Cancer drug developer Arcus Biosciences' Q3 net loss widens

Overview

• Arcus Q3 revenue declined, but beat analyst expectations

• Net loss for Q3 increased to $135 mln from $92 mln last year

• Company maintains $841 mln in cash, supporting pipeline development

Outlook

• Arcus expects 2025 full-year revenue between $225 mln and $235 mln

• Company anticipates multiple data readouts from ARC-20 study in 2026

Result Drivers

• CASDATIFAN PERFORMANCE - Casdatifan demonstrated 12.2 months median progression-free survival in late-line kidney cancer patients, highlighting its potential as a best-in-class therapy

• TAIHO PARTNERSHIP - Taiho exercised its option for an exclusive license to casdatifan in Japan and certain territories in Asia, providing Arcus with option and milestone payments

• R&D EXPENSES - Increased R&D expenses were driven by costs for late-stage programs, including PRISM-1 and PEAK-1, partially offset by lower costs from STAR-221

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Arcus Biosciences Inc is $29.00, about 35.9% above its October 27 closing price of $18.60

Press Release:

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