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Arcus Biosciences Inc (RCUS)
NYSE:RCUS
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Arcus Biosciences
(NYSE:RCUS)
53Neutral
Positive Factors
Clinical Data
The outcomes from ARC-20 at ASCO-GU provide a compelling signal that casdatifan has a distinct advantage over market leader belzutifan.
Financial Stability
Arcus Biosciences is well-capitalized, having ended the quarter with approximately $1 billion.
Stock Value
The recent stock decline presents a buying opportunity ahead of the first outcomes from ARC-20 for the cas/cabo combination.
Negative Factors
Investor Sentiment
Investors have expressed hesitation stemming from Gilead’s decision not to opt-in to the program and whether cas’s differentiation over Merck’s belzutifan will prove clinically meaningful.
Market Competition
Shares are down 45% year-to-date, likely due to skepticism on cas differentiation from belz.
Partnership Dynamics
Contrary to expectations given the promising data, GILD chose not to opt-in for commercial rights to cas, driven by strategic concerns.
Arcus Biosciences (RCUS) vs. S&P 500 (SPY)
Market Cap
$859.79M
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)―
Beta (1Y)2.02
Revenue Growth-40.51%
EPS Growth-35.07%
CountryUS
Employees627
SectorHealthcare
Sector Strength50
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.14
Shares Outstanding105,885,140
10 Day Avg. Volume1,253,154
30 Day Avg. Volume1,171,803
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.64
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.12
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.89Price Target Upside248.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Arcus Biosciences Business Overview & Revenue Model
Company DescriptionArcus Biosciences (RCUS) is a biopharmaceutical company that focuses on developing innovative cancer immunotherapies. The company is engaged in the research and development of novel combination therapies designed to enhance the immune system's ability to fight cancer. Arcus Biosciences' pipeline includes small molecules and antibodies, targeting various pathways to improve patient outcomes in oncology.
How the Company Makes MoneyArcus Biosciences generates revenue primarily through strategic collaborations and partnerships with larger pharmaceutical companies. These alliances often involve upfront payments, milestone payments based on the achievement of specific developmental or regulatory goals, and potential royalties on sales if therapies are successfully commercialized. Additionally, the company may occasionally receive grants or funding from research institutions to support its innovative projects. As Arcus Biosciences continues to advance its pipeline, licensing agreements for its proprietary therapies also serve as significant revenue streams, contributing to its financial stability and growth.
Arcus Biosciences Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights earnings from different business units or product lines, indicating which areas drive growth and profitability, and where strategic focus or improvement may be needed.
Highlights earnings from different business units or product lines, indicating which areas drive growth and profitability, and where strategic focus or improvement may be needed.
Data provided by:
Main Street Data
Main Street DataArcus Biosciences Financial Statement Overview
Summary
Arcus Biosciences exhibits strong revenue growth but struggles with profitability and cash flow sustainability. The balance sheet is solid, with minimal leverage and strong equity. However, the persistent net losses and negative cash flows highlight the need for improved operational efficiency to ensure long-term viability.Income Statement
Revenue saw a significant increase from $117M in 2023 to $258M in 2024, marking strong growth. However, the company continues to operate at a loss with negative EBIT and EBITDA margins, indicating ongoing profitability challenges. Net profit margin remains negative due to substantial net losses.―
Balance Sheet
The company maintains a robust cash position with cash and short-term investments exceeding total debt, resulting in negative net debt. However, the debt-to-equity ratio is relatively low, suggesting low leverage risk. The equity ratio is strong, indicating a solid capital structure despite the accumulated losses.60
Cash Flow
The operating cash flow improved from -$306M in 2023 to -$170M in 2024, yet remains negative, reflecting ongoing cash burn. Free cash flow has similarly improved but is still negative, implying the company needs to enhance operational efficiency to achieve sustainable cash generation.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 258.00M | 117.00M | 112.00M | 382.88M | 77.52M | Gross Profit |
| 258.00M | -223.00M | 98.00M | 375.82M | -81.48M | EBIT |
| -330.00M | -340.00M | -280.00M | 54.25M | -124.23M | EBITDA |
| -269.00M | -283.00M | -250.00M | 61.96M | -118.47M | Net Income Common Stockholders |
| -283.00M | -307.00M | -267.00M | 53.00M | -116.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 978.00M | 759.00M | 1.14B | 681.30M | 735.09M | Total Assets |
| 1.15B | 1.09B | 1.34B | 1.59B | 772.29M | Total Debt |
| 48.00M | 11.00M | 120.00M | 116.89M | 15.24M | Net Debt |
| -102.00M | -116.00M | -86.00M | -31.03M | -158.17M | Total Liabilities |
| 665.00M | 633.00M | 688.00M | 750.45M | 269.99M | Stockholders Equity |
| 485.00M | 462.00M | 657.00M | 841.45M | 502.30M |
| Cash Flow | Free Cash Flow | |||
| -176.00M | -330.00M | 426.00M | -282.25M | 108.11M | Operating Cash Flow |
| -170.00M | -306.00M | 438.00M | -256.17M | 111.17M | Investing Cash Flow |
| -84.00M | 194.00M | -413.00M | -3.87M | -434.37M | Financing Cash Flow |
| 277.00M | 33.00M | 33.00M | 237.34M | 438.68M |
Arcus Biosciences Technical Analysis
Negative
8.28
Price Trends
8.57
Negative
11.08
Negative
13.70
Negative
Market Momentum
-0.02
Negative
48.64
Neutral
52.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCUS, the sentiment is Negative. The current price of 8.28 is above the 20-day moving average (MA) of 8.25, below the 50-day MA of 8.57, and below the 200-day MA of 13.70, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.64 is Neutral, neither overbought nor oversold. The STOCH value of 52.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RCUS.
Arcus Biosciences Risk Analysis
Arcus Biosciences disclosed 60 risk factors in its most recent earnings report. Arcus Biosciences reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arcus Biosciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $661.94M | ― | 222.83% | ― | 29.88% | 35.11% | |
53 Neutral | $859.79M | ― | -63.17% | ― | -40.51% | -35.07% | |
52 Neutral | $5.17B | 3.59 | -42.19% | 2.82% | 15.05% | -0.04% | |
50 Neutral | $708.46M | ― | -17.80% | ― | ― | 56.10% | |
48 Neutral | $777.30M | ― | -44.59% | ― | -73.79% | -5.24% | |
47 Neutral | $735.29M | ― | -64.16% | ― | -30.25% | -5.92% | |
41 Neutral | $750.97M | ― | -57.92% | ― | -13.37% | 2.57% |
* Healthcare Sector Average
Performance Comparison
RCUS
Arcus Biosciences
8.28
-8.43
-50.45%
NTLA
Intellia Therapeutics
8.12
-16.34
-66.80%
XERS
Xeris Pharmaceuticals
5.01
3.25
184.66%
VIR
Vir Biotechnology
5.08
-4.36
-46.19%
NRIX
Nurix Therapeutics
9.50
-4.01
-29.68%
DAWN
Day One Biopharmaceuticals
6.45
-9.55
-59.69%
Arcus Biosciences Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 1.97%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
Arcus Biosciences demonstrated strong financial management and strategic advancements in their casdatifan program, with promising data and collaborations. However, there are concerns about pipeline reprioritization, particularly in the TIGIT program, and a decline in quarterly revenue.Q1-2025 Updates
Positive Updates
Cash Position and Capital Allocation
Arcus Biosciences has a strong balance sheet with $1 billion in cash and investments, bolstered by a $150 million equity financing. This financial position is expected to fund operations through initial pivotal readouts for key programs, including PEAK-1.
Casdatifan Development Progress
Significant progress in the casdatifan program, with promising initial data from the cas plus cabo cohort of ARC-20 accepted for an oral presentation at ASCO. The program includes eight cohorts evaluating different dosing regimens, combinations, and settings for clear cell RCC.
Strategic Collaborations
Arcus is collaborating with AstraZeneca to develop casdatifan in combination with their anti-PD-1 anti-CTLA-4 bispecific antibody, volrustomig, offering the first TKI-free HIF-2 alpha combination option for first-line RCC.
Enrollment and Study Progress
The PRISM-1 trial in pancreatic cancer is enrolling rapidly and expected to be fully enrolled by the end of 2025, ahead of initial expectations. There is also strong enrollment interest in the PEAK-1 trial.
Negative Updates
Pipeline Reprioritization and Program Halt
The adenosine modulator program, specifically the A2 receptor antagonist etruma, is not moving forward at this time despite a good meeting with the FDA.
TIGIT Program Concerns
Questions raised about under-investment in the TIGIT program compared to AstraZeneca, with only two major Phase 3 studies ongoing for TIGIT-based therapies.
Revenue Decline
Reported GAAP revenue for Q1 2025 was $28 million, down from $36 million in Q4 2024, primarily driven by the collaboration with Gilead.
Company Guidance
During the Arcus Biosciences First Quarter 2025 Earnings and Financial Results Call, the company provided several key metrics and guidance on its financial and clinical trajectory. Arcus reported $1 billion in cash and investments, with expectations to maintain this strong financial position through its initial pivotal readouts for three major programs, including the PEAK-1 trial for casdatifan. The company anticipates recognizing GAAP revenue between $75 million to $90 million for the full year 2025, primarily driven by its collaboration with Gilead. In terms of clinical development, Arcus highlighted the rapid enrollment of the PRISM-1 trial, expected to be fully enrolled by the end of 2025, and the STAR-221 trial's timeline to read out in 2026. The company emphasized its focus on casdatifan, targeting a $5 billion market opportunity in RCC, with the completion of its Phase 3 PEAK-1 study and ongoing collaborations with AstraZeneca to advance TKI-free regimens.Arcus Biosciences Corporate Events
Executive/Board Changes
Arcus Biosciences Appoints New Board Director
Neutral
Feb 6, 2025
On February 6, 2025, Merdad Parsey, M.D., Ph.D., resigned from Arcus Biosciences’ Board of Directors following his departure from Gilead Sciences, Inc. The Board appointed Dietmar Berger, M.D., Ph.D., as a Class II director to replace Dr. Parsey. Dr. Berger, who joined Gilead as Chief Medical Officer in January 2025, will not receive compensation for his role at Arcus. This change aligns with the Amended and Restated Investor Rights Agreement between Arcus and Gilead.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.