Leerink Partners analyst Daina M. Graybosch lowered the price target on Arcus Biosciences (NYSE: RCUS) to $47.00 (from $49.00) while maintaining a Outperform rating.

The analyst commented, "We see the end of Arcus' (RCUS, OP) research collaboration with Gilead (GILD, OP) as an opportunity for the company to pursue broader business development strategies with casdatifan (cas, HIF-2α inhibitor) and other pipeline candidates. While any change between a small company and their larger partner is worthy of reflection, we are not surprised by the termination, as both companies have been moving away from their collaborative core in the last year. Gilead (GILD) has recently focused oncology investment on platforms validated by lead assets and with potential applications beyond oncology, including cell therapy and antibody drug conjugates (ADCs). They opted out of cas last year, despite its class leading clinical profile and Arcus' two lead clinical indications—renal cell carcinoma (RCC) and pancreatic cancer are not core focus indications for Gilead (see HERE). Given their increasing focus on inflammation and immunology (I&I), opting out of Arcus's early I&I pipeline is negative, in our view. We find it reassuring that Gilead maintained their equity position (25% ownership as of 12/31/2025 13F) in RCUS and is retaining their two board seats (confirmed in an email to us by Arcus management). With full ownership of their late pipeline, Arcus has more flexibility to pursue external partnerships and licensing agreements, such as a PD-1/ VEGFA combination strategy for casdatifan in 1L RCC."