Mizuho raises Arcus Biosciences stock price target on casdatifan potential

Published 18/08/2025, 12:04
Mizuho raises Arcus Biosciences stock price target on casdatifan potential

Investing.com - Mizuho (NYSE:MFG) raised its price target on Arcus Biosciences (NYSE:RCUS) to $45.00 from $42.00 on Monday, while maintaining an Outperform rating on the stock. The company, currently trading at $10.39 with a market cap of $1.1 billion, has shown strong momentum with a ~13% gain over the past week, according to InvestingPro data.

The price target increase is primarily attributed to casdatifan, the company’s HIF-2a inhibitor being developed for clear cell renal cell carcinoma (ccRCC). Mizuho models approximately $5.5 billion in worldwide unadjusted peak sales for the drug across both second-line-plus and first-line indications.

Mizuho expects investor focus to shift toward casdatifan in the second half of 2025, noting it has become a top priority for Arcus. The PEAK-1 Phase 3 trial evaluating casdatifan in combination with cabozantinib is currently ongoing.

Data flow for casdatifan is expected to continue through 2025 and 2026, with results from the ARC-20 casdatifan monotherapy cohorts anticipated in fall 2025. More mature data from the casdatifan plus cabozantinib cohorts and initial new cohort data are expected in 2026.

Mizuho also noted upcoming catalysts for domvanalimab, including overall survival data from the EDGE-Gastric Phase 2 trial at ESMO 2025, scheduled for October 17-21, 2025, and results from the STAR-221 Phase 3 trial expected in 2026.

In other recent news, Arcus Biosciences announced that its investigational drug quemliclustat has received orphan drug designation from the U.S. Food and Drug Administration for the treatment of pancreatic cancer. This designation provides several incentives, such as tax credits for clinical trials and the possibility of seven-year market exclusivity upon approval. Additionally, H.C. Wainwright analysts have reiterated a Buy rating for Arcus Biosciences, maintaining a price target of $24.00. This decision followed the presentation of initial data on the combination of casdatifan and cabozantinib for treating clear cell renal cell carcinoma at the American Society of Clinical Oncology meeting. Arcus Biosciences presented promising results from a cohort of 42 patients, highlighting the feasibility and safety needed for the FDA to initiate the PEAK-1 Phase 3 trial. The treatment regimen involved specific dosages for both drugs. These developments reflect Arcus Biosciences’ ongoing progress in advancing its clinical programs.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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