• Citigroup maintains a "Buy" rating for Arcus Biosciences, Inc. (NYSE:RCUS) despite adjusting its price target from $56 to $44 following the discontinuation of the Phase 3 STAR-221 study.
• The STAR-221 study's discontinuation, due to lack of improved overall survival rates in cancer treatment, has led to a significant stock price decline of approximately 14.38%.
• Arcus Biosciences continues its research and development efforts, focusing on its inflammation and immunology portfolio despite recent setbacks.

Arcus Biosciences, Inc. (NYSE:RCUS) is a clinical-stage biopharmaceutical company dedicated to developing innovative cancer therapies. The company is in collaboration with Gilead Sciences, Inc., focusing on immuno-oncology to harness the body's immune system in fighting cancer. Despite facing competition from other biotech firms in the oncology space, Arcus Biosciences is known for its pioneering work.

On December 12, 2025, Citigroup maintained its "Buy" rating for Arcus Biosciences, with the stock priced at $21.53. However, Citigroup adjusted its price target from $56 to $44. This adjustment reflects recent developments, including the discontinuation of the Phase 3 STAR-221 study, conducted in collaboration with Gilead Sciences. The study was halted due to futility, as recommended by the Independent Data Monitoring Committee.

The STAR-221 study evaluated a combination of the anti-TIGIT antibody domvanalimab with the anti-PD-1 antibody zimberelimab and chemotherapy. The interim analysis showed that this combination did not improve overall survival compared to nivolumab plus chemotherapy. Despite similar safety profiles, the lack of improved outcomes led to the study's discontinuation. This decision has impacted Arcus Biosciences' stock performance, contributing to a significant decline.

Arcus Biosciences' stock has experienced a notable decrease of approximately 14.38%, dropping $3.62 to $21.53. The stock fluctuated between $20.35 and $23.98 during the day. Over the past year, it reached a high of $26.40 and a low of $6.50. The company's market capitalization is approximately $2.32 billion, with a trading volume of 7.16 million shares. Despite recent setbacks, Arcus continues to focus on its research and development efforts, particularly in its inflammation and immunology portfolio.