Pharmaceutical company Arvinas offers insight into its partnership with Pfizer and shares plans to bolster value generation in the collaboration, with additional measures unveiled to support the endeavor.
In a significant development, Arvinas and Pfizer have announced a collaboration for the co-development and co-commercialization of vepdegestrant, a potential treatment for estrogen receptor-positive (ER+), human epidermal growth factor receptor 2-negative (HER2-), ESR1-mutated advanced or metastatic breast cancer. The drug, currently under review by the U.S. Food and Drug Administration (FDA), is intended for patients who have previously been treated with endocrine-based therapy.
This global partnership, announced in July 2021, will see Arvinas and Pfizer share worldwide development costs, commercialization expenses, and profits, including any costs, expenses, and profits that may arise due to the agreement to out-license commercialization rights to a third party. The parties are actively seeking a third-party partner with the expertise to maximize the drug’s commercial potential.
In a move to optimize costs, Arvinas plans to limit expenditures on the vepdegestrant program, reduce its workforce by an additional 15%, and proactively manage pipeline cost by seeking strategic business development opportunities. The company has authorized a stock repurchase program of up to $100 million to further support these cost-saving measures.
The share repurchase program, which has no time limit, will be funded using the Company's working capital. Arvinas reaffirms its cash runway guidance through the second half of 2028, indicating a strong financial position to support these initiatives.
Vepdegestrant has received Fast Track designation by the FDA and has been assigned a Prescription Drug User Fee Act (PDUFA) action date of June 5, 2026. The drug was jointly developed by Arvinas and Pfizer, and its commercialization rights are expected to be out-licensed to a third party. The company that will take on this role has not yet been finalized.
Arvinas also has a pipeline of differentiated PROTAC degraders in Phase 1 trials, including ARV-102, ARV-393, and ARV-806. These opportunities, including potential clinical data readouts from these degraders, are expected to further enhance the company's portfolio.
Arvinas and Pfizer are aligned in their belief that finding a third-party commercial partner is the best path forward to unlock the full value of vepdegestrant and ensure vepdegestrant is available promptly if approved for use by regulatory authorities. This decision is expected to result in overall annual cost savings of more than $100 million compared to FY 2024, when combined with the approximately $80 million in annual cost savings announced on May 1, 2025.
