New York, Jan 13, 2026, 13:22 (EST) — Regular session
Arcus Biosciences shares rose nearly 5% on Tuesday after Goldman Sachs upgraded the biotech to “Buy” and lifted its price target. The stock was up 4.8% at $22.32 in early afternoon trading. (TipRanks)
The call hit in the middle of the J.P. Morgan Healthcare Conference week, when investors often press small and mid-cap biotechs for timelines and trial updates. Arcus is due to present on Wednesday. (Arcus Biosciences)
Goldman’s analyst Richard Law pointed to Arcus’s lead program, casdatifan, a HIF-2α inhibitor in development for advanced clear cell renal cell carcinoma, a common form of kidney cancer. The firm said early ARC-20 Phase 1 data showed objective response rates — a measure of how often tumors shrink — of 31% on monotherapy and 46% in a combination arm, and flagged competition that includes Merck’s HIF-2α drug and the targeted therapy cabozantinib. (Investing)
Arcus’s move came as biotech broadly drifted lower, with the SPDR S&P Biotech ETF down about 0.9% and the iShares Nasdaq Biotechnology ETF off roughly 0.6%.
Earlier this month, Arcus laid out a 2026 plan built around casdatifan, saying it wants to drive enrollment in its PEAK-1 Phase 3 study and start a first-line Phase 3 trial in kidney cancer. “As we enter 2026, the highest priorities for Arcus will be the rapid enrollment of PEAK-1 … and the initiation of a 1L Phase 3 study,” Chief Executive Terry Rosen said. (Arcus Biosciences)
Arcus also said it expects at least three casdatifan data presentations in 2026, starting with updated ARC-20 monotherapy data at a medical meeting in February. It said it had about $1 billion in cash and investments and sees funding for planned operations into at least the second half of 2028. (Arcus Biosciences)
The company is trying to position casdatifan as a backbone treatment in kidney cancer, including in combinations with immunotherapy — drugs that help the immune system attack tumors. That is where investors tend to get picky: response rates are nice, but durability and safety often decide the trade.
A risk sits in the fine print. Arcus has no approved drugs, and late-stage trials can slip or fail outright. Even good Phase 1 numbers can soften when studies expand, and larger rivals are already entrenched in kidney cancer.
Next up is Wednesday’s conference slot, where the market will listen for any shift in PEAK-1 enrollment pace and how Arcus frames its first-line strategy. The February ARC-20 update is the nearer-term data marker traders are circling.
