Cancer Drug Stocks Surge 14% After Overcoming Clinical Setbacks

Arcus Biosciences, Inc. (NASDAQ: RCUS) closed the most recent trading session on the New York Stock Exchange at $27.77, up 14.23%—approximately KRW 39,000. Its market capitalization is estimated at about $3.49 billion (roughly KRW 4.9 trillion), marking a single-day increase of around $580 million (about KRW 800 billion).

In its first-quarter update last month, the company confirmed that, despite remaining in a loss position, it holds ample cash on hand. It announced that, based on a prespecified interim efficacy analysis, it would discontinue the Phase 3 STAR-121 trial of its first-line non–small cell lung cancer candidate domvanalimab plus zimberelimab and reallocate those resources to other key oncology programs. Earlier in 2024, partner Gilead Sciences invested $320 million (around KRW 450 billion) in Arcus equity and amended their collaboration agreement, securing cash runway through 2027 to advance its Phase 3 pipeline.

Headquartered in Hayward, California, Arcus Biosciences is a clinical-stage biotech focused on immuno-oncology. Its pipeline includes the TIGIT-targeting antibody domvanalimab, the pancreatic cancer asset quemliclustat, and the HIF-2α inhibitor AB-521 for renal cell carcinoma. After portions of domvanalimab’s Phase 3 trials in gastric, esophageal and lung cancers were halted for lack of efficacy—triggering heightened stock volatility—the company has shifted its R&D efforts toward high-potential indications and new programs in inflammation and autoimmune diseases.