Arcus Biosciences, Inc. Q3 FY2024 earnings call

• Terry Rosen discussed data from the ARC-20 study for Casdatifan, highlighting low primary progression rates, ORR, durable activity, and plans for Phase 3 study PEAK-1.
• Jennifer Jarrett talked about the PEAK-1 study design, market opportunity for Casdatifan, and collaboration with AstraZeneca.
• Dimitry Nuyten discussed Domvanalimab's ARC-10 study data showing superiority in ORR, PFS, OS, and a differentiated safety profile.
• Bob Goeltz provided financial details, including cash position, revenue, R&D, and G&A expenses.

Cash as of the end of the third quarter was $1.1 billion, up from $1 billion at the end of the second quarter. GAAP revenue for the third quarter was $48 million, compared to $39 million in the second quarter. R&D expenses for the third quarter, net of reimbursements from Gilead, were $123 million, versus $115 million in the second quarter. G&A expenses were $30 million in the third quarter, flat from the second quarter. The expected cash and investments balance at the end of 2024 is between $950 million and $985 million, with funding expected to last into mid-2027.

• Cash and investments balance at the end of 2024 is expected to be between $950 million and $985 million, funding operations into mid-2027.
• Expected GAAP revenue for the fourth quarter of 2024 is approximately $30 million.
• Modest increases in R&D expenses are expected for the fourth quarter of 2024, with G&A expenses stable.

Q: Interest in Gilead's opt-in for Casdatifan, color on data package and timing.

A: Jennifer Jarrett said Arcus is close to meeting the data requirement for Gilead's opt-in, with a decision expected late this year or early next year.

Q: Details on unconfirmed partial responses in Casdatifan study.

A: Jennifer Jarrett mentioned one patient in the 100mg cohort and one in the 50mg cohort with pending confirmatory scans.

Q: Opt-in economics and next steps if Gilead doesn't opt-in.

A: Terry Rosen said Arcus could continue with Casdatifan on its own, has inbound interest, and there's a $150 million opt-in fee if Gilead opts-in.

Q: Trial conduct and toxicity management in PEAK-1 and combo with CTLA-4 bispecific.

A: Dimitry Nuyten discussed starting Cabo at full dose, managing toxicities, and AstraZeneca's experience with toxicity management.

Q: TIGIT data translation to STAR-121 study and timing of data.

A: Terry Rosen discussed differentiation of FC-silent anti-TIGIT, STAR-121 potential, and OS data expected in 2025.