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On Monday, H.C. Wainwright analyst Ed Arce adjusted the price target for Arcturus Therapeutics (NASDAQ:ARCT), reducing it to $60.00 from the previous $63.00, but maintained a Buy rating on the stock. Currently trading at $14.55, the stock sits near its 52-week low of $14.11, significantly below its high of $45. According to InvestingPro data, analyst targets range from $44 to $140, suggesting substantial upside potential. The revision follows the company’s announcement on Sunday that interim data from its Phase 2 study of ARCT-032 for cystic fibrosis treatment are expected by the end of the second quarter of 2025.
Arcturus’s "LunairCF" study, which is currently in an open-label Phase 2 trial, is evaluating the efficacy of ARCT-032 when administered daily for 28 days to cystic fibrosis patients, followed by a 12-week observation period. With a strong liquidity position and current ratio of 4.67, the company appears well-positioned to support its clinical programs. One of the key efficacy measures being considered is the absolute improvement in Forced Expiratory Volume in 1 second (FEV1), with a 3% absolute improvement set as a significant threshold to support further development of ARCT-032.
The analyst pointed out that the FDA’s approval of TRIKAFTA, a leading CFTR modulator, was supported by a substantial improvement in FEV1. Arce noted that the cystic fibrosis market is highly valuable, mentioning TRIKAFTA’s $10.2 billion in net sales in 2024. The LunairCF trial targets cystic fibrosis patients who are ineligible for CFTR modulators, as well as those who are eligible but do not receive them due to toxicity or intolerance, representing approximately 18% of the total CF patient population.
Arce’s statement emphasizes the potential market value for ARCT-032, given the significant sales achieved by TRIKAFTA in the cystic fibrosis therapeutic space. Despite the reduction in the price target, the analyst reaffirmed a Buy rating for Arcturus Therapeutics, signaling confidence in the company’s ongoing research and its implications for cystic fibrosis treatment.
In other recent news, Arcturus Therapeutics reported a challenging fourth quarter of 2024, with earnings per share (EPS) of -$1.11, significantly missing the forecast of -$0.19. The company’s revenue also fell short, coming in at $22.8 million against the expected $63.22 million. Despite these setbacks, Arcturus has made notable progress, including the approval of its CoStave COVID-19 vaccine in the European Union. Analysts from Canaccord Genuity adjusted their price target for Arcturus to $68, reflecting updated expectations for the Japanese COVID vaccine market, while maintaining a Buy rating. Meanwhile, BTIG analysts maintained a $48 price target, expressing optimism about the company’s mRNA vaccine developments. Leerink Partners also adjusted their price target to $65 but kept an Outperform rating, citing Arcturus’s ongoing pipeline developments. The company anticipates presenting Phase 2 data for its cystic fibrosis and ornithine transcarbamylase deficiency programs by the end of the second quarter of 2025. These developments indicate a mixed outlook for Arcturus, with significant challenges and opportunities on the horizon.
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