New Haven-based Arvinas Inc. announced it will work with Pfizer Inc. to find a third-party partner to commercialize their jointly developed breast cancer drug candidate, while also cutting jobs and authorizing a stock buyback program.
The move comes as Arvinas faces pressure from activist investor Logos Global Management, which has pushed for a leaner business model and sharper research focus. Logos recently disclosed an 8.6% stake in Arvinas and has urged the company to reduce expenses, return capital to shareholders and streamline its drug pipeline.
Arvinas said it and Pfizer agreed to out-license rights to vepdegestrant, an investigational therapy currently under review by the U.S. Food and Drug Administration, with a decision expected by June 2026. The two companies said a partner could maximize the drug’s commercial potential if approved.
Arvinas in 2021 signed a $2.4 billion deal with Pfizer to jointly develop vepdegestrant.
As part of its restructuring, Arvinas will cut about 15% of its workforce, mostly in positions tied to vepdegestrant commercialization. Combined with previously announced measures, the company said it expects to reduce annual costs by more than $100 million compared with fiscal 2024.
In May, Arvinas announced plans to lay off 131 employees, or a third of its workforce, as it discontinued two phase 3 trials with Pfizer related to its breast cancer treatment development plan.
Arvinas’ board this week also authorized a $100 million stock repurchase program, signaling confidence in the company’s prospects even as its shares trade well below their 52-week high.
Arvinas, founded in 2013, is a pioneer in protein degradation therapies. Beyond vepdegestrant, the company is advancing early-stage drug candidates in oncology and neuroscience, including therapies for lymphoma, Parkinson’s disease and KRAS-driven cancers.
Despite recent setbacks, including layoffs and the termination of a major New Haven lab lease, Arvinas said it still has enough cash to fund operations into the second half of 2028.
Arvinas’ stock was trading at $7.70 Thursday morning, up 1.2%. That’s still well off its 52-week high price of $29.61.
