Arcus Biosciences surges after Gilead Sciences raises stake

Arcus Biosciences

30/01/2024 10:40

** Shares of drug developer Arcus Biosciences  RCUS.N  rise
14.7% to $17.5  premarket
    ** Gilead Sciences  GILD.O  said late on Monday it has
raised its stake in RCUS to 33%, from 20% held previously  
    ** GILD made an equity investment of $320 mln, buying RCUS's
stock at $21/share, a 37.3% premium to its last close
    ** It also expanded its presence on Arcus' board to three;
Gilead's Chief Commercial Officer Johanna Mercier will join the
board
    ** The Two companies said they would discontinue a
late-stage trial testing their candidate domvanalimab in
combination with another experimental drug zimberelimab to treat
a type of non-small cell lung cancer 
    **  Domvanalimab belongs to a class of treatments known as
anti-TIGIT that targets a protein receptor on immune cells that
acts as a brake on the immune response
    ** The equity investment and re-prioritization will help the
two companies fund studies of the drug for larger indication
with unmet needs such as upper gastric cancers, a type of lung
cancer - Brokerage firm Truist Securities
    ** Up to Monday's close, stock had fallen 31.5% in last 12
months

 (Reporting by Khushi Mandowara in Bengaluru)
 ((Khushi.Mandowara@thomsonreuters.com;))