Arcus Biosciences, Inc. Q1 FY2026 earnings call

Terry Rosen introduced the new era for Arcus with full ownership of lead program castatafan, phase three kidney cancer study enrolling rapidly, and next generation molecules for inflammation and immunology. Richard Marcus discussed castatafan's development plan, updated efficacy data from monotherapy cohorts, frontline setting plans, and other clinical programs like Kremlin-Klustad and the discontinuation of STAR-121. Juan Jaen talked about immunology and information programs, including AB102 and other molecules entering clinic. Bob Guelph discussed market opportunity for castatafan, financials with cash runway, revenue, R&D and T&A expenses, and stock-based compensation.

ARCIS has $876 million in cash at end of quarter with runway until at least second half of 2028, expects to end 2026 with ~$600 million in cash. Expect GAAP revenue of $50 to $65 million for full year 2026. Plan to significantly reduce R&D spend in 2026 and 2027 compared to 2025. Peak one enrollment accelerating, targeting full enrollment by year end. All clinical development plans for castatafan accounted for within existing budgets with no impact on guidance or runway. PRISM-1 phase three trial for pancreatic cancer fully enrolled, on track for readout in first half of 2027.

Q: Tell us about the cast TKI frontline combo, specifically comparing to Merck's LightSpark 12.

A: Discussed pharmacodynamic difference between castatafan and belazodafan, durability, and how Merck's data relates.

Q: Updated thoughts on adjuvant setting and sequencing of development efforts.

A: Adjuvant setting prioritization based on smaller opportunity and physician feedback, sequencing of studies discussed.

Q: Arc20 update, initial data from triplet cohort.

A: Initial data from IPPE anti-PD1 cast regimen expected in fall, focusing on safety and primary progression.

Q: Confidence in Cas triplet safety in 1L.

A: Confident based on molecule properties and orthogonal AE profile.

Q: Necessary to drive broad uptake of TKI-free regimen in first line RCC.

A: Receptivity, rate of primary progression, and HIF-2 inhibition discussed.

Q: Looking at CAS plus CAVO updated data.

A: Holistic view of data, including PFS, ORR, and potential OS advantage.

Q: Proof of concept study design for AB 102.

A: Accelerated plan including PK tolerability, mechanistic confirmation, and phase two study in CSU