Arcus Halts Lung Cancer Study; Stock Falls 4%

Trial Discontinuation Sparks Stock Decline

Arcus Biosciences Inc. announced the discontinuation of its Phase 3 STAR-121 lung cancer study, leading to a 4% drop in its stock price. The decision was made in collaboration with Gilead Sciences based on a recommendation from an Independent Data Monitoring Committee citing futility.

Situation Overview

The STAR-121 trial was evaluating a combination therapy of domvanalimab and zimberelimab for metastatic non-small cell lung cancer. Following the futility analysis, both the STAR-121 study and the Phase 2 EDGE-Lung study will be discontinued. The company confirmed no new safety issues were identified during the review.

Market and Partnership Impact

Gilead has opted not to make an option continuation payment, causing its option rights under the 2020 collaboration agreement to end on July 14, 2026. While Gilead will lose options for some of Arcus's early-stage programs, it will retain existing time-limited options for other specific programs.

Summary and Outlook

The trial's failure is a setback for the company's oncology pipeline. Arcus Biosciences will now focus on its remaining development programs, including retaining full rights to casdatifan outside of specific Asian territories.

FAQ

Q: Why did Arcus Biosciences halt the STAR-121 trial?
A: The trial was halted for futility based on a recommendation from the Independent Data Monitoring Committee after a pre-planned data analysis.

Q: How did this news affect Arcus Biosciences' stock?
A: The company's shares fell by 4% immediately following the announcement.

Source: Investing.com