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Gilead Sciences, Inc. (NASDAQ:GILD) recently expanded its stake in Arcus Biosciences, Inc. (NYSE:RCUS) with a significant purchase of shares. According to a recent SEC filing, Gilead acquired 1,363,636 shares of Arcus Biosciences at a price of $11 per share on February 18, 2025. This acquisition amounts to a total investment of approximately $14.9 million. The purchase price represents an attractive entry point, with the stock trading near its 52-week low of $10.63, significantly below its high of $20.31. InvestingPro analysis indicates the stock may be undervalued at current levels.
Following this transaction, Gilead now holds 31,424,760 shares in Arcus Biosciences. While Arcus maintains a strong liquidity position with a current ratio of 5.24 and more cash than debt, the company is actively investing in growth, with analysts projecting 124% revenue growth for FY2024. The purchase underscores Gilead’s ongoing interest in expanding its footprint in the pharmaceutical sector, particularly in areas where Arcus is active. For deeper insights into Arcus’s financial health and growth prospects, including 12 additional ProTips, visit InvestingPro.
In other recent news, Arcus Biosciences has reported significant developments in its ongoing efforts to advance its cancer treatment, casdatifan. The company disclosed new data from its ARC-20 study, showing promising results in patients with metastatic clear cell renal cell carcinoma. The study revealed a median progression-free survival of 9.7 months for the 50 mg twice daily cohort, with overall response rates of 25% for this group and up to 33% for other dosing schedules. These findings were presented at the ASCO-GU symposium and suggest casdatifan’s potential as a leading HIF-2a inhibitor.
Arcus Biosciences announced a $150 million stock offering priced at $11.00 per share to fund the continued development of casdatifan, including the upcoming PEAK-1 study. The offering is managed by financial institutions such as Goldman Sachs, Leerink Partners, and Evercore ISI. Furthermore, the company retains full global rights to casdatifan after Gilead Sciences’ option to license the drug expired. In a recent SEC filing, Arcus Biosciences reported a robust cash position of approximately $992 million as of December 31, 2024.
In analyst activity, H.C. Wainwright adjusted its price target for Arcus Biosciences to $18, maintaining a Neutral rating after reviewing the ARC-20 study data. Additionally, Arcus Biosciences announced a change in its Board of Directors with the resignation of Merdad Parsey and the appointment of Dietmar Berger. These developments underscore the company’s strategic focus on advancing its clinical programs and maintaining strong corporate governance.
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