Arcus Biosciences (RCUS) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Trading Symbol	RCUS
Entity Registrant Name	Arcus Biosciences, Inc.
Entity Central Index Key	0001724521
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-38419
Entity Tax Identification Number	47-3898435
Entity Address, Address Line One	3928 Point Eden Way
Entity Address, City or Town	Hayward
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94545
City Area Code	510
Local Phone Number	694-6200
Entity Common Stock, Shares Outstanding		72,159,962
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, Par Value $0.0001 Per Share
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 272,629	$ 147,914
Short-term investments	900,147	351,394
Receivable from collaboration partners ($35,720 and $744,535 from a related party)	35,831	744,595
Accrued interest receivable	3,196	2,227
Prepaid expenses and other current assets	15,672	15,620
Total current assets	1,227,475	1,261,750
Long-term investments	98,329	181,990
Property and equipment, net	33,416	32,455
Right-of-use assets	104,025	104,968
Restricted cash	3,005	3,005
Other long-term assets ($1,322 and $0 from a related party)	10,523	7,730
Total assets	1,476,773	1,591,898
Current liabilities:
Accounts payable	21,984	10,261
Accrued research and development	35,019	29,587
Other accrued liabilities	14,438	24,181
Deferred revenue, current ($89,388 and $96,981 to a related party)	90,117	102,003
Other current liabilities	2,466	52
Total current liabilities	164,024	166,084
Deferred revenue, noncurrent ($428,546 and $462,217 to a related party)	429,339	462,217
Operating lease liabilities, noncurrent	121,343	116,887
Other long-term liabilities	14,681	5,260
Total liabilities	729,387	750,448
Commitments (Note 10)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 10,000,000 shares authorized as of June 30, 2022 and December 31, 2021; no shares issued and outstanding as of June 30, 2022 and December 31, 2021	0	0
Common stock, $0.0001 par value, 400,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 72,085,473 and 70,781,736 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively. Shares outstanding includes zero and 9,946 shares issued but subject to vesting as of June 30, 2022 and December 31, 2021, respectively.	7	7
Additional paid-in capital	1,164,602	1,118,058
Accumulated deficit	(409,979)	(275,354)
Accumulated other comprehensive loss	(7,244)	(1,261)
Total stockholders’ equity	747,386	841,450
Total liabilities and stockholders’ equity	$ 1,476,773	$ 1,591,898

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Related party, receivable from collaboration partners	$ 35,720	$ 744,535
Related party, other long-term assets	1,322	0
Related party, deferred revenue - current	88,595	96,981
Related party, deferred revenue - noncurrent	$ 429,339	$ 462,217
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	72,085,473	70,781,736
Common stock, shares outstanding	72,085,473	70,781,736
Common stock, shares outstanding includes shares issued but subject to vesting	0	9,946

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues:
Total revenues	$ 26,759	$ 9,461	$ 44,764	$ 18,922
Operating expenses:
Research and development (($36,327), ($1,176), ($66,626) and ($6,100) from a related party)	69,905	68,771	131,116	135,158
General and administrative (($99), $0, ($197) and $0 from a related party)	25,836	16,826	49,810	32,647
Total operating expenses	95,741	85,597	180,926	167,805
Loss from operations	(68,982)	(76,136)	(136,162)	(148,883)
Non-operating income (expense):
Interest and other income, net	2,861	166	3,443	320
Effective interest on liability for sale of future royalties	(511)		(902)
Total non-operating income, net	2,350	166	2,541	320
Net loss before income taxes	(66,632)	(75,970)	(133,621)	(148,563)
Income tax expense	0	0	(1,004)	0
Net loss	(66,632)	(75,970)	(134,625)	(148,563)
Other comprehensive loss	(2,584)	(44)	(5,983)	(90)
Comprehensive loss	$ (69,216)	$ (76,014)	$ (140,608)	$ (148,653)
Net loss per share, basic and diluted	$ (0.93)	$ (1.09)	$ (1.88)	$ (2.17)
Weighted-average number of shares used to compute basic and diluted net loss per share	71,814,232	69,745,297	71,506,216	68,421,086
License and Development Services Revenue
Revenues:
Total revenues	$ 16,693		$ 24,632
Other Collaboration Revenue
Revenues:
Total revenues	$ 10,066	$ 9,461	$ 20,132	$ 18,922

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
License and Development Services Revenue
Revenue from related parties	$ 16,693	$ 0	$ 24,632	$ 0
Other Collaboration Revenue
Revenue from related parties	8,316	7,711	16,632	15,422
Research and Development
Reimbursement from related party for shared costs	(35,808)	(1,176)	(66,107)	(6,100)
General and Administrative
Reimbursement from related party for shared costs	$ (99)	$ 0	$ (197)	$ 0

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Purchase Agreement Gilead	Common Stock	Common Stock Purchase Agreement Gilead	Additional Paid-In Capital	Additional Paid-In Capital Purchase Agreement Gilead	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2020	$ 502,304		$ 6		$ 830,438		$ (328,184)	$ 44
Balance, shares at Dec. 31, 2020			63,691,901
Issuance of common stock		$ 220,296		$ 1		$ 220,295
Issuance of common stock, shares				5,650,000
Issuance of common stock upon exercise of stock options and vesting of restricted stock	1,885				1,885
Issuance of common stock upon exercise of stock options and vesting of restricted stock, shares			200,828
Vesting of early exercised stock options	183				183
Vesting of early exercised stock options, shares			54,039
Stock-based compensation	12,761				12,761
Other comprehensive loss	(46)							(46)
Net loss	(72,593)						(72,593)
Balance at Mar. 31, 2021	664,790		$ 7		1,065,562		(400,777)	(2)
Balance, shares at Mar. 31, 2021			69,596,768
Balance at Dec. 31, 2020	502,304		$ 6		830,438		(328,184)	44
Balance, shares at Dec. 31, 2020			63,691,901
Net loss	(148,563)
Balance at Jun. 30, 2021	604,555		$ 7		1,081,341		(476,747)	(46)
Balance, shares at Jun. 30, 2021			70,042,790
Balance at Mar. 31, 2021	664,790		$ 7		1,065,562		(400,777)	(2)
Balance, shares at Mar. 31, 2021			69,596,768
Issuance of common stock upon exercise of stock options and vesting of restricted stock	843				843
Issuance of common stock upon exercise of stock options and vesting of restricted stock, shares			269,369
Vesting of early exercised stock options	175				175
Vesting of early exercised stock options, shares			36,245
Issuance of common stock under Employee Stock Purchase Plan	1,394				1,394
Issuance of common stock under Employee Stock Purchase Plan, shares			140,408
Stock-based compensation	13,367				13,367
Other comprehensive loss	(44)							(44)
Net loss	(75,970)						(75,970)
Balance at Jun. 30, 2021	604,555		$ 7		1,081,341		(476,747)	(46)
Balance, shares at Jun. 30, 2021			70,042,790
Balance at Dec. 31, 2021	$ 841,450		$ 7		1,118,058		(275,354)	(1,261)
Balance, shares at Dec. 31, 2021	70,781,736		70,771,790
Issuance of common stock upon exercise of stock options and vesting of restricted stock	$ 9,928				9,928
Issuance of common stock upon exercise of stock options and vesting of restricted stock, shares			840,577
Vesting of early exercised stock options	52				52
Vesting of early exercised stock options, shares			9,946
Stock-based compensation	16,541				16,541
Other comprehensive loss	(3,399)							(3,399)
Net loss	(67,993)						(67,993)
Balance at Mar. 31, 2022	796,579		$ 7		1,144,579		(343,347)	(4,660)
Balance, shares at Mar. 31, 2022			71,622,313
Balance at Dec. 31, 2021	$ 841,450		$ 7		1,118,058		(275,354)	(1,261)
Balance, shares at Dec. 31, 2021	70,781,736		70,771,790
Net loss	$ (134,625)
Balance at Jun. 30, 2022	$ 747,386		$ 7		1,164,602		(409,979)	(7,244)
Balance, shares at Jun. 30, 2022	72,085,473		72,085,473
Balance at Mar. 31, 2022	$ 796,579		$ 7		1,144,579		(343,347)	(4,660)
Balance, shares at Mar. 31, 2022			71,622,313
Issuance of common stock upon exercise of stock options and vesting of restricted stock	2,050				2,050
Issuance of common stock upon exercise of stock options and vesting of restricted stock, shares			320,603
Issuance of common stock under Employee Stock Purchase Plan	2,296				2,296
Issuance of common stock under Employee Stock Purchase Plan, shares			142,557
Stock-based compensation	15,677				15,677
Other comprehensive loss	(2,584)							(2,584)
Net loss	(66,632)						(66,632)
Balance at Jun. 30, 2022	$ 747,386		$ 7		$ 1,164,602		$ (409,979)	$ (7,244)
Balance, shares at Jun. 30, 2022	72,085,473		72,085,473

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($)
Purchase Agreement | Gilead
Offering costs	$ 55

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flow from operating activities
Net loss	$ (134,625)	$ (148,563)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	32,218	26,128
Depreciation and amortization	2,962	1,620
Noncash lease expense	4,000	1,117
Amortization of premiums on investments	2,380	1,412
Acquired in-process research and development	2,500
Effective interest on liability for sale of future royalties	902
Changes in operating assets and liabilities:
Receivable from collaboration partners ($708,296 and ($381) from a related party)	708,764	(526)
Prepaid expenses and other current assets	4,028	(9,086)
Other long-term assets (($1,322) and $0 to a related party)	(1,442)	471
Accounts payable	12,102	(3,569)
Accrued research and development	8,432	10,449
Other accrued liabilities	(10,220)	163
Deferred revenue (($41,264) and ($15,422) to a related party)	(44,764)	(18,922)
Operating lease liabilities	(1,184)	(1,003)
Other long-term liabilities	2,645	(2)
Net cash provided by (used in) operating activities	588,698	(140,311)
Cash flow from investing activities
Purchases of short-term and long-term investments	(763,131)	(370,690)
Proceeds from maturities of short-term and long-term investments	262,824	438,733
Sales of short-term and long-term investments	26,852	7,500
Purchases of property and equipment	(4,302)	(9,714)
Purchases of in-process research and development	(5,500)
Net cash (used in) provided by investing activities	(483,257)	65,829
Cash flow from financing activities
Proceeds from issuance of common stock ($0 and $220,235 from a related party)		220,235
Proceeds from sale of future royalties	5,000
Proceeds from issuance of common stock pursuant to equity award plans	14,274	4,122
Repurchase of unvested shares of stock		(6)
Net cash provided by financing activities	19,274	224,351
Net increase in cash and cash equivalents	124,715	149,869
Cash, cash equivalents and restricted cash at beginning of period	150,919	173,618
Cash, cash equivalents and restricted cash at end of period	275,634	323,487
Supplemental disclosure of cash flow information
Income taxes paid	2,743
Non-cash investing and financing activities:
Unpaid portion of property and equipment purchases included in accounts payable and accrued liabilities	617	6,488
Vesting of early exercised stock options and restricted stock	$ 52	$ 358

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Statement of Cash Flows [Abstract]
Receivable from related party	$ (708,815)	$ (381)
Other long-term assets to related party	(1,322)	0
Deferred revenue from related party	(41,264)	(15,422)
Proceeds from issuance of common stock from a related party	$ 0	$ 220,235

Organization

Organization	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Note 1. Organization Description of Business Arcus Biosciences, Inc. (the Company) is a clinical-stage biopharmaceutical company focused on creating best-in-class cancer therapies. Using its robust and highly efficient drug discovery capability, the Company has now advanced six investigational products into clinical development, with its most advanced molecule, an anti-TIGIT antibody, now in two Phase 3 registrational studies. The Company’s deep portfolio of novel small molecules and enabling antibodies allows it to create highly differentiated combination therapies, which the Company is developing to treat multiple large tumor types including lung, colorectal, prostate and pancreatic cancers. The Company expects its clinical-stage portfolio to continue to expand and to include molecules targeting both immuno-oncology and cancer cell-intrinsic pathways. The Company’s vision is to create, develop and commercialize highly differentiated combination cancer therapies that have a meaningful impact on patients. The Company currently has six investigational products in clinical development: domvanalimab (previously referred to as AB154), etrumadenant (previously referred to as AB928), quemliclustat (previously referred to as AB680), zimberelimab (previously referred to as AB122), AB308 and AB521. In 2020, the Company entered into an Option, License and Collaboration Agreement (Gilead Collaboration Agreement) with Gilead Sciences, Inc. (Gilead), whereby Gilead obtained an exclusive license to zimberelimab and time-limited exclusive options to all of the Company's then-current and future programs during the 10-year collaboration term. In December 2021, Gilead obtained rights to an additional four of the Company's investigational products: domvanalimab, etrumadenant, quemliclustat and AB308. For each program to which Gilead exercised or exercises its option, the parties will co-develop globally and, provided that the Company has not exercised its opt-out rights, if any, co-commercialize the program in the U.S., and Gilead will have the right to commercialize the program outside of the United States, subject to the rights of our existing partners in certain territories. Liquidity and Capital Resources As of June 30, 2022, the Company had cash and investments of $ 1,271.1 m illion, which are cash, cash equivalents, and investments in marketable securities, which the Company believes will be sufficient to fund its planned operations for a period of at least twelve months following the date of filing of this report.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Significant Accounting Policies	Note 2. Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the Company’s opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results of operations and cash flows for the periods presented have been included. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any future period. The balance sheet as of December 31, 2021 has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 23, 2022. There have been no significant changes to the Company’s significant accounting policies described in Note 2, Summary of Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Arcus Biosciences, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as well as related disclosures of contingent assets and liabilities. Estimates used include the determination of the standalone selling price of performance obligations and the timing of revenue recognition, the value of stock-based awards and other issuances, accruals for research and development costs, useful lives of long-lived assets, uncertain tax positions, and valuation allowance for deferred tax assets. Actual results could differ materially from the Company’s estimates. Cash Equivalents and Investments Cash equivalents include marketable securities having an original maturity of three months or less at the time of purchase. Short-term investments have maturities of greater than three months and up to twelve months at the time of purchase. Long-term investments have maturities greater than 12 months at the time of purchase. Collectively, cash equivalents, short-term and long-term investments are considered available-for-sale and are recorded at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive income (loss). Realized gains and losses are included in interest and other income, net in the condensed consolidated statements of operations and comprehensive income or loss. The basis on which the cost of a security that is sold or an amount that is reclassified out of accumulated other comprehensive income or loss into earnings is determined using the specific identification method. Reconciliation of Cash, Cash Equivalents, and Restricted Cash as Reported in Condensed Consolidated Statements of Cash Flows Restricted cash at June 30, 2022 and 2021 represents cash balances held as security in connection with the Company’s facility lease agreements. The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets to the total shown in the condensed consolidated statements of cash flows (in thousands): June 30, 2022 2021 Cash and cash equivalents $ 272,629 $ 320,482 Restricted cash 3,005 3,005 Cash, cash equivalents and restricted cash $ 275,634 $ 323,487 Concent ration of Credit Risk Cash equivalents, short-term and long-term investments are financial instruments that potentially subject the Company to concentrations of credit risk. The Company invests in money market funds, treasury bills and notes, government bonds, commercial paper, corporate notes, and certificates of deposit. The Company's investment policy limits interest-bearing security investments to certain types of instruments issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer. The Company limits its credit risk associated with cash equivalents, short-term and long-term investments by placing them with banks and institutions it believes are credit worthy and in highly rated investments. Leases and Rent Expense The Company recognizes a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The Company determines whether an arrangement is or contains a lease at contract inception. Operating leases and related tenant improvement allowances receivable are included in operating lease right-of-use assets, prepaid expenses and other current assets, other current liabilities, and operating lease liabilities, noncurrent in our condensed consolidated balance sheets at June 30, 2022 and December 31, 2021. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the net present value of lease payments, the Company uses its incremental borrowing rate based on information available at the lease commencement date. The incremental borrowing rate represents the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company considers a lease term to be the noncancelable period that it has the right to use the underlying asset, including any periods where it is reasonably assured the Company will exercise the option to extend the contract. Periods covered by an option to extend are included in the lease term if the lessor controls the exercise of that option. The Company elected to not apply the recognition requirements of the leasing standard to short-term leases with terms of 12 months or less which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. For short-term leases, lease payments are recognized as operating expenses on a straight-line basis over the lease term.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 3. Fair Value Measurements Financial assets and liabilities are recorded at fair value. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. During the periods presented, the Company has not changed the manner in which it values assets and liabilities that are measured at fair value. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy as of June 30, 2022 or December 31, 2021. The following tables set forth the Company’s financial instruments (excluding restricted cash) that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): June 30, 2022 Total Level 1 Level 2 Level 3 Money market funds $ 187,998 $ 187,998 $ - $ - U.S. treasury securities 320,202 - 320,202 - Corporate securities and commercial paper 747,351 - 747,351 - Certificates of deposit 12,073 12,073 U.S. government agency obligations 3,481 - 3,481 - Total assets measured at fair value $ 1,271,105 $ 187,998 $ 1,083,107 $ - December 31, 2021 Total Level 1 Level 2 Level 3 Money market funds $ 147,914 $ 147,914 $ - $ - U.S. treasury securities 112,170 - 112,170 - Corporate securities and commercial paper 421,214 - 421,214 - Total assets measured at fair value $ 681,298 $ 147,914 $ 533,384 $ - Classified as (with contractual maturities): June 30, 2022 December 31, 2021 Cash and cash equivalents $ 272,629 $ 147,914 Short-term investments (due within one year) 900,147 351,394 Long-term investments (due between one and three years) 98,329 181,990 Total cash, cash equivalents and investments in marketable securities $ 1,271,105 $ 681,298 All the Company's investments in marketable securities are classified as available-for-sale. At June 30, 2022 and December 31, 2021, the balance in the Company’s accumulated other comprehensive income (loss) related to the Company’s available-for-sale marketable securiti es. There were no realized gains or losses recognized on the sale or maturity of available-for-sale marketable securities as of June 30, 2022 and December 31, 2021, and as a result, the Company did no t reclassify any amounts out of accumulated other comprehensive income for the periods then ended. Th e Company has not recognized any allowances for credit losses given the nature of its receivables and investment portfolio and the immaterial amount of unrealized losses on available for sale securities. No credit related losses have been recognized for any of the periods presented. The fair value and amortized cost of investments in marketable securities by major security type as of June 30, 2022 and December 31, 2021 are presented in the tables that follow (in thousands): Amortized Unrealized Unrealized Fair As of June 30, 2022: Money market funds $ 187,998 $ - $ - $ 187,998 U.S. treasury securities 322,351 1 ( 2,150 ) 320,202 Corporate securities and commercial paper 752,429 8 ( 5,086 ) 747,351 Certificates of deposit 12,071 4 ( 2 ) 12,073 U.S. government agency obligations 3,500 - ( 19 ) 3,481 Total $ 1,278,349 $ 13 $ ( 7,257 ) $ 1,271,105 Amortized Unrealized Unrealized Fair As of December 31, 2021: Money market funds $ 147,914 $ - $ - $ 147,914 U.S. treasury securities 112,473 1 ( 304 ) 112,170 Corporate securities and commercial paper 422,172 3 ( 961 ) 421,214 Total $ 682,559 $ 4 $ ( 1,265 ) $ 681,298 As of June 30, 2022, the fair value of the liability for sale of future royalties recorded on the balance sheet in other long-term liabilities is based on the Company's current estimates of future contingent milestones and royalties expected to be paid to BVF Partners L.P. (BVF) over the term of the parties' funding agreement (the BVF Agreement). These estimates are considered Level 3 fair value inputs. See Note 6 for further discussion of the liability and related estimates.

Other Accrued Liabilities

Other Accrued Liabilities	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Other Accrued Liabilities	Note 4. Other Accrued Liabilities Other accrued liabilities consisted of the following (in thousands): As of June 30, 2022 As of December 31, 2021 Accrued personnel expenses $ 12,942 $ 16,648 Professional fees 236 4,938 Income taxes payable 18 1,815 Other 1,242 780 Total $ 14,438 $ 24,181

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Leases	Note 5. Leases The Company leases its corporate headquarters, which includes approximately 150,753 square feet of executive offices and research and development and business operations, in an office park in Hayward, California under a non-cancelable operating lease with terms that extend through 2031 . One of the buildings, having approximately 14,460 square feet of leased space, has a lease term that commenced April 2022 with tenant allowances totaling approximately $ 5.8 million. The Company also leases space in Brisbane, California under a non-cancelable lease that extends through 2031 . Both leases are subject to options by the Company to extend the lease terms. The following table summarizes supplemental cash flow disclosures and non-cash financing activities related to our operating leases (in thousands): Six Months Ended June 30, 2022 2021 Cash paid for amounts included in measurement of lease liabilities $ 4,421 $ 2,000 Cash received from tenant improvement allowances $ 8,381 $ - Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,029 $ 24,473 Recognition of tenant improvement allowance receivable included in other current liabilities $ 5,791 $ 10,598

Liability for Sale of Future Ro

Liability for Sale of Future Royalties	6 Months Ended
	Jun. 30, 2022
Research and Development [Abstract]
Liability for Sale of Future Royalties	Note 6. Liability for Sale of Future Royalties In October 2021, the Company and BVF entered into the BVF Agreement, under which BVF will fund the discovery and development of compounds for the treatment of inflammatory diseases (the Program) by providing the Company with $ 15 million in three non-refundable payments. Consistent with the terms of the Gilead Collaboration Agreement, Gilead has an option to the Program. The Company received $ 5 million from BVF in the fourth quarter of 2021 and an additional $ 5 million in the first quarter of 2022. The Company expects to receive the third $ 5 million payment in the second half of 2022. In return, the Company is obligated to perform research and development activities in the Program, to make contingent payments upon the achievement of certain clinical and regulatory milestones of up to $ 72.5 million or $ 160.0 million depending on whether the program is solely developed by Arcus or as part of the collaboration with Gilead. The Company also must pay mid- to high-single digit royalties based on net sales of products generated by the Program. The agreement also provides BVF with the option to provide an additional $ 10 million in funding for the Program in exchange for an increase in the royalty rate. The Company accounts for the BVF Agreement as a liability primarily because it has significant continuing involvement in generating the cash flows due to BVF. If the Program achieves certain development and regulatory milestones and commercial sales, the Company will recognize the portion of milestone payments and royalties paid to BVF as a decrease to the accumulated liability with a corresponding reduction in cash. The carrying amount of the liability for sale of future royalties is based on management's estimate of the future contingent milestones and royalties to be paid to BVF over the life of the arrangement as discounted using an imputed rate of interest. The excess of future estimated contingent milestone and royalty payments over the $ 15 million of allocated proceeds is recognized as non-cash interest expense using the effective interest method, which is reported in the condensed consolidated statements of operations as non-operating expense. The balance associated with the liability was $ 11.2 million at June 30, 2022 and is reported on the condensed consolidated balance sheets in other long-term liabilities. The imputed effective rate of interest on the unamortized portion of the liability was approximately 20.6 % as of June 30, 2022. The Company periodically reassesses the amount and timing of expected payments. To the extent such payments are greater or less than the Company's initial estimates or the timing of such payments is materially different than those estimates, the Company will adjust the liability and the effective interest rate using a retrospective method, catch-up method, or prospective method, subject to an accounting policy election applied on a consistent basis. As of June 30, 2022, there have been no changes to the estimated effective interest rate. There are a number of factors that could materially affect the amount and timing of contingent milestone and royalty payments, most of which are not within the Company's control. The liability is recognized using significant unobservable inputs. These inputs are derived using internal management estimates, based in part on external data when available, and reflect management’s judgements and forecasts. The significant unobservable inputs include the forecasted revenues, the probability and timing of clinical and regulatory milestones, the expected term of the royalty stream, and the royalty rate as well as the overall probability of success. These estimates are considered Level 3 fair value inputs. A significant change in unobservable inputs could result in a material increase or decrease to the effective interest rate of the liability. Changes to the liability for sale of future royalties were as follows for the six months ended June 30, 2022 (in thousands): 2022 Beginning balance, January 1 $ 5,260 Cash received from BVF 5,000 Interest accretion 902 Ending balance, June 30 $ 11,162 The Company incurred $ 0.5 million and $ 0.9 million in non-cash interest expense for the three and six months ended June 30, 2022.

License and Collaboration Agree

License and Collaboration Agreements	6 Months Ended
	Jun. 30, 2022
License And Collaboration Agreements [Abstract]
License and Collaboration Agreements	Note 7. License and Collaboration Agreements The following table summarizes the revenues recognized from the Company’s collaboration agreements with Gilead and Taiho Pharmaceutical Co., Ltd. (Taiho) (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 License and development services revenue $ 16,693 $ - $ 24,632 $ - Other collaboration revenue 10,066 9,461 20,132 18,922 Total collaboration and license revenues $ 26,759 $ 9,461 $ 44,764 $ 18,922 The following table summarizes revenues by collaboration, category of revenue, and the method of recognition (in thousands): Three Months Ended June 30, Six Months Ended June 30, Revenues recognized: Over time Point in time 2022 2021 2022 2021 License and development services for all Gilead programs * $ 16,693 $ - $ 24,632 $ - Gilead access rights related to the * 8,316 7,711 16,632 15,422 Taiho access rights * 1,750 1,750 3,500 3,500 Total collaboration and license revenues $ 26,759 $ 9,461 $ 44,764 $ 18,922 The Company recognized the following revenue as a result of changes in the deferred revenue balance during the period below (in thousands): Three Months Ended June 30, Six Months Ended June 30, Revenue recognized in the period from: 2022 2021 2022 2021 Amounts included in deferred revenue at the beginning of the period $ 26,759 $ 9,461 $ 44,764 $ 18,922 Performance obligations satisfied in a previous period - - - - Gilead Sciences, Inc. Summary In May 2020, the Company entered into the Gilead Collaboration Agreement, Common Stock Purchase Agreement (the Stock Purchase Agreement), and Investor Rights Agreement, (collectively, the Gilead Agreements), each with Gilead. Upon closing in July 2020, Gilead made an upfront payment of $ 175 million pursuant to the Gilead Collaboration Agreement and made an equity investment of approximately $ 200 million in the Company by purchasing 5,963,029 shares of Arcus common stock at a per share price of $ 33.54 pursuant to the Stock Purchase Agreement. In November 2021, the Company and Gilead entered into an amendment to the Gilead Collaboration Agreement (the Amended Gilead Collaboration Agreement), under which Gilead exercised its options to three programs for a total option payment of $ 725 million that was received in January 2022. In connection with Gilead’s exercise of its options to the three programs, the parties agreed to (i) slightly reduce the royalties for these programs, such that Gilead will pay the Company tiered royalties as a percentage of revenues ranging from the mid-teens to the low twenties and (ii) remove the $ 100 million option continuation payment that was otherwise due on the second anniversary of the Gilead Collaboration Agreement. As of June 30, 2022, Gilead had obtained licenses to the following investigational products: zimberelimab (in 2020), domvanalimab, AB308, etrumadenant, and quemliclustat (the latter four in 2021). Pursuant to the terms of the Gilead Collaboration Agreement, as amended, Gilead obtained exclusive licenses to zimberelimab, domvanalimab, AB308, etrumadenant, and quemliclustat, and time-limited exclusive options to all of the Company’s current and future clinical programs during the 10 -year collaboration term and, for those programs that enter clinical development prior to the end of the collaboration term, for up to an additional three years thereafter. Gilead's option rights to future programs are contingent upon Gilead’s payments of up to $ 300 million in option continuation payments, consisting of a $ 100 million payment due at Gilead's option on each of the fourth, sixth, and eighth anniversaries of the agreement. Gilead's option, on a program-by-program basis, will expire after a prescribed period, following the achievement of a clinical development milestone in such program and the Company's delivery to Gilead of the requisite data package. Gilead may exercise its option to any program at any time prior to expiration of the option, and will pay the Company an option fee of $ 150 million per program. Gilead has exercised its option to all of the clinical programs in existence at the date of the 2020 agreement, and the Company may not exercise its opt-out rights for any of these programs. With respect to domvanalimab, the Company is also eligible to receive up to $ 500 million in potential U.S. regulatory approval milestones. Gilead was also granted option rights to two research programs for which the Company will lead discovery and early development activities. With respect to these two research programs, Gilead has the right to exercise its option, on a program-by-program basis, either (i) upon the Company's completion of certain IND-enabling activities for an option payment of $ 60 million or (ii) following the achievement of a clinical development milestone for an option payment of $ 150 million. These research programs were not determined to be performance obligations at contract inception, due to the very early stages of the programs and the amounts of the option payments. The Company’s assessment of the transaction price upon the signing of the Amended Gilead Collaboration Agreement included an analysis of amounts it expected to receive, which at contract inception consisted of the upfront cash payment of $ 725 million committed upon contract closing following expiration of the antitrust waiting period in December 2021, as well as amounts totaling $ 165.1 million deferred from the original Gilead transaction, which excludes the $ 100 million option continuation payment that would otherwise have been due on the second anniversary of the Gilead Collaboration Agreement. The Company considers the entire $ 890.1 million to be the allocable transaction price as of the amendment closing date, due to the Company's history of timely payments from Gilead and receipt of the full $ 725 million in January 2022 per the terms of the amendment. The Company determined that the Amended Gilead Collaboration Agreement represented a contract modification under the application of ASC 606. At the amendment closing date, the Company allocated the transaction price to the new and remaining performance obligations identified as follows: Amount Allocation of transaction price Deferred revenues as of 12/21/2021 $ 165,086 Option payment for Domvanalimab 275,000 Option payment for Etrumadenant 250,000 Option payment for Quemliclustat 200,000 Total transaction price allocated to performance obligations $ 890,086 Allocation to performance obligations Distinct Combined Amount Domvanalimab license * $ 328,838 Etrumadenant license and R&D activities * 218,722 Quemliclustat license and R&D activities * 175,618 Domvanalimab R&D activities * 34,528 Zimberelimab R&D and commercial services * 11,243 Access rights related to the Company's research * 84,076 Material rights to option continuation periods * 37,061 Total $ 890,086 Upon closing of Gilead’s exercise of its option to a program, the two companies will co-develop and equally share global development costs for the joint development program, subject to opt-out rights of the Company applicable to certain programs, and expense caps on the Company’s spending and related subsequent adjustments. For each optioned program, provided the Company has not exercised its opt-out rights (if applicable), the Company has an option to co-promote in the United States with equal sharing of related profits and losses. Gilead has the right to exclusively commercialize any optioned programs outside of the U.S., subject to the rights of the Company’s existing partners to any territories, and Gilead will pay to the Company tiered royalties as a percentage of revenues ranging from (i) the mid-teens to the low twenties for the three 2021 optioned programs, (ii) high single digits to low double digits for research programs if Gilead exercises its option rights at the IND stage, and (iii) the high teens to the low twenties for all other programs. The Company had $ 517.9 million and $ 559.2 million of deferred revenue remaining on its condensed consolidated balance sheets related to this agreement at June 30, 2022 and December 31, 2021, respectively, allocated between current and noncurrent based on the expected timing of future recognition. Stock Purchase Agreement and Investor Rights Agreement Pursuant to the Stock Purchase Agreement, Gilead has the right, at its option, to purchase additional shares from the Company, up to a maximum of 35 % of the Company’s then-outstanding voting common stock, from time to time over five years from closing of the initial transaction, at a purchase price equal to the greater of a 20 % premium to market (based on a trailing five-day average closing price) at the time Gilead exercises such option, and the $ 33.54 initial purchase price. The Investor Rights Agreement also includes a three-year standstill and a two-year lockup and provides Gilead with registration rights commencing at the end of the lockup period, pro rata participation rights in certain future financings and the right to designate two individuals to be appointed to the Company’s Board of Directors. In the year ended December 31, 2020, Gilead made an equity investment of approximately $ 200 million in the Company by purchasing 5,963,029 shares of the Company's common stock at a per share price of $ 33.54 pursuant to the Stock Purchase Agreement. Of the $ 200 million equity investment, approximately $ 90.6 million was determined to be a premium on the purchase of common stock and allocated to the performance obligations created by the Gilead Collaboration Agreement. Gilead made an additional equity investment in the Company of approximately $ 56.7 million, net of offering costs, by purchasing 2,200,000 shares of its common stock at a per share price of $ 27.50 in the May 2020 public offering. In January 2021, the Company and Gilead entered into an Amended and Restated Common Stock Purchase Agreement, which amended and restated in its entirety the Common Stock Purchase Agreement, pursuant to which Gilead purchased from the Company 5,650,000 shares of its common stock at a purchase price of $ 39.00 per share, for a total of $ 220.3 million, net of offering costs. All other terms of the original Common Stock Purchase Agreement, including Gilead's option to purchase additional shares from the Company, up to a maximum ownership of 35 % of its then-outstanding common stock, remain unchanged. Pursuant to the Investor Rights Agreement, the Company appointed Gilead's two designees to the Company’s Board of Directors. Based on the value of the Company’s common stock at the contract closing, the right to purchase additional shares had no value. See Note 12 for further discussion of the agreements with Gilead. The Company evaluated the agreements with Gilead under ASC 808 and ASC 606 and determined that the licenses to zimberelimab and domvanalimab, and access rights related to the Company's research and development pipeline, were within the scope of ASC 606 because Gilead meets the definition of a customer with respect to those performance obligations. Zimberelimab license Effective on the July 2020 closing of the Gilead Collaboration Agreement, Gilead obtained an exclusive license to zimberelimab. The standalone selling price of this license was determined using a discounted cash flow method. The Company recognized the full amount associated with this distinct performance obligation in license revenue on the date the transaction closed. Domvanalimab option and license Gilead obtained the right in the Gilead Collaboration Agreement to exercise an option for exclusive rights to the Company’s anti-TIGIT monoclonal antibody program, including domvanalimab and AB308, in exchange for an option payment of $ 275 million. Prior to the closing of the Amended Gilead Collaboration Agreement, the Company had $ 36.7 million of deferred revenue on its consolidated balance sheets related to this performance obligation. Effective on the December 2021 closing of the Amended Gilead Collaboration Agreement, Gilead obtained an exclusive license to domvanalimab. The standalone selling price of this license was determined using a discounted cash flow method. The Company further evaluated the delivery of the license, noting that the program was in later stages of development and it met the criteria for being distinct from the research and development services required under the Gilead Collaboration Agreement (as amended). Specifically, the domvanalimab program was in a Phase 3 clinical trial at the time that Gilead acquired the license and the Company concluded that: (i) the R&D services for such later-stage, Phase 3 intellectual property, primarily involved validating the drug’s efficacy; and (ii) the ongoing R&D services do not significantly modify or customize the drug compound such that the intellectual property is not significantly different at the end of the arrangement as a result of the services. As the license had been made available in the fourth quarter of 2021, the Company recognized the full $ 328.8 million of transaction price allocated to this performance obligation as license revenue in December 2021. Etrumadenant option, license and R&D activities Gilead obtained the right in the Gilead Collaboration Agreement to exercise an option for exclusive rights to the Company’s adenosine receptor program, etrumadenant, in exchange for an option payment of $ 250 million. Prior to the closing of the Amended Gilead Collaboration Agreement, the Company had $ 127.0 million of deferred revenue on its condensed consolidated balance sheets related to this performance obligation. Effective on the December 2021 closing of the Amended Gilead Collaboration Agreement, Gilead obtained an exclusive license to etrumadenant. The standalone selling price of this license was determined using a discounted cash flow method. The Company further evaluated the delivery of the license, noting that it was combined with the research and development services required under the agreements due to the early stage of the technology and the highly specialized nature of the Company's know-how. Accordingly, transaction price allocated to this license is recognized as revenue as the related research services are performed. The Company determined that it retains obligations to perform further development services for Gilead related to etrumadenant. The standalone selling price of this obligation was determined using an expected cost-plus margin approach. The Company will recognize the amounts allocated to the combined license and services as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated full-time employee expense for the program. Due to the combined nature of the performance obligation, the Company determined that the revenue from the license would be recognized at the same rate and using the same input-driven methodology as the revenue from the research and development services. The Company determined that its performance of the R&D activities commenced January 1, 2022 and accordingly the Company recognized $ 13.2 million and $ 18.2 million in license and development services revenue associated with these obligations for the three and six months ended June 30, 2022, respectively. At June 30, 2022, the Company had $ 200.5 million of deferred revenue remaining on its condensed consolidated balance sheets related to this performance obligation, allocated between current and noncurrent based on the expected timing of future recognition. Quemliclustat option, license and R&D activities Gilead obtained the right in the Gilead Collaboration Agreement to exercise an option for exclusive rights to the Company's CD73 program, quemliclustat, in exchange for an option payment of $ 200 million. Prior to the closing of the Amended Gilead Collaboration Agreement, the Company had no deferred revenue on its consolidated balance sheets related to this performance obligation. The Company determined that it retains obligations to perform further development services for Gilead related to quemliclustat. The standalone selling price of this obligation was determined using an expected cost-plus margin approach. The Company will recognize the amounts allocated to these services as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated full-time employee expense for the program. Effective on the December 2021 closing of the Amended Gilead Collaboration Agreement, Gilead obtained an exclusive license to quemliclustat. The standalone selling price of this license was determined using a discounted cash flow method. The Company further evaluated the delivery of the license, noting that it was combined with the research and development services required under the agreements due to the expertise and the highly specialized nature of the Company's know-how. Accordingly, transaction price allocated to this license is recognized as revenue as the related research services are performed. Due to the combined nature of the performance obligation, the Company determined that the revenue from the license would be recognized at the same rate and using the same input-driven methodology as the revenue from the research and development services. The Company determined that its performance of the R&D activities commenced January 1, 2022 and accordingly the Company recognized $ 1.9 million and $ 3.7 million in license and development services revenue associated with these obligations for the three and six months ended June 30, 2022, respectively. At June 30, 2022, the Company had $ 172.0 million of deferred revenue remaining on its condensed consolidated balance sheets related to this performance obligation, allocated between current and noncurrent based on the expected timing of future recognition. R&D activities for domvanalimab The Company determined that it retains separate obligations to perform further development services for Gilead related to domvanalimab. The standalone selling price of this obligation was determined using an expected cost-plus margin approach. The Company will recognize the amounts allocated to these services as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated full-time employee expense for the program. The Company determined that its performance of the R&D activities commenced as of January 1, 2022 and accordingly the Company recognized $ 1.3 million and $ 2.2 million in license and development services revenue associated with these obligations in the three and six months ended June 30, 2022, respectively. At June 30, 2022, the Company had $ 32.3 million of deferred revenue remaining on its condensed consolidated balance sheets related to this performance obligation, allocated between current and noncurrent based on the expected timing of future recognition. R&D and commercialization activities for zimberelimab monotherapy The Company determined that it retains an obligation to perform further development and commercialization services for Gilead related to zimberelimab monotherapy. Prior to the closing of the Amended Gilead Collaboration Agreement, the Company had $ 9.7 million deferred revenue on its consolidated balance sheets, related to the two performance obligations. The standalone selling price of this obligation was determined using an expected cost-plus margin approach. The Company will recognize the amounts allocated to these services as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated full-time employee expense for the program. 0.3 million and $ 0.6 million in license and development services revenue associated with these obligations in the three and six months ended June 30, 2022. At June 30, 2022, the Company had $ 9.5 million of deferred revenue remaining on its condensed consolidated balance sheets related to this performance obligation, allocated between current and noncurrent based on the expected timing of future recognition. Access rights related to the Company’s research and development pipeline and material rights to option continuation periods Gilead receives exclusive access to the Company’s current programs as well as the future programs for a period of ten years , contingent upon Gilead’s payment of $ 300 million, consisting of three $ 100 million option continuation payments due at Gilead’s option on each of the fourth, sixth, and eighth anniversaries of the agreement. The standalone selling price of this ongoing research and development pipeline access was determined using an expected cost-plus margin approach. The Company uses a time-elapsed input method to measure progress toward satisfying this obligation, which is the method the Company believes most faithfully depicts the Company’s performance in transferring the promised services during the time period in which Gilead has access to the Company’s research and development pipeline. Accordingly, the revenue allocated to the performance obligation is being recognized using this input method over the minimum four-year period. The Company determined that Gilead is not obligated to pay the remaining $ 300 million due over the remainder of the term. Failure to pay the non-obligatory option continuation payments will result in Gilead’s loss of certain rights to access and obtain licenses to the programs arising from the Company’s research and development pipeline. Prior to the closing of the Amended Gilead Collaboration Agreement, the Company had $ 91.7 million deferred revenue on its condensed consolidated balance sheets related to this performance obligation. The Company recognized $ 8.3 million and $ 16.6 million in other collaboration revenues associated with these obligations in the three and six months ended June 30, 2022, respectively. The Company recognized $ 7.7 million and $ 15.4 million in other collaboration revenues associated with these obligations in the three months and six months ended June 30, 2021, respectively. At June 30, 2022, the Company had $ 103.6 million of deferred revenue on its consolidated balance sheets related to this performance obligation, classified between current and noncurrent based on the amortization of the revenue. Cost-sharing reimbursements The Company's research and development obligations under the Gilead Collaboration Agreement includes a 50/50 share of the joint development costs associated with optioned programs. Payments received from Gilead for their share of costs incurred will be recognized as a reduction of R&D expense or G&A expense depending on the type of expense reimbursed. Payments made to Gilead for the Company's share of costs incurred will be recognized as an increase to those expenses depending on the type of cost reimbursed. The Company recognized reductions of operating expenses totaling $ 35.9 million and $ 66.3 million, respectively, during the three and six months ended June 30, 2022 as a result of this cost-sharing provision. The Company recog nized reductions of operating expenses totaling $ 1.2 million and $ 6.1 million, respectively, during the three and six months ended June 30, 2021 as a result of this cost-sharing provision. Capitalized costs to obtain contract The Company incurred $ 7.3 million in costs to obtain the contract in 2020, which consisted of consultant and legal fees that were directly connected to the successful completion of the Gilead Agreements. The Company determined that $ 1.9 million of these expenses were related to the Stock Purchase Agreement which were recognized as offering costs. The Company allocated the remaining costs between the various performance obligations, to be recognized when the underlying revenue is recognized. The Company incurred an additional $ 4.5 million in fees to a third party as part of entering into the Amended Gilead Collaboration Agreement in 2021. These fees were combined with the $ 3.8 million of capitalized fees that remained from the original agreement at the date of closing, and the total $ 8.3 million was allocated among the performance obligations identified under the Amended Gilead Collaboration Agreement and deferred or recognized accordingly. The Company recognized $ 0.2 million and $ 0.4 million in expense related to these capitalized costs during the three and six months ended June 30, 2022, respectively. The Company recognized $ 0.1 million and $ 0.2 million in expense related to these capitalized costs during the three months and six months ended June 30, 2021, respectively. As of June 30, 2022, the Company had $ 4.5 million in capitalized costs to obtain the contract, of which $ 0.8 million was recorded in prepaid expenses and other current assets and $ 3.7 million was recorded in other long-term assets. Taiho Pharmaceutical Co., Ltd In September 2017, the Company and Taiho entered into an option and license agreement (the Taiho Agreement) under which Taiho obtained exclusive options to Arcus programs arising over a five-year period ending September 2022 (the Option Period). If Taiho timely exercises its option, Taiho obtains exclusive development and commercialization rights to investigational products from such Arcus Program for Japan and certain other territories in Asia (excluding China) (the Taiho Territory). In consideration for the exclusive options and other rights contained in the Taiho Agreement, Taiho paid non-refundable, non-creditable cash payments to the Company totaling $ 35.0 million. For each option that Taiho elects to exercise, it will be obligated to make an option exercise payment of between $ 3.0 million to $ 15.0 million, depending on the development stage of the applicable Arcus Program for which the option is exercised. Upon exercise Taiho is solely responsible for continued development and commercialization in the Taiho Territory. In addition, the Taiho Agreement provides that the Company is eligible to receive additional clinical and regulatory milestones totaling up to $ 130.0 million per Arcus Program, and it will be eligible to receive contingent payments of up to $ 145.0 million per Arcus Program associated with the achievement of specified levels of Taiho net sales in the Taiho Territory. In addition, the Company will receive royalties ranging from high single-digits to mid-teens on net sales of licensed products in the Taiho Territory. Royalties will be payable on a licensed product-by-licensed product and country-by-country basis during the period of time commencing on the first commercial sale of a licensed product in a country and ending upon the later of: (a) ten (10) years from the date of first commercial sale of such licensed product in such country; and (b) expiration of the last-to-expire valid claim of the Company’s patents covering the manufacture, use or sale or exploitation of such licensed product in such country (the Royalty Term). The Company determined that the identified performance obligations for the Taiho Agreement, which include the combined performance obligation of the research and development services and the obligation to participate on the joint steering committee, are satisfied over time. The Company uses a time-elapsed input method to measure progress toward satisfying its performance obligation, which is the method the Company believes most faithfully depicts the Company’s performance in transferring the promised services during the time period in which Taiho has access to the Company’s research and development activities. Accordingly, the transaction price of $ 35.0 million is being recognized in other collaboration revenues using this input method over the estimated performance period of five years ending September 2022. From the inception of the Taiho Agreement through June 30, 2022, Taiho has exercised its option to the Company's adenosine receptor antagonist program (including etrumadenant), its anti-PD-1 program (including zimberelimab), and its anti-TIGIT program (including domvanalimab and AB308) for option payments totaling $ 26.0 million. The Taiho Agreement will remain in effect until the expiry of all royalty terms for the licensed products. As of June 30, 2022, no clinical or regulatory milestones had been achieved under the Taiho Agreement. As of June 30, 2022, no sales milestone or royalty revenue has been recognized. In November 2021, Taiho exercised its option under the Taiho Agreement to the Company's anti-TIGIT program, including domvanalimab and AB308, in exchange for a $ 15.0 million option exercise fee. In November 2019, Taiho exercised its option to the Company's anti-PD-1 antibody program, including zimberelimab, for a fee of $ 8.0 million. For each of these exercises, the Company identified one performance obligation which was the delivery of the license, which was recognized by the Company as license revenue during the years ended December 31, 2021 and 2019, respectively. Upon the option exercises, Taiho gained sole responsibility for the development and commercialization of the licensed products within the Taiho Territory. As of June 30, 2022 and December 31, 2021, the Company recorded deferred revenue, current of $ 1.5 million and $ 5.0 million, respectively, on its condensed consolidated balance sheet. WuXi Biologics License Agreements The Company entered into a license agreement (the WuXi PD-1 Agreement) with WuXi Biologics in August 2017, as subsequently amended, in which it obtained an exclusive license to develop, use, manufacture, and commercialize products including an anti-PD-1 antibody worldwide except for Greater China. From the inception of the WuXi PD-1 Agreement through June 30, 2022, the Company has made upfront and milestone payments of $ 41.0 million and incurred sub-license fees of $ 11.3 million. These milestone payments and sub-license fees were recorded as research and development expense, as the products had not reached technological feasibility and did not have alternative future use. During the three and six months ended June 30, 2022, the Company incurred no milestone expense under the WuXi PD-1 Agreement. During the three and six months ended June 30, 2021, the Company incurred zero and $ 10.0 million in development milestone expense under the WuXi PD-1 Agreement. The WuXi PD-1 Agreement also provides for clinical and regulatory milestone payments, commercialization milestone payments of up to $ 375.0 million and tiered royalty payments to be made to WuXi Biologics that range from the high single-digits to low teens of net sales by the Company of licensed products. In December 2020, the Company entered into a separate license agreement (the WuXi CD39 Agreement) with WuXi Biologics to develop anti-CD39 antibodies. Under the agreement, the Company was granted exclusive worldwide rights to anti-CD39 antibodies discovered under the collaboration and will be responsible for the further development and commercialization of those antibodies. The WuXi CD39 Agreement provides for clinical and regulatory milestone payments totaling $ 16.5 million, and royalty payments in the low single digits of net sales by the Company of licensed products. From the inception of the WuXi CD39 Agreement through June 30, 2022, the Company has paid a $ 1.5 million development milestone and $ 0.5 million in upfront payments, both of which were recorded in research and development expense, as the products are still in research stage. The Company incurred zero and $ 1.5 million in development milestone expense under the WuXi CD39 Agreement during the three and six months ended June 30, 2022. The Company incurred no development milestone expense under the WuXi CD39 Agreement during the three and six months ended June 30, 2021. Abmuno License Agreement In December 2016, the Company entered into a license agreement (the Abmuno Agreement) with Abmuno Therapeutics LLC (Abmuno) in which it obtained a worldwide exclusive license to develop, use, manufacture, and commercialize products that include an anti-TIGIT antibody, including domvanalimab. From the inception of the Abmuno Agreement through June 30, 2022, the Company has made upfront and milestone payments totaling $ 14.6 million as of June 30, 2022, which were recorded in research and development expense, as the products are still in research stage. The Abmuno Agreement also provides for additional clinical, regulatory and commercialization milestone remaining payments of up to $ 93.0 million as of June 30, 2022. The Company incurred no development milestone expense for the three and six months ended June 30,

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2022
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 8. Stock-Based Compensation The Company grants awards under its 2018 Equity Incentive Plan and the 2020 Inducement Plan. Total stock-based compensation expense was recognized in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development $ 7,717 $ 6,968 $ 16,219 $ 13,138 General and administrative 7,960 6,399 15,999 12,990 Total stock-based compensation $ 15,677 $ 13,367 $ 32,218 $ 26,128

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes The provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into consideration in the relevant period. Each quarter, the Company updates the estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company records a cumulative adjustment to the provision. The Company did no t record a provision for income taxes for the three months ended June 30, 2022 and 2021. The Company’s provision for income taxes was $ 1.0 million and zero for the six months ended June 30, 2022 and 2021 with an effective tax rate of - 0.8 % and 0 %, respectively. The effective tax rate differs from the U.S. statutory tax rate primarily due to the valuation allowances on the Company’s deferred tax assets and state income taxes. The income tax provision includes the effects of the mandatory capitalization and amortization of research and development expenses starting in 2022, as required by the 2017 Tax Cuts and Jobs Act. As of June 30, 2022 and December 31, 2021, the Company has provided a valuation allowance against U.S. federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination. The Company recognizes interest and penalties associated with uncertain tax benefits as part of the income tax provision. To date, the Company has not recognized any interest and penalties in its condensed consolidated statements of operations, nor has it accrued for or made payments for interest and penalties. The Company is subject to taxation in the U.S. and various foreign jurisdictions. The tax years subsequent to 2015 remain open and subject to examination by federal, state, and foreign taxing authorities in which the Company is subject to tax.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Loss per Share	Note 10. Net Loss per Share Basic net loss per share is calculated based on the weighted-average number of shares of the Company’s common stock during the period. Diluted net loss per share is calculated based on the weighted-average number of shares of the Company’s common stock and other dilutive securities outstanding during the period. Potentially dilutive securities are excluded from the calculation if their inclusion would have been antidilutive. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss $ ( 66,632 ) $ ( 75,970 ) $ ( 134,625 ) $ ( 148,563 ) Denominator: Weighted-average common shares outstanding 71,814,232 71,094,199 71,506,216 69,792,730 Less: weighted-average common shares subject to vesting - ( 1,348,902 ) - ( 1,371,644 ) Weighted-average common shares used to compute basic and diluted 71,814,232 69,745,297 71,506,216 68,421,086 Net loss per share: basic and diluted $ ( 0.93 ) $ ( 1.09 ) $ ( 1.88 ) $ ( 2.17 ) The following outstanding potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have been antidilutive: As of June 30, 2022 2021 Common stock options issued and outstanding 12,404,112 12,508,782 Restricted stock units issued 1,397,281 1,330,120 Employee Stock Purchase Plan shares 135,040 169,326 Unvested early exercised common stock options - 73,618 Unvested restricted common stock issued as - 1,257,651 Total 13,936,433 15,339,497 The Company also excluded the effect of Gilead’s right to purchase additional shares of the Company’s common stock from its calculation as these rights had no intrinsic value at June 30, 2022.

Commitments

Commitments	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments	Note 11. Commitments Standby Letters of Credit The Company has standby letters of credit up to an aggregate of $ 3.0 million provided as collateral for its leases. The letters of credit are secured by $ 3.0 million in deposits classified as restricted cash on the Company’s condensed consolidated balance sheets. At June 30, 2022 the standby letters of credit were not drawn down.

Related Parties

Related Parties	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
Related Parties	Note 12. Related parties Relationship and transactions with Gilead As of June 30, 2022, Gilead held approximately 19.2 % o f the Company’s outstanding common stock. These holdings resulted from a combination of Gilead’s participation in the May 2020 public offering as well as purchases of stock under the stock purchase agreement. In the May 2020 public offering, Gilead purchased 2,200,000 shares of common stock for an amount of $ 56.7 million, net of offering costs. Under the stock purchase agreement (as amended and restated), Gilead purchased 5,963,029 and 5,650,000 shares in July 2020 and February 2021, respectively, for a total investment of $ 327.8 million, net of offering costs and amounts allocated to the performance obligations created by the Gilead Collaboration Agreement. Gilead has the right, at its option, to purchase up to a maximum of 35 % of the Company’s then-outstanding voting common stock, from time to time over five years from the closing of the initial transaction. Pursuant to the Investor Rights Agreement, the Company appointed Gilead's two designees to the Company’s Board of Directors. See Note 7 for further discussion of the agreements with Gilead. At June 30, 2022, the Company had a $ 35.7 million cost sharing receivable recorded on the condensed consolidated balance sheets under receivable from collaboration partners, to be invoiced the following quarter. At June 30, 2022, the Company had a $ 1.3 million long-term cost-share receivable recorded in other long-term assets on the balance sheet, to be invoiced upon the achievement of milestones under the AstraZeneca agreement in future years. The Company also had $ 88.6 million in deferred revenue, current and $ 429.3 million in deferred revenue, noncurrent recorded on its condensed consolidated balance sheets at June 30, 2022. For the three and six months ended June 30, 2022 the Company recognized $ 25.0 million and $ 41.3 million, respectively, in revenue under the Gilead Collaboration Agreement. For each of these periods, the Company also recognized net reductions in operating expenses totaling $ 35.9 million and $ 66.3 million, respectively. For the three and six months ended June 30, 2021 the C ompany recognized $ 7.7 million and $ 15.4 million, respectively, in revenue under the Gilead Collaboration Agreement. For each of these periods, the Company also recognized net reductions in operating expenses totaling $ 1.2 million and $ 6.1 million, respectively . The Company received a $ 175 million upfront payment from Gilead upon closing of the Gilead Collaboration Agreement in July 2020. In addition, in July 2020 the Company received $ 200 million from Gilead in connection with the Stock Purchase Agreement, of which approximately $ 109.4 million represented the fair value of stock purchased at the transaction closing date with the remaining premium of $ 90.6 million allocated to the transaction price. In February 2021, the Company received $ 220.4 million from Gilead in connection with the purchase by Gilead of 5,650,000 shares of the Company’s common stock at a per share price of $ 39.00 pursuant to the amended and restated Stock Purchase Agreement. In January 2022, the Company received $ 725 million in option exercise payments from Gilead.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the Company’s opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results of operations and cash flows for the periods presented have been included. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any future period. The balance sheet as of December 31, 2021 has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 23, 2022. There have been no significant changes to the Company’s significant accounting policies described in Note 2, Summary of Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Arcus Biosciences, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as well as related disclosures of contingent assets and liabilities. Estimates used include the determination of the standalone selling price of performance obligations and the timing of revenue recognition, the value of stock-based awards and other issuances, accruals for research and development costs, useful lives of long-lived assets, uncertain tax positions, and valuation allowance for deferred tax assets. Actual results could differ materially from the Company’s estimates.
Cash Equivalents and Investments	Cash Equivalents and Investments Cash equivalents include marketable securities having an original maturity of three months or less at the time of purchase. Short-term investments have maturities of greater than three months and up to twelve months at the time of purchase. Long-term investments have maturities greater than 12 months at the time of purchase. Collectively, cash equivalents, short-term and long-term investments are considered available-for-sale and are recorded at fair value. Unrealized gains and losses are recorded in accumulated other comprehensive income (loss). Realized gains and losses are included in interest and other income, net in the condensed consolidated statements of operations and comprehensive income or loss. The basis on which the cost of a security that is sold or an amount that is reclassified out of accumulated other comprehensive income or loss into earnings is determined using the specific identification method.
Reconciliation of Cash, Cash Equivalents, and Restricted Cash as Reported in Condensed Consolidated Statements of Cash Flows	Reconciliation of Cash, Cash Equivalents, and Restricted Cash as Reported in Condensed Consolidated Statements of Cash Flows Restricted cash at June 30, 2022 and 2021 represents cash balances held as security in connection with the Company’s facility lease agreements. The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets to the total shown in the condensed consolidated statements of cash flows (in thousands): June 30, 2022 2021 Cash and cash equivalents $ 272,629 $ 320,482 Restricted cash 3,005 3,005 Cash, cash equivalents and restricted cash $ 275,634 $ 323,487
Concentration of Credit Risk	Concent ration of Credit Risk Cash equivalents, short-term and long-term investments are financial instruments that potentially subject the Company to concentrations of credit risk. The Company invests in money market funds, treasury bills and notes, government bonds, commercial paper, corporate notes, and certificates of deposit. The Company's investment policy limits interest-bearing security investments to certain types of instruments issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer. The Company limits its credit risk associated with cash equivalents, short-term and long-term investments by placing them with banks and institutions it believes are credit worthy and in highly rated investments.
Leases and Rent Expense	Leases and Rent Expense The Company recognizes a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The Company determines whether an arrangement is or contains a lease at contract inception. Operating leases and related tenant improvement allowances receivable are included in operating lease right-of-use assets, prepaid expenses and other current assets, other current liabilities, and operating lease liabilities, noncurrent in our condensed consolidated balance sheets at June 30, 2022 and December 31, 2021. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the net present value of lease payments, the Company uses its incremental borrowing rate based on information available at the lease commencement date. The incremental borrowing rate represents the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company considers a lease term to be the noncancelable period that it has the right to use the underlying asset, including any periods where it is reasonably assured the Company will exercise the option to extend the contract. Periods covered by an option to extend are included in the lease term if the lessor controls the exercise of that option. The Company elected to not apply the recognition requirements of the leasing standard to short-term leases with terms of 12 months or less which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. For short-term leases, lease payments are recognized as operating expenses on a straight-line basis over the lease term.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets to the total shown in the condensed consolidated statements of cash flows (in thousands): June 30, 2022 2021 Cash and cash equivalents $ 272,629 $ 320,482 Restricted cash 3,005 3,005 Cash, cash equivalents and restricted cash $ 275,634 $ 323,487

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis	The following tables set forth the Company’s financial instruments (excluding restricted cash) that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): June 30, 2022 Total Level 1 Level 2 Level 3 Money market funds $ 187,998 $ 187,998 $ - $ - U.S. treasury securities 320,202 - 320,202 - Corporate securities and commercial paper 747,351 - 747,351 - Certificates of deposit 12,073 12,073 U.S. government agency obligations 3,481 - 3,481 - Total assets measured at fair value $ 1,271,105 $ 187,998 $ 1,083,107 $ - December 31, 2021 Total Level 1 Level 2 Level 3 Money market funds $ 147,914 $ 147,914 $ - $ - U.S. treasury securities 112,170 - 112,170 - Corporate securities and commercial paper 421,214 - 421,214 - Total assets measured at fair value $ 681,298 $ 147,914 $ 533,384 $ -
Schedule of Investments Classified as Available for Sale Securities with Contractual Maturities	Classified as (with contractual maturities): June 30, 2022 December 31, 2021 Cash and cash equivalents $ 272,629 $ 147,914 Short-term investments (due within one year) 900,147 351,394 Long-term investments (due between one and three years) 98,329 181,990 Total cash, cash equivalents and investments in marketable securities $ 1,271,105 $ 681,298
Schedule of Fair Value and Amortized Cost of Investments in Marketable Securities by Major Security Type	The fair value and amortized cost of investments in marketable securities by major security type as of June 30, 2022 and December 31, 2021 are presented in the tables that follow (in thousands): Amortized Unrealized Unrealized Fair As of June 30, 2022: Money market funds $ 187,998 $ - $ - $ 187,998 U.S. treasury securities 322,351 1 ( 2,150 ) 320,202 Corporate securities and commercial paper 752,429 8 ( 5,086 ) 747,351 Certificates of deposit 12,071 4 ( 2 ) 12,073 U.S. government agency obligations 3,500 - ( 19 ) 3,481 Total $ 1,278,349 $ 13 $ ( 7,257 ) $ 1,271,105 Amortized Unrealized Unrealized Fair As of December 31, 2021: Money market funds $ 147,914 $ - $ - $ 147,914 U.S. treasury securities 112,473 1 ( 304 ) 112,170 Corporate securities and commercial paper 422,172 3 ( 961 ) 421,214 Total $ 682,559 $ 4 $ ( 1,265 ) $ 681,298

Other Accrued Liabilities (Tabl

Other Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Summary of Other Accrued Liabilities	Other accrued liabilities consisted of the following (in thousands): As of June 30, 2022 As of December 31, 2021 Accrued personnel expenses $ 12,942 $ 16,648 Professional fees 236 4,938 Income taxes payable 18 1,815 Other 1,242 780 Total $ 14,438 $ 24,181

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Leases [Abstract]
Schedule of Supplemental Cashflow Disclosures Related to Operating Leases	The following table summarizes supplemental cash flow disclosures and non-cash financing activities related to our operating leases (in thousands): Six Months Ended June 30, 2022 2021 Cash paid for amounts included in measurement of lease liabilities $ 4,421 $ 2,000 Cash received from tenant improvement allowances $ 8,381 $ - Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,029 $ 24,473 Recognition of tenant improvement allowance receivable included in other current liabilities $ 5,791 $ 10,598

Liability for Sale of Future _2

Liability for Sale of Future Royalties (Tables)	6 Months Ended
	Jun. 30, 2022
Liability for Sale of Future Royalties
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Schedule of Changes to Liability	Changes to the liability for sale of future royalties were as follows for the six months ended June 30, 2022 (in thousands): 2022 Beginning balance, January 1 $ 5,260 Cash received from BVF 5,000 Interest accretion 902 Ending balance, June 30 $ 11,162

License and Collaboration Agr_2

License and Collaboration Agreements (Tables)	6 Months Ended
	Jun. 30, 2022
Summary of Revenues by Collaboration and by Category of Revenue	The following table summarizes revenues by collaboration, category of revenue, and the method of recognition (in thousands): Three Months Ended June 30, Six Months Ended June 30, Revenues recognized: Over time Point in time 2022 2021 2022 2021 License and development services for all Gilead programs * $ 16,693 $ - $ 24,632 $ - Gilead access rights related to the * 8,316 7,711 16,632 15,422 Taiho access rights * 1,750 1,750 3,500 3,500 Total collaboration and license revenues $ 26,759 $ 9,461 $ 44,764 $ 18,922
Summary of Revenue Recognized as a Result of Changes in Deferred Revenue	The Company recognized the following revenue as a result of changes in the deferred revenue balance during the period below (in thousands): Three Months Ended June 30, Six Months Ended June 30, Revenue recognized in the period from: 2022 2021 2022 2021 Amounts included in deferred revenue at the beginning of the period $ 26,759 $ 9,461 $ 44,764 $ 18,922 Performance obligations satisfied in a previous period - - - -
Schedule of Payments Allocated to Performance Obligations	The Company determined that the Amended Gilead Collaboration Agreement represented a contract modification under the application of ASC 606. At the amendment closing date, the Company allocated the transaction price to the new and remaining performance obligations identified as follows: Amount Allocation of transaction price Deferred revenues as of 12/21/2021 $ 165,086 Option payment for Domvanalimab 275,000 Option payment for Etrumadenant 250,000 Option payment for Quemliclustat 200,000 Total transaction price allocated to performance obligations $ 890,086 Allocation to performance obligations Distinct Combined Amount Domvanalimab license * $ 328,838 Etrumadenant license and R&D activities * 218,722 Quemliclustat license and R&D activities * 175,618 Domvanalimab R&D activities * 34,528 Zimberelimab R&D and commercial services * 11,243 Access rights related to the Company's research * 84,076 Material rights to option continuation periods * 37,061 Total $ 890,086
Gilead and Taiho
Summary of Revenues	The following table summarizes the revenues recognized from the Company’s collaboration agreements with Gilead and Taiho Pharmaceutical Co., Ltd. (Taiho) (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 License and development services revenue $ 16,693 $ - $ 24,632 $ - Other collaboration revenue 10,066 9,461 20,132 18,922 Total collaboration and license revenues $ 26,759 $ 9,461 $ 44,764 $ 18,922

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2022
Share-based Payment Arrangement [Abstract]
Summary of Stock-Based Compensation Expense	Total stock-based compensation expense was recognized in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Research and development $ 7,717 $ 6,968 $ 16,219 $ 13,138 General and administrative 7,960 6,399 15,999 12,990 Total stock-based compensation $ 15,677 $ 13,367 $ 32,218 $ 26,128

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss Per Share	The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss $ ( 66,632 ) $ ( 75,970 ) $ ( 134,625 ) $ ( 148,563 ) Denominator: Weighted-average common shares outstanding 71,814,232 71,094,199 71,506,216 69,792,730 Less: weighted-average common shares subject to vesting - ( 1,348,902 ) - ( 1,371,644 ) Weighted-average common shares used to compute basic and diluted 71,814,232 69,745,297 71,506,216 68,421,086 Net loss per share: basic and diluted $ ( 0.93 ) $ ( 1.09 ) $ ( 1.88 ) $ ( 2.17 )
Summary of Outstanding Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share	The following outstanding potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have been antidilutive: As of June 30, 2022 2021 Common stock options issued and outstanding 12,404,112 12,508,782 Restricted stock units issued 1,397,281 1,330,120 Employee Stock Purchase Plan shares 135,040 169,326 Unvested early exercised common stock options - 73,618 Unvested restricted common stock issued as - 1,257,651 Total 13,936,433 15,339,497

Organization - Additional Infor

Organization - Additional Information (Details) $ in Millions	1 Months Ended	6 Months Ended
	Dec. 31, 2021 Product	Jun. 30, 2022 USD ($) Product
Organization [Line Items]
Number of investigational product		6
Cash, Cash Equivalents and Investments in Marketable Securities
Organization [Line Items]
Cash and investments | $		$ 1,271.1
Gilead Collaboration Agreement
Organization [Line Items]
Number of investigational product	4

Significant Accounting Polici_4

Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 272,629	$ 147,914	$ 320,482
Restricted cash	3,005	3,005	3,005
Cash, cash equivalents and restricted cash	$ 275,634	$ 150,919	$ 323,487	$ 173,618

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Realized gains (loss) on sale or maturity of available-for-sale marketable securities	$ 0	$ 0
Reclassification out of accumulated other comprehensive income	0	0
Credit related losses	$ 0	$ 0

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - Fair Value On Recurring Basis - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 1,271,105	$ 681,298
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	187,998	147,914
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	1,083,107	533,384
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	187,998	147,914
Money Market Funds | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	187,998	147,914
U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	320,202	112,170
U.S. Treasury Securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	320,202	112,170
Corporate Securities and Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	747,351	421,214
Corporate Securities and Commercial Paper | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	747,351	$ 421,214
Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	12,073
Certificates of Deposit | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	12,073
U.S. Government Agency Obligation
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	3,481
U.S. Government Agency Obligation | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 3,481

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Investments Classified as Available for Sale Securities with Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Cash and cash equivalents	$ 272,629	$ 147,914
Short-term investments (due within one year)	900,147	351,394
Long-term investments (due between one and three years)	98,329	181,990
Total cash, cash equivalents and investments in marketable securities	$ 1,271,105	$ 681,298

Fair Value Measurements - Sch_3

Fair Value Measurements - Schedule of Fair Value and Amortized Cost of Investments in Marketable Securities by Major Security Type (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	$ 1,278,349	$ 682,559
Unrealized Gain	13	4
Unrealized Loss	(7,257)	(1,265)
Fair Value	1,271,105	681,298
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	187,998	147,914
Fair Value	187,998	147,914
U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	322,351	112,473
Unrealized Gain	1	1
Unrealized Loss	(2,150)	(304)
Fair Value	320,202	112,170
Corporate Securities and Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	752,429	422,172
Unrealized Gain	8	3
Unrealized Loss	(5,086)	(961)
Fair Value	747,351	$ 421,214
Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	12,071
Unrealized Gain	4
Unrealized Loss	(2)
Fair Value	12,073
U.S. Government Agency Obligation
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	3,500
Unrealized Loss	(19)
Fair Value	$ 3,481

Other Accrued Liabilities - Sum

Other Accrued Liabilities - Summary of Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accrued Liabilities, Current [Abstract]
Accrued personnel expenses	$ 12,942	$ 16,648
Professional fees	236	4,938
Income taxes payable	18	1,815
Other	1,242	780
Total	$ 14,438	$ 24,181

Leases - Additional Information

Leases - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) ft²
Lessee, Lease, Description [Line Items]
Operating lease, existence of option to extend	true
Operating lease, option to extend	Both leases are subject to options by the Company to extend the lease terms.
Buildings
Lessee, Lease, Description [Line Items]
Square feet of space leased	14,460
Tenant allowances | $	$ 5.8
Hayward, California | Executive Offices Research and Development and Business Operations
Lessee, Lease, Description [Line Items]
Square feet of space leased	150,753
Operating lease expiration year	2031
Brisbane, California
Lessee, Lease, Description [Line Items]
Operating lease expiration year	2031

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Cash Flow Disclosures and Non-cash Financing Activities Related to Operating Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Cash paid for amounts included in measurement of lease liabilities	$ 4,421	$ 2,000
Cash received from tenant improvement allowances	8,381
Right-of-use assets obtained in exchange for new operating lease liabilities	3,029	24,473
Recognition of tenant improvement allowance receivable included in other current liabilities	$ 5,791	$ 10,598

Liability for Sale of Future _3

Liability for Sale of Future Royalties - Additional Information (Details) - BVF Partners L.P. - BVF Agreement - USD ($)	1 Months Ended	3 Months Ended			6 Months Ended
	Oct. 31, 2021	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Payment to be made for discovery and development of compounds	$ 15,000,000
Cash received from counterparty		$ 5,000,000	$ 5,000,000	$ 5,000,000
Option to provide additional funding	10,000,000
Liability for milestone payments and royalties		11,200,000			$ 11,200,000
Imputed effective rate of interest on unamortized portion of liability					20.60%
Non-cash interest expense		$ 500,000			$ 900,000
Minimum
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Payment to be made for discovery and development of compounds	15,000,000
Contingent payments upon achievement of certain clinical and regulatory milestones	72,500,000
Maximum
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Contingent payments upon achievement of certain clinical and regulatory milestones	$ 160,000,000

Liability for Sale of Future _4

Liability for Sale of Future Royalties - Schedule of Changes to Liability (Details) - Liability for Sale of Future Royalties - BVF Partners L.P. - BVF Agreement $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Beginning balance, January 1	$ 5,260
Cash received from BVF	5,000
Interest accretion	902
Ending balance, June 30	$ 11,162

License and Collaboration Agr_3

License and Collaboration Agreements - Summary of Revenues (Details) - Gilead and Taiho - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
License and Development Services Revenue
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues	$ 16,693		$ 24,632
Other Collaboration Revenue
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues	10,066	$ 9,461	20,132	$ 18,922
Collaboration and License
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues	$ 26,759	$ 9,461	$ 44,764	$ 18,922

License and Collaboration Agr_4

License and Collaboration Agreements - Summary of Revenues by Collaboration and by Category of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues	$ 26,759	$ 9,461	$ 44,764	$ 18,922
License and Development Services for all Gilead Programs
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues	16,693		24,632
Gilead Access Rights
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues	8,316	7,711	16,632	15,422
Taiho Access Rights
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues	$ 1,750	$ 1,750	$ 3,500	$ 3,500

License and Collaboration Agr_5

License and Collaboration Agreements - Summary of Revenue Recognized as a Result of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
License And Collaboration Agreements [Abstract]
Amounts included in deferred revenue at the beginning of the period	$ 26,759	$ 9,461	$ 44,764	$ 18,922

License and Collaboration Agr_6

License and Collaboration Agreements - Additional Information (Details)		1 Months Ended						3 Months Ended			6 Months Ended		12 Months Ended			58 Months Ended	59 Months Ended
	Jul. 13, 2020 USD ($) Program $ / shares shares	Jan. 31, 2022 USD ($)	Nov. 30, 2021 USD ($) Program	Jan. 31, 2021 USD ($) $ / shares shares	Nov. 30, 2019 USD ($)	Sep. 30, 2017 USD ($)	Aug. 31, 2017 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2017 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 30, 2021 USD ($)
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues								$ 26,759,000	$ 9,461,000		$ 44,764,000	$ 18,922,000
Option continuation payment due upon second anniversary of agreement													$ 100,000,000
Deferred revenue recognized								26,759,000	9,461,000		44,764,000	18,922,000
Remaining capitalized fees at closing													3,800,000
Fees allocated among performance obligations													8,300,000
Contract with customer liability, noncurrent								429,339,000			429,339,000		462,217,000			$ 429,339,000	$ 429,339,000
Gilead
License And Collaboration Agreements [Line Items]
Fee incurred to third party upon receipt of option exercise payments													4,500,000
WuXi Biologics License Agreement
License And Collaboration Agreements [Line Items]
Clinical and regulatory milestones achieved											$ 16,500,000
Range of tiered royalty payments on net sales											high single-digits to low teens
WuXi Biologics License Agreement | Research and Development
License And Collaboration Agreements [Line Items]
Upfront cash payment																	500,000
Sub-license fees incurred																	11,300,000
Upfront and milestone payments																	41,000,000
Development milestone payments																	1,500,000
WuXi Biologics License Agreement | WuXi PD-1
License And Collaboration Agreements [Line Items]
Development milestone expense								0	0		$ 0	10,000,000
WuXi Biologics License Agreement | WuXi CD39
License And Collaboration Agreements [Line Items]
Development milestone expense								0	0		1,500,000	0
WuXi Biologics License Agreement | Maximum
License And Collaboration Agreements [Line Items]
Clinical, regulatory and commercialization milestone payments							$ 375,000,000
Abmuno License Agreement
License And Collaboration Agreements [Line Items]
Upfront and milestone payments											14,600,000
Clinical, regulatory and commercialization remaining milestone payments											93,000,000
Development milestone expense								0	0		0	5,000,000
Gilead Collaboration Agreement
License And Collaboration Agreements [Line Items]
Option payment upon completion of certain IND-enabling activities	$ 60,000,000
Option payment upon achievement of certain development milestones	150,000,000
Deferred revenue								517,900,000			517,900,000		559,200,000			517,900,000	517,900,000
Increase (Decrease) in Operating expenses								(35,900,000)	(1,200,000)		(66,300,000)	(6,100,000)
Gilead Collaboration Agreement | Gilead
License And Collaboration Agreements [Line Items]
Upfront cash payment	$ 175,000,000
Collaboration term for current and future clinical programs	10 years
Contingent milestone payments receivable	$ 300,000,000
Additional collaboration term for programs entering clinical development prior to end of collaboration term	3 years
Option continuation payment receivable upon eighth anniversary of agreement	$ 100,000,000
Option continuation payment receivable upon fourth anniversary of agreement	100,000,000
Option continuation payment receivable upon sixth anniversary of agreement	100,000,000
Option fee per program for all other programs entering clinical development to exercise option	$ 150,000,000
Number of research programs | Program	2
Option payment upon achievement of certain development milestones	$ 250,000,000
Total collaboration and license revenues								13,200,000			18,200,000
Deferred revenue								200,500,000			200,500,000					200,500,000	200,500,000
Deferred revenue related to domvanalimab option																		$ 36,700,000
Deferred revenue recognized													328,800,000
Deferred revenue related to etrumadenant option																		127,000,000
Option payment upon achievement of certain development milestones	$ 275,000,000
Current and future programs exclusive access period	10 years
Performance obligation period	4 years
Contractual obligation remaining amount not obligated to pay	$ 300,000,000
Deferred revenue related to research and development pipeline								103,600,000			103,600,000					103,600,000	103,600,000	$ 91,700,000
Consultant and legal fees	7,300,000
Capitalized costs								200,000	100,000		400,000	200,000
Cost sharing receivable								4,500,000			4,500,000					4,500,000	4,500,000
Gilead Collaboration Agreement | Gilead | Prepaid Expenses and Other Current Assets
License And Collaboration Agreements [Line Items]
Capitalized costs to obtain the contract, current								800,000			800,000					800,000	800,000
Gilead Collaboration Agreement | Gilead | Other Noncurrent Assets
License And Collaboration Agreements [Line Items]
Receivable from collaboration partners- noncurrent								1,300,000			1,300,000					1,300,000	1,300,000
Capitalized costs to obtain the contract, noncurrent								3,700,000			3,700,000					3,700,000	3,700,000
Gilead Collaboration Agreement | Gilead | Maximum
License And Collaboration Agreements [Line Items]
Contingent milestone payments receivable	300,000,000
Potential regulatory approval milestones payment receivable related to domvanalimab	500,000,000
Gilead Collaboration Agreement | Taiho Pharmaceutical Co., Ltd
License And Collaboration Agreements [Line Items]
Option period						5 years
Option ending period						2022-09
Non refundable and non creditable cash payments															$ 35,000,000
Payment for first option exercise			$ 15,000,000
Purchase Agreement
License And Collaboration Agreements [Line Items]
Direct offering cost	1,900,000
Purchase Agreement | Gilead
License And Collaboration Agreements [Line Items]
Issuance of common stock	$ 200,000,000									$ 220,296,000
Issuance of common stock, shares | shares	5,963,029													5,963,029
Shares issued, price per share | $ / shares	$ 33.54													$ 33.54
Percentage of option to purchase maximum shares of common stock	35%
Period over common stock to be purchased	5 years
Percentage of premium purchase price of common stock	20%
Trailing days average closing price	5 days
Share Price | $ / shares	$ 33.54
Funds received for purchase of common stock														$ 200,000,000
Purchase price of common stock allocation to performance obligation														$ 90,600,000
Purchase Agreement | Gilead | May 2020 Public Offering
License And Collaboration Agreements [Line Items]
Shares issued, price per share | $ / shares														$ 27.50
Additional equity investment net of offering costs														$ 56,700,000
Additional equity investment shares issued | shares														2,200,000
Amended Gilead Collaboration Agreement
License And Collaboration Agreements [Line Items]
Upfront cash payment													725,000,000
Issuance of common stock				$ 220,300,000
Issuance of common stock, shares | shares				5,650,000
Shares issued, price per share | $ / shares				$ 39
Option payments received		$ 725,000,000
Number of exercise option to programs | Program			3
Removal of option continuation payment under agreement			$ 100,000,000
Deferred revenue													165,100,000
Initial transaction price													890,100,000
Maximum ownership percentage of outstanding common stock remain unchanged				35%
Quemliclustat Option, and R&D Activities Agreement
License And Collaboration Agreements [Line Items]
Option payment upon achievement of certain development milestones											200,000,000
Total collaboration and license revenues								1,900,000			3,700,000
Deferred revenue								172,000,000			172,000,000					172,000,000	172,000,000
R&D activities for Domvanalimab
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues								1,300,000			2,200,000
Deferred revenue								32,300,000			32,300,000					32,300,000	32,300,000
R&D and Commercialization Activities for Zimberelimab Monotherapy
License And Collaboration Agreements [Line Items]
Deferred revenue related to development and commercialization services								9,700,000			9,700,000					9,700,000	9,700,000
Total collaboration and license revenues								300,000			600,000
Deferred revenue								9,500,000			9,500,000					9,500,000	9,500,000
Access Rights related to Research and Development Pipeline
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues								8,300,000	7,700,000		$ 16,600,000	15,400,000
Taiho Agreement | Taiho Pharmaceutical Co., Ltd
License And Collaboration Agreements [Line Items]
Payment for option exercise					$ 8,000,000											26,000,000
Range of royalties receivable on net sales											high single-digits to mid-teens
Royalties payable description											Royalties will be payable on a licensed product-by-licensed product and country-by-country basis during the period of time commencing on the first commercial sale of a licensed product in a country and ending upon the later of: (a) ten (10) years from the date of first commercial sale of such licensed product in such country; and (b) expiration of the last-to-expire valid claim of the Company’s patents covering the manufacture, use or sale or exploitation of such licensed product in such country (the Royalty Term).
Non-refundable, non-creditable upfront cash payments											$ 35,000,000
Estimated performance period											5 years
Clinical and regulatory milestones achieved											$ 0
Sales milestone or royalty revenue recognized											0
Deferred revenue, current								1,500,000			1,500,000		$ 5,000,000			1,500,000	1,500,000
Taiho Agreement | Taiho Pharmaceutical Co., Ltd | Minimum
License And Collaboration Agreements [Line Items]
Payment for option exercise						$ 3,000,000
Taiho Agreement | Taiho Pharmaceutical Co., Ltd | Maximum
License And Collaboration Agreements [Line Items]
Contingent milestone payments receivable						145,000,000
Payment for option exercise						15,000,000
Additional clinical and regulatory milestone payments receivable						$ 130,000,000
AstraZeneca Agreement
License And Collaboration Agreements [Line Items]
Development cost recorded within research and development expenses								400,000	$ 300,000		1,600,000	$ 300,000
AstraZeneca Agreement | Other Long-term Liabilities
License And Collaboration Agreements [Line Items]
Contract with customer liability, noncurrent								$ 2,600,000			$ 2,600,000					$ 2,600,000	$ 2,600,000

License and Collaboration Agr_7

License and Collaboration Agreements - Schedule of Payments Allocated to Performance Obligations (Details) - USD ($) $ in Thousands	Dec. 12, 2021	Dec. 21, 2021
Allocation of transaction price
Deferred revenues as of 12/21/2021		$ 165,086
Option payment for Domvanalimab	$ 275,000
Option payment for Etrumadenant	250,000
Option payment for Quemliclustat	200,000
Total transaction price allocated to performance obligations	890,086
Allocation to performance obligations
Domvanalimab license	328,838
Etrumadenant license and R&D activities	218,722
Quemliclustat license and R&D activities	175,618
Domvanalimab R&D activities	34,528
Zimberelimab R&D and commercial services	11,243
Access rights related to the Company's research and development pipeline	84,076
Material rights to option continuation periods	37,061
Total	$ 890,086

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 15,677	$ 13,367	$ 32,218	$ 26,128
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	7,717	6,968	16,219	13,138
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 7,960	$ 6,399	$ 15,999	$ 12,990

Income Taxes - Additional Infor

Income Taxes - Additional Information - (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 0	$ 0	$ 1,004	$ 0
Effective tax rate			(0.80%)	0%

Net Loss per Share - Computatio

Net Loss per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net loss	$ (66,632)	$ (67,993)	$ (75,970)	$ (72,593)	$ (134,625)	$ (148,563)
Denominator:
Weighted-average common shares outstanding	71,814,232		71,094,199		71,506,216	69,792,730
Less: weighted-average common shares subject to vesting			(1,348,902)			(1,371,644)
Weighted-average common shares used to compute basic and diluted net loss per share	71,814,232		69,745,297		71,506,216	68,421,086
Net loss per share: basic and diluted	$ (0.93)		$ (1.09)		$ (1.88)	$ (2.17)

Net Loss per Share - Summary of

Net Loss per Share - Summary of Outstanding Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share (Details) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	13,936,433	15,339,497
Common Stock Options Issued and Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	12,404,112	12,508,782
Restricted Stock Units Issued
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	1,397,281	1,330,120
Employee Stock Purchase Plan Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	135,040	169,326
Unvested Early Exercised Common Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share		73,618
Unvested Restricted Common Stock Issued as Part of Collaboration Agreement
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share		1,257,651

Commitments - Additional Inform

Commitments - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Commitments [Line Items]
Restricted cash	$ 3,005	$ 3,005	$ 3,005
Standby Letters of Credit
Commitments [Line Items]
Long-term line of credit	3,000
Restricted cash	$ 3,000

Related Parties - Additional In

Related Parties - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended			3 Months Ended		6 Months Ended
	Jul. 13, 2020	Jan. 31, 2022	Feb. 28, 2021	May 31, 2020	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Receivable from collaboration partners, current					$ 35,831		$ 35,831		$ 744,595
Related party, deferred revenue - current					88,595		88,595		96,981
Related party, deferred revenue - noncurrent					$ 429,339		$ 429,339		$ 462,217
Gilead
Related Party Transaction [Line Items]
Percentage of outstanding common stock held					19.20%		19.20%
Number of shares issued				2,200,000
Value of common stock issued				$ 56,700
Option payments received		$ 725,000
Gilead | Operating Expenses
Related Party Transaction [Line Items]
Reimbursed under cost-sharing provisions of arrangement					$ 35,900	$ 1,200	$ 66,300	$ 6,100
Gilead | Cost Sharing Receivable
Related Party Transaction [Line Items]
Receivable from collaboration partners, current					35,700		35,700
Related party, deferred revenue - current					88,600		88,600
Related party, deferred revenue - noncurrent					429,300		429,300
Gilead | Cost Sharing Receivable | Other Noncurrent Assets
Related Party Transaction [Line Items]
Receivable from collaboration partners, noncurrent					$ 1,300		$ 1,300
Gilead | Maximum
Related Party Transaction [Line Items]
Right to purchase additional outstanding voting common stock percentage					35%		35%
Gilead | Gilead Collaboration Agreement
Related Party Transaction [Line Items]
Revenue recognized					$ 25,000	$ 7,700	$ 41,300	$ 15,400
Upfront cash payment							175,000
Gilead | Stock Purchase Agreement
Related Party Transaction [Line Items]
Issuance of common stock, shares	5,963,029		5,650,000
Issuance of common stock			$ 220,400				327,800
Funds received for purchase of common stock							200,000
Fair value of stock purchased							109,400
Premium on stock purchased							$ 90,600
Shares issued, price per share			$ 39