On Wednesday, H.C. Wainwright maintained a positive outlook on Arcturus Therapeutics (NASDAQ:ARCT), reiterating a Buy rating and a $63.00 price target for the stock. The firm's stance comes after Meiji Seika Pharma's announcement on October 1 that it had filed for a partial amendment for the domestic manufacturing of Kostaive in Japan. Kostaive (ARCT-154), a COVID-19 vaccine candidate, is set for distribution in Japan through a partnership between Arcturus and CSL (OTC:CSLLY) Seqirus.
The amendment will enable ARCALIS, a joint mRNA contract development and manufacturing organization venture between Axcelead, Inc. of Japan and Arcturus, to start the distribution of Kostaive produced in Japan by December 2024. This move is strategically timed to ensure the vaccine's availability for the 2024-2025 flu season. The analyst noted that four million doses of Kostaive have already been shipped to Japan, indicating readiness for the upcoming flu season.
The analyst also highlighted the robust long-term immune response data presented at the OPTIONS XII for the Control of Influenza conference, suggesting that Kostaive could be a strong COVID-19 vaccine candidate in Japan. Beyond the vaccine's commercial prospects in Japan, the analyst sees potential growth in Arcturus' portfolio of wholly-owned rare disease programs. These include ARCT-032, which received IND clearance from the FDA in September for a Phase 2 study in cystic fibrosis, and ARCT-810, a treatment for OTC deficiency.
Looking ahead, the firm anticipates interim data from a Phase 2 study of ARCT-810, which is being conducted across 14 sites in the EU and UK, to be a significant next milestone. The results are expected in the fourth quarter of 2024. The continued endorsement of Arcturus Therapeutics' stock reflects the analyst's confidence in the company's pipeline and commercial strategy.
InvestingPro Insights
Arcturus Therapeutics' recent developments align with several key metrics and insights from InvestingPro. The company's strong position in vaccine development and its expanding rare disease portfolio are reflected in its financial performance.
According to InvestingPro data, Arcturus has seen impressive revenue growth, with a 373.99% increase in quarterly revenue as of Q2 2024. This substantial growth likely stems from its vaccine partnerships and advancing pipeline, including Kostaive and its rare disease programs.
However, investors should note that the company is not yet profitable, with a negative gross profit margin of -18.43% over the last twelve months. This is consistent with the InvestingPro Tip that Arcturus "suffers from weak gross profit margins." Despite this, the company holds more cash than debt on its balance sheet, providing financial flexibility to support its ongoing research and development efforts.
The stock has shown significant momentum recently, with a 19.67% return over the last month. This aligns with the InvestingPro Tip highlighting a "strong return over the last month," possibly reflecting investor optimism about the company's progress with Kostaive and its rare disease programs.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Arcturus Therapeutics, providing a comprehensive view of the company's financial health and market position.
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