Shares of drug developer Arcus Biosciences (RCUS.N) rose 2% to $24.8 premarket after brokerage TD Cowen initiated the stock with a buy rating.
TD Cowen said the company's kidney cancer drug candidate, Casdatifan, shrunk tumors in 45% of patients in clinical trials, better than the current leading drug, Welireg, developed by Merck (MRK.N).
The brokerage said upcoming trial data could de-risk the Casdatifan program, which is estimated to generate about $4.1 billion in annual sales by 2035.
Arcus is also advancing pancreatic cancer candidate drug quemliclustat and a broader immunology pipeline that could provide additional upside, TD Cowen said.
As of the last close, the stock was up 2.1% year to date.
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