Arvinas price target lowered to $14 from $16 at Stephens

Stephens analyst Sudan Loganathan lowered the firm’s price target on Arvinas (ARVN) to $14 from $16 and keeps an Overweight rating on the shares after the company announced an update on its collaboration with Pfizer (PFE) for the co-development of vepdegestrant. The companies will out-license commercialization rights to a third party and have begun the partner search process and Arvinas will refocus its operations by reducing vepdeg related expenses, cutting about 15% of its workforce and reallocating capital to ARV-102, ARV-393, and ARV-806, notes the analyst, who calls this “an unsurprising outcome.” Given the increased uncertainty surrounding vepdeg’s commercial outlook, the firm reduced its estimate of Arvinas’ attributed peak sales for vepdeg in 2035 to $641.2M from $966.2M previously forecast.