Arcus Biosciences Inc and Gilead Sciences Inc shares have both taken a tumble after the companies reported positive but not groundbreaking results from a Phase 2 trial involving its new lung cancer drug combinations.
The results showed the program is viable but left investors questioning how the pair and their proposed therapeutic could compete against other more established companies in the tough research and development space.
In a joint statement, Arcus and Gilead said the study showed their experimental treatment for metastatic non-small cell lung cancer (NSCLC) improved progression-free survival and overall response rate (ORR).
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“Results from this randomized and controlled Phase 2 trial in a large number of patients validate the potential for an anti-TIGIT/anti-PD1 combination to improve outcomes for patients with metastatic NSCLC,” commented Arcus chief medical officer Dr Dimitry S A Nuyten.
The full study results can be found here.
It is understood expectations surrounding this data had been steadily increasing up until its release, leading to investor disappointment that negatively impacted both companies’ share prices.
At mid-morning on Tuesday, Arcus’ shares were down 31.1% at US$21.01, while Gilead had shed 2.9% at US$83.88.
Contact the author at emily.jarvie@proactiveinvestors.com
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