Analyst Kaveri Pohlman of BTIG maintained a Buy rating on Arcus Biosciences (RCUS – Research Report), retaining the price target of $70.00.
Kaveri Pohlman’s rating is based on the promising attributes of Arcus Biosciences’ Fc-silent domvanalimab (dom) and its potential to outperform competitors in terms of efficacy and safety. Dom’s design avoids T-cell regulatory depletion and significant immune-related adverse events (AEs), factors that can lead to treatment discontinuations and affect efficacy. This favorable safety profile is particularly important in the first-line (1L) treatment settings for non-small cell lung cancer (NSCLC) and gastric cancer, where patients are less tolerant of AEs and where Arcus is currently evaluating dom. Additionally, the flexibility offered by Arcus in dosing dom and their anti-PD1 monoclonal antibody (mAb) zimberelimab separately, as opposed to Merck’s coformulated approach, allows for better management of potential AEs, further supporting the Buy rating.
Furthermore, data expected from the upcoming EDGE-Gastric readout at the American Society of Clinical Oncology (ASCO) 2024 bolsters confidence in dom’s efficacy. The early data from the Phase 2 EDGE-Gastric study has shown promising progression-free survival (PFS) rates, comparable to historical benchmarks. This is significant as it suggests that Arcus’ TIGIT program may offer an efficacy parallel to competing Claudin 18.2 programs, but with a cleaner safety profile, an advantage in the market. With the expectation of similar outcomes in the upcoming readout, and the potential competitive edge due to fewer gastrointestinal toxicities compared to Claudin 18.2 therapies, Pohlman’s Buy rating reflects optimism in Arcus Biosciences’ growth prospects and its therapeutic developments.
Pohlman covers the Healthcare sector, focusing on stocks such as Arcus Biosciences, Genmab, and Gritstone Oncology. According to TipRanks, Pohlman has an average return of 1.6% and a 32.03% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $35.00 price target.
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Arcus Biosciences (RCUS) Company Description:
Arcus Biosciences, Inc. engages in the development and commercialization of immunotherapies. The firm compete in the segments of the pharmaceutical, biotechnology and other related markets that develop immunotherapies for the treatment of cancer. The company was founded by Terry J. Rosen and Juan Carlos Jaen in 2015 and is headquartered in Hayward, CA.
