NYSE$RCUS

Arcus Biosciences Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported financial results for the first quarter and provided a pipeline update, including encouraging results from the third interim analysis of the ongoing Phase 2 ARC-7 study

Arcus Biosciences reported positive results from its ARC-7 study and has a strong cash position of $1.3 billion to fund operations into 2026. The company is advancing its pipeline with multiple Phase 3 trials planned.

  • Both anti-TIGIT domvanalimab-containing arms in the ARC-7 study continued to show meaningful differentiation compared to the anti-PD1 antibody zimberelimab alone for first-line metastatic non-small cell lung cancer (NSCLC).
  • Arcus and Gilead are expanding their late-stage clinical program for domvanalimab, aiming to establish a best-in-class PD-1 + TIGIT antibody backbone and triplet regimens.
  • The third registrational Phase 3 study, STAR-121, will evaluate domvanalimab plus zimberelimab and chemotherapy versus pembrolizumab with chemotherapy in first-line NSCLC PD-L1 all-comers, expected to initiate in 4Q 2022.
  • Arcus is well positioned to advance its programs with $1.3 billion in cash and cash equivalents, providing funding into 2026.

Headline financials

Total Revenue

$18M

Previous: $9.46M+90.3%
EPS (adj)

-$0.96

Previous: -$1.08+11.1%
Capital Expenditures

-$2.79M

Previous: -$3.64M+23.4%
Free Cash Flow

-$70.8M

Previous: -$76.2M+7.2%
Net Income

-$68M

Previous: -$72.6M+6.3%
Operating Income

-$67.2M

Previous: -$72.7M+7.7%
Gross Profit

$0.00

No prior period
Cash & Equivalents

$1.34B

Previous: $885M+51.7%

Revenue & EPS history

Arcus Biosciences · Revenue · Quarterly

$18M

Q1 2022+90.3%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Arcus Biosciences · $18M total across 1 segment · Q1 2022

  • License and development
    $18M

Forward guidance

Arcus Biosciences is focused on advancing its clinical programs and expects several milestones in the near term.

Tailwinds

  • Enrollment for ARC-7 remains on track to complete mid-2022; data update expected in the second half of 2022
  • Arcus and Gilead plan to initiate STAR-121 in 4Q 2022
  • STAR-221, a pivotal Phase 3 study of a domvanalimab-based combination in upper gastrointestinal cancers, is currently in advanced stages of planning
  • Arcus and Gilead expect to initiate two signal-finding Phase 2 studies to further evaluate multiple domvanalimab-combinations, including triplet combinations with etrumadenant and quemliclustat, by year-end
  • A Phase 1/1b study to explore AB521 in clear-cell renal cell carcinoma, alone and in combination with other molecules, including those targeting the CD73-adenosine axis, is anticipated to be initiated in mid-2022

Headwinds

  • The company's financial results indicate a net loss for the quarter.
  • The development of new therapies is subject to inherent risks and uncertainties.
  • Clinical trial initiations and data readouts are subject to potential delays.
  • The company's dependence on collaborations, particularly with Gilead, poses risks.
  • Changes in the competitive landscape could adversely affect Arcus's programs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+2.4%

Avg return

Earnings day

+3.6%

Avg return

5 days after

+6.7%

Avg return

30 days after

59%

19 / 32 earnings

Positive

+19.2%

Q4 2021

Best reaction

-7.9%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-2.6%-5.6%
Q4 2025-4.0%+10.7%+0.0%
Q3 2025-1.1%+2.7%+28.9%
Q1 2025-1.2%+8.4%+22.8%
Q4 2024-1.0%-7.3%-18.4%
Q3 2024+7.7%+16.1%+13.1%
Q2 2024+11.5%+11.7%+12.3%
Q1 2024+3.8%+10.6%-0.4%
Q4 2023+18.5%+18.4%-1.0%
Q3 2023+2.8%-13.0%+0.4%
Q2 2023-3.0%-4.3%+18.3%
Q1 2023-5.2%-6.9%+9.0%
Q4 2022-4.0%+0.6%-3.7%
Q3 2022-2.2%-7.9%+43.2%
Q2 2022+6.0%+7.9%-2.1%
Q1 2022+11.9%-9.7%+10.1%
Q4 2021+19.2%+24.6%+20.4%
Q3 2021+11.4%+9.1%+26.5%
Q2 2021-7.3%-2.5%+13.7%
Q1 2021-7.9%-11.7%-23.4%
Q4 2020+2.9%+10.3%-1.7%
Q3 2020-7.1%+3.8%+33.1%
Q2 2020+2.3%+8.1%-1.1%
Q1 2020-0.7%+11.4%+11.3%
Q4 2019+7.1%-2.6%-19.8%
Q3 2019+1.6%-6.3%-3.2%
Q2 2019+1.8%+10.3%+18.2%
Q1 2019+4.9%+9.1%-15.5%
Q4 2018-6.8%+11.6%-3.7%
Q3 2018+8.9%-1.1%+8.0%
Q2 2018+2.2%+7.5%+19.0%
Q1 2018+2.9%-1.1%+6.9%
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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