Gilead projects earnings impact after expanding research deal with Arcus
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Gilead Sciences (NASDAQ:GILD) said on Monday that an expanded research collaboration with cancer-focused biotech Arcus Biosciences (NYSE:RCUS) would reduce its GAAP and non-GAAP earnings by $0.02 in 2023.
Under the revised agreement, Gilead (GILD) and Arcus (RCUS) will broaden their previously announced research collaboration on oncology to include treatments targeted at inflammatory diseases.

The revised deal will generate up to $1B in option fees and milestone payments to Arcus (RCUS) from Gilead (GILD).
Per the terms, RCUS will receive $35M upfront and begin research programs against up to four jointly-selected targets focused on inflammatory diseases. Gilead (GILD) will have the option to license each program at two different, prespecified time points.
"The research collaboration facilitates much earlier alignment between Gilead and Arcus on our discovery and development activities, while enabling Arcus to expand into inflammation in a capital-efficient manner,â CEO of Arcus (RCUS) Terry Rosen remarked.


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