Company: ARVN
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001655759-25-000085
Chunk: 127

Company: ARVINAS, INC.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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 the first-line Phase 3 combination trial with Pfizer’s novel investigational CDK4 inhibitor, atirmociclib, and the removal of the second-line Phase 3 combination trial with a CDK4/6 inhibitor from the development plan. The change in accounting estimate resulted in an increase in revenue of $150.2 million, an increase in operating expenses of $2.6 million, an increase in net income of $147.6 million, and an increase in basic and diluted earnings per share of $2.04 and $2.03, respectively, for the three months ended March 31, 2025.During the three months ended March 31, 2025, the Company also changed its estimate of the duration of the performance period under the Pfizer Research Collaboration Agreement as a result of updated research timelines. The change in accounting estimate resulted in a decrease in revenue and net income of $2.5 million, respectively, and a decrease in basic and diluted earnings per share of $0.03 for the three months ended March 31, 2025. The reversed revenue will continue to be recognized in future periods as the Company continues to advance on the performance obligation under the updated collaboration timeline.During the three months ended March 31, 2024, no changes in accounting estimates related to the Company's collaborations were recorded.The aggregate amount of the transaction price allocated to performance obligations that were unsatisfied as of March 31, 2025 totaled $259.4 million, which is expected to be recognized in the following periods:(dollars in millions)Remainder of 2025$101.7 202666.6 202720.3 202870.8 Total$259.4 

10

4. Marketable Securities and Fair Value Measurements 

The following is a summary of the Company’s available-for-sale marketable securities measured at fair value on a recurring basis. March 31, 2025(dollars in millions)ValuationHierarchyAmortizedCostGrossUnrealizedGainsGross UnrealizedLossesFair ValueCorporate bondsLevel 2$868.3 $1.7 $(0.2)$869.8 Government securitiesLevel 23.5 — — 3.5 Total$871.8 $1.7 $(0.2)$873.3  December 31, 2024(dollars in millions)ValuationHierarchyAmortizedCostGrossUnreal