Arcus Biosciences Q3 revenue drops on lower Gilead collaboration

Overview

• US biopharma company's Q3 revenue fell sharply yr/yr, mainly due to lower Gilead collaboration revenue

• Q3 net loss narrowed from prior year as R&D and admin costs declined

• Company ended Q3 with $694 mln cash, plus $288 mln raised in October equity offering

Outlook

• Company expects full-year 2026 GAAP revenue of $70 mln to $75 mln

• Arcus expects near-term R&D expenses to remain relatively consistent

• Company expects cash runway to fund operations into 2029

Result Drivers

• GILEAD COLLABORATION WIND-DOWN - Co said lower Q3 revenue was mainly due to winding down of Gilead collaboration activities

• R&D SPENDING SHIFT - Lower R&D expenses driven by wind-down of domvanalimab studies and PRISM-1 enrollment, partly offset by increased investment in casdatifan programs

• COST STREAMLINING - Co said lower admin expenses reflected streamlining initiatives across operations

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "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 $42.00, about 122.1% above its November 3 closing price of $18.91

Reuters Recommended Reads

• Nov 3 - Amgen Q3 revenue beats expectations on higher volumes

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)