With all eyes on the American Society of Clinical Oncology’s virtual annual meeting this weekend, a company presenting two closely watched clinical trials there is making its latest push into cancer immunotherapy.

Foster City, California-based Gilead Sciences said Wednesday that it had entered a 10-year partnership with Hayward, California-based Arcus Biosciences to develop and commercialize therapies designed to treat cancers through the body’s immune system.

Under the deal, Gilead will pay Arcus $175 million upfront, as well as making a $200 million equity investment and up to $1.6 billion in potential research and development funding, opt-in and milestone payments. Gilead will option programs that the two will commercialize together with equal profit share in the U.S., with Arcus receiving double-digit royalties outside the U.S.

Shares of Arcus fell 15% on the New York Stock Exchange Wednesday following the news and closed at $27.08, but were up 2.5% from Wednesday’s closing price in Thursday afternoon trading. Gilead’s shares rose, closing on the Nasdaq at 3.3% above their opening price.

Despite the fall in Arcus’ shares, investment bank analysts’ views toward the deal were generally favorable. In a note to investors, Baird analyst Brian Skorney wrote, “Overall, we like this deal, but do not see it as thesis changing, at this point.” Gilead’s stock has a “neutral” rating from the term. Meanwhile, RBC Capital Markets’ Brian Abrahams offered a more positive view, writing that it provides Gilead with “additional pipeline expansion optionality in a space where it continues to galvanize its expertise,” giving Gilead’s shares a positive rating.

Arcus’ pipeline includes zimberelimab, a monoclonal antibody that targets PD-1; AB154, an antibody that targets TIGIT; AB680, a small-molecule inhibitor of CD73; and AB928, a small-molecule dual A2a/A2b adenosine receptor antagonist. The company’s clinical programs include trials in castrate-resistant prostate cancer, colorectal cancer, non-small cell lung cancer, triple-negative breast cancer and cancers of the kidney, pancreatic duct and other areas.

Gilead has already made several moves into immuno-oncology. Most recently, in March, it spent $4.9 billion to acquire Forty Seven, a company whose lead product candidate is the CD47-targeting antibody magrolimab, data for which will be presented at the ASCO meeting. It also owns Kite Pharma, the CAR-T cell therapy company that is also presenting data at the meeting.

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