Arcus Biosciences (RCUS) 10-Q9 May 232023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	May 03, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Trading Symbol	RCUS
Entity Registrant Name	Arcus Biosciences, Inc.
Entity Central Index Key	0001724521
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-38419
Entity Tax Identification Number	47-3898435
Entity Address, Address Line One	3928 Point Eden Way
Entity Address, City or Town	Hayward
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94545
City Area Code	510
Local Phone Number	694-6200
Entity Common Stock, Shares Outstanding		73,105,580
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, Par Value $0.0001 Per Share
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Total revenues	$ 25	$ 18
Operating expenses:
Research and development (Net of recoveries of $33 and $30 from a related party)	81	61
General and administrative	30	24
Total operating expenses	111	85
Loss from operations	(86)	(67)
Non-operating income (expense):
Interest and other income, net	9
Effective interest on liability for sale of future royalties	(1)
Total non-operating income, net	8
Loss before income taxes	(78)	(67)
Income tax expense	(2)	(1)
Net loss	$ (80)	$ (68)
Net loss per share, basic	$ (1.09)	$ (0.96)
Net loss per share, diluted	$ (1.09)	$ (0.96)
Shares used to compute net income loss per share, basic	73	71.2
Shares used to compute net income loss per share, diluted	73	71.2
License and Development Services Revenue
Revenues:
Total revenues	$ 17	$ 8
Other Collaboration Revenue
Revenues:
Total revenues	$ 8	$ 10

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
License and Development Services Revenue
Revenue from related parties	$ 17	$ 8
Other Collaboration Revenue
Revenue from related parties	8	8
Research and Development
Reimbursement from related party for shared costs	$ 33	$ 30

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net loss	$ (80)	$ (68)
Other comprehensive income (loss)	3	(4)
Comprehensive loss	$ (77)	$ (72)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 238	$ 206
Marketable securities	716	803
Receivable from collaboration partners ($33 and $39 from a related party)	33	39
Prepaid expenses and other current assets	28	19
Total current assets	1,015	1,067
Long-term marketable securities	90	129
Property and equipment, net	37	35
Other noncurrent assets ($3 and $2 from a related party)	112	114
Total assets	1,254	1,345
Current liabilities:
Accounts payable	28	20
Deferred revenue ($97 and $97 to a related party)	97	97
Other current liabilities	54	76
Total current liabilities	179	193
Deferred revenue, noncurrent ($330 and $355 to a related party)	330	355
Other noncurrent liabilities	145	140
Commitments
Stockholders’ equity:
Preferred stock, $0.0001 par value per share; 10.0 shares authorized; no shares issued and outstanding	0	0
Common stock and additional paid-in capital: $0.0001 par value per share; 400.0 shares authorized; 73.1 shares in 2023 and 72.9 shares in 2022 issued and outstanding	1,226	1,206
Accumulated deficit	(622)	(542)
Accumulated other comprehensive loss	(4)	(7)
Total stockholders’ equity	600	657
Total liabilities and stockholders’ equity	$ 1,254	$ 1,345

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Related party, receivable from collaboration partners	$ 33	$ 39
Related Parties Contract Assets Noncurrent	3	2
Related party, deferred revenue - current	97	97
Related party, deferred revenue - noncurrent	$ 330	$ 355
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	73,100,000	72,900,000
Common stock, shares outstanding	73,100,000	72,900,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Equity Award Programs	Common Stock	Common Stock Equity Award Programs	Common stock and additional paid-in capital	Common stock and additional paid-in capital Equity Award Programs	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2021	$ 842				$ 1,118		$ (275)	$ (1)
Balance, shares at Dec. 31, 2021			70.8
Issuance of common stock		$ 10				$ 10
Issuance of common stock, shares				0.8
Stock-based compensation	17				17
Other comprehensive gain (loss)	(4)							(4)
Net loss	(68)						(68)
Balance at Mar. 31, 2022	797				1,145		(343)	(5)
Balance, shares at Mar. 31, 2022			71.6
Balance at Dec. 31, 2022	$ 657				1,206		(542)	(7)
Balance, shares at Dec. 31, 2022	72.9		72.9
Issuance of common stock		$ 1				$ 1
Issuance of common stock, shares				0.2
Stock-based compensation	$ 19				19
Other comprehensive gain (loss)	3							3
Net loss	(80)						(80)
Balance at Mar. 31, 2023	$ 600				$ 1,226		$ (622)	$ (4)
Balance, shares at Mar. 31, 2023	73.1		73.1

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net loss	$ (80)	$ (68)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	19	17
Depreciation and amortization	2	1
Noncash lease expense	2	2
Amortization of premiums (discounts) on marketable securities	(4)	2
Other items, net	1	3
Changes in operating assets and liabilities:
Receivable from collaboration partners ($6 and $715 from a related party)	6	715
Other assets (($1) and ($1) from a related party)	(8)	(7)
Accounts payable	10	8
Deferred revenue (($25) and ($16) to a related party)	(25)	(18)
Other liabilities	(21)	(1)
Net cash provided by (used in) operating activities	(98)	654
Cash flows from investing activities
Purchases of marketable securities	(154)	(377)
Proceeds from maturities of marketable securities	284	94
Proceeds from sales of marketable securities	2	18
Purchases of property and equipment	(3)	(3)
Net cash provided by (used in) investing activities	129	(268)
Cash flow from financing activities
Proceeds from issuance of common stock pursuant to equity award plans	1	10
Proceeds from sale of future royalties		5
Net cash provided by financing activities	1	15
Net increase in cash, cash equivalents and restricted cash	32	401
Cash, cash equivalents and restricted cash at beginning of period	209	151
Cash, cash equivalents and restricted cash at end of period	241	552
Non-cash investing and financing activities:
Unpaid portion of property and equipment purchases included in accounts payable and accrued liabilities	$ 4	1
Unpaid acquisition of in-process research and development		$ 3

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Cash Flows [Abstract]
Receivable from related party	$ 6	$ 715
Other long-term assets to related party	(1)	(1)
Deferred revenue from related party	$ (25)	$ (16)

Organization, Liquidity and Cap

Organization, Liquidity and Capital Resources	3 Months Ended
Organization, Liquidity and Capital Resources	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Liquidity, and Capital Resources	Note 1. Organization, liquidity, and capital resources Organization Arcus Biosciences, Inc. (referred to as "Arcus," "we," "our," "us," or the "Company") is a clinical-stage, biopharmaceutical company focused on creating best-in-class therapies. Using our robust and highly efficient drug discovery capability, we have created a significant portfolio of investigational products which are in clinical development, with our most advanced molecule, an anti-TIGIT antibody, now in four Phase 3 registrational studies targeting lung and gastrointestinal cancers. Our deep portfolio of novel small molecules and enabling antibodies allows us to create highly differentiated therapies, which we are developing to treat multiple large indications. We operate and manage our business as one reportable and operating segment, which is the business of developing and commercializing highly differentiated therapies that have a meaningful impact on patients. Liquidity and Capital Resources As of March 31, 2023, we had cash, cash equivalents and marketable securities of $ 1.04 b illion, which we believe will be sufficient to fund our planned operations for a period of at least twelve months following the date of filing of this report.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of significant accounting policies	Note 2. Summary of significant accounting policies Basis of Presentation These interim financial statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2022 included in our Annual Report on Form 10-K filed with the SEC on February 28, 2023. There have been no significant changes to our accounting policies as described in Note 2, Summary of significant accounting policies, in the notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K. These interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and include all adjustments consisting of normal recurring adjustments that management believes are necessary for a fair presentation of the periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2022 has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any future period. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. We base our estimates on historical experience and on various market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are assessed and updated each period to reflect current information. Actual results may differ materially from those estimates. Recent Accounting Pronouncements There have been no new accounting pronouncements issued or adopted during the period with a significant impact to our financial statements.

Related party - Gilead Sciences

Related party - Gilead Sciences, Inc.	3 Months Ended
Related party - Gilead Sciences, Inc.	Mar. 31, 2023
Related Party Transactions [Abstract]
Related party - Gilead Sciences, Inc.	Note 3. Related party - Gilead Sciences, Inc. In 2020, we and Gilead Sciences, Inc. (Gilead) entered into an Option, License and Collaboration Agreement (the Gilead Collaboration Agreement), Common Stock Purchase Agreement (the Stock Purchase Agreement), and Investor Rights Agreement (Investor Rights Agreement). In 2021, we amended the Gilead Collaboration Agreement (the Amended Gilead Collaboration Agreement) and the Stock Purchase Agreement (the Amended Stock Purchase Agreement), and in 2022 we amended the Investor Rights Agreement (Amended Investor Rights Agreement). We refer to these agreements collectively as the Gilead Agreements. Stock Purchase Agreement and Investor Rights Agreement In 2020, under the Stock Purchase Agreement, Gilead purchased 6.0 million shares for a total cost of $ 200 million, of which $ 91 million was allocated to the revenue related performance obligations (See Note 5, Revenues for more information) created by the Gilead Collaboration Agreement. In 2021, under the Amended Stock Purchase Agreement, Gilead purchased 5.7 million shares for a total cost of $ 220 million. Gilead has the right, at its option until July 2025, to purchase up to a maximum of 35 % of the Company’s then-outstanding voting common stock, at a purchase price equal to the greater of a 20 % premium to market (based on a trailing five-day average closing price at option exercise) or the $ 33.54 initial purchase price. Based on the value of our common stock at each contract closing, the right to purchase additional shares had no value. Under the Investor Rights Agreement, Gilead has the right, which they have exercised, to designate two members of our Board of Directors. This agreement also includes a three-year standstill, included a two-year lockup, provided Gilead with registration rights commencing at the end of the lockup period and provides Gilead with pro rata participation rights in certain future financings. In October 2022, we registered Gilead’s shares and the agreement was amended, primarily to extend the two-year lockup period to three-years expiring July 13, 2023. As of March 31, 2023, Gilead held approximately 18.9 % of the Company’s outstanding common stock arising from purchases in our May 2020 public offering and purchases under the Stock Purchase Agreement and Amended Stock Purchase Agreement. Collaboration Agreements In 2020, we entered into the Gilead Collaboration Agreement, which gave Gilead an exclusive license to develop and commercialize zimberelimab (the anti PD-1 program) in certain markets and time-limited options to acquire exclusive licenses to develop and commercialize any of our then-current and future clinical programs arising during the 10-year collaboration term, contingent upon $ 100 million option continuation payments payable on each of the second, fourth, sixth and eighth anniversaries of the agreement. Upon closing of the transaction in July 2020, Gilead made an upfront payment of $ 175 million. In 2021, we entered into the Amended Gilead Collaboration Agreement pursuant to which Gilead exercised its option to three programs—providing Gilead with exclusive licenses to develop and commercialize domvanalimab and AB308 (collectively, the anti-TIGIT program), etrumadenant (the adenosine receptor antagonist program) and quemliclustat (the CD73 program), in certain markets—for a total payment of $ 725 million that was received in 2022. The amendment also (i) provided for a slight reduction in the royalties for these three programs, such that Gilead will pay us tiered royalties as a percentage of revenues ranging from the mid-teens to the low twenties; and (ii) removed the $ 100 million option continuation payment that was otherwise due on the second anniversary of the Gilead Collaboration Agreement. Gilead's option, on a program-by-program basis, will expire after a prescribed period following the achievement of a clinical development milestone in such program and our delivery to Gilead of the requisite data package. Gilead may exercise its option to any program at any time prior to expiration of the option and will pay Arcus an option fee of $ 150 million per program. With respect to domvanalimab, we are also eligible to receive up to $ 500 million in potential U.S. regulatory approval milestones. For each program that Gilead opts in to, both companies will co-develop and equally share global development costs, subject to certain opt-out rights that we have, and caps on our spending and related subsequent adjustments. For each program, provided we have not exercised our opt-out rights, we have the option to co-promote in the United States with equal sharing of related profits and losses. Gilead has the right to exclusively commercialize outside of the U.S., subject to the rights of our existing partners in any territories and will pay us tiered royalties as a percentage of revenues ranging from the high teens to the low twenties. Under the Amended Gilead Collaboration Agreement, Gilead also has option rights to two research programs for which we will lead discovery and early development activities. With respect to these two research programs, Gilead has the right to exercise its option, on a program-by-program basis, either (i) upon our completion of certain IND-enabling activities for an option payment of $ 60 million or (ii) following the achievement of a clinical development milestone for an option payment of $ 150 million. These research programs were not determined to be performance obligations at contract inception, due to the very early stages of the programs. As of March 31, 2023, Gilead has licenses to domvanalimab, AB308, etrumadenant, quemliclustat and zimberelimab. For the three months ended March 31, 2023 and 2022, we recognized revenue under this agreement of $ 25 million and $ 16 million, respectively; and net reimbursements from Gilead recognized as reductions in R&D expense of $ 33 million and $ 30 million , respectively. For a more detailed discussion on revenues recognized under this collaboration see Note 5, Revenues.

License and Collaborations

License and Collaborations	3 Months Ended
License and Collaborations	Mar. 31, 2023
License And Collaboration Agreements [Abstract]
License and Collaborations	Note 4. License and collaborations We enter into licensing agreements, strategic collaborations and other similar arrangements with third parties for the development and commercialization of certain investigational products. These arrangements may be collaborative and involve two or more parties who are active participants in the operating activities of the collaboration and are exposed to significant risks and rewards depending on the commercial success of the activities. These arrangements may include: non-refundable upfront payments; payments for options to acquire certain rights; potential development and regulatory milestone payments and/or sales-based milestone payments; royalty payments; revenue or profit-sharing arrangements; expense reimbursements; and cost-sharing arrangements. Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line items in the Condensed Consolidated Statements of Operations, net of any payments due to or reimbursements due from our collaboration partners, with such reimbursements being recognized at the time the party becomes obligated to pay. Our significant arrangements are discussed below. Gilead Collaboration See Note 3, Related party - Gilead Sciences, Inc. AstraZeneca Collaboration In 2020, we entered into a collaboration with AstraZeneca to evaluate domvanalimab, our investigational anti-TIGIT antibody, in combination with AstraZeneca’s durvalumab in a registrational Phase 3 clinical trial in patients with unresectable Stage 3 non-small cell lung cancer (NSCLC), known as the PACIFIC-8 trial. Under the collaboration, each company will retain existing rights to their respective molecules and any future commercial economics. AstraZeneca will conduct the trial, and each company will supply their respective investigational product to support the trial. Under the terms of the agreement, we will reimburse AstraZeneca for its share of the trial costs upon the achievement of certain milestones or under certain circumstances if the agreement is terminated early. The portion of the costs that we consider to be unavoidable are accrued in advance of the achievement of the milestone. For the three months ended March 31, 2023 and 2022, we recognized as R&D expense $ 2 million and $ 1 million, respectively, before expected recoveries from our cost-sharing agreement with Gilead. At March 31, 2023 and December 31, 2022, we have recognized a liability of $ 7 million and $ 5 million, respectively, related to our obligation to AstraZeneca which is recorded in Other noncurrent liabilities. The PACIFIC-8 trial forms part of the Arcus and Gilead joint development program for domvanalimab and our portion of the trial costs are shared with Gilead. At March 31, 2023 and December 31, 2022, we have recognized a receivable due from Gilead for these shared costs of $ 3 million and $ 2 million, respectively, which is recorded in Other noncurrent assets. Taiho License In 2017, we entered into an agreement with Taiho Pharmaceutical Co., Ltd (Taiho) under which we granted Taiho exclusive options to programs arising over a five-year period which ended in September 2022 (the Option Period) for an upfront payment of $ 35 million. Upon an option exercise of a program, Taiho would obtain exclusive development and commercialization rights to investigational products under the program for Japan and certain other territories in Asia (excluding China) (the Taiho Territory). For each option that Taiho exercises, they will be obligated to make a payment of $ 3 million to $ 15 million, depending on the development stage of the optioned program. Upon exercise, Taiho is solely responsible for continued development and commercialization in the Taiho Territory. In addition, for each optioned program we would be eligible to receive clinical and regulatory milestones of up to $ 130 million and commercial milestone payments of up to $ 145 million with the achievement of certain sales thresholds in the Taiho Territory. We will also receive royalties ranging from high single-digits to mid-teens on net sales of licensed products in the Taiho Territory. Royalties will be payable by product and country commencing on the first commercial sale and ending upon the later of: (a) 10 years; and (b) expiration of the last-to-expire valid claim of our patents covering the manufacture, use or sale. As of March 31, 2023, Taiho has licenses for the Taiho Territory to (i) etrumadenant (the adenosine receptor antagonist program); (ii) zimberelimab (the anti PD-1 program); and (iii) domvanalimab and AB308 (collectively, the anti-TIGIT program). For the three months ended March 31, 2022 we recognized revenue of $ 2 million related to the upfront payment. There was no remaining deferred revenue after the Option Period ended in September 2022. For a more detailed discussion on revenues see Note 5, Revenues. WuXi Biologics License - anti-PD-1 In 2017, we entered into an agreement with WuXi Biologics Ireland Limited (WuXi Biologics) which, as amended, provides us with exclusive rights to (i) develop, use and manufacture products that include an anti-PD-1 antibody, including zimberelimab, worldwide and (ii) commercialize any such products worldwide, except in Greater China. Under the agreement, as of March 31, 2023 we may incur (i) clinical and regulatory milestone payments, and commercialization milestone payments of up to $ 375 million, (ii) tiered royalties that range from the high single-digits to low teens on net sales of the licensed products and (iii) fees related to any sublicenses. For the three months ended March 31, 2023 and 2022, we did not have any transactions nor were any amounts due under this arrangement. WuXi Biologics License - anti-CD39 In 2020, we entered into an agreement with WuXi Biologics, under which we obtained the exclusive worldwide license to develop and commercialize anti-CD39 antibodies discovered under the agreement. Under the agreement, as of March 31, 2023 we may incur additional clinical and regulatory milestone payments of up to $ 14 million and royalty payments in the low single digits on net sales of the licensed products. For the three months ended March 31, 2023 and 2022, we incurred development milestones under this arrangement of $ 1 million and $ 2 million, respectively which were recognized as R&D expense. Abmuno License In 2016, we entered into an agreement with Abmuno Therapeutics LLC (Abmuno), under which we obtained the exclusive worldwide license to develop, use, manufacture, and commercialize products that include an anti-TIGIT antibody, including domvanalimab. Under the agreement, as of March 31, 2023 we may incur additional clinical, regulatory and commercialization milestone payments of up to $ 88 million. For the three months ended March 31, 2023 and 2022, we did not have any transactions nor were any amounts due under this arrangement.

Revenues

Revenues	3 Months Ended
Revenues	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenues	Note 5. Revenues The following table summarizes our revenues by collaboration, category of revenue, and the method of recognition (in millions): Three Months Ended March 31, Over time Point in time 2023 2022 Gilead Collaboration License and R&D services * 17 8 Access rights * 8 8 Taiho Collaboration Access rights * - 2 Total revenues $ 25 $ 18 Revenues from Gilead accounted for 100 % and 89 % of Total revenues for the three months ended March 31, 2023 and 2022, respectively. The following table summarizes the revenue recognized as a result of changes in the deferred revenue balance (in millions): Three Months Ended March 31, 2023 2022 Revenue recognized from amounts included in deferred revenue at the beginning of the period $ 25 $ 18 Revenue from the Gilead Collaboration We had $ 427 million and $ 452 million of deferred revenue remaining on our Condensed Consolidated Balance Sheets related to the Gilead collaboration at March 31, 2023 and December 31, 2022, respectively, allocated between current and noncurrent based on the expected timing of future recognition. Activity for performance obligations under this arrangement for the periods presented herein was as follows: Etrumadenant - License and R&D Services Under the Amended Gilead Collaboration Agreement, Gilead has an exclusive license and we are also obligated to perform further R&D services for Gilead related to etrumadenant. We determined that the license and R&D services were combined based on an evaluation of the delivery of the license, due to the early stage of the technology and the specialized nature of our know-how. We allocated arrangement consideration of $ 219 million to the combined license and R&D services performance obligation and recognize the amounts allocated as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated total effort for the program. We recognized $ 8 million and $ 5 million in license and R&D services revenue for the three months ended March 31, 2023 and 2022, respectively. At March 31, 2023, we had $ 177 million of deferred revenue remaining on our Condensed Consolidated Balance Sheet related to this performance obligation. Quemliclustat - License and R&D Services Under the Amended Gilead Collaboration Agreement, Gilead has an exclusive license and we are also obligated to perform further R&D services for Gilead related to quemliclustat. We determined that the license and R&D services were combined based on an evaluation of the delivery of the license, due to the early stage of the technology and the specialized nature of our know-how. We allocated arrangement consideration of $ 176 million to the combined license and R&D services performance obligation and recognize the amounts allocated as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated total effort for the program. We recognized $ 8 million and $ 2 million in license and R&D services revenue for the three months ended March 31, 2023 and 2022, respectively. At March 31, 2023, we had $ 142 million of deferred revenue remaining on our Condensed Consolidated Balance Sheet related to this performance obligation. Domvanalimab - R&D Services Under the Amended Gilead Collaboration Agreement, we have an obligation to perform further R&D services for Gilead related to domvanalimab. We determined that these services are distinct based on an evaluation of the delivery of the related license, noting that the program was in the later stages of development and license met the criteria for being distinct from the R&D services required. We allocated arrangement consideration of $ 34 million to the R&D services performance obligation and recognize the amounts allocated as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated total effort for the program. We recognized $ 1 million in license and R&D services revenue for each of the three months ended March 31, 2023 and 2022. At March 31, 2023, we had $ 29 million of deferred revenue remaining on our Condensed Consolidated Balance Sheet related to this performance obligation. Zimberelimab - R&D and Commercialization Services Under the Amended Gilead Collaboration Agreement, we have an obligation to perform further R&D and commercialization services for Gilead related to zimberelimab, as a monotherapy and in combination with other agents. We determined that these services are distinct based on an evaluation of the delivery of the related license, noting that the program was in the later stages of development and license met the criteria for being distinct from the R&D and commercialization services required. We allocated arrangement consideration of $ 11 million to the R&D and commercialization services performance obligation and recognize the amounts allocated as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated total effort for the program. For the three months ended March 31, 2023 and 2022, revenue recognized was not significant. As of December 31, 2022, substantially all the revenue related to this performance obligation had been recognized. Access Rights and Option Continuation Periods Under the Amended Gilead Collaboration Agreement, Gilead has exclusive access to our current programs as well as the future programs for a period of ten years , contingent upon option continuation payments totaling $ 300 million, consisting of a $ 100 million payment on each of the fourth, sixth, and eighth anniversaries of the agreement. We allocated arrangement consideration of $ 121 million to this performance obligation. We use a time-elapsed input method to measure progress toward satisfying this obligation, which is the method we believe most faithfully depicts our performance in transferring the promised services during the time period in which Gilead has access to our R&D pipeline. Accordingly , the revenue allocated to this performance obligation is being recognized using this input method over the minimum four-year period. We have determined that Gilead is not obligated to pay the remaining $ 300 million due over the remainder of the term and excluded these payments from the transaction price. Failure to pay the non-obligatory option continuation payments will result in Gilead’s loss of certain rights to access and obtain licenses to the programs arising from our R&D pipeline. We recognized as revenue $ 8 million associated with the performance of this obligation for each of the three months ended March 31, 2023 and 2022. At March 31, 2023, we had $ 79 million of deferred revenue on our Condensed Consolidated Balance Sheet related to this performance obligation. Capitalized Costs to Obtain Contracts We incurred certain costs to obtain the Gilead Collaboration Agreement in 2020 and the Amended Gilead Collaboration Agreement in 2021, which consisted of consultant and legal fees. We allocated these costs to the various performance obligations, to be recognized as the underlying performance obligations are satisfied and revenue is recognized. For the three months ended March 31, 2023, and 2022, the recognized expense was not significant. At March 31, 2023, we had $ 4 million in capitalized costs to obtain the contracts, of which $ 1 million was recorded as Prepaid and other current assets and $ 3 million was recorded as Other noncurrent assets in our Condensed Consolidated Balance Sheet.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Note 6. Income taxes The income tax provision or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into consideration in the relevant period. Each quarter, we update the estimate of the annual effective tax rate, and if the estimated tax rate changes, we record a cumulative adjustment to the provision or benefit. The income tax expense was $ 2 million and $ 1 million for the three months ended March 31, 2023 and 2022, respectively, with an effective tax rate of ( 2.3 %) and ( 1.4 %), respectively. We have taxable income compared to book losses before income taxes due to the timing of recognition of deferred revenue for tax purposes and the effects of the mandatory capitalization and amortization of research and development expenses starting in 2022, as required by the 2017 Tax Cuts and Jobs Act. The year-over-year increase in the income tax provision was due to an increase in taxable income. The effective tax rate differs from the U.S. statutory tax rate primarily due to the valuation allowances on our deferred tax assets and state income taxes. As of March 31, 2023 and December 31, 2022, we have provided a valuation allowance against U.S. federal and state deferred tax assets. We continue to evaluate the realizability of deferred tax assets and the related valuation allowance. If our assessment of the deferred tax assets or the corresponding valuation allowance were to change, we would record the related adjustment to income during the period in which we make the determination. We recognize interest and penalties associated with uncertain tax benefits as part of the income tax provision. To date, we have not recognized any interest and penalties, nor have we accrued for or made payments for interest and penalties. We have not been audited by the Internal Revenue Service, any state or foreign tax authority. We are subject to taxation in the United States and in Australia. Due to net operating loss and research credit carryforwards, all of our tax years, from 2015 to 2022, remain open to U.S. federal and California state tax examinations. In addition, our fiscal years from 2018 to 2022 are open to examination in Australia.

Net Loss per Share

Net Loss per Share	3 Months Ended
Net Loss per Share	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Loss per Share	Note 7. Net loss per share The following table summarizes potentially dilutive securities excluded from the computation of diluted net loss per share calculations because they would have been antidilutive (in millions): March 31, 2023 March 31, 2022 Common stock options issued and outstanding 14.0 12.6 Restricted stock units issued 2.1 1.5 Employee Stock Purchase Plan shares 0.2 0.1 Total potential dilutive securities 16.3 14.2 We have also excluded the effect of Gilead’s right to purchase additional shares of our common stock from the calculation as these rights had no intrinsic value at either March 31, 2023 or 2022.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 8. Stock-based compensation The following table reflects the components of stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended March 31, 2023 2022 Research and development $ 9 $ 9 General and administrative 10 8 Total stock-based compensation $ 19 $ 17

Cash, Cash Equivalents and Mark

Cash, Cash Equivalents and Marketable Securities	3 Months Ended
Cash, Cash Equivalents and Marketable Securities	Mar. 31, 2023
Cash, Cash Equivalents and Marketable Securities [Abstract]
Cash, Cash Equivalents and Marketable Securities	Note 9. Cash, cash equivalents and marketable securities The following table summarizes amortized cost, gross unrealized gains and losses and the fair value of our cash, cash equivalents and marketable securities, all of which are considered available for sale, by type of securities: Types of securities as of March 31, 2023 Amortized Unrealized Unrealized Fair Money market funds $ 196 $ - $ - $ 196 U.S. treasury securities 284 - ( 2 ) 282 Corporate securities and commercial paper 508 - ( 2 ) 506 U.S. government agency securities 60 - - 60 Total cash, cash equivalents and marketable securities $ 1,048 $ - $ ( 4 ) $ 1,044 Types of securities as of December 31, 2022 Amortized Unrealized Unrealized Fair Money market funds $ 169 $ - $ - $ 169 U.S. treasury securities 317 - ( 3 ) 314 Corporate securities and commercial paper 635 - ( 4 ) 631 U.S. government agency securities 20 - - 20 Certificate of deposit 4 - - 4 Total cash, cash equivalents and marketable securities $ 1,145 $ - $ ( 7 ) $ 1,138 The following table summarizes the fair values of our cash, cash equivalents and marketable securities by location in the Condensed Consolidated Balance Sheets and contractual maturity: Location in Condensed Consolidated Balance Sheets Contractual Maturity March 31, 2023 December 31, 2022 Cash and cash equivalents - $ 238 $ 206 Marketable securities Within one year 716 803 Long-term marketable securities Between one and three years 90 129 Total cash, cash equivalents and marketable securities $ 1,044 $ 1,138 Realized gains or losses recognized on the sale of available-for-sale marketable securities were not material for the three months ended March 31, 2023 and 2022. Realized gains and losses are included in Interest and other income, net, in the Condensed Consolidated Statements of Operations. The cost of a security sold is determined using the specific-identification method. We limit the credit risk associated with our investments by placing them with banks and institutions we believe are highly credit worthy and investing in highly rated investments. We held a total of 178 and 219 positions in securities which were in unrealized loss positions as of March 31, 2023 and December 31, 2022, respectively. We do not intend to sell our securities with unrealized loss positions and have concluded we will not be required to sell the securities before recovery of the amortized cost for the investment at maturity. No credit related losses have been recognized for any of the periods presented. The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets to the total shown in the Condensed Consolidated Statements of Cash Flows (in millions): March 31, 2023 March 31, 2022 Cash and cash equivalents $ 238 $ 549 Restricted cash (included in Other noncurrent assets) 3 3 Total cash, cash equivalents and restricted cash $ 241 $ 552

Condensed Consolidated Balanc_3

Condensed Consolidated Balance Sheet Components	3 Months Ended
Condensed Consolidated Balance Sheet Components	Mar. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Consolidated balance sheet components	Note 10. Condensed consolidated balance sheet components Prepaid and Other Current Assets Prepaid and other current assets consisted of the following (in millions): March 31, 2023 December 31, 2022 Prepaids and other assets $ 25 $ 15 Accrued interest receivable 3 4 Total prepaid and other current assets $ 28 $ 19 Other Current Liabilities Other current liabilities consisted of the following (in millions): March 31, 2023 December 31, 2022 Accrued research and development $ 37 $ 45 Accrued personnel expenses 12 25 Income taxes payable 1 - Other 4 6 Total other current liabilities $ 54 $ 76

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2023
Leases [Abstract]
Leases	Note 11. Leases The following table summarizes our cash and non-cash information related to our operating leases (in millions): Three Months Ended March 31, 2023 2022 Cash paid for amounts included in measurement of lease liabilities $ 4 $ 1 Recognition of tenant improvement allowance receivable included in other current liabilities $ 4 $ - As of March 31, 2023 and December 31, 2022, we have provided deposits for letters of credit totaling $ 3 million to secure our obligations under our leases, which are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 12. Fair value measurements We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows: • Level 1 inputs include unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 inputs include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and • Level 3 inputs include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Our Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in millions): Fair value measurement as of March 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market funds $ 196 $ - $ - $ 196 U.S. treasury securities - 282 - 282 Corporate securities and commercial paper - 506 - 506 U.S. government agency obligations - 60 - 60 Total assets measured at fair value $ 196 $ 848 $ - $ 1,044 Liabilities Liability for sale of future royalties $ - $ - $ 18 $ 18 Total liabilities measured at fair value $ - $ - $ 18 $ 18 Fair value measurement as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Money market funds $ 169 $ - $ - $ 169 U.S. treasury securities - 314 - 314 Corporate securities and commercial paper - 631 - 631 U.S. government agency securities - 20 - 20 Certificate of deposit - 4 - 4 Total assets measured at fair value $ 169 $ 969 $ - $ 1,138 Liabilities Liability for sale of future royalties $ - $ - $ 17 $ 17 Total liabilities measured at fair value $ - $ - $ 17 $ 17 Liability for Sale of Future Royalties In 2021, we entered into an agreement with BVF Partners L.P. (BVF), under which BVF will fund the discovery and development of compounds for the treatment of inflammatory diseases (the Program) for $ 15 million in non-refundable payments which were paid in 2021 and 2022. In return, we are obligated to: perform research and development activities in the Program; to make contingent payments upon the achievement of certain clinical and regulatory milestones of up to $ 73 million or $ 160 million depending on whether the program is solely developed by us or with Gilead if they opt-in pursuant to the Gilead Collaboration Agreement; and pay mid- to high-single digit royalties on any net product sales generated by the Program. We account for the BVF Agreement as a liability primarily because we have significant continuing involvement in generating the cash flows due to BVF. The liability is recorded at fair value by using probability-adjusted discounted cash flows and is revalued each reporting period until the related contingencies have been resolved. The fair value measurement is based on significant unobservable inputs that are reviewed quarterly by management and include, as applicable, estimated probabilities and the timing of achieving specified development, regulatory and commercial milestones as well as estimated annual sales. Significant changes that increase or decrease the probabilities of achieving the related development, regulatory and commercial events or that shorten or lengthen the time required to achieve such events or that increase or decrease estimated annual sales would result in corresponding increases or decreases in the fair values of the obligations, as applicable. Changes in the fair value of this liability related to interest accretion are recognized in Non-operating income (expense) in the Consolidated Statements of Operations. The imputed effective interest rate on the unamortized portion of the liability was 20.6 % as of March 31, 2023 and 2022. The liability for sale of future royalties is reported in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets and changes were as follows (in millions): Three Months Ended March 31, 2023 2022 Beginning balance $ 17 $ 5 Cash received - 5 Interest accretion 1 1 Ending balance $ 18 $ 11

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation These interim financial statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2022 included in our Annual Report on Form 10-K filed with the SEC on February 28, 2023. There have been no significant changes to our accounting policies as described in Note 2, Summary of significant accounting policies, in the notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K. These interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and include all adjustments consisting of normal recurring adjustments that management believes are necessary for a fair presentation of the periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2022 has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any future period.
Use of Estimates	Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. We base our estimates on historical experience and on various market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are assessed and updated each period to reflect current information. Actual results may differ materially from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There have been no new accounting pronouncements issued or adopted during the period with a significant impact to our financial statements.

Revenues (Tables)

Revenues (Tables)	3 Months Ended
Revenues (Tables)	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Summary of Revenues by Collaboration, Category of Revenue and Method of Recognition	The following table summarizes our revenues by collaboration, category of revenue, and the method of recognition (in millions): Three Months Ended March 31, Over time Point in time 2023 2022 Gilead Collaboration License and R&D services * 17 8 Access rights * 8 8 Taiho Collaboration Access rights * - 2 Total revenues $ 25 $ 18
Summary of Revenue Recognized as a Result of Changes in Deferred Revenue	The following table summarizes the revenue recognized as a result of changes in the deferred revenue balance (in millions): Three Months Ended March 31, 2023 2022 Revenue recognized from amounts included in deferred revenue at the beginning of the period $ 25 $ 18

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
Net Loss per Share (Tables)	Mar. 31, 2023
Earnings Per Share [Abstract]
Summary of Outstanding Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share	The following table summarizes potentially dilutive securities excluded from the computation of diluted net loss per share calculations because they would have been antidilutive (in millions): March 31, 2023 March 31, 2022 Common stock options issued and outstanding 14.0 12.6 Restricted stock units issued 2.1 1.5 Employee Stock Purchase Plan shares 0.2 0.1 Total potential dilutive securities 16.3 14.2

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Stock-Based Compensation Expense	The following table reflects the components of stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended March 31, 2023 2022 Research and development $ 9 $ 9 General and administrative 10 8 Total stock-based compensation $ 19 $ 17

Cash, Cash Equivalents and Ma_2

Cash, Cash Equivalents and Marketable Securities (Tables)	3 Months Ended
Cash, Cash Equivalents and Marketable Securities (Tables)	Mar. 31, 2023
Cash, Cash Equivalents and Marketable Securities [Abstract]
Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Our Cash, Cash Equivalents and Marketable Securities Considered as Available for Sale by Type of Securities	The following table summarizes amortized cost, gross unrealized gains and losses and the fair value of our cash, cash equivalents and marketable securities, all of which are considered available for sale, by type of securities: Types of securities as of March 31, 2023 Amortized Unrealized Unrealized Fair Money market funds $ 196 $ - $ - $ 196 U.S. treasury securities 284 - ( 2 ) 282 Corporate securities and commercial paper 508 - ( 2 ) 506 U.S. government agency securities 60 - - 60 Total cash, cash equivalents and marketable securities $ 1,048 $ - $ ( 4 ) $ 1,044 Types of securities as of December 31, 2022 Amortized Unrealized Unrealized Fair Money market funds $ 169 $ - $ - $ 169 U.S. treasury securities 317 - ( 3 ) 314 Corporate securities and commercial paper 635 - ( 4 ) 631 U.S. government agency securities 20 - - 20 Certificate of deposit 4 - - 4 Total cash, cash equivalents and marketable securities $ 1,145 $ - $ ( 7 ) $ 1,138
Schedule of Fair Values of Our Cash, Cash Equivalents and Marketable Securities by Location in Condensed Consolidated Balance Sheets and Contractual Maturity	The following table summarizes the fair values of our cash, cash equivalents and marketable securities by location in the Condensed Consolidated Balance Sheets and contractual maturity: Location in Condensed Consolidated Balance Sheets Contractual Maturity March 31, 2023 December 31, 2022 Cash and cash equivalents - $ 238 $ 206 Marketable securities Within one year 716 803 Long-term marketable securities Between one and three years 90 129 Total cash, cash equivalents and marketable securities $ 1,044 $ 1,138
Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets to the total shown in the Condensed Consolidated Statements of Cash Flows (in millions): March 31, 2023 March 31, 2022 Cash and cash equivalents $ 238 $ 549 Restricted cash (included in Other noncurrent assets) 3 3 Total cash, cash equivalents and restricted cash $ 241 $ 552

Condensed Consolidated Balanc_4

Condensed Consolidated Balance Sheet Components (Tables)	3 Months Ended
Condensed Consolidated Balance Sheet Components (Tables)	Mar. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Summary of Prepaid and Other Current Assets	Prepaid and other current assets consisted of the following (in millions): March 31, 2023 December 31, 2022 Prepaids and other assets $ 25 $ 15 Accrued interest receivable 3 4 Total prepaid and other current assets $ 28 $ 19
Summary of Other Current Liabilities	Other current liabilities consisted of the following (in millions): March 31, 2023 December 31, 2022 Accrued research and development $ 37 $ 45 Accrued personnel expenses 12 25 Income taxes payable 1 - Other 4 6 Total other current liabilities $ 54 $ 76

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2023
Leases [Abstract]
Summary of Cash and Non-cash Information Related to Operating Leases	The following table summarizes our cash and non-cash information related to our operating leases (in millions): Three Months Ended March 31, 2023 2022 Cash paid for amounts included in measurement of lease liabilities $ 4 $ 1 Recognition of tenant improvement allowance receivable included in other current liabilities $ 4 $ -

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in millions): Fair value measurement as of March 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market funds $ 196 $ - $ - $ 196 U.S. treasury securities - 282 - 282 Corporate securities and commercial paper - 506 - 506 U.S. government agency obligations - 60 - 60 Total assets measured at fair value $ 196 $ 848 $ - $ 1,044 Liabilities Liability for sale of future royalties $ - $ - $ 18 $ 18 Total liabilities measured at fair value $ - $ - $ 18 $ 18 Fair value measurement as of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Money market funds $ 169 $ - $ - $ 169 U.S. treasury securities - 314 - 314 Corporate securities and commercial paper - 631 - 631 U.S. government agency securities - 20 - 20 Certificate of deposit - 4 - 4 Total assets measured at fair value $ 169 $ 969 $ - $ 1,138 Liabilities Liability for sale of future royalties $ - $ - $ 17 $ 17 Total liabilities measured at fair value $ - $ - $ 17 $ 17
Summary of Changes of Liabilities for Sale of Future Royalties	The liability for sale of future royalties is reported in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets and changes were as follows (in millions): Three Months Ended March 31, 2023 2022 Beginning balance $ 17 $ 5 Cash received - 5 Interest accretion 1 1 Ending balance $ 18 $ 11

Organization, Liquidity and C_2

Organization, Liquidity and Capital Resources - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) Segment
Organization [Line Items]
Number of reportable segments	1
Number of operating segments	1
Cash, Cash Equivalents and Investments in Marketable Securities
Organization [Line Items]
Cash and investments \| $	$ 1,040

Related party - Gilead Scienc_2

Related party - Gilead Sciences, Inc. - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended		3 Months Ended		12 Months Ended
	Oct. 31, 2022	Jan. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) Program $ / shares	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) Program shares	Dec. 31, 2020 USD ($) shares
Research and Development
Related Party Transaction [Line Items]
Reimbursed under cost-sharing provisions of arrangement			$ 33	$ 30
Gilead Collaboration Agreement
Related Party Transaction [Line Items]
Option payment upon completion of certain IND-enabling activities			60
Option payment upon achievement of certain development milestones			$ 150
Amended Investor Rights Agreement
Related Party Transaction [Line Items]
Lockup period	2 years
Extended lockup period	3 years
Amended Gilead Collaboration Agreement
Related Party Transaction [Line Items]
Number of exercise option to programs \| Program					3
Option payments received		$ 725
Removal of option continuation payment under agreement					$ 100
Gilead
Related Party Transaction [Line Items]
Percentage of outstanding common stock held			18.90%
Gilead \| Research and Development
Related Party Transaction [Line Items]
Reimbursed under cost-sharing provisions of arrangement			$ 33	30
Gilead \| Gilead Collaboration Agreement
Related Party Transaction [Line Items]
Collaboration term for current and future clinical programs						10 years
Option continuation payment due upon second anniversary of agreement						$ 100
Option continuation payment due upon fourth anniversary of agreement						100
Option continuation payment due upon sixth anniversary of agreement						100
Option Continuation Payment Due Upon Eighth Anniversary of Agreement						100
Upfront cash payment						175
Option fee per program for all other programs entering clinical development to exercise option						150
Number of research programs \| Program			2
Revenue recognized			$ 25	$ 16
Gilead \| Gilead Collaboration Agreement \| Maximum
Related Party Transaction [Line Items]
Potential regulatory approval milestones payment receivable related to domvanalimab						$ 500
Gilead \| Stock Purchase Agreement
Related Party Transaction [Line Items]
Percentage of premium purchase price of common stock			20%
Trailing days average closing price			5 days
Weighted average closing price of our common stock on grant date \| $ / shares			$ 33.54
Issuance of common stock, shares \| shares					5.7	6
Issuance of common stock					$ 220
Funds received for purchase of common stock						$ 200
Purchase price of common stock allocation to performance obligation						$ 91
Gilead \| Stock Purchase Agreement \| Maximum
Related Party Transaction [Line Items]
Right to purchase additional outstanding voting common stock percentage			35%

License and Collaborations - Ad

License and Collaborations - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2017	Dec. 31, 2022
License And Collaboration Agreements [Line Items]
Liabilities classified as noncurrent	$ 145,000,000			$ 140,000,000
Shared costs classified as other noncurrent assets	112,000,000			114,000,000
Total collaboration and license revenues	25,000,000	$ 18,000,000
WuXi Biologics License Agreement \| anti-CD39 \| Research and Development
License And Collaboration Agreements [Line Items]
Development milestone expense	1,000,000	2,000,000
WuXi Biologics License Agreement \| Maximum \| anti-PD-1
License And Collaboration Agreements [Line Items]
Clinical, regulatory and commercialization milestone payments			$ 375,000,000
WuXi Biologics License Agreement \| Maximum \| anti-CD39
License And Collaboration Agreements [Line Items]
Additional clinical, regulatory and commercialization milestone payments	14,000,000
Abmuno License Agreement
License And Collaboration Agreements [Line Items]
Additional clinical, regulatory and commercialization milestone payments	88,000,000
AstraZeneca Agreement
License And Collaboration Agreements [Line Items]
Liabilities classified as noncurrent	7,000,000			5,000,000
Development cost recorded within research and development expenses	$ 2,000,000	1,000,000
Taiho Agreement \| Taiho Pharmaceutical Co., Ltd
License And Collaboration Agreements [Line Items]
Option period			5 years
Option ending period			2022-09
Non refundable and non creditable cash payments			$ 35,000,000
Range of royalties receivable on net sales	high single-digits to mid-teens
Royalties payable description	Royalties will be payable by product and country commencing on the first commercial sale and ending upon the later of: (a) 10 years; and (b) expiration of the last-to-expire valid claim of our patents covering the manufacture, use or sale.
Total collaboration and license revenues		2,000,000
Deferred revenue		$ 0
Taiho Agreement \| Taiho Pharmaceutical Co., Ltd \| Minimum
License And Collaboration Agreements [Line Items]
Payment for option exercise			3,000,000
Taiho Agreement \| Taiho Pharmaceutical Co., Ltd \| Maximum
License And Collaboration Agreements [Line Items]
Contingent milestone payments receivable			145,000,000
Payment for option exercise			15,000,000
Additional clinical and regulatory milestone payments receivable			$ 130,000,000
Option License And Collaboration Agreement [Member]
License And Collaboration Agreements [Line Items]
Shared costs classified as other noncurrent assets	$ 3,000,000			2,000,000
Deferred revenue	$ 427,000,000			$ 452,000,000

Revenues - Summary of Revenues

Revenues - Summary of Revenues by Collaboration, Category of Revenue and Method of Recognition (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
License And Collaboration Agreements [Line Items]
Total revenues	$ 25	$ 18
Gilead Collaboration, License and R&D services
License And Collaboration Agreements [Line Items]
Total revenues	17	8
Gilead Collaboration, Access Rights
License And Collaboration Agreements [Line Items]
Total revenues	$ 8	8
Taiho Collaboration, Access Rights
License And Collaboration Agreements [Line Items]
Total revenues		$ 2

Revenues - Additional Informati

Revenues - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended
	Jul. 13, 2020	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
License And Collaboration Agreements [Line Items]
Total collaboration and license revenues		$ 25	$ 18
Deferred revenue recognized		25	$ 18
Gilead
License And Collaboration Agreements [Line Items]
Cost sharing receivable		4
Gilead \| Prepaid Expenses and Other Current Assets
License And Collaboration Agreements [Line Items]
Capitalized Contract Cost, Net, Current		1
Gilead \| Other Noncurrent Assets
License And Collaboration Agreements [Line Items]
Capitalized Contract Cost, Net, Noncurrent		$ 3
Customer Concentration Risk \| Gilead \| Revenue Benchmark
License And Collaboration Agreements [Line Items]
Percentage of revenues		100%	89%
Gilead Collaboration Agreement
License And Collaboration Agreements [Line Items]
Deferred revenue		$ 427		$ 452
Gilead Collaboration Agreement \| Gilead
License And Collaboration Agreements [Line Items]
Deferred revenue		177
Total collaboration and license revenues		8	$ 5
Deferred revenue recognized	$ 121	219
Current and future programs exclusive access period	10 years
Contingent milestone payments receivable	$ 300
Option continuation payment receivable upon sixth anniversary of agreement	$ 100
Performance obligation period	4 years
R&D activities for Domvanalimab
License And Collaboration Agreements [Line Items]
Deferred revenue		29
Total collaboration and license revenues		1	1
Deferred revenue recognized		34
Quemliclustat, License and R&D services \| Gilead
License And Collaboration Agreements [Line Items]
Deferred revenue		142
Total collaboration and license revenues		8	2
Deferred revenue recognized		176
R&D and Commercialization Activities for Zimberelimab
License And Collaboration Agreements [Line Items]
Deferred revenue recognized		11
Access rights and option continuation periods
License And Collaboration Agreements [Line Items]
Deferred revenue		79
Total collaboration and license revenues		$ 8	$ 8

Revenues - Summary of Revenue R

Revenues - Summary of Revenue Recognized as a Result of Changes in Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
License And Collaboration Agreements [Abstract]
Amounts included in deferred revenue at the beginning of the period	$ 25	$ 18

Income Taxes - Additional Infor

Income Taxes - Additional Information - (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 2	$ 1
Effective tax rate	(2.30%)	(1.40%)

Net Loss per Share - Summary of

Net Loss per Share - Summary of Outstanding Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	16,300,000	14,200,000
Common Stock Options Issued and Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	14,000,000	12,600,000
Restricted Stock Units Issued
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	2,100,000	1,500,000
Employee Stock Purchase Plan Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	200,000	100,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 19	$ 17
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	9	9
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 10	$ 8

Cash, Cash Equivalents and Ma_3

Cash, Cash Equivalents and Marketable Securities - Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Our Cash, Cash Equivalents and Marketable Securities Considered as Available for Sale by Type of Securities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 1,048	$ 1,145
Unrealized Loss	(4)	(7)
Fair Value	1,044	1,138
Money Market Funds
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	196	169
Fair Value	196	169
U.S. Treasury Securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	284	317
Unrealized Loss	(2)	(3)
Fair Value	282	314
Corporate Securities and Commercial Paper
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	508	635
Unrealized Loss	(2)	(4)
Fair Value	506	631
U.S. Government Agency Securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	60	20
Fair Value	$ 60	20
Certificates of Deposit
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost		4
Fair Value		$ 4

Cash, Cash Equivalents and Ma_4

Cash, Cash Equivalents and Marketable Securities - Schedule of Fair Values of Our Cash, Cash Equivalents and Marketable Securities by Location in Condensed Consolidated Balance Sheets and Contractual Maturity (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Cash and cash equivalents	$ 238	$ 206
Marketable securities	716	803
Long-term marketable securities	90	129
Total cash, cash equivalents and marketable securities	$ 1,044	$ 1,138

Cash, Cash Equivalents and Ma_5

Cash, Cash Equivalents and Marketable Securities - Additional Information (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) Positions	Dec. 31, 2022 USD ($) Positions
Cash, Cash Equivalents and Marketable Securities [Abstract]
Number of positions in securities in unrealized loss \| Positions	178	219
Credit related losses \| $	$ 0	$ 0

Cash, Cash Equivalents and Ma_6

Cash, Cash Equivalents and Marketable Securities - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 238	$ 206	$ 549
Restricted cash	$ 3		3
Restricted Cash, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other noncurrent assets ($3 and $2 from a related party)	Other noncurrent assets ($3 and $2 from a related party)
Total cash, cash equivalents and restricted cash	$ 241	$ 209	$ 552	$ 151

Condensed Consolidated Balanc_5

Condensed Consolidated Balance Sheet Components - Summary of Prepaid and Other Current Assets (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Prepaid Expense and Other Assets, Current [Abstract]
Prepaids and other assets	$ 25	$ 15
Accrued interest receivable	3	4
Total prepaid and other current assets	$ 28	$ 19

Condensed Consolidated Balanc_6

Condensed Consolidated Balance Sheet Components - Summary of Other Current Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Accrued Liabilities, Current [Abstract]
Accrued research and development	$ 37	$ 45
Accrued personnel expenses	12	25
Income taxes payable	1
other	4	6
Total other current liabilities	$ 54	$ 76

Leases - Summary of Cash and No

Leases - Summary of Cash and Non-cash Information Related to Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Cash paid for amounts included in measurement of lease liabilities	$ 4	$ 1
Recognition of tenant improvement allowance receivable included in other current liabilities	$ 4

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Deposits for letters of credit	$ 3	$ 3

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value On Recurring Basis - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	$ 1,044	$ 1,138
Total liabilities measured at fair value	18	17
Liability for Sale of Future Royalties
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	18	17
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	196	169
U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	282	314
Corporate Securities and Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	506	631
U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	60	20
Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value		4
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	196	169
Level 1 \| Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	196	169
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	848	969
Level 2 \| U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	282	314
Level 2 \| Corporate Securities and Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	506	631
Level 2 \| U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value	60	20
Level 2 \| Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total assets measured at fair value		4
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	18	17
Level 3 \| Liability for Sale of Future Royalties
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total liabilities measured at fair value	$ 18	$ 17

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - BVF Partners L.P. - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
BVF Agreement
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Imputed effective rate of interest on unamortized portion of liability	20.60%	20.60%
Non-refundable payments received		$ 15,000,000	$ 15,000,000
BVF Agreement \| Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent payments upon achievement of certain clinical and regulatory milestones			73,000,000
Gilead Collaboration Agreement \| Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent payments upon achievement of certain clinical and regulatory milestones			$ 160,000,000

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Changes of Liabilities for Sale of Future Royalties (Details) - BVF Partners L.P. - BVF Agreement - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 17	$ 5
Cash received		5
Interest accretion	1	1
Ending balance	$ 18	$ 11