Pfizer will pay at least $1 billion to develop and commercialize Arvinas’s investigational breast cancer therapy

Shares of Arvinas Inc. ARVN,
rose 6.0% in premarket trading Thursday after the company announced a billion-dollar deal with Pfizer Inc. PFE,
to develop and commercialize its experimental breast cancer treatment. Pfizer will make a $650 million upfront payment to Arvinas, in addition to a $350 million equity investment. Separately, there are up to $1.4 billion in potential milestone payments. The therapy, ARV-471, is expected to enter Phase 3 clinical trials sometime next year. Shares of Arvinas are down 8.7% this year, while the S&P 500 SPX,
has increased by 15.1%.