• Arcus Biosciences and Gilead Sciences recently discontinued the Phase 3 STAR-121 and Phase 2 EDGE-Lung studies for domvanalimab and zimberelimab in metastatic non-small cell lung cancer after a pre-planned futility analysis, while reporting no new safety issues and confirming that zimberelimab plus chemotherapy showed overall survival in line with pembrolizumab plus chemotherapy.

• On the same day, Arcus disclosed that Gilead will allow its broader option rights on several early-stage Arcus programs to lapse in July 2026, narrowing the collaboration’s future scope while leaving Arcus with full rights to casdatifan outside territories licensed to Taiho.

• We’ll now examine how discontinuing STAR-121 and EDGE-Lung may reshape Arcus Biosciences’ investment narrative centered on casdatifan and oncology development.

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Arcus Biosciences Investment Narrative Recap

To own Arcus Biosciences today, you need to believe its oncology pipeline, now centered on casdatifan and select immunology assets, can justify ongoing losses and funding needs. The futility-driven shutdown of STAR-121 and EDGE-Lung removes domvanalimab and zimberelimab as near-term value drivers, making upcoming casdatifan readouts an even more important short term catalyst, while heightening the key risk that clinical or regulatory setbacks in this more concentrated pipeline could weigh heavily on the equity story.

The 20 April 2026 update that Gilead will let its broader option rights lapse after July 2026 is especially relevant here, because it tightens Arcus’s dependence on its own balance sheet and remaining collaborations just as domvanalimab and zimberelimab exit pivotal lung programs. At the same time, Arcus keeps full rights to casdatifan outside Taiho territories, so any positive data from ARC-20 and related studies could still be meaningful for future partnership or financing discussions.

Yet behind the renewed focus on casdatifan, investors should also be aware that...

Read the full narrative on Arcus Biosciences (it's free!)

Arcus Biosciences' narrative projects $178.6 million revenue and $26.5 million earnings by 2029. This implies a 10.3% yearly revenue decline and a $379.5 million earnings increase from -$353.0 million today.

Uncover how Arcus Biosciences' forecasts yield a $34.20 fair value , a 34% upside to its current price.

Exploring Other Perspectives

Before this setback, the most cautious analysts were already assuming revenue could slide to about US$120.2 million and that persistent losses would continue, reflecting worries about heavy reliance on a few programs and on partners like Gilead; this new lung cancer news may push some of those already pessimistic views even further, so it is worth comparing how different analysts frame these risks before you decide which story you find more convincing.