TacticScaleWhat Arcus Biosciences Does & How It Makes Money (RCUS)
Updated October 2026 · reflects Arcus Biosciences's latest reported financials
Clinical-stage biotech developing cancer drugs for kidney, lung, and GI cancers. As a clinical-stage company, Arcus has no approved products on the market yet.
How Arcus Biosciences makes money
As a clinical-stage company, Arcus has no approved products on the market yet. It funds research through partnerships and collaborations with other drugmakers and investors, and aims to earn revenue by commercializing its drugs once they are approved.
What Arcus Biosciences does
Arcus Biosciences is a clinical-stage biopharmaceutical company based in Hayward, California, and incorporated in 2015. It develops cancer therapies. Its lead programs include casdatifan, a HIF-2α inhibitor for kidney cancer, and domvanalimab, an anti-TIGIT antibody in Phase 2 and Phase 3 trials for lung and gastrointestinal cancers. Domvanalimab is often paired with Arcus's own anti-PD-1 antibody, zimberelimab. The company also targets the ATP-adenosine pathway, which tumors use to weaken the immune response. These programs are quemliclustat, a CD73 inhibitor in Phase 3 and Phase 1/1b trials for lung and pancreatic cancer, and AB598, a CD39 antibody in Phase 1/1b for gastrointestinal cancer. Its earlier-stage pipeline includes AB801, an AXL inhibitor in Phase 1b for lung cancer. Arcus works with several partners. With AstraZeneca, it runs the Phase 3 PACIFIC-8 trial of domvanalimab plus durvalumab in Stage 3 non-small cell lung cancer, and a Phase 1/1b study of casdatifan plus volrustomig in clear cell renal cell carcinoma. It is also working with Bristol-Myers Squibb on a kidney cancer treatment regimen and with BVF Partners on compounds for inflammatory diseases. The company has no approved products yet, so its value depends mostly on trial results and regulatory approvals.
Products & services
- Casdatifan (HIF-2α inhibitor)
- Domvanalimab (anti-TIGIT antibody)
- Zimberelimab (anti-PD-1 antibody)
- Quemliclustat (CD73 inhibitor)
- AB598 (CD39 antibody)
- AB801 (AXL inhibitor)
What is Arcus Biosciences worth?
On an owner-earnings DCF, Arcus Biosciences's most-likely value is about $2 versus a recent price near $24 (90% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$1) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $24 is above even the optimistic Bull case ($8) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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