Company: RCUS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001724521-25-000063
Chunk: 329

Company: Arcus Biosciences, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 329
---
 and preclinical programsR&D expenses incurred for activities ranging from early-stage development and preclinical to Phase 2 clinical trials. This includes all unallocated program-level expense not directly attributable to a specific clinical trial unless the related program has entered into one or more Phase 3 clinical trials.quemliclustat**etrumadenantcasdatifanAB598AB801ARC-7ARC-8ARC-9ARC-20ARC-25ARC-26*ARC-27EDGE-Lung EDGE-GastricSTELLAR-009*VELOCITY-LungVELOCITY-HNSCCCompensation and personnel costsInternal costs, such as salaries, non-cash stock-based compensation, and other personnel expenses for our 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

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

Three Months EndedMarch 31,Category20252024ChangeLate-stage development programs$55 $63 (13)%Early-stage R&D and preclinical programs42 25 68 %Compensation and personnel costs49 45 9 %Other costs14 13 8 %Partnership reimbursements(38)(37)3 %Total research and development$122 $109 12 %

The increase in R&D expenses for the three months ended March 31, 2025 was primarily driven by higher costs in our early-stage development and preclinical program activities, driven by higher enrollment in our Phase 2 studies, primarily casdatifan. Our growing headcount drove an increase in compensation and personnel costs, offset by a $2 million decrease in non-cash stock-based compensation. The overall increase was partially offset by reduced spend in our late-stage development activities due to lower manufacturing costs due to the timing of manufacturing activities.

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.

26

General and Administrative Expenses

The decrease in G&A expenses for the three months ended March 31, 2025 was