Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Arcus Biosciences Inc (RCUS, Financial) completed enrollment of its first Phase 3 trial, STAR-221, with over 1,000 patients in first-line upper GI adenocarcinomas.
- The company is advancing two additional molecules into Phase 3 studies, supported by strong data and targeting significant unmet needs.
- Arcus Biosciences Inc (RCUS) has a robust financial position with $1 billion in cash and investments, plus additional payments expected from partnerships.
- The company has a validated target in HIF-2-alpha with casdatifan, which shows potential for best-in-class efficacy compared to existing treatments.
- Arcus Biosciences Inc (RCUS) has multiple partnerships providing significant funding for its programs, including a $100 million continuation payment from Gilead.
Negative Points
- The company's revenue for the second quarter was $39 million, a significant decrease from $145 million in the first quarter.
- Arcus Biosciences Inc (RCUS) expects modest increases in R&D expenses through 2024, which could impact financial performance.
- The anti-TIGIT program and domvanalimab are considered a 'show-me' story, indicating skepticism and the need for further validation.
- There are risks and uncertainties associated with forward-looking statements, which could impact the company's actual results.
- The company faces competition from established treatments, such as Merck's belzutifan, which has already achieved significant market penetration.
Q & A Highlights
Q: On the expansion cohort with cas and cabo, is it necessary to check the box on safety before initiating the PEAK-1 Phase 3 trial?
A: (Dimitry Nuyten, Chief Medical Officer) It's important to establish safety information for a specific combination before starting a larger trial. We don't expect any relevant overlapping toxicity with the exception of fatigue, which can be managed with dose interruptions. Cas has been well-tolerated, with rare cases of dose reduction or discontinuation due to toxicity.
Q: Can you confirm if the primary progressive disease rate for the 50 mg cohort is less than that seen in LITESPARK-005? Will the 50 and 100 mg data be presented separately?
A: (Jennifer Jarrett, Chief Operating Officer) Yes, the primary progressive disease rate for the 50 mg cohort is substantially lower than the 33% seen in LITESPARK-005. We will present the cohorts separately, but we may show some data from the 50 mg cohort when presenting the 100 mg data in the fall.
Q: What sort of combo partners are you considering for the first-line metastatic study?
A: (Terry Rosen, CEO) We will disclose this shortly. We aim to enter the front-line setting with a combination that Merck is not doing, and we feel we will be ahead of them. This will be done in a capital and resource-efficient manner with a collaboration partner.
Q: Can you provide insights on the potential presentation venue for the cas HIF-2a inhibitor ARC-20 data in the fall?
A: (Jennifer Jarrett, Chief Operating Officer) We won't disclose the specific medical meeting, but it won't be at ESMO. We expect to present data from about 30 patients with around 10 months of median follow-up.
Q: Regarding etruma in colorectal cancer, what do you see as the likely registrational path, and when will you share next steps?
A: (Terry Rosen, CEO) We are considering moving towards the frontline setting based on feedback from our advisory board. We are in the midst of discussions to finalize our approach.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
