Company: ARVN
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001655759-25-000085
Chunk: 91

Company: ARVINAS, INC.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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amide (ARV-110)1.1 1.6 Luxdegalutamide (ARV-766)— 3.6 Other programs2.6 0.1 Non program-specific external expense13.9 16.1 Compensation and related personnel expense(including stock-based compensation)36.9 38.3 Other research and development expense3.1 3.0 Total research and development expense90.8 84.3 General and administrative expense26.6 24.3 Income tax expense0.2 0.1 Plus:Interest income, net11.7 14.0 Segment net income (loss)$82.9 $(69.4)(*)    Includes net reimbursement to and from Pfizer pursuant to the Vepdegestrant (ARV-471) Collaboration Agreement which are accounted for pursuant to ASC 808 and are recorded as an offset or an increase to research and development expenses.During the three months ended March 31, 2025 and 2024, depreciation expense totaled $0.7 million and $1.2 million, respectively.

15. Subsequent Events

Reduction in ForceOn April 30, 2025, the Company's management, pursuant to authority delegated by the Board of Directors of the Company, committed the Company to and approved a reduction of the Company’s workforce by approximately 33% across all areas of the Company, as part of the Company’s decision to streamline operations across the organization and enable the efficient progression of the Company’s portfolio.The Company expects the workforce reduction will be substantially completed by the end of the second quarter of 2025. The Company estimates that it will incur approximately $10.0 million in costs in connection with the workforce reduction, which consist of severance and other one-time employee termination benefit expenses which the Company expects to recognize primarily in the second quarter of 2025. The estimates of costs that the Company expects to incur, and the timing thereof, are subject to a number of assumptions and actual results may differ. The Company may also incur other charges or cash expenditures not currently contemplated due to events that may occur as a result of, or associated with, the workforce reduction.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis is meant to provide material information relevant to an assessment of the financial condition and results of operations of our company, including an evaluation of the amount and certainty of cash flows