Shares of Gilead Sciences Inc. (GILD) were down 0.4% in premarket trading on Wednesday after the drugmaker said it inked a 10-year deal to develop and commercialize Arcus Biosciences Inc.'s (RCUS) investigational immuno-oncology therapies. Arcus's stock was down 7.5% before the market opened. Gilead will make a $175 million upfront payment and take a $200 million equity stake, and an additional $1.6 billion will be available for milestone payments and R&D funding. Last month people familiar with the matter told Bloomberg News ( ) that Gilead was considering a stake in Arcus. The deal is expected to close in the third quarter. Since the start of the year, Gilead's stock has gained 12.6%, after a series of rallies spurred by the market response to its COVID-19 treatment remdesivir getting emergency authorization from the Food and Drug Administration. Year-to-date, shares of Arcus have soared 232.1%, and the S&P 500 is down 7.4%.
-Jaimy Lee; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 27, 2020 07:33 ET (11:33 GMT)
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