Gilead Expands Arcus Collaboration with $320M Equity Investment
Gilead's $320 million equity investment in Arcus Biosciences at $21 per share has resulted in a significant expansion of their collaboration, with Gilead now holding a 33% ownership stake in Arcus. This investment is part of a strategic move to accelerate the development of the joint anti-TIGIT antibody program, focusing on the advancement of STAR-121 (lung cancer) and STAR-221 (gastrointestinal cancer) studies, as well as the launch of STAR-131, a Phase III lung cancer study.
Key aspects of the amended collaboration include:
1. A shift in priorities to leverage Gilead-optioned and non-optioned programs and to accelerate existing domvanalimab-containing regimen studies, particularly in combination with chemo and where there is a high unmet need, emphasizing the potential impact in combination with chemotherapy and light-chain restriction in upper gastrointestinal cancers.
2. Johanna Mercier, Gilead's Chief Commercial Officer, will join Arcus' board, marking the third Gilead member on the board, indicating a collaborative approach and synergistic decision-making.
3. Arcus will receive the funds required to continue the development of other pipeline assets, including the Phase III study of quemliclustat in pancreatic cancer (quemliclustat) and the AB521 program in kidney cancer.
4. The amendment also includes halting Phase III studies of the domvanalimab and zimberelimab combination compared to a Keytruda monotherapy in non-small cell lung cancer, focusing on the aforementioned Phase III studies and other pipeline assets.
5. The partnership's cash runway for Arcus is expected to last until 2027, providing financial stability for the biotech company to pursue their clinical and pre-clinical programs.
As an industry analyst, I can confirm that this equity investment exemplifies a robust strategy in the biotech sector, where partnerships like this often harmonize the resources, expertise, and capabilities of both companies to progress novel drug combinations for cancer treatment.