Gilead invests $320M in Arcus, expands stake to 33% (NYSE:RCUS)

Arcus Biosciences (NYSE:RCUS) shares jumped 16% in post-market buying and selling Monday following information that accomplice Gilead Sciences (NASDAQ:GILD) has elevated its stake within the firm to 33% to assist speed up their joint improvement applications.

Gilead upped its stake by shopping for $320M shares of Arcus at $21 per share. The deal entitles Gilead to an extra seat on Arcus’s board, elevating the variety of seats managed by Gilead to 3. The funding extends Arcus’s money runway into 2027, based on a press release.

The businesses additionally amended their collaboration settlement to prioritize advancing Section 3 research for domvanalimab within the remedy of lung most cancers and gastrointestinal most cancers, together with initiating a Section 3 research of domvanalimab plus zimberelimab within the remedy of lung most cancers.

Gilead and Arcus have determined, nonetheless, to discontinue enrollment in a Section 3 research of domvanalimab plus zimberelimab as a first-line remedy for domestically superior or metastatic PD-L1-high non-small cell lung most cancers. As well as, a deliberate Section 3 research of the drug quemliclustat within the remedy of pancreatic most cancers will turn into an impartial Arcus research.

Arcus mentioned that Gilead’s newest funding will permit the corporate to fund Section 3 testing of quemliclustat in pancreatic most cancers and its drug AB521 within the remedy of kidney most cancers.