Roth Capital Partners initiated coverage of Arvinas (NASDAQ:ARVN) with a “buy” rating and $35 price target. The stock closed at $28.38 on Nov. 13.
Analyst Zegbeh Jallah writes that Arvinas is one of the leaders in the protein degradation space, with two Phase 1 clinical programs, ARV-110, an androgen receptor degrader in prostate cancer, and ARV-471, an estrogen receptor degrader in breast cancer.
“Early clinical safety data presented in October significantly moved the stock upward and efficacy data expected in 2020 as well as advances in the pipeline, particularly the Tau program, could further drive value,” she added.
Ms. Jallah said she believes the safety and pharmacokinetic profile of lead program, ARV-110, is “supportive of the drug reaching therapeutically active levels, with the potential to achieve competitive prostate-specific antigen levels and response evaluation criteria in solid tumors responses.”
Although clinical efficacy data for ARV-471 is not expected until the second half of 2020, “investors should not lose sight of this program,” Ms. Jallah said. While doses have only been escalated up to 30mg, the “dose did reach drug exposure levels shown preclinically to be clinically meaningful and very safe.”
