Gilead Sciences announced Monday that it will increase its stake in Arcus Biosciences to 33%, pumping an equity investment of $320 million into the latter’s common stock priced at $21 per share. The companies also amended their existing collaboration in an effort to accelerate development of the anti-TIGIT drug domvanalimab as part of chemotherapy-containing regimens.
Gilead and Arcus will push ahead with the late-stage STAR-121 study, which is evaluating domvanalimab plus zimberelimab and chemotherapy versus Keytruda plus chemotherapy in first-line all-comer NSCLC patients regardless of PD-L1 expression levels.
The original deal between the companies was forged back in 2020, focusing on advancing cancer immunotherapies from Arcus' pipeline. They expanded the partnership in May last year to encompass therapies for inflammatory diseases.
The additional investment is expected to extend Arcus’ cash runway into 2027, while it will see Gilead’s chief commercial officer Johanna Mercier take a seat on the former’s board.