Skip to content
    ARVN
    Earnings call· Jun 2026(Q2 FY26)

    ARVINAS Q2 FY26 earnings call ARVN

    Aug 4, 2026 Source

    Executive summary

    Arvinas Q2 FY26 — VEPPANU Approval & Pipeline Advancement

    Arvinas achieved a significant milestone with the FDA approval of VEPPANU, the first PROTAC degrader, and subsequently out-licensed it, generating substantial revenue. The company is strategically focusing its pipeline on oncology and neurology, advancing several Phase I programs with upcoming data catalysts. While regulatory delays impacted the LRRK2 program, Arvinas maintains a strong financial position to fund operations through key milestones into the second half of 2028.

    Highlights

    5

    • FDA approval of VEPPANU, the first-ever PROTAC degrader, marking a significant milestone.

    • Total revenue for the quarter reached $249.7 million, driven by license revenue and milestone payments.

    • Cash, cash equivalents, and marketable securities stood at $567.9 million, providing a cash runway into the second half of 2028.

    • ARV-027 (SBMA) Phase I completed single ascending dose cohorts and initiated multiple dose portion, with data expected in H1 2027.

    • ARV-393 (BCL6) Phase I enrollment accelerated as doses approached efficacious range, with initial data on track for end of 2026.

    Concerns

    3

    • ARV-102 (LRRK2) next clinical trials for PSP are now expected to begin in 2027, a delay from previous plans.

    • Strategic decision to only advance the KRAS G12D program (ARV-806) with a partner, indicating a deprioritization of internal investment.

    • Initial enrollment for ARV-393 (BCL6) was slower than desired at sub-therapeutic doses.

    Guidance & targets

    6
    CategoryTargetConfidence
    Cash runway
    Into the second half of 2028
    high materiality
    High
    ARV-393 (BCL6 degrader) Phase I initial data
    By the end of the year
    medium materiality
    High
    ARV-393 (BCL6 degrader) Phase I mature data
    In 2027
    medium materiality
    High
    ARV-027 (polyQ-AR degrader) Phase I data
    In the first half of next year
    medium materiality
    High
    ARV-102 (LRRK2 degrader) next clinical trials initiation
    Begin in 2027
    high materiality
    Medium
    ARV-6723 (HPK1 degrader) Phase I enrollment
    In the coming weeks
    medium materiality
    High

    Operational metrics

    12
    Cash, cash equivalents and marketable securities
    $567.9 milliondown from $685.4 million at the end of 2025
    Q2 FY26

    null

    Total Revenue
    $249.7 million
    Q2 FY26

    Comprised of license revenue, deferred revenue recognition, and milestone payments.

    License Revenue
    $62.5 million
    Q2 FY26

    Result of the license agreement with Rigel for VEPPANU.

    Deferred Revenue Recognition
    $126.4 million
    Q2 FY26

    Moved all deferred revenue to P&L as the original Pfizer agreement method was no longer applicable under ASC 606 due to Rigel agreement. No further revenue recognition related to original Pfizer collaboration going forward.

    Milestone Payment
    $50 million
    Q2 FY26

    Triggered by VEPPANU approval.

    Research Collaboration Revenue
    $3.5 million
    Q2 FY26

    Under a Pfizer research collaboration agreement where the research term has been completed.

    Cost of License Revenue
    $9 million
    Q2 FY26

    Triggered by FDA approval of VEPPANU and entry into Rigel license agreement.

    General and Administrative Expenses
    $24 milliondecrease of $1.3 million compared to $25.3 million in Q2 FY25
    Q2 FY26

    null

    Non-GAAP General and Administrative Expenses
    increased by $0.3 million2% compared to prior year
    Q2 FY26

    null

    Research and Development Expenses
    $52.6 milliondecrease of $16 million compared to $68.6 million in Q2 FY25
    Q2 FY26

    Cost reduction programs completed during the quarter.

    Non-GAAP Research and Development Expenses
    down $8.1 million14% compared to prior year
    Q2 FY26

    null

    Liability for VEPPANU Runout Costs
    $52.7 million
    Q2 FY26

    Booked to cover estimated remaining liabilities related to VEPPANU development plan closeout. Future obligations will be booked against this accrual.

    Industry KPIs

    3
    MetricValueDetails
    Pipeline clinical milestonesMultiple programs
    Regulatory approvals filingsVEPPANU
    Business development capacity deal appetitePartnering for ARV-806 (KRAS G12D)

    Deals & partnerships

    4
    Rigel PharmaceuticalsOut-licensing of VEPPANU$62.5 million

    Rigel anticipates making VEPPANU available to patients in the near future.

    PfizerMilestone payment triggered by VEPPANU approval$50 million

    Triggered by the FDA approval of VEPPANU.

    PfizerResearch collaboration agreement$3.5 million

    Research term has been completed.

    Partner (unnamed)Seeking partner for KRAS G12D program (ARV-806)

    Strategic decision to advance ARV-806 only in the hands of a partner.

    Risks & headwinds

    3
    Regulatory delays for ARV-102 (LRRK2) clinical trialsShort-to-medium term (until 2027)

    Next clinical trials for PSP now expected to begin in 2027, delayed from H1 2026.

    Mitigation: Ongoing productive engagement with FDA, European, and Japanese health authorities to incorporate feedback and finalize the path forward.

    Slow initial enrollment for ARV-393 (BCL6) Phase I at sub-therapeutic dosesPast (resolved as doses escalated)

    Enrollment was "certainly slower than we would have liked" at very low starting doses.

    Mitigation: Enrollment has seen a "clear uptick" as doses approached the predicted efficacious range; combination study enrollment has been strong.

    Investment required for KRAS G12D program (ARV-806) inconsistent with capital allocation strategyOngoing

    Not quantified in dollars, but described as requiring "investment that is inconsistent with our current capital allocation strategy."

    Mitigation: Strategic decision to only move forward with ARV-806 in the hands of a partner.

    What to watch in Q3 FY26

    5

    ARV-393 (BCL6) Phase I initial data

    End of 2026
    CurrentOn track for end of 2026. Data from early cohorts, primarily T-cell lymphomas, dosed below expected efficacious range.
    TargetInitial safety and efficacy signals, especially in T-cell lymphomas.

    Why it matters

    Provides first clinical insights into the BCL6 degrader's profile, particularly in difficult-to-treat T-cell lymphomas, and informs future development.

    When it comes to upcoming data for ARV-393, we are on track to share initial Phase I data by the end of the year.

    Q&A highlights

    5

    Inquire about the strategic development plan for ARV-393, particularly how combination data might enable pivotal trials in earlier treatment settings for NHL.

    Management confirmed that ARV-393 has potential in multiple NHL settings due to its oral, tolerable small molecule profile. While early, they see opportunities in later-line monotherapy (e.g., 4th-line LBCL, 3rd-line LBCL, AITL T-cell disease) and, with combinations like glofi, potentially in 3rd-line and 2nd-line LBCL. The immediate focus is on monotherapy dose escalation and demonstrating combinability.

    “The short answer is yes. The long answer is the NHL space has a lot of opportunities to pursue, right? ... What there's not a lot of is orally bioavailable, tolerable small molecules. And so we think that a BCL6 degrader could slot into multiple areas within the disease landscape.”

    asked by Nicholas Lorusso · answered by Randy Teel

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Repositioning and Pipeline Focus

    Arvinas has undergone significant strategic repositioning in the first half of 2026, culminating in the FDA approval of VEPPANU and its subsequent out-licensing to Rigel Pharmaceuticals. This has allowed the company to sharpen its focus on advancing its internal Phase I clinical programs in oncology and neurology, while also making the strategic decision to seek a partner for its KRAS G12D program, ARV-806, to align with its capital allocation strategy.

    02

    ARV-393 (BCL6 Degrader) Progress

    The Phase I trial for ARV-393, targeting BCL6 in non-Hodgkin lymphoma, has seen accelerated enrollment as dosing approached the expected efficacious range. Initial data by the end of 2026 will focus on early cohorts, including a higher proportion of T-cell lymphoma patients, where early responses have been observed. More mature data, including DLBCL patients and combination with glofi, is anticipated in 2027.

    03

    ARV-027 (polyQ-AR Degrader) in SBMA

    ARV-027, an oral degrader for spinal and bulbar muscular atrophy (SBMA), has completed single ascending dose cohorts and initiated multiple dose cohorts in healthy volunteers. The program aims to demonstrate adequate exposure and AR degradation in human muscle tissue, with data expected in the first half of 2027. This proof of mechanism could accelerate development towards a registrational study, targeting the primary driver of SBMA.

    04

    ARV-102 (LRRK2 Degrader) Regulatory Update

    Regulatory interactions for ARV-102, a LRRK2 degrader for neurodegenerative diseases like PSP and PD, are ongoing with US, European, and Japanese health authorities. Following an FDA request for additional information and chronic tox study data, the initiation of next clinical trials is now expected in 2027. Additional biomarker data, including ocular motor measures and CSF proteomics, will be presented at the MDS conference in October.

    05

    Immuno-Oncology and Pan-KRAS Research

    Arvinas is advancing two preclinical oncology programs: ARV-6723, an oral HPK1 degrader, which is set to begin Phase I enrollment soon, and a first-in-class oral pan-KRAS degrader. Preclinical data for ARV-6723 showed superior antitumor activity compared to HPK1 inhibitors and anti-PD-1 therapy, while the pan-KRAS degrader demonstrated potent activity across a broad spectrum of KRAS mutations and against KRAS amplification.

    AI-generated summary of the company’s earnings call. Not investment advice.