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Arcus Biosciences Announces Third Quarter 2019 Financial Results and Recent Corporate Updates

November 5, 2019

HAYWARD, Calif.--(BUSINESS WIRE)--Nov 5, 2019--

Arcus Biosciences, Inc. (NYSE:RCUS), a clinical-stage biopharmaceutical company focused on creating innovative cancer therapies, today announced financial results for the third quarter ended September 30, 2019 and provided corporate updates.

“Arcus is at an exciting and important point of inflection in its evolution,” said Terry Rosen, Ph.D., Chief Executive Officer. “We are now advancing our clinical-stage molecules into efficacy evaluation studies, with data expected starting in mid-2020. At the 2019 ESMO Congress, we presented safety, pharmacokinetic and preliminary clinical activity data for AB928 across multiple combination regimens and in a variety of advanced tumor types. With these results and our expanding clinical development program, Arcus continues to mature on the path to becoming a fully integrated biopharmaceutical company.”

Recent Corporate Highlights

Upcoming Milestones & Presentations

Please refer to Arcus’s pipeline at www.arcusbio.com for the company’s most current pipeline and development plans.

Financial Results for the Third Quarter and Nine Months Ended September 30, 2019

About Arcus Biosciences

Arcus Biosciences is a clinical-stage biopharmaceutical company focused on creating innovative cancer therapies. Arcus has four programs in the clinic targeting important oncology/immuno-oncology pathways: (1) AB928, a dual antagonist of adenosine receptors A 2a R and A 2b R, being evaluated in several Phase 1/1b trials in combination with multiple regimens across a range of tumor types, (2) AB680, a small molecule inhibitor of CD73, being evaluated in a Phase 1/1b pancreatic cancer trial, (3) AB122, an anti-PD-1 antibody, being evaluated in a biomarker-selected tumor-agnostic Phase 1b trial, and (4) AB154, an anti-TIGIT antibody being evaluated in combination with AB122. Arcus has extensive in-house expertise in medicinal chemistry, 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 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 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 September 30, 2019 filed on November 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.

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)
(unaudited)
  
 

September 30,

 

December 31,

 

2019

 

2018 (1)

ASSETS 
Current assets: 
Cash and cash equivalents 

$

78,992

 

$

71,064

 

Short-term investments 

 

111,997

 

 

185,480

 

Receivable from collaboration partners 

 

5,276

 

Prepaid expenses and other current assets 

 

4,223

 

 

2,321

 

Amounts owed by a related party 

 

83

 

Total current assets 

 

200,488

 

 

258,948

 

Long-term investments 

 

5,992

 

 

3,181

 

Property and equipment, net 

 

10,011

 

 

11,107

 

Equity investment in related party 

 

1,202

 

Restricted cash 

 

203

 

 

203

 

Other long-term assets 

 

263

 

 

284

 

Total assets 

$

216,957

 

$

274,925

 

LIABILITIES 
Current liabilities 
Accounts payable 

$

2,905

 

$

3,102

 

Accrued liabilities 

 

9,662

 

 

6,023

 

Deferred revenue, current 

 

7,000

 

 

6,250

 

Other current liabilities 

 

1,490

 

 

1,560

 

Total current liabilities 

 

21,057

 

 

16,935

 

Deferred revenue, noncurrent 

 

13,772

 

 

16,984

 

Deferred rent 

 

3,875

 

 

4,272

 

Other long-term liabilities 

 

1,026

 

 

1,792

 

Total liabilities 

 

39,730

 

 

39,983

 

Stockholders’ equity: 
Common stock 

 

4

 

 

4

 

Additional paid-in capital 

 

365,898

 

 

357,873

 

Accumulated deficit 

 

(188,728

)

 

(122,828

)

Accumulated other comprehensive loss 

 

53

 

 

(107

)

Total stockholders’ equity (deficit) 

 

177,227

 

 

234,942

 

Total liabilities, convertible preferred stock and stockholders’ equity (deficit) 

$

216,957

 

$

274,925

 

(1) Derived from the audited financial statements for the year ended December 31, 2018, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, dated March 5, 2019.
ARCUS BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)

(unaudited)

 
 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2019

 

2018

 

2019

 

2018

Collaboration and license revenue 

$

1,750

 

$

4,291

 

$

5,250

 

$

6,791

 

Operation expenses: 
Research and development 

 

17,241

 

 

12,859

 

 

57,795

 

 

38,210

 

General and administrative 

 

7,758

 

 

3,577

 

 

18,637

 

 

9,956

 

Total operating expenses 

 

24,999

 

 

16,436

 

 

76,432

 

 

48,166

 

Loss from operations 

 

(23,249

)

 

(12,145

)

 

(71,182

)

 

(41,375

)

Non-operating income (expense): 
Interest and other income (expense), net 

 

1,254

 

 

1,519

 

 

4,272

 

 

3,410

 

Gain on deemed sale from equity method investee 

 

1,229

 

Share of loss from equity method investee 

 

(357

)

 

(186

)

 

(1,202

)

 

(563

)

Total non-operating income, net 

 

897

 

 

1,333

 

 

3,070

 

 

4,076

 

Net loss 

 

(22,352

)

 

(10,812

)

 

(68,112

)

 

(37,299

)

Other comprehensive gain (loss) 

 

(59

)

 

(25

)

 

160

 

 

(66

)

Comprehensive loss 

$

(22,411

)

$

(10,837

)

$

(67,952

)

$

(37,365

)

Net loss per share, basic and diluted 

$

(0.51

)

$

(0.25

)

$

(1.56

)

$

(1.16

)

Weighted-average number of shares used to compute basic and diluted net loss per share 

 

43,939,281

 

 

42,838,098

 

 

43,750,154

 

 

32,056,675

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191105006200/en/

CONTACT: Katherine Bock

(510) 694-6231

kbock@arcusbio.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BIOTECHNOLOGY HEALTH PHARMACEUTICAL CLINICAL TRIALS ONCOLOGY

SOURCE: Arcus Biosciences, Inc.

Copyright Business Wire 2019.

PUB: 11/05/2019 04:15 PM/DISC: 11/05/2019 04:15 PM

http://www.businesswire.com/news/home/20191105006200/en