Shares of Arcus Biosciences are falling 31% Wednesday in pre-open trades after Roche’s anti-TIGIT drug Tecentriq (OTC) failed to reach its primary endpoint, progression-free survival. This was in a Phase-3 trial that treated people with PD-1-highly advanced metastatic nonsmall-cell lung cancer (NSCLC) (PD-L1-high locally advanced).

Mara Goldstein, Mizuho analyst expects that Arcus shares will be under pressure due to the important role that ARC-7/domvanalimab has in stock valuation. This despite a meaningful differentiation in the doublet arm of domvanalimab+zimberelimab versus zimberelimab alone, Goldstein added.

“SKYSCRAPER-01″‘s results will cast a huge shadow on the RCUS programs. While it may be that this failure is specific to SKYSCRAPER and is not generalizable domvanalimab+ zimberelimab. However, Goldstein stated, “This differentiation is likely to become marginalized until 2H22 is available for the ARC-7 data.”