Arvinas VEPPANU License Lands With Rigel
Arvinas VEPPANU license to Rigel shifts commercialization, gives $85M upfront and up to $320M milestones, easing launch risk and extending Arvinas runway.
KEY TAKEAWAYS
- Rigel gained exclusive global rights to commercialize VEPPANU with $85M initial consideration and up to $320M in milestones.
- The deal shifts U.S. launch responsibility to Rigel and reallocates near-term launch risk away from Arvinas.
- Arvinas reported Q1 revenue $15.6M, net loss $57.6M, and $614.9M cash expected to fund operations into 2H 2028.
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Arvinas Inc. (ARVN) said on May 12, 2026, that it granted Rigel Pharmaceuticals Inc. (RIGL) exclusive global rights to commercialize VEPPANU, the first FDA-approved PROTAC for certain ER+/HER2-, ESR1-mutated advanced breast cancers. The company also reported first-quarter results that day.
Rigel Licensing Deal Terms
Arvinas and Pfizer Inc. (PFE) said the transaction includes $70 million upfront plus a $15 million transition payment, totaling $85 million in initial consideration, along with up to $320 million in potential milestone payments and royalties in the mid-teens to mid-20s. Rigel will fund up to $40 million of development over four years, while Arvinas and Pfizer will share ex-U.S. sublicensing proceeds.
VEPPANU (vepdegestrant) is an orally bioavailable PROTAC estrogen-receptor degrader approved by the FDA on May 1, 2026, for adults with ER+/HER2-, ESR1-mutated advanced or metastatic breast cancer detected by an FDA-authorized test after progression on at least one line of endocrine therapy. The approval was based on the Phase 3 VERITAC-2 trial, which showed median progression-free survival of 5.0 months with vepdegestrant versus 2.1 months with fulvestrant and a 43% reduction in the risk of progression or death among ESR1-mutated patients (n=270). VEPPANU was added to the NCCN Breast Cancer Guidelines as a Category 2A option on May 8, 2026.
Rigel will lead the U.S. launch and commercialization and hold global rights with the ability to sublicense ex-U.S. The company said VEPPANU will be its fourth commercial product and a major focus to accelerate revenue growth. The agreement is subject to regulatory clearance.
Arvinas Q1 Results
For the quarter ended March 31, 2026, Arvinas reported revenue of $15.6 million, down from $188.8 million a year earlier. GAAP research and development expense was $60.3 million, and GAAP general and administrative expense was $19.1 million. The company posted a net loss of $57.6 million and a GAAP diluted loss per share of $0.90. It held cash, cash equivalents, and marketable securities of $614.9 million, which it said is expected to fund operations into the second half of 2028.
Management attributed the year-over-year revenue decline to reduced Pfizer vepdegestrant collaboration revenue following 2025 cost-estimate adjustments. Arvinas filed an 8-K disclosing the licensing agreement and the quarter's results.
The license transfers commercialization responsibilities to Rigel while providing Arvinas with near-term proceeds and potential milestone upside. Arvinas and Pfizer retain ongoing development roles, shifting launch risk away from Arvinas and allowing the company to rely on the transaction proceeds and its balance sheet to extend its runway.
