Company: ARVN
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001655759-25-000085
Chunk: 79

Company: ARVINAS, INC.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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Changes in the Company's contract balances for the three months ended March 31, 2025 and 2024 were as follows:(dollars in millions)March 31,2025March 31,2024Accounts receivable related to collaborationsBeginning balance$5.7 $— Payments received(5.3)— Ending balance$0.4 $— Accounts payable related to collaborationsBeginning balance$5.4 $13.1 Additions19.4 14.1 Payments made(5.4)(13.1)Ending balance$19.4 $14.1 Contract assets: Collaboration contract assetBeginning balance$7.8 $9.4 Amortization(3.3)(0.4)Ending balance$4.5 $9.0 Contract liabilities: Deferred revenueBeginning balance$448.2 $549.2 Revenue recognized from balances held at the beginning of the period(188.8)(25.3)Ending balance$259.4 $523.9 During the three months ended March 31, 2025, the Company updated its estimate to satisfy the performance obligations under the Vepdegestrant (ARV-471) Collaboration Agreement due to the removal of 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