional trials of ARV-471 in 2021, including a second Phase 1b combination trial with everolimus and a trial in the neoadjuvant setting.
In 2022, Arvinas and Pfizer expect to initiate Phase 3 studies across lines of therapy in metastatic breast cancer, including combinations with Ibrance, followed by pivotal studies in the early breast cancer setting.
Price Action: ARVN shares are up 7.09% at $83.05, while PFE shares are down 0.05% at $41.02 during the premarket session on the last check Thursday.