Arvinas VERITAC-2 trial timelines not changed, says Oppenheimer

Oppenheimer lowered the firm’s price target on Arvinas to $80 from $95 and keeps an Outperform rating on the shares. The shares were down sharply earlier this morning on the misperception that guidance for the VERITAC-2 trial had changed, the analyst tells investors in a research note. The firm says that in reality, the messaging has been highly consistent over the past few quarters: Enrollment was always intended to wrap up by year-end 2024 and topline results would be available shortly thereafter. Opco believes the added wording “…depending on event rates” in the company’s Q4 earnings release spooked some investors. It says “no harm no foul.” Given the low expected survival of late-stage breast cancer patients, the firm assumes a median progression free survival of only 2-3 months, meaning topline VERITAC-2 should readout sometime in late 2024 or early 2025. It lowered the price target to reflect Arvinas’ cash burn guidance.