Arcus Raises $270M in Second Offering Within Twelve Months
Company Background
Arcus Biosciences is a clinical-stage biopharmaceutical company developing treatments for cancer and inflammatory diseases. Its near-term future is now almost entirely concentrated in casdatifan, a HIF-2α inhibitor for clear cell renal cell carcinoma, after two Phase 3 programs for the anti-TIGIT antibody domvanalimab failed consecutive futility analyses — one in gastric cancer in December 2025, a second in non-small cell lung cancer in April 2026.
The company's strategic reset deepened in July 2026 when Gilead Sciences declined to make its option continuation payment under their 2020 collaboration, ending Gilead's option rights on July 14 and simultaneously vacating three Gilead-appointed board seats. That departure stripped Arcus of a key development and financial partnership, though it left the company with full ownership of casdatifan outside territories licensed to Taiho Pharmaceutical in Japan and parts of Asia.
Financially, Arcus has been burning cash steadily: $134 million in Q1 2026, $101 million in Q2 2026, and a preliminary $81 million in Q3 2026, with revenues falling sharply as Gilead-related collaboration income dried up — from $160 million in Q2 2025 to $41 million in Q2 2026. The company carried approximately $694 million in preliminary cash at September 30, 2026, against a near-term pipeline that includes the ongoing Phase 3 PEAK-1 study and a first-line Phase 3 program management planned to initiate by year-end.
What Was Disclosed
Arcus sold 16,428,572 shares of common stock at $17.50 per share, generating net proceeds of approximately $269.7 million. The offering was led by Jefferies LLC, Leerink Partners LLC, and TD Securities (USA) LLC; the underwriters exercised their overallotment option in full, expanding the deal from the base 14,285,715 shares. The underwriting agreement was signed October 21, 2026, and the offering closed two days later on October 23.