This Turnaround Is So Thought-provoking: Arvinas, Inc. (NASDAQ: ARVN)

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On 29 May 2020, Arvinas, Inc. (NASDAQ: ARVN) spotted trading -45.96% off 52-week high price. On the other end, the stock has been noted 119.10% away from the low price over the last 52-weeks. The stock changed -25.82% to recent value of $33.27. The stock transacted 4860504 shares during most recent day however it has an average volume of 466.78K shares. The company has 38.55M of outstanding shares and 72.79M shares were floated in the market.

Arvinas, Inc. (ARVN) recently stated financial results for the fourth quarter and full year ended December 31, 2019 and provided a corporate update.

Full Year and Fourth Quarter Financial Results

Cash, Cash Equivalents and Marketable Securities Position: As of December 31, 2019, cash, cash equivalents and marketable securities were $280.9M as contrast with $187.8M as of December 31, 2018. The increase primarily related to net proceeds from a public offering of ordinary stock of $107.6M, aggregate proceeds of $51.5M from a alliance and license contract with Bayer and the issuance of ordinary stock to Bayer and collaborator milestone and other payments of $7.8M, partially offset by cash used to fund operations of about $67.6M and cash used to purchase fixed assets and leasehold improvements of $6.2M. Cash, cash equivalents, and marketable securities increased by $90.4M in the fourth quarter of 2019. This increase primarily related to net proceeds from a public offering of ordinary stock of $107.6M and collaborator milestone and other payments of $2.2M, partially offset by cash used to fund operations of about $17.6M and cash used to purchase fixed assets and leasehold improvements of $1.8M.

Research and Development Expenses: Research and development expenses were $67.2M and $20.4M for the year and quarter ended December 31, 2019, respectively as contrast with $45.2M and $14.6M for the year and quarter ended December 31, 2018, respectively. The increase in research and development expenses for the year and quarter primarily related to Arvinas’ continued investment in its platform, exploratory and lead optimization programs and its estrogen receptor (ER) and androgen receptor (AR) clinical development programs.

General and Administrative Expenses: General and administrative expenses were $27.3M and $7.3M for the year and quarter ended December 31, 2019, respectively, as contrast with $12.9M and $5.8M for the year and quarter ended December 31, 2018, respectively. The increase in general and administrative expenses for the year and quarter primarily related to increasing infrastructure costs and being a public company for a full year in 2019.

Revenues: Revenue was $43.0M and $4.9M for the year and quarter ended December 31, 2019, respectively, as contrast with $14.3M and $3.4M for the year and quarter ended December 31, 2018, respectively. Revenue for the year ended December 31, 2019 included $24.7M of revenue recognized from the Arvinas contribution of the license to the joint venture between Bayer and Arvinas to pursue the PROTAC® technology in agricultural applications (the Joint Venture). The remaining revenue of $18.3M and revenue of $4.9M for the year and quarter ended December 31, 2019, respectively, was generated from the license and rights to technology fees and research and development activities related to the alliance and license contract with Bayer that was initiated in July 2019, the alliance and license contract with Pfizer that was initiated in January 2018, and the amended and restated option, license and alliance contract with Genentech that was initiated in November 2017.

Loss from Equity Method Investment: Loss from equity method investment for the year ended December 31, 2019 was $24.7M, which related to the loss from the equity method investment in the Joint Venture. The loss was generated from the Joint Venture’s expensing the values associated with the contributed intellectual property from the Joint Venture partners.

Net Loss: Net loss was $70.3M and $21.0M for the year and quarter ended December 31, 2019, respectively, as contrast with $41.5M and $16.1M for the year and quarter ended December 31, 2018, respectively. The increase in net loss for the year and quarter primarily related to Arvinas’ continued investment in its platform, exploratory and lead optimization programs, its ER program, its AR program and increase in general and administrative infrastructure costs related to the first full year as a public company offset by a raise in revenue primarily related to the Bayer alliance that was initiated in July 2019.

According to the most recent quarter its current ratio was 8.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -31.75% from the mean of 20 days, -28.32% from mean of 50 days SMA and performed -11.53% from mean of 200 days price. Company’s performance for the week was -24.39%, -38.42% for month and YTD performance remained -19.03%.

 

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