Cancer-focused biotech, Arcus Biosciences, Inc. (NYSE:RCUS) stock is trading higher on Wednesday after the company’s stock closed lower on Tuesday following a lung cancer trial update.

In an SEC filing after hours on Monday, the company said it has discontinued its Phase 3 STAR-121 study in metastatic non-small cell lung cancer after an interim analysis showed the trial was unlikely to meet its primary endpoint.

The decision, made in collaboration with Gilead Sciences, Inc. (NASDAQ:GILD), follows a recommendation from an independent monitoring committee.

The late-stage trial evaluated domvanalimab, an anti-TIGIT antibody, combined with zimberelimab and chemotherapy against a pembrolizumab-based regimen in first-line treatment.

The Independent Data Monitoring Committee flagged futility during a pre-planned review, prompting the companies to halt the study.

The SEC filing on Monday noted that the safety data were not part of this interim assessment, though the committee noted no new safety concerns during routine evaluations.

Read Also: Anthropic AI Breach Is A 'Bad Development,' Says Tom Lee — But He Still Expects A Market Rally

Exploratory Endpoint Shows Comparable Survival

In addition to the primary analysis, the trial assessed zimberelimab plus chemotherapy as an exploratory endpoint. According to the company, this combination showed overall survival outcomes consistent with the pembrolizumab-based regimen.

Arcus also confirmed that the Phase 2 EDGE-Lung study will be discontinued alongside STAR-121.

Gilead is now working with investigators to determine next steps for patients enrolled in both trials.

Gilead Declines To Extend Collaboration Option

Separately, Arcus said Gilead will not extend its option rights under the companies' 2020 collaboration agreement.

The option period will expire on July 14, after Gilead opted not to make a continuation payment.

As a result, Gilead will lose access to additional early-stage programs. However, it retains time-limited options on select assets such as AB801, AB598, AB102, and a TNF small molecule inhibitor.

Arcus Retains Key Program Rights

The company confirmed it maintains full rights to its casdatifan program, except for territories licensed to Taiho in Japan and parts of Asia. The update signals a shift in the collaboration scope while preserving control over certain pipeline assets.

RCUS Stock Price Activity: Arcus Biosciences shares were up 6.89% at $26.21 at the time of publication on Wednesday. The stock is trading near its 52-week high of $26.40, according to Benzinga Pro data.

Image via Shutterstock