Arvinas, Inc.

Arvinas, Inc. (NASDAQ: ARVN) is a Biopharmaceutical business focused on discovering, developing, and marketing disease-causing protein-degrading medicines. It employs its PROTAC Discovery Engine, a technology platform that allows it to create PROTAC targeted protein degraders that leverage the body's own natural protein disposal system to eliminate disease-causing proteins selectively.

Key Highlights

• The company reported YoY growth of 340.0% in revenue to USD 24.2 million in Q1FY22 (ended March 31, 2022) compared to USD 5.5 million in Q1FY21.
• In Q1FY22, ARVN net loss increased to USD 63.4 million from USD 41.0 million in Q1FY21.  
• As of March 31, 2022, the company had cash and cash equivalents of USD 1.43 billion and total outstanding debt of USD 1.0 million.
• ARVN’s net margin for Q1FY22 was -262.0%, significantly lower than the industry median of 4.3%.
• ARVN has a strong liquidity, Current ratio of 6.12x at the end of Q1FY22 vs. Industry Median of 2.92x.
• ARVN’s Q1FY22 cash cycle of 61 days is significantly lower than the industry median of 130 days.
• On May 09, 2022, GNS Healthcare, the leader in using "Virtual Patients," Causal AI, and simulation technology for biopharmaceutical companies, announced a collaboration with ARVN to generate insights to help accelerate drug development for neurodegenerative diseases.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support level, a bearish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 37.41 to USD 108.47.

Conclusion: Considering the company’s strong topline, continued losses, liquid balance sheet, technical indicators, and associated risks. We recommend a "Watch" rating on the stock at the current price of USD 40.05, up 4.40%, as of May 12, 2022, at 08:39 AM PDT.

Technical Price Chart (as of May 12, 2022, at 08:39 AM PDT). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Closing price as of May 12, 2022, at 08:39 AM PDT.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.