Arcus Biosciences (RCUS) Stock Forecast & Price Target

Arcus Biosciences Inc has demonstrated significant advancements in its clinical development, with Casdatifan's market penetration in second-line renal cell carcinoma (RCC) increasing from 30% to 40%, contributing to an updated sales forecast of approximately $1.5 billion by 2034. The successful conclusion of the LITESPARK-011 trial, which met its primary endpoint of progression-free survival (PFS), bolsters confidence in the ongoing PEAK-1 trial, particularly in comparison to belzutifan, with data suggesting Casdatifan's superiority in efficacy metrics. Financially, the company reported $841 million in cash and equivalents at the end of the third quarter of 2025, providing ample runway to support its operations and clinical endeavors through 2027.

Arcus Biosciences faces several fundamental challenges contributing to a negative outlook on its stock. The company reported a substantial operating loss of $142 million for 3Q25, with an earnings per share (EPS) of -$1.27, indicating ongoing financial strain. Additionally, risks related to safety signals from clinical programs, competitive pressures, and the need for substantial financing—estimated at approximately $700 million through 2038—underscore the precarious nature of the company’s future financial health.