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Arcus Biosciences drops 6% after Roche lung cancer failure

Shares of Arcus Biosciences (RCUS) after moving lower after Roche (RHHBY) announced yesterday that the Phase II/III SKYSCRAPER-06 study, evaluating tiragolumab plus Tecentriq and chemotherapy versus pembrolizumab and chemotherapy as an initial treatment for people with previously untreated, locally advanced unresectable or metastatic non-squamous non-small cell lung cancer, did not meet its primary endpoints. The concept of Roche’s study is similar to Arcus and Gilead’s (GILD) Phase 3 STAR-121 in first-line non-small cell lung cancer, Cantor Fitzgerald analyst Li Watsek said in a research note. The analyst says Roche’s outcome is likely the worst-case scenario for Arcus and could add uncertainty to its STAR-121 study. Shares of Arcus Biosciences are down 6% to $13.54 in premarket trading.

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