What Arcus Biosciences, Inc. told the SEC could break it.

Arcus's biologics supply is concentrated in a single China-based contract manufacturer: WuXi Biologics is currently the sole manufacturer of zimberelimab and domvanalimab (a key anti-TIGIT program). It explicitly flags that if WuXi Biologics becomes subject to trade restrictions, sanctions, increased tariffs or other U.S. regulatory requirements — including designation as a 'biotechnology company of concern' under the U.S. BIOSECURE Act — or if U.S./Chinese governments take retaliatory actions amid rising tensions, its supply could be disrupted with no qualified alternative. This couples sole-source manufacturing risk with active U.S.–China biotech-decoupling policy (BIOSECURE), making it a high-severity, thesis-central geopolitical supply exposure.

“If WuXi Biologics becomes subject to trade restrictions, sanctions, increased tariffs or other regulatory requirements by the U.S. government”

Beyond the specific WuXi/China exposure, Arcus has a structural single-source dependence across its entire pipeline: it currently has limited manufacturing arrangements and expects that each of its investigational products will only be covered by single-source suppliers for the foreseeable future, with no redundant supply for API and drug product. For a clinical-stage company, an interruption, quality failure or capacity shortfall at any one sole-source manufacturer could halt the affected program's trial and (if approved) commercial supply. A broad, structural sole-source manufacturing dependence.

“we currently have limited manufacturing arrangements for our investigational products and expect that each of our investigational products will only be covered by single source suppliers for the foreseeable future.”