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On Monday, BTIG analysts maintained a Buy rating and a $48.00 price target for Arcturus Therapeutics (NASDAQ:ARCT), currently trading at $14.55 with a market capitalization of $395 million. According to InvestingPro data, analyst consensus remains strongly bullish, with price targets ranging from $44 to $140, suggesting significant upside potential despite the stock trading near its 52-week low. The focus was on the potential of Arcturus’ self-amplifying mRNA (SAM) vaccine for influenza, which is currently in development in partnership with CSL (CSLLY (OTC:CSLLY), Not Rated).
The analysts noted that mRNA vaccines for influenza could surpass the efficacy of current high-efficacy protein vaccines, such as Fluzone HD. Although Arcturus has experienced Grade 3 (Gr3) adverse events in its KOSTAIVE trials, these may be specific to COVID-19. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 4.67, providing financial flexibility to advance its clinical programs. The company holds more cash than debt on its balance sheet, though it’s important to note it’s currently burning through cash rapidly. The analysts pointed out that in a placebo-controlled trial published in Nature, adverse events requiring medical attention were actually higher in the placebo group, suggesting the upcoming pandemic flu readout for Arcturus’ SAM-vaccine will be critical. High seroconversion rates coupled with low Gr3 adverse events could position Arcturus’ flu program as a leader in the market.
In addition to the flu vaccine, Arcturus is also conducting trials for cystic fibrosis (CF) treatments. The analysts expect that several patients will have completed dosing in the second cohort of the CF trial. They highlighted the company’s use of a degradable lipid in its LUNAR-lipid delivery platform to avoid toxic buildup, which could be particularly beneficial for patients with fragile lungs.
The analysts also commented on Arcturus’ program for ornithine transcarbamylase (OTC) deficiency, noting that the company is now treating very sick patients and that the trial is designed to identify biomarkers for discussion with the FDA. However, they anticipate that the details of this readout may be less detailed due to competitive reasons.
Overall, the BTIG analysts view the absence of negative news as a positive sign for Arcturus Therapeutics, and they believe that the company’s innovative approach could be challenging for competitors to replicate. With a beta of 2.96, investors should note the stock’s high volatility. For a deeper understanding of Arcturus’s financial health and growth potential, InvestingPro offers a comprehensive research report with detailed analysis of key metrics, growth drivers, and risk factors.
In other recent news, Arcturus Therapeutics reported a significant miss in their fourth-quarter 2024 earnings, with an earnings per share (EPS) of -$1.11, falling short of the forecasted -$0.19. The company’s revenue also disappointed, coming in at $22.8 million against the expected $63.22 million. Despite these financial setbacks, Arcturus achieved a gross profit share of $28 million for its COVID-19 vaccine, CoStave, in Japan. This comes as the company progresses with its vaccine and rare disease portfolios, including upcoming Phase 2 data for cystic fibrosis and ornithine transcarbamylase deficiency programs expected by mid-2025.
Meanwhile, Leerink Partners adjusted their financial outlook for Arcturus, lowering the price target from $70.00 to $65.00 while maintaining an Outperform rating. The firm revised its financial model to reflect the latest earnings disclosures, delaying expected contributions from CoStave’s profit share to 2026. Arcturus also highlighted its strong cash position, with $293.9 million in cash and equivalents, positioning it well for ongoing development efforts. The company anticipates further milestones related to CoStave, including a Biologics License Application filing in the U.S. later this year. These developments come as Arcturus aims to expand its innovative self-amplifying mRNA platform, which it considers a competitive advantage in the biotechnology sector.
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