Arvinas inks over $1.0 billion deal with Novartis

Arvinas Inc (NASDAQ: ARVN) is in the green at writing after announcing a deal worth over $1.0 billion with Novartis (SWX: NOVN).

Details of Arvinas – Novartis agreement

Novartis will pay $150 million to the pharmaceutical company up front. In return, it will secure license (exclusive) for development and commercialisation of its second-gen treatment for prostate cancer or ARV-766.

The Swiss multinational will take over $ARVN’s preclinical AR-V7 programme as well. John Houston – chief executive of the Nasdaq-listed firm said in a press release today:

Despite today’s gain, Arvinas stock is down more than 15% versus its year-to-date high in mid-February.

Is Arvinas stock worth buying in 2024?

Arvinas Inc is eligible for another $1.01 billion in “development, regulatory, and commercial milestones” and royalties on sales of ARV-766 as well.

The agreement underscores its “innovative PROTAC protein degrader platform and its potential to deliver new treatments”, the chief executive added on Thursday.  

Also on Thursday, analysts at Stifel reiterated their “buy” rating on Arvinas shares and raised their price objective to $72 which suggests a whopping 90% upside from here.

The news arrives more than a month after $ARVN reported its earnings for the fourth quarter that came in shy of Street estimates. Note that Novartis stock is down nearly 1.0% following the Arvinas news today.