RCUS - Earnings call transcript Q1 2024

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Operator

Hello, and welcome to Arcus Biosciences First Quarter 2024 Earnings Call. My name is Lydia, and I will be your operator today. [Operator Instructions] I'll now hand you over to Pia Eaves, Vice President of Investor Relations and Strategy.

Pia Eaves

Hello, everyone, and thank you for joining us on today's conference call to discuss Arcus' First Quarter 2024 Financial Results and Pipeline Updates. I'd like to remind you that on this call, management will make forward-looking statements, including statements about our cash runway and our expected clinical development milestones and time lines. differ historical and the that involve our results than expectations beliefs may other actual management expressed. of risks to statements facts current reflect and cause All those from and uncertainties risks XX-K quarterly been Form filed uncertainties report which SEC. the Form and described our report in . Those annual and on with XX-Q, on have are We strongly encourage you filings. to review our Bob Terry Goeltz. from hear Jennifer COO, you'll Rosen; our CEO, and Today, CFO, Jarrett; questions and We'll the also our by Juan prepared after be for CMO, Dimitry remarks. President, Jaen, Nuyten; joined

ease of will cas; as we zim; dom; listening, of etrumadenant our be as abbreviations For zimberelimab referring molecule quemliclustat casdatifan as and to as quemli; names: domvanalimab etruma. as

slides call During CEO, website. of deck, our our corporate be over Terry that, Rosen. Investors today's refer which turn I'll to section call, With to our the in found we'll can on the

Terry Rosen

to and you much, thanks the very today. all Thanks in for call of listening Pia, on

XXXX Arcus. in colorectal all clear and incredibly our quemli up upper know, to RCC; support clinical to X you end shaping cancers; cas in we'll GI cancer; data and cell in an cancer. year, dom-zim programs: the etruma this By later-stage pancreatic be is have As for lung of year in catalyst-rich of

with positioned these efficiently. We'll AstraZeneca, stage $X to data along and approval partnerships events. with sets on commercialization towards well also advance diversified runway Taiho, today billion capitalize hand, first spend and extremely very and With others, our treatments best-of-class a we're pipeline, and of data setting of potential Gilead, call for most XXXX, into over the the these upcoming cash on quickly

away. less is Let me start with ASCO than a ASCO. month

which presentations, strong honored two oral thrilled will efforts in for the almost to our field. we're both there. We're cancer programs and and provide GI So support have of

settings to sets and data there's in for a both are opportunities meaningful make are genuine huge patients. need. unmet limited These competition difference where Importantly,

of AX we'll EDGE-Gastric evaluating have the chemo cancer. June dom study cohort updated plus So plus data from on X, Saturday, gastric zim Phase first off, II first-line in

Fc-silent development, is in that dom when to antibodies Fc-enabled that believe aware, improve clinical date antibody relative anti-TIGIT that the when late-stage potentially chemotherapy they're you're the with may to we profile As safety dom only anti-TIGIT combined with of combined the data indicate presented and chemotherapy.

reminder, a November of in of from initial we at ASCO was presented the PFS As virtual At time, data year. EDGE-Gastric session this median last immature. the plenary cohort

X-month landmark see XX overall corporate PFS However, on PD-LX landmark PFS you population. X-month Slide XX% our numbers, can for we XX% is of that for was did high can the you What present see and the mature which deck. population

given standard data that these in median from were X the X encouraging. the care for to obviously PFS months, very ranges very, setting So

we're median data. ASCO, to mature presenting PFS very be At excited

clinically further will gastric data provide in dom-zim updated the the expect benefit We potential cancer. relative standard support meaningful to the for care of

the Importantly, our evaluated patient same III setting population EDGE-Gastric in STAR-XXX. ongoing is study Phase similar

by in midyear. In expect these STAR-XXX enrollment in complete is expected that foreshadow data we're STAR-XXX context, So our confidence therefore, our -- we study. to what to

only of survival antibodies overall gastric enrollment anti-PD-X is in with study in in and options, The and lack new studies ranging cancer incredibly XX from rapid of particularly this of chemotherapy. need the immense population the patient indicative with the months market to therapeutic for XX competition

end tailwinds year. some We also of at data felt that with we the last our presentation actually achieved

development start very for you substantial all will there's head have same. of can Phase together, over that a putting given the a to So antibodies this there are line in competitors other potential and data no that sight anti-TIGIT dom-zim infer III

in patient creates clear the population first U.S. first-to-market with for in XX,XXX and this to to us we're an think going setting addressable patients have patients in be exciting countries. the we GX a alone advantage. an So This of XXX,XXX opportunity over

worldwide So potential to $X market billion. equates the over of this

The On we'll at to will Now third-line presentation June be which is Sunday, FOLFOX on presentation in X, with regorafenib, of be B, evaluating standard second cancer. on be the will of cancer. care for presenting our our zim, from first study. colorectal moving tumor This this Cohort combination ASCO. treatments ARC-X data study colorectal data third-line the one bev in from and

were study. between second-line and These our prior arm. of must received and this cohort study XX cushion who can portion current a etruma design regimen. and Slide X:X of XXX On you were for the and contraindicated the therapies patients enrolled randomized first- regorafenib have arm deck, for CRC. bev the the see oxaliplatin-based Patients are this the criteria care corporate in standard of the

set. So this a large relatively data is

ARC-X not also second-line randomized plus additional cohorts, includes versus which will later zim cancer. in matured data plus are yet etruma and bev bev These a FOLFOX be presented FOLFOX X at time. evaluated colorectal and and

a late-line with since liver mature know, you The include liver mets. months. with has tend to will prognosis, patients ASCO XX without patients and data they're always and a is as over will presentation PFS of OS mets CRC poor median and This our have data follow-up not include trials. a longer OS. setting, included substantially with And in Second-line important

and the more limited Patients regorafenib XX.X combination and population. there of in As of are are plus and which the in X.X study, based many the options cancer. third-line patient with know, typically showed recently of of months SUNLIGHT bev treated PFS months a third-line on OS you with colorectal very

limitations we'll a for options represent with While the month may improvement do next but comparisons, acknowledging combination [indiscernible] substantial third-line over setting. our data, the in current shared very we all patients on you cross-trial of it be based

set want hypothesis of XX and blockade chemotherapy a by which further in bit small in first-line Roche supports a also Ib/II that patients the of versus operationalized out These data at quite adenosine in a our to were evaluated was data cancer. presented captured actually trial study, point just that enhances I immune Roche's plus activating that AACR, alone poster pancreatic benefits etruma of MORPHEUS-PDAC randomized our chemotherapy the molecule metastatic chemotherapy. anti-PD-LX atezo from Phase interest

XX. the PFS on control On the a XX, and XX regimen, Slide of arm both plots arm Slide design highlighted We've and the data the showed etruma meaningful corporate and trial, improvement in etruma-based this And OS. shown both containing we've Slides In on which for shown demonstrated the responses. durable the we've these deck. XX

similar was hazard etruma for containing an ARC-X. of Specifically, chemotherapy in the was what we saw improvement X.X yielding the arm ratio and regimen survival PFS very over hazard XX.X was etruma-based with the X.XX median the median ratio absolute over in OS months OS The alone. X.XX to months,

evaluated chemotherapy may we pancreatic in chemotherapy time immunogenic our evidence alone. in that the have etruma, that data ARC-X, which that which independent with very with X similar, first-line sets combination chemotherapy highlight presented X chemo that Before to evaluated to together inhibit immunosuppressive very want adenosine in pathway, first-line MORPHEUS-PDAC, period the with for data data have leave survival cancer, provide etruma ATP but we And sets, compelling X now adenosine which with I of with short prolonged a ARC-X now presentation, of the molecules ARC-X, similar quemli associated quemli we'll pancreatic and relative Between combined cancer. demonstrating action in etruma. mitigating

in For keep drove what time, the first axis was of in original us mind, for hypothesis the this who've place. those you long adenosine been to us the a following

So to matching the we're getting where the are the data point hypothesis.

combined blockade these meaningful historical was of improvement Importantly, benchmarks in of and versus adenosine our control OS studies two X when standard-of-care chemotherapy. all with showed improvement the showed substantial immunogenic

turn that over be it discuss we've with to HIF-X expectations to this alpha sharing we'll like inhibitor year. to Jen Now covered ASCO, I'd for program our later what at

Jennifer Jarrett

events Terry. our inhibitor, Thanks, CAF, in of which our specifically cell HIF-X are carcinoma, turn clear second or cell I'll and for half ccRCC. the XXXX now we data renal developing to for alpha

monotherapy a validated cell reminder, zanzalintinib. baseline harder goal hit efficacy the PD with clear As has mechanism enable Cas of for clinical should approved achieving a target which is with to than HIF-X advantages and belzutifan patients. PK for greater RCC it recently alpha

higher there opportunities response responses, of we longer higher improve that relative and OS and multiple are into ultimately cas earnings for our A upon to about a which the As more lower of prolonged a on to of profile any disease, PFS overall talked translate call, could of belzutifan. progressive rate primary rate last belzutifan.

Our patients, is various summarized to want X-X. XX now XX Phase was over to Slide designed this that's study, corporate has I the answer numerous for deck. multi-cohort enrolled ARC-XX, Ib minute our on study of cas, It which components of describing So spend questions a

First, dose from escalation. the

earnings no had February, As in XX XXX dose-limiting of mg the call XX observed. and our mg, of enrollment completed last dose with cohorts mg toxicities we

any DLTs, we enrollment completed cohort. XXX And we cleared again, did observe now that have mg of We not just the dose. and

even was designed proportional The to near serve ARC-XX cas continue the see dose dose. we at mg the dose Additionally, for of expansion XXX purposes. portion PK few a to

XXX First and These monotherapy III Phase first [indiscernible] to of study, least of is enrolling of TKI. expansion the least X more have patients mg at lines And therapy. X dose approximately used is proposed will data foremost, an prior a dose advanced therapy cas. dose of and anti-PD-X received cohort, portion of generate data our that for X/X or support mg X stage XXX at patients III to have initiation prior Phase be which The received

advanced. relatively were patients the So

cohort had the disclosed that of responses with only majority were confirmation study X scans, or while line On in this our we last pending we received response belzutifan. Phase earnings III seeing for in the already patients call, rate, including a X LITESPARK-XXX,

where of that patients for have served LITESPARK-XXX. disease prior We reported that lower first primary also we their percent rate that the was progressive of mentioned progressed a scan to

high one rate heard This PFS Bringing clinicians, and consistently treatment data patients should we've the weakness result rate to down in from disease. as in prolong of survival. as is more this is primary set, LITESPARK-XXX benefiting the important from progressive

in data to cohort at year. excited medical the this half very are second We of a present conference from detailed the

to We the also satisfy the portion [indiscernible] dose regulatory submissions. required optimization for designed work

are in Specifically, monotherapy evaluating and we which mg XX dose dose. included cohorts XXX a mg X additional ARC-XX,

we completed enrollment mg of We have cohort. XXX cohort, now the enrollment the XX and initiated of mg just

further us addition of these project the lot cas. will to that profile cohorts complete clinical a will optimization for in work additional to the elucidate also of Optimus, dose So enabling data required generate

to evaluate by the Phase addition expansion in operationalized clear the II Phase combination to to cell planned initiation data addition with of X in to Data to are In the which cas used TKI. used in STELLAR-XXX, combination study from study a least in generated cohorts III from our for cabo cas being Exelixis will about with at be of TKI cohort cohort generated commonly in initiate RCC. X enrollment this ARC-XX, monotherapy we the support

presentation later cas expect Given year followed our we of mg various and the cohorts. expansion to enthusiasm data be ARC-XX, this from enrollment data the other for the cohort by XXX dose quickly rapid

We towards are aggressively year. first advancing Phase early cas of our III the next trial initiation

taking development a we strategic alpha a what our the Importantly, inhibitor. maximize of we to plan value best-in-class to are believe HIF-X approach is

STELLAR-XXX a believe that For an best-in-class from belzutifan's both cas with safety the AE profile. a example, lenvatinib, next-generation and both study therefore, partner, perspective can advantages tolerability expect could zanza evaluating TKI TKI And our We we TKI differentiated have lenvatinib. to and better efficacy cas belzutifan combination over plus potentially belzutifan. cabo is and relative with tolerated with and be

The approximately in approximately few end histology. of annual X-X in resulting patients, line, XX,XXX patients for of second approximately first-line patients XX,XXX the countries. spending progress percent patients patient a the our countries. cell includes moments first-line of patients population X/X than Around I'd XX% in RCC and these like RCC which by XX,XXX addressable and on GX addressable U.S. X,XXX have clear in incident treatment over the across GX the market, cell the clear the more U.S. the in on to

most is market and Cabo share fragmented, line market XX% used only XXXX the share the alone TKI. line driven ccRCC second is market X/X first RCC by almost entirely in U.S. sales The in frequently in of $X.X the in study. the billion, were over under with cabo and

Phase frequently RCC, first-line plus benign few HIF-X III nivolumab When relatively of few with for for relative introduction a been on a paradigm or resulted and therapy, a are combination not surprisingly, beyond anti-PD-X typically through has cycle treatment treated TKI inhibitors, belzutifan positive for first-line a or given the years experienced the script trajectory. It's tumor alpha clinician patients the the waiting to options community eagerly immediate more. of particularly an terms TKIs In profile TKIs. plus different for With of inflection in progression safety TKIs, patients data the ipilimumab.

twofold up top on first an August a alone the rate in growing. in now just belzutifan approximately the line approval clear since just Monthly after format million setting. RCC was data $XXX XX% and and scripts scripts, U.S. cell in belzutifan's the are and is at for bel XXXX March released in run now Based

As believe that which plan billion. we may differentiated and we've belzutifan, north a is clinical cas, of which cas market discussed, we cas and to $X combinations, meaningful all relative we believe of for on improve outcomes support opportunity developing very

Before I'll call we over quarterly review conclude, the turn financials. to to now Bob our

Robert Goeltz

Thanks, Jen. continues to Arcus position. strong a be financial in

compared Our XXXX, of $XXX XX, December million cash XX, $X.X as as XXXX. March to of billion as was

the million, quarter quarter our fourth to of first We Turning the million revenue in compares of $XXX for P&L. $XX recognized XXXX. GAAP which to

Gilead and of Taiho January. the Our first in collaborations catch-up we primarily executed $XXX driven a Gilead million quarter the and our included from cumulative revenue amendment in resulting is by with

of We the of per million remainder GAAP for quarter $XX XXXX. expect to revenue approximately recognize

Our quarter, expenses. stated increase our first R&D R&D quarter The costs $XX our XXXX. in $XXX as quarter represented clinical of trial the quarter reimbursements $XX Gilead for and higher of was net clinical million manufacturing, the headcount-related In the expenses first compared million are to first of and were the with related noncash fourth million from stock to associated programs. late-stage compensation in

the increases We were trials. our the III of and continue activities modest will on therapeutics $XX expect to R&D studies G&A to based as to of for compensation expect stable of standard primarily we quarter $XX remain our for fluctuate clinical care the of Phase and manufacturing expenses clinical spend and XXXX. XXXX. timing mature in expenses $XX in for purchase fourth Noncash expenses for our of represents first the compared first quarter million quarter, G&A stock million million G&A the

were the noncash Total our space. in impacted resulting office charge the of quarter first impairment million by operating sublease $XX expenses of a intended from portion a

expect end into and our XXXX. partners. operations potential the Finally, million $XXX we guidance to to a excludes million XXXX at between be continue and Gilead from $XXX third partnership approval opt-in payment our of fund in $XXX quarter continuation the and cash milestones million and payments This balance to includes from

For back more concluding and regarding financial turn earnings over to today refer our Terry for XX-Q. details please release to now from remarks. our it our results, earlier I'll

Terry Rosen

Thanks, Bob.

STAR-XXX the a registrational today, this, first-line evolution Behind at heard second you've Phase from for have readout. of completion enrollment As in expected III midyear, expected gastric cancer us this to genuinely our we'll from lung Phase III first-line also year. data this we complete trial are markets. cell With significant inflection to by STAR-XXX of attention enrollment in our returning with for first non-small dom-zim study cancer our

trials cell first-line cancer. least year In addition, X III by in for in we'll pancreatic at additional clear early cas starting Phase and quemli be next RCC

meaningful etruma-zim. shortly our derisking GI programs. X This with on As from and validation And and all may have alpha looking off our which further cancer the together, talked of And at several dom-zim near-term we presentations oral we're, of much ASCO course, forward showcase kick to sets, today, will expansion of about later data emerging program for ARC-XX. cohorts several we franchise. provide important more HIF-X year this sharing dose they'll of

reduce executing be studies opportunities multiple it This massive parallel. several overall Taiho. These combination cost will want so of a through development and AstraZeneca, enabled our company molecules, our position sharing expenses. is to continue doing all our to for all include fees, receipt different targeting early-stage current and Gilead, is that funding partnerships Phase I an development milestones of unusual Exelixis to obviously by and option highlight how in cash for partners to and III in have provide

support I questions. of our We'll by you ongoing to for in Arcus bring mission thanking your to conclude all call innovative for want and open now and therapies the continued of to patients need.

Operator

Pohlman of Kaveri comes question first Our from BTIG.

Kaveri Pohlman

HIF-X sensitive leads patients and overlapping also do and basically you of make [indiscernible] VEGF? so suggest alpha it zanza, same could pathway. For with to that XXX of to the expect see more to they're you production. in some of same the that cabo-responsive any which think because upstream biology, the HIF-X is alpha, Do toxicities

Terry Rosen

Yes.

are there the AE HIF-X, they since that So the what genes, expect. believe hand, fact, We ongoing in probably are in profiles And do other it cancer. on pathway. are. effect in though, the same in XXX other side controls know effects really don't We we

see and would that already toxicities. been do belzutifan. not expect say toxicities well with And those So I we have alpha, that defined would HIF-X AEs you overlapping by just

seen see primarily there's that in been believe that anemia. we fact is a hitting kidney, essentially very sources and because very harder, much And seen break HIF-X is in continues We've you belzutifan. built we've for of we're and know has similar the nature epo. though look reported epo mediated in manageable the target happening only similar expression and a profile What what to so even other safety is to

completed XXX-milligram have As Jen DLTs actually not noted, date. a we've again, to any And even we seen cohort.

Kaveri Pohlman

control That's OS. are from quick primary trial cancer. the to has what of helpful. maybe you arm And arm one win on variation is cell a C? expectations the lung have How And both? first-line regarding It it. much Got STAR-XXX and/or Arm non-small and Do PFS endpoints TIGIT from for the acceptable?

Terry Rosen

to you want question? that Dimitry, handle do

Dimitry Nuyten

Sure, Terry.

question simple. first is the So relatively

those it way endpoint, a meaning if speaking, up, either So trial. it's one be statistically primary OS, either positive it's or dual is significant, of will set that the PFS a statistically

a from question. it, your second is is very well of I the didn't perspective, question, regulatory in are you can PFS been endpoint, repeat please? the entire that supportive. interactions get and that lots domain calls the registrational as we've think really public And previous I in clear OS

Kaveri Pohlman

just I so And is Arm Arm acceptable? some PFS to arm I wanted an OS Keytruda C keep is, the are but through combination, and really arm B. is arm, control wondering just how and versus comparing Sure. that variation C there -- from the arm much was A [indiscernible] get believe, I

Dimitry Nuyten

domain that's That the hard a clear let's X:X:X FDA Yes, randomization. question is say review the from, a would think, issue. public arm, say, I as a it's is

contribution of And to of I endpoint of randomized response So a establish on a a assessed. also very guidance, is limited of the that can established is going to in contribution patients on components looking zim by rate. chemotherapy course, mostly share be fashion, at and components. Based could number FDA time-to-event

with absolute no There's guidance with the the discussion, a of I generated issue. can to what the data very contribution for zim, that I'm and is on dom part clearly let's be. positive a discussion that trial, That's successfully modest Keytruda variability we've can I'm zim say, that a study combined the that and confident meaning summarize review confident that will beat chemotherapy, with be the we design. components, able of achieve and

Operator

from comes question Lawson of next Peter Barclays. The

Peter Lawson

Just around HIF-X alpha.

For from trigger the -- Gilead And you of what half or what you Gilead what for the defines set? that points kind us success could data remind opted? second data potentially

Terry Rosen

Sure. Thanks, Peter.

articulated, So and on for opportunities as we've defines of what belzutifan. from a number success, variables there's differentiation

good. keep And already ahead be seen, mind look we that thinking rate we've about you this in are term program the what full not -- even do upon want in at as progression, starting of I'll data trial. we remind response point, if we're with in by monotherapy. depth our of near that overall going to if to based to better registrational the So response, we And developing rate, primary so have belzutifan. than PFS a we're least goal, speed

so another combining than believe, with will was we Jen better for discussing that And give also that us be opportunity lenvatinib as TKI differentiation. a we'll

think one to places, and So we there's that of have opportunity than those. those on beat multiple an we more

a terms year. either We've would opt-in, of would of opt-in, would end early decision that's the define the this we expect. In what next that towards Gilead and into something year or on expect we converged

Operator

from comes Nochomovitz question next The Citi. Yigal of

Unknown Analyst

obviously, looks Yigal. the have on obviously end. cited, trending like with hurdle, a update the a the the data capital ASCO. X you already to based are months at few you've And is but beyond shared, PFS naturally well it on I small This X I EDGE-Gastric think on

well be So theoretical much the derisk PFS guess, to do that correlates in I'm you in just think needs think primary curious OS this you more STAR-XXX? benefit really setting, to the STAR-XXX? PFS with question, how a And benefit do given I how endpoint

Terry Rosen

question. So thanks for the

think You're make right on you'll on to your own the I sample able that. call And size. be

you known. And the date suggested, tight. pretty actually, As been has it's

with addition, both the X there's and to PFS. just XXX, X chemo. X And months in studies they in anti-PD-X come registrational been CheckMate at other roughly So under

quite pretty firm our will that's number. So data think be We meaningful.

I PD-LX, interestingly you to CheckMate when enough, think in actually we're low had PD-LX, the XX-XX one other sets, XXX XX-XX. our keep high thing and mind compare data

So substantial pretty difference.

saw, And look even as our in good. population pretty numbers you all-comer the

So X away. weeks we're We're the excited data. about

being your we call Interestingly that completed. study we're make how much cusp as You'll they've you enough, registrational the derisked own also on think on of mentioned,

So couple you'll those in of see data weeks. a

as X-month In correlation, context OS, general, in a the but form speculation for numbers on correlative, might are happen think terms some some and plot particularly that I immunotherapy, you think clearly But what know, the to happen. able like to given the formed necessarily certainly speculation be line the you what data qualitatively wouldn't I on of of can as you'll our them. in might PFS set, you just landmark OS,

connect are in to that going confident least dots enhancing. at those think will direction qualitatively a be I

Jennifer Jarrett

pretty at you think if look was hazard set, PFS I similar benefit OS and look pretty And that and if you ratios. data the say at you XXX could correlative Yes. the the CheckMate

data I point and disease. strong this my between coalition in think PFS least to shows pretty OS that their So be that's at

Unknown Analyst

wrong. said I ASCO I if asset at or data me, the you But the But think Cohort ASCO Correct AX. it. from data Got more. will only have I'm one be

important plus will the number that cohort which helping FOLFOX And that talking things dom obviously, is understand where the cohorts, stand especially know think I Cohort X X to contribution zim be you're varies of the curious one I'm I AX, to month from with the So arm? other about.

[indiscernible] curious stand there. just So

Terry Rosen

Sure.

sequentially for first So one. the that actually cohort enrolled

So patient arm not but probably study, sequential thing experimental it's a a have an another essentially was slowed that ago. its Keep since was in actually is the fact enrollment. only that final don't just weeks few enrolled the single-arm mind, it you

So it's the year probably trending a behind initial cohort.

I clinicaltrials.gov, probably fashion that, probably seen X take a designed as are arms that also of run with on mentioned we you've that contribution components will on be more the additional have to randomized end. and in larger a

The another other Keytruda that compares that be give that anti-PD-Xs people Zim another important nivo chemo. about numbers other or recognize look set for may chemo single-arm, opportunity, cohort nonrandomized at as that it's a historical such to how just that we will referenced thing you albeit data

So an we well. a year be think it's data as at will it behind set least But interesting cohort. this

Operator

question with ISI. next comes Our from Evercore Jonathan Miller

Jonathan Miller

better XXX-milligram cohort enrolled a HIF-X see competitor. the same A to XXX here specifically very milligrams now. Obviously, and me. why isn't But the for part was that HIF-X release we're wondering get cohort release XX-milligram before going well, on excited couple be that to sense versus of I'm -- from efficacy

XX you highlighted as last got I well understand quarter your in that XXX but quarter, already... were why finished, year release? Secondly, of you not end So just this include as

Terry Rosen

because that forget answer to going I'm what you said. I'll

mine. is brain and younger faster Your than

So question. first the forget I'll

question. second So one, the I'll let your me just take answer first then

the was then go the And added to and cohort Optimus. cohort. context XXX-milligram basically, enrolled it wanted we actually XX of the both with was the after we XX-milligram higher the So in

very won't it So cohort was mature. the presentation of won't clearly, because, recently fully XX-milligram enrolled. it And be the fact, in just be medical part conference

of be inducing. able me about know it, get we to much whatever that But without out you'll

you we The share we're XX very whatever been And first know to So starting, point, milligrams, Merck interesting. just it's patients of or when that's actually noted. the have it. is And XXX-milligram about the cohort looking saw belzutifan data -- when XX clinical X.X dose. it's we so fact, your data the though scanned. PD as The we'll even equivalent even in earliest only

came XX XXX. So after

Jonathan Miller

similar there this Last assume, get the both to implication ORR given more being already that that under could, response, quarter highlighted is time you The as ORR fact, at XXX-milligram sense. Okay. Makes quarter scans in -- in dose, belzutifan. I you that your deepen belt. to belzutifan's

noticed you're respond? intervening levels in quarter But have now the that ORR scans in belzutifan. see do presumably X akin hitting you patients, responses you similar gotten this or last I language on and to months, they've late similar saying ORR using to both more belzutifan's these that to time responses later seen So increase? quarter more those

Terry Rosen

Yes.

language, update opposed we were reiterating the gave if So when end -- because of was fresh description. same using a we were it's to the we it we what said last the at like the as

to give conference until were And we have is So plans picture. seeing updates look all we what we the medical you'll the would comment the data to no see and continue good, full longer then of trajectory then.

Jennifer Jarrett

add side, was the study. you're on a LITESPARK and thing in the the mechanism The where X response months only the to is, slower kinetics response this are time is right, average about

take time. some more So responses may our yes, early, still of

Jonathan Miller

safety sense. you can you've that Makes the of give between about just lastly, them? a as we of as for us to about And versus color here, X exploring you're then combinations Okay. highlighted different TKIs here. a what importance little pick Lenvima think bit driver the you're And looking for

signals really clear Or way is it you're that other? no-go else would push the at? are So you looking something versus there one that

Terry Rosen

Yes.

reasons, and in going strategic any for say would I more you're think we're primarily what is playing And games. not settings. different it's to I about thinking So this timing competitive see, and

-- As but not to we'll the get some strategy. and closer as development out We we goes there's this, let studies our this process, transparent coming therapies. online, little different even decision-making a about play in want year we see that we to along, of it's very you'll we're time be of those know, lines

There's other combinations we're thinking about.

In even different might can imagine both directions go and you in addition, we things.

that goes describe year we'll the as along. So

Operator

from Bank comes with Jason question America. next of Our Zemansky

Jason Zemansky

back step the on progress. on Congratulations the to a take pathway. Maybe just adenosine

the at up data terms look are in efforts, confidence mechanism cracked Are like give tumor your Just pancreatic as the there encouraging is number additional to of certainly sets tumors you types. across tumors indications? you cancer, especially well. at very have the in like mainly signals there I'm likely was mature? which looked both admitted of this NSCLC code signals [indiscernible] some as starting this that emerge pathway in point, to you while And some additional this development especially point and well, respond, been have it in start regulated there maybe and the prostate point, and as longer at curious, term, colorectal

Terry Rosen

Jason. Thanks,

So is mean that to there -- going own the of that I learned. both you when from biology going And sweet now therefore, in we're look spot the now, what we're at are less we're immunogenic MORPHEUS-PDAC, chemotherapy. organ study, what about and right the right a that I think part was right more thought looking and this colorectal what situations by on the X if is pointing of think studies big top we've what the And we study at our probably we what treatment. and pancreatic

dying, that ATP in where middle from for us it's about where a a And in out sort way chemotherapy that initial settings you're the going what's is setting the ton you of understood this you of immunogenic if produce those cells spills extraordinarily of those adenosine. cells, have was into killing well that down fairway this with

to going and cells you're immune mount physics. papers T a those any there's million sort of T if response, are to cell you That going adenosine, it's hit And able -- adenosine to X adenosine by sweep. tell are sees that that's so if

of the very these phenotype seeing response similar. studies that the each so of in And we're is

that we care that the current can but effects thinking of benefit settings about to the that that just be the chemotherapy, the about you beyond where places those be of that actually are you the something that adenosine form. headway get induced of chemo response think mitigating might above by an immune So would enhance the standard when immunogenic there's is by

to more learned there way But primary the the and with date. thinking to what's that's learn time. date, we've the that's So be learning we're to may most

Juan Jaen

be expression. would a very be that high to Sorry, in third think tumors element I CDXX tend

So long places the that between convergence in where the GI have takes you high-level you immunogenic pretty as tract CDXX much to [indiscernible] chemotherapy.

Operator

Partners. question of next Graybosch Daina from Our Leerink comes

Unknown Analyst

Jeff on Daina,. This is for

one one oral their So in starting on And HIF-X with program? cas through the discontinue you your think what We have do know cas context, has to an that development in cas. the read cas presentation. for on guess from ASCO Novartis their expectations we Novartis' decision differentiated I [indiscernible] to and your for that How molecule? is are So inhibitor. any as at ASCO

Terry Rosen

molecule we know comment whatever Novartis don't comment off Novartis the read-through, about I'll you it Why I'll on the what but or let Juan on molecule. And start X

Juan Jaen

Yes.

So see. to alpha was hands, reasonably interaction, that a our in great goes But more that a we'll into making compound, PK/PD, is, going clearly for standpoint not as sort suggests does definitely of maybe potent pharmacokinetics vitro terms inhibitor. drug it high-quality evaluation in have contender a you order [indiscernible] of it's it HIF-X weaker in of In much what cas there's the of magnitude drug our it know, in than

Unknown Analyst

Okay. expect at do Roche And recent quemli? you Great. on for you is you all this change your then data outperform ARC-X additional upcoming Phase potential any Phase do III Put how year? treatment II Or And clinical relative way, opportunity to another any trials or quemli? issuing anticipate see view the randomized data therapeutic and the PDAC settings?

Terry Rosen

look otherwise, people said the good that more speculated things while contemplate. great something be molecules So honest, as here great some continue and And to come, one both if potential. on and today, we is data the sit first this is at we molecules the question, to more along We will this start data once good way. get the beginning, from the we

You advantageous. not a to might even point some could you because certain the adenosine about that's mediated, through at two be there blocking may be case generate situations are which where its CDXX in think able action combining mechanism

so your to seen we think is as very you'll And the molecules. and it's I'm always early of done -- we're going And for you it's with what we both combination date, molecule it's an We've we've see molecules. can this an the got studies of use question to the bad with compelling decide to Novartis, going see the about to and we've data -- data umbrella just talk yourself as under setting opportunity. very quality, to frankly, difference. lived going that, just about make some So a

And be think trajectory. despite learned with fact forward, there's to going so we the on each that a still could be them whole a these lot of more

about trial do with our And and this tumor. as the pancreatic The as we are the obviously, early we're preparing year. what details evolved. what we'll do details data, that do But the you sharing We only we're think having questions know for of as control after late has next the you working late more we're the care future. details And early to would expect discussions year with the be in be. that fact, specific of to still see as Gilead. starting of be will the reason and plan to exactly we want about those going In more We're be exactly what FDA. control, together probably through there'll standard with ideal

When we to more bev. now regorafenib, was in moved much plus direction started, of it's it the

molecule. to things will work a the expect definitely we be of expect can through. But we'd to something data, see doing you with more so And be that you that crazy and there's want not number when the -- you

So we're through working that.

Jennifer Jarrett

means a bar. get be ASCO to I presentation, a got it oral at a an high I mean, oral says -- lot, obviously, I at gotten to to get presentation lot Yes. that has it ASCO think, any except

an the the least tells that that in results is the accepted oil meaningful. the at community study hopefully, you had we fact presentation finding clinical So

Operator

comes of Li question Co. Cantor next Fitzgerald our And Watsek from &

Unknown Analyst

just next-gen all with This inflammation late-stage programs. these is going as quick your fit Li how does a Rosemary have oncology on for And in one prioritization you franchise? on? trials on So about thinking your are you How

Terry Rosen

Yes.

that early-stage -- collaboration late-stage given And these have we question the we was all I sort and were what So it the it? collaborators think the about talking us. that enables think about designed Day these and X, in collaboration. well, with to the with R&D fact, it's up Gilead aspect this this people [indiscernible] engine When created like we dynamic we type another collaboration. I be things portfolio, of of the don't always So of think things, how we do unusual value really take was an set

being discussed given recent some going late-stage which you of discussed moving the So and part are equity There the clearly, for enable this Because nicely in generating and be is performed paper. And data. be started at $XXX deal discovery well they'll it initial number we're million are the and if and the of we that Gilead of as what good molecules along programs, one think was we PK made, a into high-quality to that generating, investment continuing have, generating it. gone recently time, we things said, healthy maintains that patients, big most of a that's big that that there's targets we the at clearly, one fee believe notable We're what is paying look most interest. our we inhibitor, was has we've relationship. we a shortly that continued the With invested correspondingly. when disproportionately, dollars emphasis to on volunteers

to how out. will hard that and It's that have going And PK AXL be tests the actually selectivity we'll hypothesis. AXL works and the to that that the see hit inhibitor be able

early-stage investment it emphasis the with So has same portfolio than and previously. continues the

the there. To shared that we'll Gilead, we'll your on on, talk about that emphasis recent But probably component, along targets off we, we haven't within immunological some we're to that. start on question time that working the that our hold and for most increased year a with more

biology that it percentage of stage best I at very like not And still built you'll would includes strong the looks the players. we've inflammation we As the be slowly of portfolio our increasing, the think We're a but particular biggest like company, group. defined some it's see immunology, immunology driver we evolution percentage. have a where

next oncology whether target, best I&I. So our drug emphasis in the or use discovery the I'll term we'll immuno-oncology, the get group,

Operator

queue. the We further questions have no in

call. today. So today's this you very listening Thank for concludes much in

Arcus Biosciences (RCUS) 8 May 242024 Q1 Earnings call transcript