Arcus Biosciences (RCUS)

Arcus is developing a next-gen HIF-2 alpha inhibitor, a successor to MRK’s belzutifan, for clear cell Renal Cell Carcinoma (ccRCC). In a Ph1/2 trial, their lead asset (casdatifan) showed a 2x-3x improvement in mPFS vs the incumbent belzutifan. If sustained, casdatifan should win out in the second and third line settings, netting $1-2B in sales. Interestingly, this increased potency could help casdatifan penetrate the first-line opportunity, which would be a ~$4-5B opportunity.

RCUS is coming up on a readout of several new first line cohorts, which could start to position it as a serious contender in the first line. Our intro to the company is available here.