Gilead Sciences Inc. and Arcus Biosciences Inc. unveiled a 10-year immuno-oncology R&D collaboration on 27 May that brings the larger firm significant pipeline option rights with substantial downstream earning potential for the smaller company. Analysts uniformly praised the deal from Gilead’s standpoint, both in terms of what it adds in IO and the flexibility it offers; Arcus investors, however, responded negatively to the news.
Recent speculation suggested Gilead might be looking to acquire Arcus and its pipeline and discovery engine focused on the adenosine axis and the tumor microenvironment, but as a 27 May Jefferies note put it, instead Gilead gets the milk without having to buy the whole cow. (Also see "Could Gilead Make A Profit From Remdesivir?" - Scrip, 23 April, 2020
