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Arcus Biosciences (NYSE:RCUS) shares jumped 16% in post-market trading Monday following news that partner Gilead Sciences (NASDAQ:GILD) has increased its stake in the company to 33% to help accelerate their joint development programs.
Gilead upped its stake by buying $320M shares of Arcus at $21 per share. The deal entitles Gilead to an additional seat on Arcus’s board, raising the number of seats controlled by Gilead to three. The investment extends Arcus’s cash runway into 2027, according to a statement.
The companies also amended their collaboration agreement to prioritize advancing Phase 3 studies for domvanalimab in the treatment of lung cancer and gastrointestinal cancer, along with initiating a Phase 3 study of domvanalimab plus zimberelimab in the treatment of lung cancer.
Gilead and Arcus have decided, however, to discontinue enrollment in a Phase 3 study of domvanalimab plus zimberelimab as a first-line treatment for locally advanced or metastatic PD-L1-high non-small cell lung cancer. In addition, a planned Phase 3 study of the drug quemliclustat in the treatment of pancreatic cancer will become an independent Arcus study.
Arcus said that Gilead’s latest investment will allow the company to fund Phase 3 testing of quemliclustat in pancreatic cancer and its drug AB521 in the treatment of kidney cancer.
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