Arvinas to reduce workforce by 15%

Following the decision to monetize the value of vepdegestrant and out-license its rights to a third party, Arvinas (ARVN) management and its board of directors conducted a thorough review of the company’s business and strategic plan in consultation with its independent financial and legal advisors. Following this review, the company continues to believe that its pipeline of differentiated Protac degraders has the potential to create important therapies for patients with debilitating and life-threatening diseases across oncology and neuroscience. Arvinas currently has three investigational Protac degraders in Phase 1 trials: ARV-102, a LRRK2 degrader for progressive supranuclear palsy and Parkinson’s disease; ARV-393, a BCL6 degrader for subsets of non-Hodgkin lymphoma and ARV-806, a KRAS G12D degrader for solid tumor malignancies. With the change to development plan for the vepdegestrant program and a refocus on its early development programs, Arvinas has determined it will take further action to optimize its organizational and cost structures and streamline operations. These actions include: further limiting additional expenditures on the vepdegestrant program to support activities required for commercialization readiness and identification and out-licensing of vepdegestrant to a third party for commercialization, subject to alignment with Pfizer; reducing the Company’s workforce by an additional 15% to streamline operations, with the most significant reductions being roles related to vepdegestrant commercialization; and managing pipeline cost by seeking strategic business development opportunities and by identifying further efficiencies across the business. The planned out-licensing of vepdegestrant and the resulting cost optimization actions, when combined with the approximately $80M in annual cost savings from the measures announced on May 1 are expected to result in overall annual cost savings of more than $100M compared to FY24.