Arvinas, Inc. (NASDAQ: ARVN) recently reported its financial results for the second quarter ended June 30, 2024, and provided a corporate update. The company's cash, cash equivalents, restricted cash, and marketable securities position as of June 30, 2024, was $1,234.2 million, compared with $1,266.5 million as of December 31, 2023. This reflects a decrease of $32.3 million, primarily related to cash used in operations, unrealized losses on marketable securities, and the purchase of lab equipment and leasehold improvements, partially offset by proceeds from the exercise of stock options.
In terms of financial performance, research and development expenses for the quarter ended June 30, 2024, were $93.7 million, compared with $103.4 million for the same period in 2023. General and administrative expenses were $31.3 million for the quarter ended June 30, 2024, compared with $25.7 million for the quarter ended June 30, 2023. Revenues for the quarter ended June 30, 2024, were $76.5 million, compared with $54.5 million for the same period in 2023, with the increase primarily attributed to revenue from the Novartis agreements entered into during the quarter.
The company also achieved significant milestones in its clinical development programs. For example, it completed enrollment of the study lead-in for the Veritac-3 phase 3 clinical trial of Vepdegestrant in combination with palbociclib as a first-line treatment in patients with estrogen receptor-positive/human growth epidermal growth factor 2-negative (ER+/HER2-) locally advanced or metastatic breast cancer. Arvinas also presented updated clinical data from a phase 1b clinical trial combination cohort evaluating Vepdegestrant in combination with palbociclib in patients with locally advanced or metastatic ER+/HER2* breast cancer.
Additionally, the company entered into a strategic transaction with Novartis for the exclusive, worldwide development, manufacture, and commercialization of ARV-766, Arvinas’ second-generation Protac® androgen receptor (AR) degrader for patients with prostate cancer, and the sale of Arvinas’ preclinical AR-v7 program. As part of the transaction, Arvinas received a one-time, upfront payment in the aggregate amount of $150.0 million and is eligible to receive up to an additional $1.01 billion as contingent payments based on specified development, regulatory, and commercial milestones for ARV-766, as well as tiered royalties based upon worldwide net sales of ARV-766.
The market has reacted to these announcements by moving the company's shares -6.3% to a price of $27.78. For more information, read the company's full 8-K submission here.
