Arcus Biosciences sets $11/share for $150M stock offering

HAYWARD, Calif. - Arcus Biosciences, Inc. (NYSE:RCUS), a biopharmaceutical company in the clinical stage with a solid financial health score according to InvestingPro, announced an underwritten public offering of its shares. The company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 5.24. The company, which specializes in creating innovative treatments for cancer and has achieved impressive revenue growth of 119% over the last twelve months, has priced the offering at $11.00 per share, with the aim to raise gross proceeds of about $150 million. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts maintaining positive revenue growth forecasts for the current year.

The offering consists of 13,636,364 shares of common stock, and it is scheduled to close on February 19, 2025, subject to the satisfaction of customary closing conditions. The entirety of the shares are being offered by Arcus Biosciences itself.

Proceeds from the stock sale are earmarked for funding ongoing research and development activities. This includes the clinical development of casdatifan, a molecule in their pipeline, as well as manufacturing-related costs. The funds will also cover general corporate purposes, such as working capital and operating expenses. While the company's gross profit margins remain challenging at -67.3%, InvestingPro data shows three analysts have recently revised their earnings expectations upward for the upcoming period. For deeper insights into Arcus Biosciences' financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Renowned financial institutions Goldman Sachs & Co. LLC, Leerink Partners, and Evercore ISI are serving as joint book-running managers for the transaction.

The offering is made through a shelf registration statement filed with the Securities and Exchange Commission (SEC) on February 28, 2023. Details of the offering are available in the prospectus supplement filed with the SEC, which can be accessed on their website.

This press release does not constitute an offer to sell these securities, nor a solicitation of an offer to buy. Sales of these securities will not be made in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such state or jurisdiction.

Arcus Biosciences is known for its work on differentiated molecules and combination therapies aimed at treating cancer. The company's forward-looking statements indicate a focus on the successful completion of the offering and the intended use of the net proceeds. However, potential investors are cautioned that these statements are subject to risks and uncertainties that could affect the actual results.

This news article is based on a press release statement from Arcus Biosciences.

In other recent news, Arcus Biosciences reported a strong cash position of approximately $992 million as of December 31, 2024, and retained full global development and commercial rights to casdatifan, a drug evaluated in the ARC-20 study for treating metastatic clear cell renal cell carcinoma. The study showed promising results, with patients demonstrating a median progression-free survival of 9.7 months at a 50mg twice daily dosage and an overall response rate of 25%.

In addition to the financial and development updates, Arcus Biosciences has also seen changes in its executive and board members. Dr. Richard Markus has been appointed as the new Chief Medical (TASE:PMCN) Officer, succeeding Dr. Dimitry Nuyten. Concurrently, the company's board of directors welcomed Dietmar Berger, M.D., Ph.D., as a Class II director, following the departure of Merdad Parsey, M.D., Ph.D.

These recent developments offer insight into the company's financial health, drug development progress, and leadership changes. As Arcus Biosciences navigates these transitions, it continues to focus on the development of innovative pharmaceuticals. The company's recent announcements are based on press release statements and SEC filings, providing factual information without speculation or subjective assessment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.