Company: RCUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001724521-25-000101
Chunk: 265

Company: Arcus Biosciences, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 265
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 in R&D expenses for the three months ended June 30, 2025 was primarily due to increased CMC costs. We expect to incur elevated costs related to this activity through the third quarter 2025. Otherwise, clinical costs for our late-stage programs were flat, as increased enrollment and start-up activities for PRISM-1 and PEAK-1 were largely offset by lower costs for STAR-221. Other increases in expense resulted from an increase in early-stage development activities, driven by Phase 2 activities for casdatifan. Increases in compensation and personnel costs were partially offset by a $2 million decrease in non-cash stock-based compensation.

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The increase in R&D expenses for the six months ended June 30, 2025 was primarily driven by higher costs in our early-stage development activities, driven by Phase 2 activities for casdatifan. Increases in compensation and personnel costs were partially offset by a $4 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 in G&A expenses for the three months ended June 30, 2025 was primarily driven by a decrease in compensation and personnel costs driven by a $3 million decrease in non-cash stock-based compensation, partially offset by increased costs recognized in the quarter in connection with the Gilead Agreement.

The decrease in G&A expenses for the six months ended June 30, 2025 was primarily driven by costs recognized in the prior year in connection with the Third Gilead Agreement Amendment, as well as a decrease in compensation and personnel costs driven by a $5 million decrease in non-cash stock-based compensation.

Impairment of Long-Lived Assets

The impairment expense for the six months ended June 30, 2024 was due to our 2024 evaluation and sublease of a portion of our office space, resulting in an impairment charge of $20 million.

Non-Operating Income, net

The decrease in Non-operating income, net for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, was primarily due to lower investment yields and lower average portfolio balances, and the interest expense on our long