Monday (NASDAQ:MNDY), Canaccord Genuity (TSX:CF) maintained a Buy rating on shares of Arcturus Therapeutics (NASDAQ:ARCT) and increased its price target to $74 from $72. This adjustment follows Arcturus's third-quarter earnings report for 2024, which the firm found encouraging.
The report included confirmation of $25 million in milestone payments from CSL (OTC:CSLLY) related to Kostaive sales in Japan. The company has confirmed the timing for the next update on ARCT-032 for cystic fibrosis, which is expected in the first half of 2025.
Arcturus's earnings report also provided updates on other pipeline developments. Most were as anticipated, except for a minor delay in the ARCT-810 update for Ornithine Transcarbamylase (OTC) deficiency, now scheduled for the first half of 2025 instead of the fourth quarter of 2024.
Moreover, the approval of Kostaive in the European Union has been rescheduled to the fourth quarter of 2024, a slight shift from the originally expected third quarter.
The company is poised for significant developments in 2025, with the anticipation of recording its first commercial revenue from Kostaive, likely securing EU approval for the product, and announcing progress in both the cystic fibrosis program and ARCT-810 in OTC.
Canaccord Genuity's analyst highlighted the company's robust cash balance, which is expected to sustain the company until it reaches profitability, assuming the vaccine side of the business progresses as planned.
The analyst's statement reiterated the Buy rating, emphasizing the potential for 2025 to be a transformative year for Arcturus. The company's financial position is seen as strong enough to support its journey toward sustainability, with significant milestones on the horizon.
In other recent news, Arcturus Therapeutics reported a net loss of $6.9 million in Q3 2024, an improvement from the previous year, with revenues standing at $41.7 million, a decrease from $45.1 million in Q3 2023. However, the company remains buoyant about its future, highlighting a cash runway extending into Q1 2027 and promising developments in its mRNA therapeutic programs.
Arcturus launched KOSTAIVE, its first commercial product, in Japan, and received a $25 million milestone payment following KOSTAIVE's first sale. The company is also anticipating a decision from the European Medicines Agency (EMA) on KOSTAIVE, with a CHMP opinion expected in December 2024.
Furthermore, Arcturus plans to file a Biologics License Application (BLA) for KOSTAIVE in the U.S. in H1 2025. Interim Phase 2 data for ARCT-032 and ARCT-810 are expected in early 2025. These are some of the recent developments in the company.
InvestingPro Insights
Recent data from InvestingPro adds depth to Canaccord Genuity's optimistic outlook on Arcturus Therapeutics. The company's market capitalization stands at $531.59 million, reflecting its current position in the biotech sector. Despite the analyst's positive stance, InvestingPro Tips highlight some challenges, noting that 4 analysts have revised their earnings downwards for the upcoming period, and the company is not expected to be profitable this year.
However, Arcturus's financial health shows some strengths. An InvestingPro Tip indicates that the company holds more cash than debt on its balance sheet, which aligns with Canaccord Genuity's observation about the company's robust cash position. This financial cushion could indeed support Arcturus through its developmental phases, as the analyst suggests.
The stock has shown a significant return over the last week, with a 10.13% price total return, potentially reflecting market optimism about the company's recent earnings report and pipeline updates. However, investors should note that the stock price movements are quite volatile, as pointed out by another InvestingPro Tip.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Arcturus Therapeutics, providing a broader perspective on the company's financial health and market position.
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