Full Press Release Details
Arcus Biosciences Announces First Quarter 2020 Financial Results and Corporate Updates
HAYWARD, Calif. - (BUSINESS WIRE) - May 5, 2020 - Arcus Biosciences, Inc. (NYSE:RCUS), an oncology-focused biopharmaceutical company working to create best-in-class cancer therapies, today announced financial results for the first quarter ended March 31, 2020 and provided corporate updates.
"We have continued to aggressively advance our unique portfolio of therapeutics that target three of the most highly pursued immuno-oncology pathways, TIGIT, the adenosine axis and PD-1, each of which we believe is significantly de-risked based on the totality of available internal and external biological and clinical data," said Terry Rosen, Ph.D., Chief Executive Officer. "Since the inception of the company, our vision has been to create, develop and commercialize best-in-class combination cancer therapies and expand on the availability of innovative treatment paradigms in the oncology space in hopes of substantially benefiting patients. Execution in the laboratory and clinic has placed us in an ideal position to deliver on this vision, with an ongoing flow of important data throughout the coming year."
"We would like to express our deepest gratitude to healthcare professionals, patients and their caregivers and all clinical operations personnel involved in our trials for their extraordinary commitment to advancing these new treatment options. Despite fighting on the front lines of the COVID-19 pandemic and the challenges posed by self-quarantine and public health measures, they continue to recognize the vital importance of our mission to advance best-in-class combination therapies in the pursuit of cures for patients with cancer, which still results in approximately 10 million deaths globally each year. As a result of the efforts of these dedicated individuals, we remain on track to generate preliminary Phase 1b expansion data in mid-2020 and randomized data starting in the fourth quarter of 2020, respectively, that will inform the advancement of our regulatory strategy."
Recent Key Highlights
Anticipated Corporate Milestones
We continue to actively monitor the COVID-19 pandemic and its effects on our clinical trial operations, research and development programs, key vendors and employees. While we do not anticipate any modifications to the timelines above, this will depend on future developments which are currently unknown, including any new information that may emerge concerning the duration and/or severity of the crisis, any new actions by government authorities to contain the spread of the virus, and how quickly and to what extent normal economic and operating conditions can resume.
Financial Results for the First Quarter 2020
About Arcus Biosciences
Arcus Biosciences is an oncology-focused biopharmaceutical company leveraging its deep cross-disciplinary expertise to discover highly differentiated therapies and to develop a broad portfolio of novel combinations addressing significant unmet needs. AB928, the first and only dual A2a/A2b adenosine receptor antagonist in the clinic, is being evaluated in several Phase 1b/2 studies across multiple indications, including prostate, colorectal, non-small cell lung, pancreatic, triple negative breast and renal cell cancers. AB680, the first small-molecule CD73 inhibitor in the clinic, is in Phase 1 development for first-line treatment of metastatic pancreatic cancer. AB154, an anti-TIGIT monoclonal antibody, is in Phase 2 development for first-line treatment of metastatic non-small cell lung cancer in combination with zimberelimab and AB928. Zimberelimab (AB122), Arcus's anti-PD1 monoclonal antibody, is being evaluated in a Phase 1b study as monotherapy for cancers with no approved anti-PD1 treatment options, as well as in combinations across the portfolio. For more information about Arcus Biosciences, please visit www.arcusbio.com.
Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts contained herein, including, but not limited to, Arcus's expectations regarding the impact of COVID-19 on our operations, including ongoing and upcoming clinical trials, and financial condition; anticipated milestones and timelines; as well as anticipated operating expenses and capital expenditure requirements, are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause Arcus's actual results, performance or achievements to differ significantly from those expressed or implied. Factors that could cause or contribute to such differences include, but are not limited to, the inherent uncertainty associated with the COVID-19 pandemic, including the duration and/or severity of the outbreak and actions by government authorities to slow the spread of the virus, the inherent uncertainty associated with pharmaceutical product development and clinical trials, delays in our clinical trials due to difficulties or delays in the regulatory process, enrolling subjects or manufacturing or supplying product for such clinical trials, the emergence of adverse events or other undesirable side effects, risks associated with preliminary and interim data, and changes in the competitive landscape for our programs. Risks and uncertainties facing Arcus are described more fully in Arcus's quarterly report on Form 10-Q for the quarter ended March 31, 2020 filed on May 5, 2020 with the SEC. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this press release. Arcus disclaims any obligation or undertaking to update, supplement or revise any forward-looking statements contained in this press release.
Source: Arcus Biosciences
ARCUS BIOSCIENCES, INC.
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
| (unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2020 | 2019 | |||||||
| Collaboration and license revenue | $ | 1,750 | $ | 1,750 | ||||
| Operating expenses: | ||||||||
| Research and development | 23,142 | 15,554 | ||||||
| General and administrative | 7,008 | 4,969 | ||||||
| Total operating expenses | 30,150 | 20,523 | ||||||
| Loss from operations | (28,400 | ) | (18,773 | ) | ||||
| Non-operating income (expense): | ||||||||
| Interest and other income, net | 647 | 1,534 | ||||||
| Gain on deemed sale from equity method investee | 482 | - | ||||||
| Share of loss from equity method investee | (482 | ) | (431 | ) | ||||
| Total non-operating income, net | 647 | 1,103 | ||||||
| Net loss | (27,753 | ) | (17,670 | ) | ||||
| Other comprehensive income | 224 | 136 | ||||||
| Comprehensive loss | $ | (27,529 | ) | $ | (17,534 | ) | ||
| Net loss per share, basic and diluted | $ | (0.63 | ) | $ | (0.41 | ) | ||
| Weighted-average number of shares used to compute basic and diluted net loss per share | 44,282,607 | 43,508,592 |
Selected Consolidated Balance Sheet Data
| March 31, | December 31, | |||||||
| 2020 | 2019 (1) | |||||||
| Cash, cash equivalents and investments in marketable securities | $ | 157,866 | $ | 188,270 | ||||
| Total assets | 176,144 | 203,110 | ||||||
| Total liabilities | 35,506 | 39,268 | ||||||
| Total stockholders' equity | 140,638 | 163,842 |
(1) Derived from the audited financial statements for the year ended December 31, 2019, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, dated March 5, 2020.