Arcus Biosciences (NYSE:RCUS) soared in pre-market trading after the clinical-stage biopharmaceutical company announced a $320 million equity investment by Gilead Sciences (NASDAQ:GILD) in Arcus common stock at $21 per share. This investment increases Gilead’s stake in Arcus to 33% and grants it an additional seat on Arcus’ Board, raising the number of seats controlled by Gilead to three. It will also extend Arcus’ cash runway into 2027
In addition, Arcus announced a change to its collaboration agreement with Gilead. The amendment will speed up joint development programs and allow Gilead to advance the domvanalimab program and Arcus to focus on multiple pipeline assets. Gilead and Arcus aim to prioritize advanced Phase 3 studies in lung and gastrointestinal cancers, aiming for full enrollment by year-end. They plan a new Phase 3 lung cancer study with domvanalimab plus zimberelimab, prioritizing the TIGIT pathway and domvanalimab’s design for potential efficacy and safety benefits.
Domvanalimab and zimberelimab are investigational molecules, while TIGIT is a key inhibitor of anti-tumor responses.
What Is the Price Target for RCUS Stock?
Analysts remain bullish about RCUS stock with a Strong Buy consensus rating based on nine Buys and one Hold. Over the past year, RCUS stock has slid by more than 30%, and the average RCUS price target of $43 implies an upside potential of more than 181% at current levels.
