Biotech company Arvinas could see its shares rally from a potential medium- to long-term commercial opportunity, according to Goldman Sachs. The firm initiated coverage on Arvinas with a buy rating and price target of $70. That suggests 68.7% upside potential from where shares closed Wednesday. According to analyst Paul Choi, breast cancer drug vepdegestrant (ARV-471), which is being co-developed by Arvinas and Pfizer , presents an “underappreciated” commercial opportunity. Arvinas has a “differentiated protein degrader platform that could expand several major markets,” Choi wrote in a Thursday note. The analyst added that Arvinas’ late-stage product is “largely-derisked,” and there are opportunities for market expansion, which create an attractive profile for the company. “Against the current biotech backdrop, we see the to-date clinical profile of vepdegestrant and ARVN’s PROTAC platform technology (e.g., prostate, hematology, neurology) as placing the company as a potential candidate for acquirers seeking late stage oncology assets, which could provide more upside over the intermediate-to-long term,” said Choi. Shares surged as much as 8% Thursday, propelling the stock to a 52-week high. — CNBC’s Michael Bloom contributed to this report.
