Arcus keeps its independence in deal that gives Gilead access to targets ripe for combinations

Gilead’s partnership with Arcus gives it access to a pipeline ripe for immuno-oncology combinations around closely watched targets, such as TIGIT. But the agreement doesn’t mirror Gilead’s last deal, in which partnering negotiations with Forty Seven Inc. grew into a buyout, so much as its long-term ties with Galapagos, albeit on a smaller scale.

Gilead Sciences Inc. (NASDAQ:GILD) will pay Arcus Biosciences Inc. (NASDAQ:RCUS) $175 million up front and make a $200 million equity investment in the biotech, gaining exclusive rights immediately to PD-1 inhibitor zimberelimab and options to the remainder of Arcus’ pipeline. On a conference call Wednesday, Arcus CEO Terry Rosen said the investment gives Gilead a stake of roughly 10%...