Analyst Emily Bodnar from H.C. Wainwright maintained a Buy rating on Arcus Biosciences and keeping the price target at $24.00.
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Emily Bodnar’s rating is based on the promising results from Arcus Biosciences’ Phase 2 EDGE-Gastric trial, which demonstrated a significantly longer median overall survival (OS) compared to existing treatments. The trial, which evaluated a combination of domvanalimab, zimberelimab, and chemotherapy, showed a median OS of 26.7 months, surpassing the OS of current anti-PD-1 trials. This data increases confidence in the ongoing Phase 3 STAR-221 trial, which is fully enrolled and expected to read out in 2026.
Additionally, the EDGE-Gastric trial’s results suggest that the dom + zim + chemo regimen could potentially be used in a broader patient population, including those not eligible for current checkpoint inhibitors due to PD-L1 status. The STAR-221 trial does not restrict enrollment to PD-L1 positive patients, which could lead to a wider application of the treatment if successful. These factors combined suggest a positive outlook for Arcus Biosciences, justifying the Buy rating.
Bodnar covers the Healthcare sector, focusing on stocks such as Atossa Therapeutics, Agenus, and Arcus Biosciences. According to TipRanks, Bodnar has an average return of 3.9% and a 37.10% success rate on recommended stocks.