arvn-10q_20200930.htm
false Q3 0001655759 --12-31 us-gaap:AccountingStandardsUpdate201613Member true true true true P120M 2300000 4900000 2018-09-30 P3M P1Y P1Y P1Y 2020 2021 0.703 P5Y3M18D 0.003 24.75 0.747 P7Y 0.016 50.00 0001655759 2020-01-01 2020-09-30 xbrli:shares 0001655759 2020-10-30 iso4217:USD 0001655759 2020-09-30 0001655759 2019-12-31 iso4217:USD xbrli:shares 0001655759 2020-07-01 2020-09-30 0001655759 2019-07-01 2019-09-30 0001655759 2019-01-01 2019-09-30 0001655759 us-gaap:CommonStockMember 2019-06-30 0001655759 us-gaap:RetainedEarningsMember 2019-06-30 0001655759 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001655759 2019-06-30 0001655759 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001655759 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001655759 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001655759 us-gaap:CommonStockMember 2019-09-30 0001655759 us-gaap:RetainedEarningsMember 2019-09-30 0001655759 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001655759 2019-09-30 0001655759 us-gaap:CommonStockMember 2020-06-30 0001655759 us-gaap:RetainedEarningsMember 2020-06-30 0001655759 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001655759 2020-06-30 0001655759 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0001655759 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0001655759 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0001655759 us-gaap:CommonStockMember arvn:AtTheMarketOfferingMember 2020-07-01 2020-09-30 0001655759 us-gaap:AdditionalPaidInCapitalMember arvn:AtTheMarketOfferingMember 2020-07-01 2020-09-30 0001655759 arvn:AtTheMarketOfferingMember 2020-07-01 2020-09-30 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0001655759 us-gaap:CommonStockMember 2020-09-30 0001655759 us-gaap:RetainedEarningsMember 2020-09-30 0001655759 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0001655759 us-gaap:CommonStockMember 2018-12-31 0001655759 us-gaap:RetainedEarningsMember 2018-12-31 0001655759 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001655759 2018-12-31 0001655759 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001655759 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0001655759 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0001655759 us-gaap:CommonStockMember 2019-12-31 0001655759 us-gaap:RetainedEarningsMember 2019-12-31 0001655759 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001655759 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-09-30 0001655759 us-gaap:RetainedEarningsMember 2020-01-01 2020-09-30 0001655759 us-gaap:CommonStockMember 2020-01-01 2020-09-30 0001655759 us-gaap:CommonStockMember arvn:AtTheMarketOfferingMember 2020-01-01 2020-09-30 0001655759 us-gaap:AdditionalPaidInCapitalMember arvn:AtTheMarketOfferingMember 2020-01-01 2020-09-30 0001655759 arvn:AtTheMarketOfferingMember 2020-01-01 2020-09-30 0001655759 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0001655759 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-09-30 0001655759 arvn:BayerAGMember 2019-07-31 0001655759 arvn:BayerAGMember arvn:ResearchFundingPaymentsMember srt:ScenarioForecastMember 2022-12-31 0001655759 arvn:BayerAGMember arvn:ResearchFundingPaymentsMember 2019-07-31 0001655759 arvn:BayerAGMember arvn:ResearchFundingPaymentsMember 2020-03-31 0001655759 arvn:BayerAGMember arvn:DevelopmentMilestonePaymentsMember srt:MaximumMember 2019-07-31 0001655759 arvn:BayerAGMember arvn:SalesBasedMilestonePaymentsMember srt:MaximumMember 2019-07-31 0001655759 arvn:StockPurchaseAgreementMember arvn:BayerAGMember 2020-01-01 2020-09-30 arvn:Contract 0001655759 arvn:PfizerIncorporationMember 2018-01-01 2018-12-31 0001655759 arvn:PfizerIncorporationMember arvn:OptionExercisedToLicenseAgreementsMember 2020-09-30 0001655759 arvn:PfizerIncorporationMember arvn:OptionPaymentsToLicenseAgreementMember srt:MaximumMember 2020-09-30 0001655759 arvn:PfizerIncorporationMember arvn:DevelopmentMilestonePaymentsMember srt:MaximumMember 2020-09-30 0001655759 arvn:PfizerIncorporationMember arvn:SalesBasedMilestonePaymentsMember srt:MaximumMember 2020-09-30 0001655759 arvn:PfizerIncorporationMember 2019-12-31 0001655759 arvn:PfizerIncorporationMember 2020-03-31 0001655759 arvn:GenentechIncorporationAndFHoffmanLaRocheLimitedMember 2015-09-01 2015-12-31 0001655759 arvn:GenentechIncorporationAndFHoffmanLaRocheLimitedMember 2017-11-01 2017-11-30 arvn:Target 0001655759 arvn:DevelopmentMilestonePaymentsMember srt:MaximumMember arvn:GenentechIncorporationAndFHoffmanLaRocheLimitedMember 2017-11-30 0001655759 arvn:RegulatoryMilestonePaymentsMember arvn:GenentechIncorporationAndFHoffmanLaRocheLimitedMember 2017-11-30 0001655759 arvn:CommercialMilestonesMember arvn:GenentechIncorporationAndFHoffmanLaRocheLimitedMember 2017-11-30 0001655759 arvn:OptionPaymentsToLicenseAgreementMember srt:MaximumMember arvn:GenentechIncorporationAndFHoffmanLaRocheLimitedMember 2017-11-30 0001655759 2019-01-01 2019-12-31 0001655759 arvn:BayerAGAndPfizerMember 2020-01-01 2020-09-30 0001655759 2020-10-01 2020-09-30 0001655759 2021-01-01 2020-09-30 0001655759 2022-01-01 2020-09-30 0001655759 2023-01-01 2020-09-30 0001655759 arvn:CorporateBondsMaturingTwoThousandTwentyOneMember 2020-01-01 2020-09-30 0001655759 arvn:CorporateBondsMaturingTwoThousandTwentyAndTwoThousandTwentyOneMember srt:MinimumMember 2020-01-01 2020-09-30 0001655759 arvn:CorporateBondsMaturingTwoThousandTwentyAndTwoThousandTwentyOneMember srt:MaximumMember 2020-01-01 2020-09-30 0001655759 arvn:CorporateBondsMaturingTwoThousandTwentyAndTwoThousandTwentyOneMember 2020-09-30 0001655759 arvn:CorporateBondsMaturingTwoThousandTwentyOneMember 2020-09-30 0001655759 arvn:CorporateBondsMaturingTwoThousandTwentyMember 2019-01-01 2019-12-31 0001655759 arvn:CorporateBondsMaturingTwoThousandTwentyOneMember 2019-01-01 2019-12-31 0001655759 arvn:CorporateBondsMaturingTwoThousandTwentyMember 2019-12-31 0001655759 arvn:CorporateBondsMaturingTwoThousandTwentyOneMember 2019-12-31 0001655759 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001655759 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001655759 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001655759 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001655759 arvn:LaboratoryEquipmentMember 2020-09-30 0001655759 arvn:LaboratoryEquipmentMember 2019-12-31 0001655759 us-gaap:OfficeEquipmentMember 2020-09-30 0001655759 us-gaap:OfficeEquipmentMember 2019-12-31 0001655759 us-gaap:LeaseholdImprovementsMember 2020-09-30 0001655759 us-gaap:LeaseholdImprovementsMember 2019-12-31 xbrli:pure 0001655759 srt:MinimumMember 2020-09-30 0001655759 srt:MaximumMember 2020-09-30 0001655759 arvn:ConnecticutInnovationsIncorporatedMember arvn:LoanAgreementMember us-gaap:SecuredDebtMember 2013-08-31 0001655759 arvn:ConnecticutInnovationsIncorporatedMember arvn:LoanAgreementMember us-gaap:SecuredDebtMember us-gaap:LeaseholdImprovementsMember 2013-08-31 0001655759 arvn:ConnecticutInnovationsIncorporatedMember arvn:LoanAgreementMember us-gaap:SecuredDebtMember 2020-01-01 2020-09-30 0001655759 arvn:ConnecticutInnovationsIncorporatedMember arvn:LoanAgreementMember us-gaap:SecuredDebtMember 2013-08-01 2013-08-31 0001655759 arvn:TwoThousandAndFourteenAssistanceAgreementMember stpr:CT 2014-01-01 2014-12-31 0001655759 arvn:TwoThousandAndFourteenAssistanceAgreementMember stpr:CT 2014-12-31 0001655759 srt:MaximumMember arvn:TwoThousandAndEighteenAssistanceAgreementMember stpr:CT 2018-06-30 0001655759 arvn:TwoThousandAndEighteenAssistanceAgreementMember stpr:CT 2018-06-01 2018-06-30 0001655759 arvn:TwoThousandAndEighteenAssistanceAgreementMember stpr:CT 2018-09-30 0001655759 arvn:TwoThousandAndEighteenAssistanceAgreementMember stpr:CT 2018-09-01 2018-09-30 0001655759 srt:MaximumMember arvn:TwoThousandAndEighteenAssistanceAgreementMember stpr:CT 2018-09-01 2018-09-30 0001655759 arvn:AtTheMarketOfferingMember arvn:PiperSandlerMember 2019-10-31 0001655759 arvn:AtTheMarketOfferingMember arvn:PiperSandlerMember 2020-01-01 2020-09-30 0001655759 arvn:AtTheMarketOfferingMember arvn:PiperSandlerMember 2020-07-01 2020-09-30 0001655759 us-gaap:EmployeeStockMember 2018-09-30 0001655759 us-gaap:EmployeeStockMember 2019-01-01 0001655759 us-gaap:EmployeeStockMember 2020-01-01 0001655759 us-gaap:EmployeeStockMember 2019-01-01 2019-01-01 0001655759 us-gaap:EmployeeStockMember 2020-01-01 2020-01-01 0001655759 us-gaap:EmployeeStockMember 2020-07-01 2020-09-30 0001655759 us-gaap:EmployeeStockMember 2020-01-01 2020-09-30 0001655759 us-gaap:EmployeeStockMember 2020-09-30 0001655759 us-gaap:EmployeeStockMember srt:MinimumMember 2020-01-01 2020-09-30 0001655759 arvn:StockIncentivePlanMember 2018-03-31 0001655759 arvn:StockIncentivePlanMember srt:MinimumMember 2018-03-01 2018-03-31 0001655759 arvn:StockIncentivePlanMember srt:MaximumMember 2018-03-01 2018-03-31 0001655759 arvn:StockIncentivePlanMember 2018-03-01 2018-03-31 0001655759 arvn:TwoThousandEighteenStockIncentivePlanMember 2018-09-30 0001655759 arvn:StockIncentivePlanMember srt:MaximumMember 2018-09-30 0001655759 arvn:TwoThousandEighteenStockIncentivePlanMember srt:MinimumMember 2018-09-01 2018-09-30 0001655759 arvn:TwoThousandEighteenStockIncentivePlanMember 2018-09-01 2018-09-30 0001655759 arvn:StockIncentivePlanMember 2019-01-01 2019-12-31 0001655759 arvn:StockIncentivePlanMember srt:ScenarioForecastMember 2020-01-01 2020-12-31 0001655759 arvn:EmployeesMember arvn:StockIncentivePlanMember 2020-01-01 2020-09-30 0001655759 arvn:EmployeesMember arvn:StockIncentivePlanMember 2020-09-30 0001655759 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-30 0001655759 us-gaap:EmployeeStockOptionMember srt:MinimumMember 2020-01-01 2020-09-30 0001655759 us-gaap:EmployeeStockOptionMember srt:MaximumMember 2020-01-01 2020-09-30 0001655759 us-gaap:EmployeeStockOptionMember srt:MinimumMember 2020-09-30 0001655759 us-gaap:EmployeeStockOptionMember srt:MaximumMember 2020-09-30 0001655759 arvn:StockIncentivePlanMember us-gaap:RestrictedStockMember arvn:EmployeesDirectorsAndConsultantsMember 2019-12-31 0001655759 arvn:StockIncentivePlanMember us-gaap:RestrictedStockMember arvn:EmployeesDirectorsAndConsultantsMember 2020-01-01 2020-09-30 0001655759 arvn:StockIncentivePlanMember us-gaap:RestrictedStockMember arvn:EmployeesDirectorsAndConsultantsMember 2020-09-30 0001655759 arvn:TwoThousandEighteenStockIncentivePlanMember 2019-12-31 0001655759 arvn:TwoThousandEighteenStockIncentivePlanMember 2020-01-01 2020-09-30 0001655759 arvn:TwoThousandEighteenStockIncentivePlanMember 2020-09-30 0001655759 arvn:StockIncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember arvn:EmployeesMember 2019-12-31 0001655759 arvn:StockIncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember arvn:EmployeesMember 2020-01-01 2020-09-30 0001655759 arvn:StockIncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember arvn:EmployeesMember 2020-09-30 0001655759 arvn:StockIncentivePlanMember us-gaap:RestrictedStockMember 2020-09-30 0001655759 us-gaap:StateAndLocalJurisdictionMember 2020-07-01 2020-09-30 0001655759 us-gaap:StateAndLocalJurisdictionMember 2020-01-01 2020-09-30 0001655759 us-gaap:StateAndLocalJurisdictionMember 2019-07-01 2019-09-30 0001655759 us-gaap:StateAndLocalJurisdictionMember 2019-01-01 2019-09-30 0001655759 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-30 0001655759 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0001655759 us-gaap:RestrictedStockMember 2020-01-01 2020-09-30 0001655759 us-gaap:RestrictedStockMember 2019-01-01 2019-09-30 0001655759 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-09-30 0001655759 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-09-30 0001655759 arvn:BayerCropScienceLPMember arvn:OerthBioLimitedLiabilityCorporationMember 2020-09-30 0001655759 arvn:OerthBioLimitedLiabilityCorporationMember 2020-09-30 0001655759 arvn:OerthBioLimitedLiabilityCorporationMember us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember 2020-07-01 2020-09-30 0001655759 arvn:OerthBioLimitedLiabilityCorporationMember us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember 2020-01-01 2020-09-30 0001655759 arvn:OerthBioLimitedLiabilityCorporationMember 2020-07-01 2020-09-30 0001655759 arvn:OerthBioLimitedLiabilityCorporationMember 2020-01-01 2020-09-30

f

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended September 30, 2020

OR

 

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      No    

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      No  

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

 

  

Accelerated filer

 

Non-accelerated filer

 

☐  

  

Smaller reporting company

 

 

 

 

 

Emerging growth company

 

 

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. 

 

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

 

As of October 30, 2020, the registrant had 40,548,985 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 

 

 


Table of Contents

 

 

 

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 Unaudited Condensed Consolidated Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

15

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

25

Item 4.

Controls and Procedures

25

PART II.

OTHER INFORMATION

26

Item 1.

Legal Proceedings

26

Item 1A.

Risk Factors

26

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

64

Item 6.

Exhibits

65

Signatures

66

 

i


FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “target,” “potential,” “goals,” “will,” “would,” “could,” “should,” “continue” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

The forward-looking statements in this Quarterly Report on Form 10-Q include, among other things, statements about:

 

the timing and conduct of our clinical trial programs of ARV-110, ARV-471 and ARV-766, including statements regarding the conduct of our ongoing Phase 1/2 clinical trials of ARV-110 and ARV-471, including one or more Phase 1b cohort expansions of ARV-110 in combination with standard of care agents and the Phase 1b cohort expansion evaluating ARV-471 in combination with palbociclib, and the period during which the results of the clinical trials will become available;

 

the timing of, and our ability to obtain, marketing approval of ARV-110 and ARV-471, and the ability of ARV-110 and ARV-471 and our other product candidates to meet existing or future regulatory standards;

 

our plans to pursue research and development of other product candidates;

 

the potential advantages of our platform technology and our product candidates;

 

the extent to which our scientific approach and platform technology may potentially address a broad range of diseases;

 

the potential benefits of our arrangements with Yale University and Professor Crews;

 

the potential receipt of revenue from future sales of our product candidates;

 

the rate and degree of market acceptance and clinical utility of our product candidates;

 

our estimates regarding the potential market opportunity for our product candidates;

 

our sales, marketing and distribution capabilities and strategy;

 

our ability to establish and maintain arrangements for manufacture of our product candidates;

 

the potential achievement of milestones and receipt of payments under our collaborations;

 

our ability to enter into additional collaborations with third parties;

 

our intellectual property position;

 

our estimates regarding expenses, future revenues, capital requirements and needs for additional financing;

 

the impact of COVID-19 on our business and operations;

 

the impact of government laws and regulations; and

 

our competitive position.

We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included in this Quarterly Report on Form 10-Q, particularly in the “Risk Factors” section, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

You should read this Quarterly Report on Form 10-Q and the documents that we have filed as exhibits to this Quarterly Report on Form 10-Q completely and with the understanding that our actual future results may be materially different from what we expect. We do not assume any obligation to update any forward-looking statements except as required by applicable law.

In this Quarterly Report on Form 10-Q, unless otherwise stated or the context otherwise requires, references to the “Company,” “Arvinas,” “we,” “us,” and “our,” except where the context requires otherwise, refer to Arvinas, Inc. and its consolidated subsidiaries, or any one or more of them as the context may require, and “our board of directors” refers to the board of directors of Arvinas, Inc.

 

 

ii


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Arvinas, INC. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

 

 

 

September 30,

2020

 

 

December 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

88,988,921

 

 

$

9,211,057

 

Marketable securities

 

 

159,574,963

 

 

 

271,661,456

 

Account receivable

 

 

2,444,450

 

 

 

 

Other receivables

 

 

3,511,633

 

 

 

6,280,828

 

Prepaid expenses and other current assets

 

 

3,459,862

 

 

 

3,727,294

 

Total current assets

 

 

257,979,829

 

 

 

290,880,635

 

Property, equipment and leasehold improvements, net

 

 

11,712,403

 

 

 

8,455,411

 

Operating lease right of use assets

 

 

2,226,422

 

 

 

2,278,623

 

Other assets

 

 

28,777

 

 

 

26,757

 

Total assets

 

$

271,947,431

 

 

$

301,641,426

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,088,034

 

 

$

4,556,827

 

Accrued expenses

 

 

12,143,734

 

 

 

7,602,904

 

Deferred revenue

 

 

21,358,989

 

 

 

19,979,525

 

Current portion of operating lease liability

 

 

939,761

 

 

 

673,896

 

Total current liabilities

 

 

39,530,518

 

 

 

32,813,152

 

Deferred revenue

 

 

23,945,470

 

 

 

38,427,882

 

Long term debt

 

 

2,000,000

 

 

 

2,000,000

 

Operating lease liability

 

 

1,351,476

 

 

 

1,714,111

 

Total liabilities

 

 

66,827,464

 

 

 

74,955,145

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.001 par value; 40,096,001 and 38,461,353 shares

   issued and outstanding as of September 30, 2020 and December 31, 2019,

   respectively

 

 

40,096

 

 

 

38,461

 

Accumulated deficit

 

 

(450,342,422

)

 

 

(372,556,846

)

Additional paid-in capital

 

 

654,342,486

 

 

 

599,097,090

 

Accumulated other comprehensive income

 

 

1,079,807

 

 

 

107,576

 

Total stockholders’ equity

 

 

205,119,967

 

 

 

226,686,281

 

Total liabilities and stockholders’ equity

 

$

271,947,431

 

 

$

301,641,426

 

 

See accompanying notes

2


Arvinas, INC. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)

 

Condensed Consolidated Statements of Operations

 

For the Three Months

Ended September 30,

 

 

For the Nine Months

Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

$

7,596,776

 

 

$

30,050,227

 

 

$

19,584,085

 

 

$

38,083,205

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

30,012,918

 

 

 

16,588,050

 

 

 

75,155,694

 

 

 

46,779,047

 

General and administrative

 

 

9,331,925

 

 

 

7,957,364

 

 

 

26,072,404

 

 

 

20,038,772

 

Total operating expenses

 

 

39,344,843

 

 

 

24,545,414

 

 

 

101,228,098

 

 

 

66,817,819

 

Income (loss) from operations

 

 

(31,748,067

)

 

 

5,504,813

 

 

 

(81,644,013

)

 

 

(28,734,614

)

Other income (expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

144,215

 

 

 

405,302

 

 

 

841,967

 

 

 

840,153

 

Interest income

 

 

800,236

 

 

 

1,112,415

 

 

 

3,065,220

 

 

 

3,394,269

 

Interest expense

 

 

(16,250

)

 

 

(22,903

)

 

 

(48,750

)

 

 

(69,319

)

Total other income

 

 

928,201

 

 

 

1,494,814

 

 

 

3,858,437

 

 

 

4,165,103

 

Loss from equity method investment

 

 

 

 

 

(24,675,000

)

 

 

 

 

 

(24,675,000

)

Net loss

 

 

(30,819,866

)

 

 

(17,675,373

)

 

 

(77,785,576

)

 

 

(49,244,511

)

Net loss per common share, basic and diluted

 

$

(0.79

)

 

$

(0.54

)

 

$

(2.01

)

 

$

(1.54

)

Weighted average common shares outstanding, basic

   and diluted

 

 

39,058,294

 

 

 

32,740,486

 

 

 

38,784,569

 

 

 

31,876,074

 

 

Condensed Consolidated Statements of Comprehensive Loss

 

For the Three Months

Ended September 30,

 

 

For the Nine Months

Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net loss

 

$

(30,819,866

)

 

$

(17,675,373

)

 

$

(77,785,576

)

 

$

(49,244,511

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on available-for-sale securities

 

 

(584,317

)

 

 

(103,505

)

 

 

972,231

 

 

 

414,368

 

Comprehensive loss

 

$

(31,404,183

)

 

$

(17,778,878

)

 

$

(76,813,345

)

 

$

(48,830,143

)

 

See accompanying notes

 

 

3


Arvinas, INC. and Subsidiaries

Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

Total

 

 

 

Common

 

 

Accumulated

 

 

Paid-in

 

 

Comprehensive

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Deficit

 

 

Capital

 

 

Income (Loss)

 

 

Equity

 

Balance at June 30, 2019

 

 

31,523,474

 

 

$

31,524

 

 

$

(333,833,757

)

 

$

450,007,344

 

 

$

300,150

 

 

$

116,505,261

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

4,601,214

 

 

 

 

 

 

4,601,214

 

Issuance of common stock

 

 

1,346,313

 

 

 

1,346

 

 

 

 

 

 

29,452,687

 

 

 

 

 

 

29,454,033

 

Net loss

 

 

 

 

 

 

 

 

(17,675,373

)

 

 

 

 

 

 

 

 

(17,675,373

)

Restricted stock vesting

 

 

120,647

 

 

 

120

 

 

 

 

 

 

(120

)

 

 

 

 

 

 

Exercise of stock options

 

 

86,123

 

 

 

86

 

 

 

 

 

 

1,377,882

 

 

 

 

 

 

1,377,968

 

Unrealized loss on available-for

   -sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(103,505

)

 

 

(103,505

)

Balance at September 30, 2019

 

 

33,076,557

 

 

$

33,076

 

 

$

(351,509,130

)

 

$

485,439,007

 

 

$

196,645

 

 

$

134,159,598

 

Balance at June 30, 2020

 

 

38,825,190

 

 

$

38,825

 

 

$

(419,522,556

)

 

$

615,601,031

 

 

$

1,664,124

 

 

$

197,781,424

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

8,246,921

 

 

 

 

 

 

8,246,921

 

Net loss

 

 

 

 

 

 

 

 

(30,819,866

)

 

 

 

 

 

 

 

 

(30,819,866

)

Restricted stock vesting

 

 

82,156

 

 

 

82

 

 

 

 

 

 

(82

)

 

 

 

 

 

 

Exercise of stock options

 

 

25,581

 

 

 

26

 

 

 

 

 

 

577,277

 

 

 

 

 

 

577,303

 

Common stock issued in at-the-market offering,

   net of offering costs of $0.9 million

 

 

1,163,074

 

 

 

1,163

 

 

 

 

 

 

29,917,339

 

 

 

 

 

 

29,918,502

 

Unrealized loss on available-for

   -sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(584,317

)

 

 

(584,317

)

Balance at September 30, 2020

 

 

40,096,001

 

 

$

40,096

 

 

$

(450,342,422

)

 

$

654,342,486

 

 

$

1,079,807

 

 

$

205,119,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

Total

 

 

 

Common

 

 

Accumulated

 

 

Paid-in

 

 

Comprehensive

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Deficit

 

 

Capital

 

 

Income (Loss)

 

 

Equity

 

Balance at December 31, 2018

 

 

31,235,458

 

 

$

31,236

 

 

$

(302,264,619

)

 

$

439,118,089

 

 

$

(217,723

)

 

$

136,666,983

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

15,091,269

 

 

 

 

 

 

15,091,269

 

Issuance of common stock

 

 

1,346,313

 

 

 

1,346

 

 

 

 

 

 

29,452,687

 

 

 

 

 

 

29,454,033

 

Net loss

 

 

 

 

 

 

 

 

(49,244,511

)

 

 

 

 

 

 

 

 

(49,244,511

)

Restricted stock vesting

 

 

383,695

 

 

 

383

 

 

 

 

 

 

(383

)

 

 

 

 

 

 

Exercise of stock options

 

 

111,091

 

 

 

111

 

 

 

 

 

 

1,777,345

 

 

 

 

 

 

1,777,456

 

Unrealized gain on available-for

   -sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

414,368

 

 

 

414,368

 

Balance at September 30, 2019

 

 

33,076,557

 

 

$

33,076

 

 

$

(351,509,130

)

 

$

485,439,007

 

 

$

196,645

 

 

$

134,159,598

 

Balance at December 31, 2019

 

 

38,461,353

 

 

$

38,461

 

 

$

(372,556,846

)

 

$

599,097,090

 

 

$

107,576

 

 

$

226,686,281

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

22,121,591

 

 

 

 

 

 

22,121,591

 

Net loss

 

 

 

 

 

 

 

 

(77,785,576

)

 

 

 

 

 

 

 

 

(77,785,576

)

Restricted stock vesting

 

 

295,065

 

 

 

295

 

 

 

 

 

 

(295

)

 

 

 

 

 

 

Exercise of stock options

 

 

176,509

 

 

 

177

 

 

 

 

 

 

3,206,761

 

 

 

 

 

 

3,206,938

 

Common stock issued in at-the-market offering,

   net of offering costs of $0.9 million

 

 

1,163,074

 

 

 

1,163

 

 

 

 

 

 

29,917,339

 

 

 

 

 

 

29,918,502

 

Unrealized gain on available-for

   -sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

972,231

 

 

 

972,231

 

Balance at September 30, 2020

 

 

40,096,001

 

 

$

40,096

 

 

$

(450,342,422

)

 

$

654,342,486

 

 

$

1,079,807

 

 

$

205,119,967

 

 

See accompanying notes

4


 

Arvinas, INC. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (unaudited)

 

 

 

For the Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(77,785,576

)

 

$

(49,244,511

)

Adjustments to reconcile net loss to net cash

   used in operating activities:

 

 

 

 

 

 

 

 

Amortization of debt discount

 

 

 

 

 

15,149

 

Depreciation and amortization

 

 

2,113,865

 

 

 

1,024,845

 

Net accretion of bond discounts/premiums

 

 

1,404,626

 

 

 

(109,870

)

Gain on sale of marketable securities

 

 

(327,025

)

 

 

 

Amortization of right to use assets

 

 

624,614

 

 

 

506,855

 

Stock-based compensation

 

 

22,121,591

 

 

 

15,091,269

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Account receivable

 

 

(2,444,450

)

 

 

2,716,501

 

Other receivables

 

 

2,769,195

 

 

 

(2,886,261

)

Prepaid expenses and other current assets

 

 

265,412

 

 

 

(1,282,866

)

Accounts payable

 

 

(246,733

)

 

 

(618,960

)

Accrued expenses

 

 

4,540,830

 

 

 

2,225,695

 

Deferred revenue

 

 

(13,102,948

)

 

 

8,513,945

 

Operating lease liabilities

 

 

(669,183

)

 

 

(399,610

)

Net cash used in operating activities

 

 

(60,735,782

)

 

 

(24,447,819

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of marketable securities

 

 

(41,196,165

)

 

 

(113,056,097

)

Maturities of marketable securities

 

 

115,402,053

 

 

 

119,842,816

 

Sales of marketable securities

 

 

37,775,235

 

 

 

 

Purchase of property, equipment and leasehold

   improvements

 

 

(4,592,917

)

 

 

(4,455,360

)

Net cash provided by investing activities

 

 

107,388,206

 

 

 

2,331,359

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repayments of long-term debt

 

 

 

 

 

(169,610

)

Proceeds from sale of common stock in at-the-market offering

 

 

30,835,206

 

 

 

 

Payment of common stock offering costs

 

 

(916,704

)

 

 

 

Proceeds from issuance of common stock

 

 

 

 

 

29,454,033

 

Proceeds from exercise of stock options

 

 

3,206,938

 

 

 

1,777,456

 

Net cash provided by financing activities

 

 

33,125,440

 

 

 

31,061,879

 

Net increase in cash and cash equivalents