ARVINAS, INC. Annual Report Summary (Fiscal Year Ended December 31, 2025)

This summary distills key information from Arvinas, Inc.'s latest 10-K filing for the fiscal year ended December 31, 2025. Arvinas, a clinical-stage biopharmaceutical company, develops a new class of drugs called PROTAC® (PROteolysis TArgeting Chimeras) protein degraders. These innovative therapies target serious diseases, primarily in oncology and neuroscience.

As a "well-known seasoned issuer" and "accelerated filer," Arvinas meets the SEC's criteria for established companies with a history of timely and comprehensive financial reporting, offering investors a high degree of transparency.

Business Overview: Arvinas, Inc. is a clinical-stage biopharmaceutical company dedicated to discovering, developing, and commercializing innovative therapies. The company's core technology is its proprietary PROTAC® protein degradation platform. This platform harnesses the body's natural protein degradation system to selectively target and eliminate disease-causing proteins. This approach offers a novel therapeutic strategy compared to traditional small molecule inhibitors. Arvinas primarily focuses on advancing its pipeline in oncology and neuroscience, addressing areas with significant unmet medical needs.

Financial Performance (Fiscal Year 2025):

• Revenue: The company reported approximately $150 million in collaboration revenue for fiscal year 2025, primarily from strategic partnerships.
• Net Loss: Arvinas recorded a net loss of approximately $320 million for 2025. This is typical for biotech companies heavily investing in research and development (R&D) to advance their drug pipeline.
• Research & Development (R&D) Expenses: R&D expenses reached approximately $400 million in 2025, reflecting substantial investment in clinical programs and discovery efforts.

Risk Factors:

Investing in Arvinas involves significant risks inherent to the biotechnology sector:

• Clinical Trial Success: The success of drug candidates like ARV-471 and ARV-766 is not guaranteed. Clinical trials are complex, expensive, and often fail due to lack of efficacy, unexpected side effects, or other issues. Any setbacks could significantly impact the company's valuation.
• Regulatory Approval: Even with positive clinical data, the FDA or other regulatory bodies may not approve Arvinas's drug candidates for commercialization. The approval process is rigorous and unpredictable.
• Competition: The oncology and neuroscience markets are highly competitive. Other companies may develop superior or more cost-effective treatments, potentially limiting Arvinas's market share.
• Funding Needs: Despite a solid current cash position, Arvinas may require additional capital to fund ongoing R&D, clinical trials, and potential commercialization efforts. Future fundraising could dilute existing shareholders.
• Intellectual Property: The company's success heavily depends on its ability to protect its PROTAC technology through patents. Challenges to its intellectual property could severely impact the business.
• Reliance on Third Parties: Arvinas relies on third parties for manufacturing, clinical trial conduct, and certain research activities, which introduces risks related to their performance and compliance.
• Product Liability: As a biopharmaceutical company, Arvinas faces inherent product liability risks associated with developing and potentially commercializing pharmaceutical products.

Management Discussion and Analysis (MD&A) Highlights:

The MD&A section offers management's perspective on the company's financial condition and operational results.

• Results of Operations: Management highlighted the significant investment in research and development, totaling approximately $400 million in 2025, as a primary driver of the $320 million net loss. Collaboration revenue of $150 million partially offset these expenses, demonstrating the value of strategic partnerships in funding pipeline advancement. The increase in R&D expenses primarily stemmed from advancing lead clinical candidates, ARV-471 and ARV-766, into later-stage clinical trials, and expanding early-stage neuroscience programs.
• Liquidity and Capital Resources: As of December 31, 2025, Arvinas held approximately $650 million in cash, cash equivalents, and marketable securities. Management projects this cash runway will fund operations into late 2027, excluding potential new business development activities or significant pipeline advancements. This projection relies on current operating plans and anticipated R&D expenditures. The company continues to evaluate various funding strategies to support its long-term growth and pipeline development.
• Operational Highlights & Strategic Focus: Arvinas made significant progress across its PROTAC platform in 2025.
  • ARV-471 (for ER+/HER2- metastatic breast cancer): The company successfully completed enrollment for its Phase 3 clinical trial. Initial data readouts are anticipated in mid-2027. This program, developed in collaboration with Pfizer, remains a key focus.
  • ARV-766 (for metastatic castration-resistant prostate cancer): Arvinas reported positive data from the Phase 2 trial, demonstrating promising efficacy and safety profiles. The company plans to discuss potential registrational pathways with regulatory authorities in early 2026.
  • Neuroscience Programs: Several early-stage PROTAC candidates targeting neurological disorders, including ARV-102 for Alzheimer's disease, advanced into Phase 1 clinical trials, expanding the company's therapeutic reach beyond oncology.
• Strategic Partnerships: Existing collaborations, particularly with Pfizer for ARV-471 and with Bayer for early-stage programs, continued to provide funding, expertise, and validation for Arvinas's PROTAC technology.

Financial Health:

• Cash Position: As of December 31, 2025, Arvinas held approximately $650 million in cash, cash equivalents, and marketable securities.
• Liquidity: Management projects this cash position will fund operations into late 2027, excluding potential new business development activities or significant pipeline advancements. This indicates a strong short-to-medium term liquidity position.
• Market Capitalization & Shares: The value of Arvinas's publicly traded stock (public float) was approximately $469.0 million as of June 30, 2025. As of February 15, 2026, approximately 63.96 million shares of common stock were outstanding.

Future Outlook:

• Guidance: Management projects the current cash position will fund operations into late 2027. Key clinical milestones include anticipated initial data readouts for ARV-471 in mid-2027 and discussions with regulatory authorities for ARV-766 in early 2026.
• Strategy: Arvinas's strategy centers on accelerating the development of its lead clinical candidates, expanding its PROTAC platform into new disease areas, and leveraging strategic partnerships to maximize pipeline value and reach. The company aims to continue investing in its proprietary PROTAC platform to generate new drug candidates and explore additional therapeutic applications.

Competitive Position:

Arvinas's competitive position primarily stems from its proprietary PROTAC® protein degradation platform, which offers a differentiated approach to drug discovery compared to traditional small molecule inhibitors. The company believes this platform provides several potential advantages, including the ability to target "undruggable" proteins, achieve sustained pharmacological effects, and potentially overcome drug resistance mechanisms.

• Differentiation: PROTAC technology enables the selective degradation of target proteins rather than mere inhibition. This could lead to more profound and durable therapeutic effects. This novel mechanism of action provides a unique competitive edge in the highly competitive oncology and neuroscience therapeutic areas.
• Intellectual Property: Arvinas holds a robust portfolio of intellectual property covering its PROTAC technology and specific drug candidates. This is crucial for protecting its innovations and maintaining a competitive advantage.
• Strategic Partnerships: Collaborations with major pharmaceutical companies like Pfizer and Bayer validate the potential of Arvinas's platform. These partnerships also provide access to significant resources, expertise, and broader market reach, enhancing its competitive standing.
• Market Landscape: While the oncology and neuroscience markets are highly competitive with numerous established players and emerging biotechs, Arvinas aims to carve out a significant niche. It addresses diseases with high unmet needs through its unique degradation approach. The company faces competition from other protein degradation companies, as well as developers of traditional small molecules, antibodies, and other treatment modalities.