Gilead raises stake in Arcus Biosciences
Justin Sullivan/Getty Images News
Update 3:24PM EST: Adds comments from Arcus
According to a regulatory filing on Thursday, Gilead (NASDAQ:GILD) has increased its ownership in cancer-focused biotech Arcus Biosciences (NYSE:RCUS) with the purchase of ~1.0M additional RCUS shares for $19.26 apiece in late June.
The disclosure was made weeks after the duo expanded their oncology collaboration. The purchase consideration of $19.4M was spent from the available cash resources, Gilead (GILD) said in a regulatory filing.
After the report, Arcus (RCUS) communicated to Seeking Alpha that Gileadâs (GILD) stake in the company rose to ~20% from ~19% after the purchase. The pharma giant can potentially increase its ownership to 35% with the exercise of options.
In 2020, two companies entered into an agreement under which Gilead (GILD) obtained an exclusive license to Arcusâ (RCUS) anti-PD-1 program along with exclusive options for additional programs targeted at cancer.
In May, the duo expanded the collaboration to include treatments for inflammatory diseases. Per the revised terms, Gilead (GILD) will have options to license up to four jointly selected targets from Arcus (RCUS) in return for $1B in option fees and milestone payments.
More on Arcus
Gilead and Arcus issue update from mid-stage trial for lung cancer therapy
Arcus Biosciences: Gilead Partnered TIGIT Pioneer Excites But Frustrates