Arcus Biosciences price target lowered to $36 from $60 at Barclays

Barclays analyst Peter Lawson lowered the firm’s price target on Arcus Biosciences to $36 from $60 and keeps an Overweight rating on the shares after the company announced results from the fourth interim analysis of the ARC-7 study in patients with first-line, metastatic non-small cell lung cancer. The analyst is taking a "conservative stance" following the ARC-7 data by reducing the focus of the model on anti-TIGIT, removing adenosine and adding in HIF-2alpha and durvalumab/TIGIT combo. While Lawson sees clear benefit to adding anti-TIGIT to Arcus’ anti-PD1, he still has concerns around the underperformance of zimberelimab monotherapy versus standard of care.