Arcus Biosciences (RCUS) Morgan Stanley 24th Annual Global Healthcare Conference summary

Strategic vision and pipeline

• Focus centers on casdatifan, projected as a $5–10 billion drug, but the broader strategy includes a sustainable pipeline and long-term growth ambitions, targeting a potential $10–50 billion company valuation.

• Quemli program in frontline pancreatic cancer is progressing, with interim analysis expected this quarter.

• Emphasis on platform strategy, not just a single product, with multiple programs and data converging.

Key clinical data and upcoming events

• October event will present over 200 patients' worth of data from ARC-20, covering frontline, second line, and late line settings in clear cell renal cell carcinoma.

• Frontline data compares anti-PD-1 plus casdatifan (with and without ipi) to standard ipi/nivo, with 11+ months of follow-up.

• Second-line data features cabo plus casdatifan with 20 months' follow-up in 40+ patients; late-line data includes 120 patients with nearly 30 months' median follow-up and first overall survival (OS) endpoint.

• ARC-20 doublet showed a 7% primary progression rate, outperforming historical benchmarks.

Competitive differentiation and trial design

• Casdatifan demonstrates a durable PK/PD profile, robustly inhibiting HIF-2 activity beyond a year, unlike belzutifan.

• Frontline phase III (PEAK-20) will be a two-arm study (ipi/nivo/cas vs. ipi/nivo), with primary endpoint PFS; safety cohort fully enrolled and study start expected by year-end.

• Second-line phase III (PEAK-01) is enrolling rapidly, with completion expected by year-end; primary endpoint is PFS, with OS as a key secondary endpoint.

• Patient populations in trials are more representative of real-world settings compared to competitors, especially regarding prior TKI exposure.