BUZZ - Arcus Biosciences shares plunge due to $250 million stock offering

October 22 - ** Shares of biopharmaceutical company Arcus Biosciences (RCUS.N) fell 8.1% to $17.56 before the market opened on Thursday, nearing a one-year low, after the company priced a $250 million follow-on offering.

** RCUS, which focuses on cancer and immune diseases, sold about 14.3 million shares at $17.50 each on Wednesday evening (link), an 8.4% discount to the last closing price.

** Jefferies, Leerink, TD Cowen, Evercore, and Mizuho acted as joint bookrunners.

** According to the prospectus (link), the company plans to use the net proceeds for R&D, including expanding and accelerating the clinical development program for its drug casdatifan, as well as other general corporate purposes.

** RCUS, headquartered in Hayward, California, currently has about 127.3 million shares outstanding.

** RCUS shares plummeted 19.6% on Wednesday. The stock has declined by 36% over the past three months and is down about 20% year-to-date.

** According to LSEG data, 13 out of 15 analysts rate the stock as “strong buy” or “buy,” while 2 rate it as “hold”; the median target price is $43.50.

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