In a significant move to advance its position in the oncology sector, Gilead Sciences announced a substantial increase in its stake in Arcus Biosciences. The pharmaceutical giant has elevated its shares to 33%, marking a notable expansion of its investment and collaboration in developing groundbreaking cancer drugs.
Enhanced Investment and Board Presence
Gilead Sciences has infused an additional $320 million into Arcus Biosciences, purchasing stock at $21 per share. This investment represents a 37.3% premium over the last closing price of Arcus’ stock, underlining Gilead’s confidence in the partnership. Post-announcement, Arcus’ shares experienced an 11.8% increase, reaching $17.2 after the closing bell.
The collaboration further strengthens with the appointment of Johanna Mercier, Gilead’s Chief Commercial Officer, to the Arcus board. Prior to this development, Gilead held a 20% stake in Arcus, as noted by a brokerage report from Jefferies.
Refocusing Clinical Trials
In a strategic shift, the two companies have decided to discontinue a late-stage trial of their candidate drug, domvanalimab, used in tandem with zimberelimab. This trial was aimed at treating a specific type of non-small cell lung cancer. Domvanalimab is part of the anti-TIGIT class of treatments, targeting a protein receptor on immune cells that moderates the immune response.
The decision to halt this trial aligns with the companies’ revised focus on prioritizing two other late-stage trials. These trials, expected to be fully enrolled by year’s end, are testing domvanalimab in the treatment of lung and gastrointestinal cancers, showcasing a strategic pivot in their joint development program.
Independent Study in Pancreatic Cancer
Additionally, a planned late-stage study evaluating the investigational drug quemliclustat in pancreatic cancer will now be independently conducted by Arcus. This move signifies a realignment of resources and objectives within the collaborative framework of Gilead and Arcus.
A Forward-Thinking Collaboration
This expanded partnership between Gilead Sciences and Arcus Biosciences represents a significant stride in the fight against cancer. By pooling their resources, expertise, and innovative approaches, these two entities aim to bring new, effective treatments to the forefront of oncology. This collaboration not only underscores the commitment of both companies to advancing cancer treatment but also highlights the dynamic nature of pharmaceutical partnerships in pursuing groundbreaking medical advancements.
Stay tuned for more updates on this developing story.
This article is for informational purposes and does not constitute financial advice.
