Arcus Biosciences Stretches Cash Runway To 2029, With A $288 Million Stock Sale Doing The Work
Cash fell to $694 million in the third quarter, but October's share sale lifts the funding horizon into 2029.
Arcus Biosciences, a late clinical-stage drugmaker focused on cancer and immune diseases, now says its cash plus an October stock sale will fund operations into 2029, according to its 10-Q filed Wednesday. The prior quarter's filing gave a horizon of at least the second half of 2028.
Cash down, offering fills the gap
Cash, cash equivalents and marketable securities stood at $694 million on September 30. The prior quarter's filing showed $775 million on June 30, so the pile shrank by $81 million in a quarter.
In October, Arcus sold 16.4 million shares at $17.50 each, for gross proceeds of about $288 million before underwriting discounts, commissions and expenses. The company's runway language counts both the September cash and that offering. Wednesday's close was $19.31, above the offering price, for a market value of $2.4 billion.
The filing also keeps its standard warning that Arcus may need more capital and that raising it could dilute shareholders.
Revenue shrinks as Gilead steps back
Third-quarter revenue was $9 million, against $26 million a year earlier, and the net loss was $128 million, compared with $135 million. The company attributed the revenue drop mainly to winding-down Gilead collaboration activity, partly offset by Taiho programs.
Gilead's option rights ended on July 14, 2026, after it decided not to make an option continuation payment. Under an amended investor rights agreement, Gilead also gave up its board seats in the third quarter; it held about 24.6% of the stock on September 30.
Arcus now plans around casdatifan, a kidney cancer drug it owns, after wind-downs of its domvanalimab studies. It expects research spending to stay roughly level near term. Arcus is also obligated to pay AstraZeneca $18 million in milestones after PACIFIC-8 was discontinued, fully accrued on the balance sheet.
Casdatifan trial timetable
Arcus said it expects enrollment in PEAK-1, a Phase 3 casdatifan study, to finish within two to three months, with the first-line PEAK-20 study due to start by year-end 2026. In October it reported data showing casdatifan plus cabozantinib reached median progression-free survival of 14.5 months in second-line patients.
Management is scheduled for a fireside chat at the Jefferies healthcare conference in London on November 16.
Arcus expects PEAK-1 enrollment to wrap up in the next two to three months, and it plans to start PEAK-20 by the end of 2026.
Sources
- 10-Q Filing — Arcus Biosciences (RCUS) — SEC EDGAR
- 10-Q Filing — Arcus Biosciences (RCUS), Q2 FY2026 filed 2026-08-05 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, a2026q38kexhibit991.htm) — Arcus Biosciences, filed 2026-11-04 — SEC EDGAR
- Earnings To Watch: Arcus Biosciences Inc (RCUS) Q3 2026 -- GF Value Sees 80% Downside — Yahoo Finance
- Arcus Biosciences GAAP EPS of -$1.00 misses by $0.09, revenue of $9M beats by $0.73M (RCUS:NYSE) | Seeking Alpha — seekingalpha.com
- Arcus Biosciences to Participate in the Jefferies Global Healthcare Conference 2026 in London – Company Announcement - FT.com — Financial Times
- Arcus Biosciences Reports Third-Quarter 2026 Financial Results and Provides a Pipeline Update — businesswire.com
