Asthika Goonewardene, an analyst from Truist Financial, maintained the Buy rating on Arcus Biosciences. The associated price target remains the same with $32.00.
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Asthika Goonewardene has given his Buy rating due to a combination of factors surrounding Arcus Biosciences’ recent data on Casdatifan. The updated results from the Casdatifan monotherapy dose expansion study, especially the 100mg dose, have shown promising efficacy. The median progression-free survival (mPFS) in the 100mg cohort has not been reached even after a median follow-up of over 12 months, which is significantly higher than expected benchmarks.
Moreover, the confirmed objective response rate (ORR) in this cohort is 35%, with potential to increase to approximately 42% pending further confirmations. These results suggest that Casdatifan is outperforming existing benchmarks, such as Belzutifan, and supports the rationale for ongoing and future combination studies. Additionally, the safety profile of Casdatifan remains consistent and manageable, with no new safety concerns. This combination of strong efficacy data and a manageable safety profile underpins Goonewardene’s confidence in a Buy rating for Arcus Biosciences.
In another report released on September 30, Barclays also maintained a Buy rating on the stock with a $14.00 price target.