Leerink Partners analyst Andrew Berens downgraded the rating on Arvinas Holding Company (ARVN – Research Report) to a Hold today, setting a price target of $9.00.
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Andrew Berens’s rating is based on the recent developments and uncertainties surrounding Arvinas Holding Company’s lead drug, vepdegestrant, in the breast cancer treatment landscape. The results from the Phase 3 VERITAC-2 trial showed that while the drug is active and likely approvable for patients with ESR1 mutations, it may not be the best option available. The emergence of new data from the SERENA-6 study suggests that alternative treatments could become the standard of care, potentially reducing the target population for vepdegestrant.
Furthermore, there is uncertainty regarding the commitment to develop vepdegestrant in combination with other agents, which could limit its uptake as a monotherapy. Although the stock is trading below its fundamental value, the company’s ability to unlock tangible value from its lead asset remains uncertain. These factors have led to a tempered outlook on the drug’s market potential, resulting in a Hold rating for the stock.
Berens covers the Healthcare sector, focusing on stocks such as Arvinas Holding Company, Incyte, and Elevation Oncology. According to TipRanks, Berens has an average return of -5.7% and a 38.56% success rate on recommended stocks.