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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)