Arvinas, Inc. (ARVN) Earnings

Management highlights

### Strategic Milestones Achieved in First Half of 2026 - Secured the first ever FDA approval of a proteolysis targeting chimera (PROTAC) degrader, Vepinil - Completed out-licensing of Vepinil to Rigel Pharmaceuticals, which plans to launch the drug for patients imminently - Made the strategic decision to partner out the KRAS G12V program ARV806, as the required investment does not align with the company's current capital allocation strategy - Shifted full internal focus to advancing the company's own early-stage pipeline in oncology and neurology ### Clinical Pipeline Progress - **ARV393 (BCL6 degrader for non-Hodgkin lymphoma):** Initial FDA guidance required starting doses far below predicted efficacious levels, leading to slower initial enrollment, but enrollment has accelerated significantly as dosing approaches the expected efficacious range. Early responses have already been observed in hard-to-treat T-cell lymphomas (including AITL) and B-cell lymphomas even at sub-efficacious doses. Initial Phase 1 monotherapy data is on track to release by the end of 2026, with more mature monotherapy and combination (with Glophe) data planned for 2027. - **ARV027 (PolyQAR degrader for SBMA/Kennedy's disease):** Completed single ascending dose cohorts in the Phase 1 healthy volunteer trial and initiated the multiple dose portion of the study. ARV027 is the first potential therapy targeting the underlying driver of SBMA, a rare neuromuscular disorder with 10,000-13,000 diagnosed patients in major markets. Proof-of-mechanism data (exposure and degradation in muscle) and initial safety data are expected in H1 2027, after which the trial will dose SBMA patients, with a path to accelerate directly to a registrational study after Phase 1. - **ARV102 (LRRK2 degrader for progressive supranuclear palsy (PSP) and Parkinson's disease (PD)):** Additional biomarker data (oculomotor measures and CSF proteomics) will be presented at the MDS conference in October 2026. The FDA requested additional information and completed chronic toxicology data prior to approving the Phase 1b trial; after productive ongoing interactions with US, European, and Japanese regulators, trial initiation is now expected in 2027. ARV102 is the first therapy to demonstrate modulation of key PD/PSP biomarkers, a result not achieved by existing LRRK2 inhibitors. ### Early Research Programs - **ARV6723 (oral HPK1 degrader for immuno-oncology):** Degradation eliminates both HPK1 kinase activity and its intact scaffolding function, which inhibitors cannot do. Preclinical data shows robust anti-tumor activity across immunogenic and checkpoint-resistant tumor models, outperforming both HPK1 inhibitors and anti-PD1 monotherapy. Phase 1 enrollment is set to initiate in the coming weeks, with dosing directly in oncology patients. - **Oral pan-KRAS degrader program:** Preclinical data shows potent activity across >90% of KRAS mutations (including hard-to-treat G12R and Q61) and against KRAS amplification (a common resistance mechanism). Combination data with immune checkpoint blockade will be presented at an upcoming scientific conference.

Guidance

- Cash runway is maintained at the previously guided level, with existing cash on balance sheet expected to fund operations into the second half of 2028, covering all planned key pipeline milestones - No changes were made to previous clinical disclosure timelines: ARV393 initial Phase 1 data by end-2026, ARV027 Phase 1 data in H1 2027, ARV102 Phase 1b/registrational trial initiation in 2027

Segment performance

Arvinas is a biopharmaceutical company focused on targeted protein degradation, and all reported revenue in Q2 2026 comes from licensing and collaboration agreements (no product segment revenue breakdown is provided in the transcript). Total Q2 2026 revenue was $249.7 million, broken down as: $62.5 million in license revenue from the Rigel Pharmaceuticals out-licensing of Vepinil, $50 million in milestone revenue from Pfizer triggered by Vepinil FDA approval, $3.5 million in revenue from the completed Pfizer research collaboration, and $133.7 million in recognized residual deferred revenue from the original Pfizer collaboration agreement. Operating expenses were: $9 million in cost of license revenue (all payments to Yale for Vepinil-related obligations), $24 million in general and administrative (G&A) expenses (down $1.3 million year-over-year from Q2 2025), and $52.6 million in research and development (R&D) expenses (down $16 million year-over-year from Q2 2025, with non-GAAP R&D down 14% year-over-year after completing 2025-initiated cost reduction programs). Cash, cash equivalents and marketable securities totaled $567.9 million at the end of Q2 2026, down from $685.4 million at the end of 2025.

Risks & headwinds

- ARV393 Phase 1 enrollment was slower than expected at initial sub-efficacious starting doses per FDA guidance, though enrollment has now accelerated as dosing approaches predicted efficacious levels - ARV102 trials in the US were placed on clinical hold by the FDA pending additional information and completed chronic toxicology data, pushing trial initiation from 2026 to 2027 - All programs are in early clinical or preclinical development, with no guarantee that observed preclinical or early clinical activity will translate to successful efficacy in later-stage trials

Analyst Q&A

• Q: What is the long-term development path for ARV393, and could ARV393 in combination with bispecifics support a pivotal trial in earlier-line non-Hodgkin lymphoma? /

  A: Management confirmed that a pivotal trial in earlier-line lymphoma in combination with bispecifics is a plausible end goal. Currently, the priority is completing monotherapy dose escalation to establish efficacy and safety signals, then confirm combinability with agents like Glophe. There are multiple unmet needs for an oral, chemotherapy-free BCL6 degrader across later-line and earlier-line settings for both B-cell and T-cell lymphomas, and the development path will be finalized once initial data is available. (201 characters)

• Q: Following recent regulatory interactions, what is the updated timeline and registrational path for ARV102 in PSP? /

  A: After the FDA placed a clinical hold on the planned Phase 1b trial to request additional data, ongoing regulatory discussions with US, European, and Japanese agencies will continue through the end of 2026, so trial initiation is now expected in 2027. The overall two-part development plan (Phase 1b followed by a registrational trial) remains unchanged, and the registrational trial will involve longer 6-12 month dosing periods for patients. (214 characters)

• Q: Why is an LRRK2 degrader more likely to succeed than the failed Biogen/Denali LRRK2 inhibitor Phase 2b trial? /

  A: Management noted that they were not surprised by the inhibitor failure, because they have always believed inhibiting only LRRK2's kinase function is not sufficient to treat disease. LRRK2 also has GTPase and scaffolding functions that drive pathology, which only degradation can fully eliminate. ARV102 will present unprecedented biomarker data at MDS showing greater target engagement and changes in prognostic progression markers that have not been seen with inhibitors. (223 characters)

• Q: Will degradation results in healthy volunteers for ARV027 translate well to SBMA patients, and what endpoints should investors watch for the upcoming ARV027 data? /

  A: Management confirmed that the translatability is expected to be very high: ARV027 degrades both wild-type androgen receptor (found in healthy volunteers) and disease-causing polyglutamine AR (found in SBMA patients) equally, and preclinical testing in patient-derived muscle samples confirmed matching pharmacology. The key endpoints to watch in the upcoming H1 2027 data are achievement of adequate drug exposure in muscle and >50% target degradation, the threshold linked to functional benefit in preclinical models. (262 characters)