arvn-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________

FORM 10-Q

__________________________________________

(Mark One)


ý			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-38672

__________________________________________

ARVINAS, INC.

(Exact name of registrant as specified in its Charter)

__________________________________________


Delaware			47-2566120
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
5 Science Park 395 Winchester Ave. New Haven, Connecticut			06511
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (203) 535-1456

__________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.001 per share

ARVN

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	ý	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

As of July 26, 2024, the registrant had 68,648,061 shares of common stock, $0.001 par value per share, outstanding.


		Page
PART I.	FINANCIAL INFORMATION	2

Item 1.	Financial Statements (Unaudited)	2
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Operations and Comprehensive Loss	3
	Condensed Consolidated Statements of Changes in Stockholders’ Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34

PART II.	OTHER INFORMATION	36

Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 5.	Other Information	37
Item 6.	Exhibits	38

Signatures		39


(dollars and shares in millions, except per share amounts)	June 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	154.8	$	311.7
Restricted cash	5.5		5.5
Marketable securities	1,073.9		949.3

Other receivables	10.0		7.2
Prepaid expenses and other current assets	12.5		6.5
Total current assets	1,256.7		1,280.2
Property, equipment and leasehold improvements, net	9.8		11.5
Operating lease right of use assets	1.5		2.5
Collaboration contract asset and other assets	11.6		10.4
Total assets	$	1,279.6	$	1,304.6
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities	$	78.1	$	92.2
Deferred revenue	267.9		163.0

Current portion of operating lease liabilities	1.2		1.9
Total current liabilities	347.2		257.1
Deferred revenue	331.3		386.2
Long term debt	0.7		0.8
Operating lease liabilities	0.2		0.5
Total liabilities	679.4		644.6
Commitments and Contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.001 par value, zero shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	—		—
Common stock, $0.001 par value; 68.6 and 68.0 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	0.1		0.1
Accumulated deficit	(1,437.3)		(1,332.7)
Additional paid-in capital	2,041.2		1,995.7
Accumulated other comprehensive loss	(3.8)		(3.1)
Total stockholders’ equity	600.2		660.0
Total liabilities and stockholders’ equity	$	1,279.6	$	1,304.6


(dollars and shares in millions, except per share amounts)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
Consolidated Statements of Operations	2024		2023		2024		2023
Revenue	$	76.5	$	54.5	$	101.8	$	87.0
Operating expenses:
Research and development	93.7		103.4		178.0		198.6
General and administrative	31.3		25.7		55.6		50.7
Total operating expenses	125.0		129.1		233.6		249.3
Loss from operations	(48.5)		(74.6)		(131.8)		(162.3)
Other income (expense)
Other expense, net	(0.1)		—		(0.1)		(1.1)
Interest income, net	13.6		9.0		27.6		16.6

Total other income	13.5		9.0		27.5		15.5
Net loss before income taxes and loss from equity method investment	(35.0)		(65.6)		(104.3)		(146.8)
Income tax (expense) benefit	(0.2)		0.3		(0.3)		0.7
Loss from equity method investment	—		(1.3)		—		(2.4)
Net loss	$	(35.2)	$	(66.6)	$	(104.6)	$	(148.5)
Net loss per common share, basic and diluted	$	(0.49)	$	(1.25)	$	(1.46)	$	(2.78)
Weighted average common shares outstanding, basic and diluted	71.9		53.4		71.7		53.4


(dollars in millions)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
Consolidated Statements of Comprehensive Loss	2024		2023		2024		2023
Net loss	$	(35.2)	$	(66.6)	$	(104.6)	$	(148.5)
Other comprehensive loss:
Unrealized gain (loss) on available-for-sale securities	0.6		0.4		(0.7)		7.0
Comprehensive loss	$	(34.6)	$	(66.2)	$	(105.3)	$	(141.5)


(dollars and shares in millions)	Common			Accumulated Deficit		Additional Paid-in Capital		Accumulated Other Comprehensive (Loss) Income		Total Stockholders' Equity
For the Three Months Ended June 30, 2024 and 2023	Shares	Amount
Balance as of March 31, 2024	68.3	0.1		(1,402.1)		2,016.1		(4.4)		$	609.7
Stock-based compensation	—	—		—		21.6		—		21.6
Net loss	—	—		(35.2)		—		—		(35.2)

Issuance of common stock under equity incentive plans	0.3	—		—		3.5		—		3.5
Unrealized gain on available-for-sale securities	—	—		—		—		0.6		0.6
Balance as of June 30, 2024	68.6	$	0.1	$	(1,437.3)	$	2,041.2	$	(3.8)	$	600.2
Balance as of March 31, 2023	53.4	$	0.1	$	(1,047.3)	$	1,570.8	$	(12.6)	$	511.0
Stock-based compensation	—	—		—		18.3		—		18.3
Net loss	—	—		(66.6)		—		—		(66.6)

Issuance of common stock under equity incentive plans	—	—		—		0.5		—		0.5
Unrealized gain on available-for-sale securities	—	—		—		—		0.4		0.4
Balance as of June 30, 2023	53.4	$	0.1	$	(1,113.9)	$	1,589.6	$	(12.2)	$	463.6


(dollars in millions)	June 30, 2024		June 30, 2023
Cash and cash equivalents	$	154.8	$	90.6
Restricted cash	5.5		5.5
Cash, cash equivalents and restricted cash	$	160.3	$	96.1


(dollars in millions)
Remainder of 2024	$	191.2
2025	153.4
2026	105.0
2027	57.6
2028	59.8
2029	32.2

Total	$	599.2


	June 30, 2024
(dollars in millions)	Valuation Hierarchy	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate bonds	Level 2	$	1,069.0	$	—	$	(3.8)	$	1,065.2
Government securities	Level 2	8.7		—		—		8.7
Total		$	1,077.7	$	—	$	(3.8)	$	1,073.9


	December 31, 2023
(dollars in millions)	Valuation Hierarchy	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate bonds	Level 2	$	934.4	$	1.5	$	(4.6)	$	931.3
Government securities	Level 2	18.0		—		—		18.0
Total		$	952.4	$	1.5	$	(4.6)	$	949.3


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2024		2023		2024		2023
Operating lease cost	$	0.5	$	0.5	$	1.0	$	1.0


(dollars in millions)	June 30, 2024		June 30, 2023
Accounts receivable related to collaborations
Beginning balance	$	—	$	1.0
Additions	1.8		1.6
Payments received	—		(2.5)
Ending balance	$	1.8	$	0.1
Accounts payable related to collaborations
Beginning balance	$	13.1	$	5.0
Additions	29.2		1.7
Payments made	(26.1)		(6.7)
Ending balance	$	16.2	$	—
Contract assets: Collaboration contract asset
Beginning balance	$	9.4	$	10.7
Additions	3.0		—
Amortization	(1.7)		(1.5)
Ending balance	$	10.7	$	9.2
Contract liabilities: Deferred revenue
Beginning balance	$	549.2	$	623.7
Additions to collaboration agreements	130.0		1.5
Revenue recognized from balances held at the beginning of the period	(56.3)		(84.6)
Revenue recognized from new collaborations	(23.7)		—
Ending balance	$	599.2	$	540.6


(dollars in millions)	Maturity Date	Interest Rate	June 30, 2024		December 31, 2023
2018 Assistance Agreement Debt	09/28	3.25%	$	0.9	$	1.0
Less: current installments			(0.2)		(0.2)
Total long-term debt			$	0.7	$	0.8

SEC Form 10-Q filed by Arvinas Inc.