Company: RCUS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001724521-25-000101
Chunk: 228

Company: Arcus Biosciences, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 228
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 R&D employees that are not allocated to specific programs or trials.——Other costsFacilities, depreciation, and other external costs that are not recorded at the investigational product level.——Partnership reimbursementsReimbursements from our collaboration partners for shared 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

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

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

Three Months EndedJune 30,Six Months EndedJune 30,Category20252024Change20252024ChangeLate-stage development programs$74 $64 16 %$129 $127 2 %Early-stage R&D and preclinical programs38 33 15 %80 58 38 %Compensation and personnel costs45 45 — %94 90 4 %Other costs15 13 15 %29 26 12 %Partnership reimbursements(33)(40)(18)%(71)(77)(8)%Total research and development$139 $115 21 %$261 $224 17 %

The increase 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