Arcus Says Cash Now Lasts Into 2029 After $288 Million Raise, Even As Quarterly Revenue Shrinks To $9 Million
The cancer drug developer's third-quarter loss narrowed to $128 million as it cut trial spending and put its kidney cancer pill at the center.
Arcus Biosciences, a clinical-stage drug developer focused on cancer and immune diseases, said its cash should fund operations into 2029, counting a $288 million October stock sale on top of $694 million in the bank at September 30. The company's third-quarter net loss narrowed to $128 million, from $135 million a year earlier, even as revenue fell to $9 million from $26 million, it said in an 8-K filed Wednesday.
Smaller loss, smaller revenue
The loss worked out to $1.00 per share, against $1.27 a year earlier. The share count used in that math rose to 127.4 million from 106.5 million.
Revenue fell mainly because work under the Gilead collaboration is winding down or reaching completion, the company said. Revenue tied to the Taiho collaboration partly offset the drop. Arcus expects full-year 2026 revenue of $70 million to $75 million under standard accounting.
Research and development spending dropped to $117 million from $141 million, as Phase 3 studies of domvanalimab wound down and enrollment in the PRISM-1 pancreatic cancer trial finished. Spending on casdatifan trials rose. General and administrative costs fell to $23 million from $27 million on streamlining. Arcus expects R&D spending to stay relatively consistent in the near term.
Cash down, runway extended
Cash, equivalents and marketable securities fell to $694 million from $1.01 billion at the end of 2025, mostly from funding research and development. For the first nine months, the net loss was $347 million, up from $247 million a year earlier.
Arcus, which has no approved products, believes the September cash plus the October raise is enough to fund planned operations into 2029.
Casdatifan carries the pipeline
Casdatifan is Arcus's pill aimed at HIF-2α, a protein tied to clear cell kidney cancer. In October, the company presented ARC-20 data with a September 4, 2026 cutoff. In 121 heavily pretreated late-line patients followed a median 28 months, casdatifan alone showed median overall survival of 35 months, which the company called unprecedented. Median progression-free survival was 13 months.
CEO Terry Rosen said the data show casdatifan can address patients at every line of kidney cancer therapy. Enrollment in PEAK-1, the second-line Phase 3 study, should finish in the next two to three months, and the first-line Phase 3 PEAK-20 is on track to start by year-end 2026. The company cautions that its comparisons to benchmarks are not head-to-head.
An interim analysis of the Phase 3 PRISM-1 pancreatic cancer trial of quemliclustat is due in the fourth quarter of 2026, and more mature ARC-20 survival data are expected in 2027.
Sources
- 8-K Filing — Arcus Biosciences, Inc. (RCUS) — SEC EDGAR
- Exhibit a2026q38kexhibit991.htm — Arcus Biosciences, Inc. 8-K exhibit — SEC EDGAR
- 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
