Full Press Release Details
Arcus Biosciences Announces Fourth Quarter and Full Year 2018 Financial Results and Recent Corporate Updates
Hayward, CA. - (BUSINESS WIRE) - March 5, 2019 - Arcus Biosciences, Inc. (NYSE:RCUS), a clinical-stage biopharmaceutical company focused on creating innovative cancer immunotherapies, today announced financial results for the fourth quarter and full year 2018. The Company also provided updates on its clinical programs.
"Throughout 2018, we made substantial progress on multiple programs, ending the year with four product candidates in the clinic," said Terry Rosen, Ph.D., Chief Executive Officer at Arcus. "Enrollment continues in our first three dose-escalation trials for AB928, in which we are evaluating AB928 in combination with either immunogenic chemotherapies or our anti-PD-1 antibody, AB122, across a number of tumor types. We plan to present early data on safety, pharmacokinetic/pharmacodynamic profile, biomarker analysis and clinical activity for the AB928 combinations in mid-2019. Following our IPO last year, we have a strong balance sheet, and we are well-positioned to execute on our research and clinical development plans into 2021."
AB928 (dual A2aR/A2bR antagonist)
AB122 (anti-PD-1 antibody)
AB154 (anti-TIGIT antibody)
AB680 (small-molecule CD73 inhibitor)
In mid-2019, the Company expects to:
In the second half of 2019, the Company expects to:
Fourth Quarter and Full Year 2018 Financial Results
Based on its current operating plan, the Company expects that its cash and investments as of December 31, 2018 will enable the Company to fund its anticipated operating expenses and capital expenditure requirements into 2021.
About Arcus Biosciences
Arcus Biosciences is a clinical-stage biopharmaceutical company focused on creating innovative cancer immunotherapies. Arcus has several programs targeting important immuno-oncology pathways, including a dual adenosine receptor antagonist, AB928, which is in a Phase 1/1b program to evaluate
AB928 in combination with other agents in multiple tumor types, and an anti-PD-1 antibody, AB122, which is being evaluated in a Phase 1 trial and is being tested in combination with Arcus's other product candidates. Arcus's other programs include AB154, an anti-TIGIT antibody, which is being evaluated in a Phase 1 trial as monotherapy and in combination with AB122, and AB680, a small-molecule inhibitor of CD73, which is in a Phase 1 healthy volunteer study. Arcus has extensive in-house expertise in medicinal chemistry, immunology, biochemistry, pharmacology and structural biology. 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 clinical development plans, biomarker activities, milestones and timelines, and 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 pharmaceutical product development and clinical trials, difficulties or delays in developing and validating biomarkers and related assays, 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, and the emergence of adverse events or other undesirable side effects. Risks and uncertainties facing Arcus are described more fully in Arcus's Annual Report on Form 10-K for the year ended December 31, 2018 filed on March [5], 2019 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.
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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 | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Collaboration and license revenue | $ | 1,562 | $ | 1,250 | $ | 8,353 | $ | 1,413 | ||||||||
| Operation expenses: | ||||||||||||||||
| Research and development | 11,436 | 12,146 | 49,646 | 47,218 | ||||||||||||
| General and administrative | 3,610 | 2,448 | 13,566 | 7,636 | ||||||||||||
| Total operating expenses | 15,046 | 14,594 | 63,212 | 54,854 | ||||||||||||
| Loss from operations | (13,484 | ) | (13,344 | ) | (54,859 | ) | (53,441 | ) | ||||||||
| Non-operating income (expense): | ||||||||||||||||
| Interest and other income (expense), net | 1,512 | 290 | 4,922 | 775 | ||||||||||||
| Gain on deemed sale from equity method investee | - | - | 1,229 | - | ||||||||||||
| Share of loss from equity method investee | (323 | ) | (156 | ) | (886 | ) | (416 | ) | ||||||||
| Total non-operating income, net | 1,189 | 134 | 5,265 | 359 | ||||||||||||
| Net loss | (12,295 | ) | (13,210 | ) | (49,594 | ) | (53,082 | ) | ||||||||
| Other comprehensive gain (loss) | 1 | (32 | ) | (65 | ) | (16 | ) | |||||||||
| Comprehensive loss | $ | (12,294 | ) | $ | (13,242 | ) | $ | (49,659 | ) | $ | (53,098 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.28 | ) | $ | (5.98 | ) | $ | 1.43 | $ | (29.03 | ) | |||||
| Weighted-average number of shares used to compute basic and diluted net loss per share | 43,163,412 | 2,208,065 | 34,618,237 | 1,828,262 |
ARCUS BIOSCIENCES, INC.
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
| December 31, | December 31, | |||||||
| 2018 | 2017 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 71,064 | $ | 98,426 | ||||
| Short-term investments | 185,480 | 77,277 | ||||||
| Prepaid expenses and other current assets | 2,321 | 1,141 | ||||||
| Amounts owed by a related party | 83 | 25 | ||||||
| Total current assets | 258,948 | 176,869 | ||||||
| Long-term investments | 3,181 | - | ||||||
| Property and equipment, net | 11,107 | 11,230 | ||||||
| Equity investment in related party | 1,202 | 682 | ||||||
| Restricted cash | 203 | 203 | ||||||
| Other long-term assets | 284 | 1,502 | ||||||
| Total assets | $ | 274,925 | $ | 190,486 | ||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 3,102 | $ | 3,820 | ||||
| Accrued liabilities | 6,023 | 3,137 | ||||||
| Deferred revenue, current | 6,250 | 5,000 | ||||||
| Other current liabilities | 1,560 | 769 | ||||||
| Total current liabilities | 16,935 | 12,726 | ||||||
| Deferred revenue, noncurrent | 16,984 | 18,587 | ||||||
| Deferred rent | 4,272 | 4,740 | ||||||
| Other long-term liabilities | 1,792 | 565 | ||||||
| Total liabilities | 39,983 | 36,618 | ||||||
| Convertible preferred stock | - | 226,196 | ||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock | 4 | - | ||||||
| Additional paid-in capital | 357,873 | 948 | ||||||
| Accumulated deficit | (122,828 | ) | (73,234 | ) | ||||
| Accumulated other comprehensive loss | (107 | ) | (42 | ) | ||||
| Total stockholders' equity (deficit) | 234,942 | (72,328 | ) | |||||
| Total liabilities, convertible preferred stock and stockholders' equity (deficit) | $ | 274,925 | $ | 190,486 |