Full Press Release Details
Arcus Biosciences Announces Second Quarter 2019 Financial Results and Recent Corporate Updates
HAYWARD, Calif. - (BUSINESS WIRE) - August 6, 2019 - Arcus Biosciences, Inc. (NYSE:RCUS), a clinical-stage biopharmaceutical company focused on creating innovative cancer therapies, today announced financial results for the second quarter ended June 30, 2019 and provided corporate updates.
"For our lead program, AB928, the first dual adenosine receptor antagonist designed for use in oncology, we have demonstrated excellent safety, maximal receptor coverage, and PK/PD correlation in three different combination regimens. This has enabled broad Phase 1b expansion across multiple tumor types, now including prostate cancer, and we look forward to reporting initial results in mid-2020," said Terry Rosen, Ph.D., Chief Executive Officer of Arcus. "Arcus's emphasis on selecting science-driven clinical combinations, adaptive clinical design, and an early commitment to clinical and commercial integration provide a framework that enables us to be well positioned to maximize clinical and commercial value from our pioneering drug discovery efforts in the adenosine space and potentially best-in-class molecules."
Recent Corporate Highlights
Anticipated Upcoming (2H 2019) Milestones
Please refer to Arcus's pipeline at www.arcusbio.com for the company's most current pipeline and development plans.
Financial Results for the Second Quarter 2019
About Arcus Biosciences
Arcus Biosciences is a clinical-stage biopharmaceutical company focused on creating innovative cancer therapies. Arcus has several programs targeting important oncology/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 progressing into a Phase 1b trial in biomarker-selected patients. AB122 is expected to form the backbone for many of Arcus's intra-portfolio combinations. 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 progressing into a Phase 1/1b trial in patients with pancreatic cancer. Arcus has extensive in-house expertise in medicinal chemistry, oncology, immunology, biochemistry, pharmacology and structural biology. Utilizing these unique capabilities, Arcus has developed a robust and active early-stage discovery effort focused on small-molecule pipeline expansion. 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 breadth, advancement and potential of its clinical development programs, including anticipated milestones and timelines, ability to extract maximal value from its drug discovery efforts and molecules, 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, 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, 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 June 30, 2019 filed on August 6, 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.
The Arcus name and logo are trademarks of Arcus. All other trademarks belong to their respective owners.
Source: Arcus Biosciences
ARCUS BIOSCIENCES, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
| June 30, | December 31, | |||||||
| 2019 | 2018 (1) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 76,068 | $ | 71,064 | ||||
| Short-term investments | 148,330 | 185,480 | ||||||
| Prepaid expenses and other current assets | 3,273 | 2,321 | ||||||
| Amounts owed by a related party | 62 | 83 | ||||||
| Total current assets | 227,733 | 258,948 | ||||||
| Long-term investments | - | 3,181 | ||||||
| Property and equipment, net | 10,362 | 11,107 | ||||||
| Equity investment in related party | 357 | 1,202 | ||||||
| Restricted cash | 203 | 203 | ||||||
| Other long-term assets | 319 | 284 | ||||||
| Total assets | $ | 238,974 | $ | 274,925 | ||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 2,448 | $ | 3,102 | ||||
| Accrued liabilities | 15,552 | 6,023 | ||||||
| Deferred revenue, current | 7,000 | 6,250 | ||||||
| Other current liabilities | 1,513 | 1,560 | ||||||
| Total current liabilities | 26,513 | 16,935 | ||||||
| Deferred revenue, noncurrent | 10,522 | 16,984 | ||||||
| Deferred rent | 4,010 | 4,272 | ||||||
| Other long-term liabilities | 1,283 | 1,792 | ||||||
| Total liabilities | 42,328 | 39,983 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 4 | 4 | ||||||
| Additional paid-in capital | 362,905 | 357,873 | ||||||
| Accumulated deficit | (166,376 | ) | (122,828 | ) | ||||
| Accumulated other comprehensive loss | 113 | (107 | ) | |||||
| Total stockholders' equity (deficit) | 196,646 | 234,942 | ||||||
| Total liabilities, convertible preferred stock and stockholders' equity (deficit) | $ | 238,974 | $ | 274,925 |
ARCUS BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
| (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Collaboration and license revenue | $ | 1,750 | $ | 1,250 | $ | 3,500 | $ | 2,500 | ||||||||
| Operation expenses: | ||||||||||||||||
| Research and development | 24,999 | 13,699 | 40,553 | 25,352 | ||||||||||||
| General and administrative | 5,911 | 3,450 | 10,879 | 6,379 | ||||||||||||
| Total operating expenses | 30,910 | 17,149 | 51,432 | 31,731 | ||||||||||||
| Loss from operations | (29,160 | ) | (15,899 | ) | (47,932 | ) | (29,231 | ) | ||||||||
| Non-operating income (expense): | ||||||||||||||||
| Interest and other income (expense), net | 1,482 | 1,288 | 3,016 | 1,891 | ||||||||||||
| Gain on deemed sale from equity method investee | - | 1,229 | - | 1,229 | ||||||||||||
| Share of loss from equity method investee | (412 | ) | (151 | ) | (844 | ) | (377 | ) | ||||||||
| Total non-operating income, net | 1,070 | 2,366 | 2,172 | 2,743 | ||||||||||||
| Net loss | (28,090 | ) | (13,533 | ) | (45,760 | ) | (26,488 | ) | ||||||||
| Other comprehensive gain (loss) | 84 | 14 | 220 | (41 | ) | |||||||||||
| Comprehensive loss | $ | (28,006 | ) | $ | (13,519 | ) | $ | (45,540 | ) | $ | (26,529 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.64 | ) | $ | (0.32 | ) | $ | (1.05 | ) | $ | (1.01 | ) | ||||
| Weighted-average number of shares used to compute basic and diluted net loss per share | 43,797,718 | 42,533,641 | 43,653,325 | 26,236,007 |