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TICKERS: RCUS

Pharma Co.'s Partnership a Key Validation
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Recently, Arcus Biosciences Inc. announced a partnership with Exelixis Inc., which may be the key to validating the company, noted WedBush analysts in a December 4 report.

Arcus Biosciences Inc. (RCUS:NYSE) and Exelixis Inc. (EXEL:NASDAQ) announced a collaboration to evaluate Arcus' AB521 with Exelixis' multi-TKI zanzalintinib with solid tumors and clear cell renal cell carcinoma (ccRCC), noted Wedbush Securities analysts Dr. Robert Driscoll, Sam Raina, Dr. Ritika Das, and Dr. Martin Fan in a December 4 WedBush report.

Novel Mechanisms in Combination

The planned Phase 1b/2 STELLAR-009 trial will test whether the combination of AB521, Arcus' anti-TIGIT antibody, plus zanzalintinib, Exelixis' next-generation tyrosine kinase inhibitor, can drive improved efficacy over the individual agents.

Exelixis' agent is intended to have an enhanced safety and tolerability profile over standard-of-care TKIs like cabozantinib. Early data showed promise, including a 38% objective response rate in renal cell carcinoma patients.

Analysts View Deal as Key Validation

The analysts see Arcus' selection of AB521 rather than core asset domvanalimab for the zanzalintinib combo trial as external confirmation of AB521's strong preclinical and early clinical profile.

With AB521 efficacy data upcoming in 2024 and multiple other pipeline candidates progressing in the clinic, Wedbush maintains an Outperform rating on Arcus with a US$36 price target.

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Disclosures for WedBush, Arcus Biosciences Inc., December 4, 2023

Analyst Certification We, Robert Driscoll, Sam Ravina, Ritika Das and Martin Fan, certify that the views expressed in this report accurately reflect our personal opinions and that we have not and will not, directly or indirectly, receive compensation or other payments in connection with our specific recommendations or views contained in this report.

Company Specific Disclosures This information is subject to change at any time. 1. WS makes a market in the securities of Arcus Biosciences Inc..

OTHER DISCLOSURES The information herein is based on sources that we consider reliable, but its accuracy is not guaranteed. The information contained herein is not a representation by this corporation, nor is any recommendation made herein based on any privileged information. This information is not intended to be nor should it be relied upon as a complete record or analysis: neither is it an offer nor a solicitation of an offer to sell or buy any security mentioned herein. This firm, Wedbush Securities, its officers, employees, and members of their families, or any one or more of them, and its discretionary and advisory accounts, may have a position in any security discussed herein or in related securities and may make, from time to time, purchases or sales thereof in the open market or otherwise. The information and expressions of opinion contained herein are subject to change without further notice. The herein mentioned securities may be sold to or bought from customers on a principal basis by this firm. Additional information with respect to the information contained herein may be obtained upon request.

Wedbush Securities does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see pages 3–7 of this report for analyst certification and important disclosure information.

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