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Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2025
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company's operations are organized into one operating and reportable segment focused on the discovery, development and commercialization of therapies that degrade disease-causing proteins. The segment develops protein degradation therapies designed to harness the body's natural protein disposal system to selectively and efficiently degrade and remove disease-causing protein through the Company's PROTAC (PROteolysis TArgeting Chimera) protein degrader platform. The Company is progressing multiple product candidates through clinical development programs, including vepdegestrant, targeting the estrogen receptor for patients with locally advanced or metastatic ER+/HER2- breast cancer; ARV-393, targeting BCL6 for relapsed/refractory non-Hodgkin Lymphoma; ARV-102, targeting LRRK2 for neurodegenerative disorders; and ARV-806, targeting Kirsten rat sarcoma, or KRAS, G12D for mutated cancers, including pancreatic and colorectal cancers. The Company's tangible assets are held in the United States and all of the Company's revenue has been generated in the United States. The Company manages all business activities on a consolidated basis. The Company's chief operating decision maker is the Chief Executive Officer. The operating segment's revenue is primarily generated through research collaborations and licensing arrangements with pharmaceutical partners. The terms of these agreements contain multiple goods and services which may include (i) licenses, (ii) research and development activities, and (iii) participation in joint research and development steering committees. The terms of these agreements may include non-refundable, upfront license or option fees, payments for research and development activities, payments upon the achievement of certain milestones and royalty payments based on product sales derived from the collaboration. Revenue is recognized ratably over the Company’s expected performance period under each respective arrangement. The Company has also generated revenue through the sale of assets based on fair value. The Company does not have intra-entity sales or transfers. The accounting policies of the operating segment are the same as those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in Note 2, Summary of Accounting Pronouncements and Significant Accounting Policies. The chief operating decision maker evaluates the performance of the operating segment and allocates resources based on net income/loss that also is reported on the consolidated income statement as net income (loss). The measure of the operating segment assets is reported on the consolidated balance sheet as total assets. The chief operating decision maker uses net loss to monitor budget versus actual results and to analyze cash flows in assessing performance of the segment and allocating resources. The following table summarizes the reportable segment's financial information:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(dollars in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue | $ | 22.4 |  |  | $ | 76.5 |  |  | $ | 211.2 |  |  | $ | 101.8 |
Less: |  |  |  |  |  |  |
Research and development expense |  |  |  |  |  |  |
Vepdegestrant (ARV-471) (*) | 15.1 |  |  | 25.1 |  |  | 39.2 |  |  | 44.1 |
ARV-102 | 3.8 |  |  | 1.7 |  |  | 10.3 |  |  | 3.0 |
ARV-393 | 2.5 |  |  | 1.7 |  |  | 5.1 |  |  | 2.9 |
ARV-806 | 1.7 |  |  | 0.2 |  |  | 2.6 |  |  | 0.3 |
Bavdegalutamide (ARV-110) | 0.9 |  |  | 2.5 |  |  | 2.0 |  |  | 4.1 |
Luxdegalutamide (ARV-766) | — |  |  | 9.5 |  |  | — |  |  | 13.2 |
Other programs | 0.8 |  |  | — |  |  | 2.5 |  |  | — |
Non program-specific external expense | 11.1 |  |  | 13.5 |  |  | 25.0 |  |  | 29.6 |
Compensation and related personnel expense (including stock-based compensation) | 28.4 |  |  | 36.3 |  |  | 65.3 |  |  | 74.6 |
Other research and development expense | 4.3 |  |  | 3.2 |  |  | 7.4 |  |  | 6.2 |
Total research and development expense | 68.6 |  |  | 93.7 |  |  | 159.4 |  |  | 178.0 |
General and administrative expense | 25.3 |  |  | 31.3 |  |  | 51.9 |  |  | 55.6 |
Other segment expense, net (**) | 0.3 |  |  | 0.1 |  |  | 0.4 |  |  | 0.1 |
Income tax expense | (0.3) |  |  | 0.2 |  |  | (0.2) |  |  | 0.3 |
Plus: |  |  |  |  |  |  |
Interest income, net | 10.3 |  |  | 13.6 |  |  | 22.0 |  |  | 27.6 |
Segment net (loss) income | $ | (61.2) |  |  | $ | (35.2) |  |  | $ | 21.7 |  |  | $ | (104.6) |
(*) 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. (**) Includes primarily realized foreign exchange gains/ losses. During the three months ended June 30, 2025 and 2024, the Company recognized depreciation and amortization expense of $0.8 million and $1.2 million, respectively. During the six months ended June 30, 2025 and 2024, the Company recognized depreciation and amortization expense of $1.5 million and $2.4 million, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. 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