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Jun 30, 2023
Arcus Biosciences Q2 2023 Earnings Report
Arcus Biosciences reported financial results for the second quarter ended June 30, 2023, and provided a pipeline update.
Key Takeaways
Arcus Biosciences reported revenues of $29 million for the second quarter of 2023, compared to $27 million for the same period in 2022. Cash, cash equivalents and marketable securities were $1.0 billion as of June 30, 2023. Net loss was $75 million for the quarter.
Presented data from the ongoing ARC-7 Phase 2 trial in non-small cell lung cancer at ASCO, demonstrating clinically meaningful improvements over anti-PD-1 monotherapy with domvanalimab.
Initiated the dose-expansion phase of the Phase 1b ARC-20 study of AB521 in clear-cell renal cell carcinoma patients.
Conducted an analysis of data from the Phase 1/1b ARC-8 study of quemliclustat, with encouraging overall survival data relative to historical benchmarks for chemotherapy alone.
Based on data from ARC-6, the etrumadenant-based combination is not expected to demonstrate sufficient clinical benefit in castrate resistant prostate cancer.
Revenue by Segment
Forward Guidance
Arcus expects to present several key datasets across its pipeline, including data from the Phase 2 EDGE-Gastric study (ARC-21), overall survival data from ARC-8, and data from the Phase 1b ARC-20 study for AB521.
Positive Outlook
- Initial ORR data from the ongoing EDGE-Gastric (ARC-21) Phase 2 study of domvanalimab plus zimberelimab and chemotherapy in first-line upper GI cancers are anticipated in the fourth quarter of 2023.
- A Phase 2 study evaluating AB521 in combination with other agents is anticipated to begin in the fourth quarter of 2023.
- Arcus expects to initiate a Phase 1 study in healthy volunteers of AB801, its potent and highly selective Axl inhibitor, in the third quarter of 2023.
- Initial pharmacokinetic (PK), pharmacodynamic (PD) and safety data, along with any preliminary signs of anti-tumor activity from the dose-escalation phase of ARC-20, are expected in late 2023 or early 2024.
- Data from ARC-9, a Phase 1b/2 study evaluating etrumadenant plus zimberelimab plus chemotherapy in second-line and third-line metastatic colorectal cancer (mCRC), which is fully enrolled, are expected in the first half of 2024.
Challenges Ahead
- Based on our most recent analysis of data from ARC-6, the etrumadenant-based combination is not expected to demonstrate sufficient clinical benefit in castrate resistant prostate cancer to warrant further investment.
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