Arcus Biosciences price target lowered to $47 from $49 at Leerink

Leerink lowered the firm’s price target on Arcus Biosciences to $47 from $49 and keeps an Outperform rating on the shares. The firm sees the end of Arcus’ (RCUS) research collaboration with Gilead (GILD) as an opportunity for the company to pursue broader business development strategies with casdatifan and other pipeline candidates. While any change between a small company and their larger partner is worthy of reflection, Leerink is not surprised by the termination, as both companies have been moving away from their collaborative core in the last year. The firm finds it reassuring that Gilead maintained their equity position in Arcus and is retaining their two board seats.