Arcus Biosciences (NYSE:RCUS) FY 2025 Conference December 03, 2025 10:30 AM ET Company ParticipantsYigal Nochomovitz - DirectorTerry Rosen - CEOJenn Jarrett - COOYigal NochomovitzOkay. Well, here we are. Another year, another conference. So welcome to the leadership team for Arcus. Very familiar faces. Terry Rosen, the CEO. Jen Jarrett, COO. Thanks for—And Pia.And Pia. Thank you. Hi, Pia. And I'm Yigal Nochomovitz. I'm a biotech analyst here at Citi. We've been covering Arcus now a long time, I think. Six y ...

Financial Data and Key Metrics Changes - The company has over $1 billion in cash, which provides substantial capital for executing its strategic plans and covering readouts for all ongoing programs [15] - The annual sales run rate for Merck's belzutifan, a comparable product, is approximately $700 million, indicating a significant market opportunity for the company's casdatifan [5][6] Business Line Data and Key Metrics Changes - Casdatifan is highlighted as the primary value driver for the company, with data showing it has a better profile than belzutifan across multiple endpoints, including primary progression rates and progression-free survival (PFS) [9][10] - The company has three programs in Phase III, including the anti-TIGIT program, which is expected to read out in 2026, and a CD73 inhibitor study that was fully enrolled ahead of schedule [12][13][15] Market Data and Key Metrics Changes - The renal cancer market is a significant focus, with the company targeting a large patient population that has previously been treated with immune-oncology therapies [19][22] - The competitive landscape in renal cancer is less intense compared to other oncology markets, which may facilitate quicker enrollment and data readouts for the company's studies [22] Company Strategy and Development Direction - The company aims to leverage its complete ownership of casdatifan to create strategic optionality across its portfolio, positioning it as a foundational asset for future growth [6] - The strategy includes a fast-to-market approach for casdatifan, with a focus on combining it with established therapies like CABO to enhance treatment efficacy [19][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the differentiation of casdatifan from competitors, citing robust clinical data and a favorable safety profile [11][12] - The company anticipates rapid enrollment in its studies due to the favorable design and the lack of competing studies in the renal cancer space [22][23] Other Important Information - The company is actively exploring additional immunology programs and has plans to enter the clinic with a new HIF-2alpha inhibitor next year [15] - The company is also considering various combinations for its frontline studies, including potential collaborations with AstraZeneca [40][41] Q&A Session Summary Question: What are the key differentiators for casdatifan compared to belzutifan? - Management highlighted that casdatifan shows better primary progression rates, response rates, and PFS compared to belzutifan, with significant clinical data supporting these claims [9][10] Question: What is the expected timeline for the ongoing studies? - The goal is to complete enrollment for the CAS-CABO study by the end of next year, with primary completion expected by April 2028 [24][25] Question: How does the company plan to manage safety profiles in combination therapies? - The safety profile of casdatifan combined with CABO appears favorable, with high dose intensity maintained throughout treatment, which is a positive indicator for patient management [37][38] Question: What is the significance of the STAR-221 trial? - STAR-221 is expected to read out in 2026 and is positioned as a pivotal study for the company's anti-TIGIT program, with promising early data suggesting a potential for improved overall survival [90][91] Question: How does the company view the competitive landscape for its products? - Management noted that the renal cancer space is less competitive, which may facilitate quicker enrollment and data readouts, providing a strategic advantage [22]

Arcus Biosciences (NYSE:RCUS) FY Conference December 02, 2025 04:40 PM ET Company ParticipantsJennifer Jarrett - COOTerry Rosen - CEOConference Call ParticipantsNone - AnalystNoneAll right. Well, good afternoon, everybody. Welcome. Thank you so much to Arcus Management for joining us. We've got Terry and Jen here with us. I can't wait to go through all the exciting data and all the updates coming soon. But let's start with a minute or two from you. What are you excited about heading into 2026? Where are the ...

Group 1: Semtech Corp Financial Results - Semtech reported third-quarter revenue of $267 million, missing analyst estimates of $268.83 million [1] - The company reported third-quarter adjusted earnings of 48 cents per share, beating estimates of 45 cents per share [1] Group 2: Stock Performance - Semtech shares dipped 7.2% to $65.00 in pre-market trading [2] - Other stocks also experienced declines in pre-market trading, including Arcus Biosciences Inc, which fell 6.7% to $21.63, and Nanobiotix SA, which fell 6.2% to $20.64 [4]

Core Insights - Juan C. Jaen, president of Arcus Biosciences, sold 96,859 shares for over $2 million, marking his largest sale in recent years [1][2][9] - The sale was executed under a structured trading plan, indicating it was not a reaction to market conditions [9][10] - Post-transaction, Jaen retains 367,220 direct shares and approximately 1.1 million indirect shares, reflecting continued investment in the company [4][10] Company Overview - Arcus Biosciences is a clinical-stage biotechnology firm focused on developing cancer immunotherapies, with a market capitalization of $2.1 billion and a revenue of $262 million over the trailing twelve months [5][6] - The company has a robust pipeline including several assets in Phase 1/2 clinical trials, such as Etrumadenant and Zimberelimab, and maintains collaborations with major biopharmaceutical firms like AstraZeneca [8][10] Financial Performance - The company reported a net income loss of $298 million over the trailing twelve months, but has a strong cash position of $841 million, positioning it well for future developments [5][11] - Arcus has experienced a 29% price change over the past year, indicating positive market sentiment [5] Market Context - The timing of Jaen's sale follows positive updates from Phase 2 and 3 trials, suggesting that the company is on a promising trajectory with its drug candidates [10] - Insider sales under structured trading plans are common in maturing biotech firms, particularly those with significant stock-based compensation [11]

Group 1 - Arcus Biosciences, Inc. has announced the pricing of an underwritten public offering of 13,700,000 shares of its common stock at a price of $18.25 per share [1] - The gross proceeds from this offering are expected to be $250 million [1]

分组1 - Arcus Biosciences reported a quarterly loss of $1.27 per share, which was better than the Zacks Consensus Estimate of a loss of $1.33, and compared to a loss of $1 per share a year ago, indicating an earnings surprise of +4.51% [1] - The company posted revenues of $26 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 27.20%, although this was a decrease from year-ago revenues of $48 million [2] - Arcus Biosciences shares have increased approximately 24.9% since the beginning of the year, outperforming the S&P 500's gain of 16.9% [3] 分组2 - The earnings outlook for Arcus Biosciences is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Arcus Biosciences was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is -$1.24 on revenues of $20.06 million, and for the current fiscal year, it is -$3.70 on revenues of $228.48 million [7] 分组3 - The Medical - Biomedical and Genetics industry, to which Arcus Biosciences belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - TG Therapeutics, another company in the same industry, is expected to report quarterly earnings of $0.24 per share, reflecting a significant year-over-year change of +1100%, with revenues projected to be $150.66 million, up 79.6% from the previous year [9]

Clinical Development - The company has a clinical-stage portfolio with seven programs targeting unique cancer pathways, including HIF-2α, TIGIT, and CD73[131]. - The anti-TIGIT antibody, domvanalimab, is currently in multiple Phase 3 registrational studies for lung and gastrointestinal cancers[130]. - The Phase 3 trial of quemliclustat (PRISM-1) for first-line metastatic pancreatic cancer completed enrollment within 12 months of initiation[139]. - The median progression-free survival (mPFS) for casdatifan in late-line metastatic kidney cancer was reported at 12.2 months, with a confirmed overall response rate (cORR) of 31%[140]. - The company reported an 18-month landmark progression-free survival of 60% for the 100mg QD cohort of casdatifan in the Phase 3 PEAK-1 study[140]. - The safety profile of domvanalimab plus zimberelimab and chemotherapy was well tolerated, with median overall survival (mOS) reported at 26.7 months in a Phase 2 study[140]. Financial Performance - Total revenues for the three months ended September 30, 2025, decreased by 46% to $26 million, primarily due to a $15 million license revenue from Taiho in the prior year and lower development service revenues from the Gilead Collaboration[151][152]. - The net loss for the three months ended September 30, 2025, was $135 million, representing a 47% increase compared to the net loss of $92 million in the same period of 2024[151]. - Non-operating income decreased by 46% to $7 million for the three months ended September 30, 2025, primarily due to lower investment yields and interest expenses[162]. - For the nine months ended September 30, 2025, net cash used in operating activities was $362 million, compared to $70 million for the same period in 2024[173]. Research and Development Expenses - Research and development (R&D) expenses increased by 15% to $141 million for the three months ended September 30, 2025, driven by costs related to late-stage programs and increased enrollment activities[156][157]. - The company expects R&D expenses to peak in 2025 and then decline significantly as programs advance towards regulatory approval[146]. Revenue Recognition and Collaboration - The company has not generated any revenue from product sales and does not expect to do so in the foreseeable future, relying instead on collaboration agreements for revenue[141]. - License and development services revenue is recognized based on the completion of performance obligations related to collaboration agreements with Gilead and Taiho[142]. - A cumulative catch-up adjustment to revenue of $143 million was recognized due to a contract modification related to the Gilead Collaboration Agreement[182]. - At September 30, 2025, the company had $105 million in deferred revenue related to upfront cash payments for R&D programs[185]. Cash and Financing Activities - The company has cash and investments sufficient to fund operations for at least twelve months following the report date, supporting pivotal read-outs for key programs[166]. - The company entered into an equity distribution agreement to sell up to $200 million of common stock[168]. - A $250 million term loan facility was obtained from Hercules, with $50 million drawn at closing and additional amounts available for strategic initiatives[170]. - Cash provided by financing activities for the nine months ended September 30, 2025, included $150 million from the common stock issuance and $49 million from borrowings under the Hercules Agreement[176]. - The company drew an additional $50 million under the Hercules Agreement in June 2025[177]. Impairment and Adjustments - Impairment charges of $20 million were recorded for the nine months ended September 30, 2024, due to the evaluation and sublease of office space[161]. - A hypothetical 10% change in the total estimated effort required for R&D activities could have changed the related revenue recognized by as much as $58 million[186]. General and Administrative Expenses - General and administrative (G&A) expenses decreased by 10% to $27 million for the three months ended September 30, 2025, mainly due to a reduction in non-cash stock-based compensation[159]. Market Risks - Market risks related to interest rates and foreign currency exchange rates have not changed materially from previous disclosures[188].

Financial Performance - Arcus reported revenues of $26 million for Q3 2025, down from $48 million in Q3 2024, primarily due to a prior year license revenue of $15 million and lower revenues from the Gilead collaboration[13] - Total revenues for Q3 2025 were $26 million, a decrease of 45.8% compared to $48 million in Q3 2024[24] - License and development services revenue was $20 million in Q3 2025, down from $41 million in Q3 2024, representing a decline of 51.2%[24] - Net loss for Q3 2025 was $135 million, compared to a net loss of $92 million in Q3 2024[13] - Net loss for Q3 2025 was $135 million, compared to a net loss of $92 million in Q3 2024, reflecting a 46.7% increase in losses[24] - Basic and diluted net loss per share for Q3 2025 was $1.27, compared to $1.00 for Q3 2024[24] - Non-operating income for Q3 2025 was $7 million, a decrease of 46.2% from $13 million in Q3 2024[24] Research and Development - Research and Development (R&D) expenses increased to $141 million in Q3 2025 from $123 million in Q3 2024, driven by costs for late-stage programs[13] - Research and development expenses increased to $141 million in Q3 2025, up 14.6% from $123 million in Q3 2024[24] - The Phase 3 PEAK-1 study of casdatifan is currently enrolling, with a primary endpoint of progression-free survival (PFS)[5] - Arcus plans to initiate a Phase 3 study for casdatifan in early-line ccRCC in the second half of 2026, informed by emerging data from ongoing studies[9] - The company disclosed five new research and preclinical programs targeting inflammatory and autoimmune diseases, with the first candidate expected to enter the clinic in 2026[14] Cash and Assets - The company has $841 million in cash, cash equivalents, and marketable securities as of September 30, 2025, down from $992 million at the end of 2024, with a cash runway expected to fund operations through pivotal readouts for key programs[13] - Cash, cash equivalents, and marketable securities totaled $841 million as of September 30, 2025, down from $992 million at the end of 2024[26] - Total assets decreased to $974 million as of September 30, 2025, compared to $1,150 million at the end of 2024[26] - Total liabilities were $538 million as of September 30, 2025, down from $665 million at the end of 2024[26] - Total stockholders' equity decreased to $436 million as of September 30, 2025, from $485 million at the end of 2024[26] Clinical Results - Casdatifan demonstrated a median progression-free survival (mPFS) of 12.2 months and an 18-month landmark PFS of 43% in a pooled analysis of 121 patients with late-line kidney cancer[6] - Domvanalimab plus zimberelimab and chemotherapy showed a median overall survival (OS) of 26.7 months in the Phase 2 EDGE-Gastric study[6] Revenue Expectations - Arcus expects to recognize GAAP revenue of between $225 million and $235 million for the full year 2025[13]

Company Overview - Arcus Biosciences, Inc. (RCUS) shares increased by 7.5% to $18.6 in the last trading session, with a notable trading volume, contributing to a 34.8% gain over the past four weeks [1][2] Financial Performance - The company is expected to report a quarterly loss of $1.33 per share, reflecting a year-over-year decline of 33% [2] - Projected revenues for the upcoming quarter are $20.44 million, which is a decrease of 57.4% compared to the same quarter last year [2] Market Sentiment - The rise in stock price is attributed to increasing investor confidence in the company's pipeline candidates, which are undergoing various stages of clinical development for cancer treatments [2] - The consensus EPS estimate for Arcus Biosciences has remained unchanged over the last 30 days, indicating a lack of earnings estimate revisions [4] Industry Context - Arcus Biosciences operates within the Zacks Medical - Biomedical and Genetics industry, where another company, VistaGen Therapeutics, Inc. (VTGN), experienced a 4.2% decline in its stock price [4] - VistaGen Therapeutics has seen an 11.1% increase in its consensus EPS estimate over the past month, with a projected EPS of -$0.51, representing a year-over-year change of -21.4% [5]