Company: RCUS
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001724521-25-000116
Chunk: 345

Company: Arcus Biosciences, Inc.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 345
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 costs incurred by us and recognized as a reduction in R&D expense.——

*Study discontinued or completed

**  Quemliclustat moved from early-stage development and preclinical program to a late-stage development program in the third quarter 2024. Casdatifan moved from early stage development and preclinical to a late-stage development program in the third quarter 2025.

*** Head and Neck Squamous Cell Carcinoma ("HNSCC")

25

The following table summarizes our R&D expenses by category (in millions):

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,Category20252024Change20252024ChangeLate-stage development programs$78 $69 13 %$207 $196 6 %Early-stage R&D and preclinical programs33 34 (3)%113 92 23 %Compensation and personnel costs44 44 — %138 134 3 %Other costs14 13 8 %43 39 10 %Partnership reimbursements(28)(37)(24)%(99)(114)(13)%Total research and development$141 $123 15 %$402 $347 16 %

The increase in R&D expenses for the three months ended September 30, 2025 was primarily due to costs incurred for our late-stage programs, resulting from increased enrollment and start-up activities for PRISM-1 and PEAK-1 and partially offset by lower costs from STAR-221. Increases in compensation and personnel costs were partially offset by a $2 million decrease in non-cash stock-based compensation.

The increase in R&D expenses for the nine months ended September 30, 2025 was primarily driven by higher costs in our early-stage development activities, driven by Phase 2 activities for casdatifan, and clinical and manufacturing costs incurred for our late-stage programs, resulting from increased enrollment and start-up activities for PRISM-1 and PEAK-1 and partially offset by lower costs for STAR-221. Increases in compensation and personnel costs were partially offset by a $6 million decrease in non-cash stock-based compensation.

R&D expense by quarter may fluctuate due to the timing of clinical manufacturing and standard-of-care therapeutic purchases with a corresponding impact on reimbursements. We expect R&D expenses to decline commencing in the fourth quarter 2025 as costs related to the domvanalimab Phase 3 development program decrease significantly.

General and Administrative Expenses

The decrease