On July 13, 2020 Gilead Sciences, Inc. (Nasdaq: GILD) and Arcus Biosciences, Inc. (NYSE: RCUS), an oncology-focused biopharmaceutical company working to create best-in-class cancer therapeutics, reported the closing of their option and co-development and co-commercialization partnership agreement signed on May 27, 2020 (Press release, Gilead Sciences, JUL 13, 2020, View Source [SID1234561835]).

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The closing occurred following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Under the terms of the agreements, the closing of this transaction triggered a payment of $175 million by Gilead to Arcus. In addition, Gilead made an equity investment in Arcus of approximately $200 million by purchasing shares at a price of $33.54 per share. As a result of this investment and Gilead’s participation in Arcus’s follow-on offering on May 28, 2020, Gilead now owns nearly 8.2 million shares of common stock of Arcus, representing approximately 13 percent of Arcus’s outstanding shares.