Arcturus Therapeutics Holdings Inc (ARCT) Reports Significant Revenue Growth in Q3 2023
Arcturus Therapeutics Holdings Inc (NASDAQ:ARCT) announces a substantial increase in revenue for Q3 2023.
Extended cash runway to the end of 2026, bolstered by strategic collaborations and milestones.
Key clinical programs, including ARCT-154, remain on track with notable progress in pipeline development.
On November 14, 2023, Arcturus Therapeutics Holdings Inc (NASDAQ:ARCT) released its 8-K filing, detailing its financial results for the third quarter ended September 30, 2023, and providing updates on its pipeline progress. The company reported a significant increase in revenue and extended its expected cash runway, underlining a period of robust financial and operational achievements.
Financial Performance and Revenue Growth
Arcturus Therapeutics reported a remarkable increase in revenue for the third quarter of 2023, with figures reaching $45.1 million compared to $13.4 million for the same period in 2022. This $31.7 million increase is primarily attributed to the collaboration agreement with CSL Seqirus and grant revenue recognized from the agreement with BARDA. Over the nine months ended September 30, 2023, revenue surged by $90.3 million compared to the same period in 2022, mainly due to the CSL Seqirus collaboration.
Operating Expenses and Net Loss
Total operating expenses for Q3 2023 were $64.5 million, an increase from $50.2 million in Q3 2022. Research and development expenses rose to $51.1 million for the quarter, reflecting increased clinical research and manufacturing costs. General and administrative expenses also saw an uptick due to higher personnel expenses and rent associated with a new facility. Despite higher expenses, the net loss for the quarter improved to approximately $16.2 million, or ($0.61) per diluted share, compared to a net loss of $35.3 million, or ($1.33) per diluted share in Q3 2022.
Balance Sheet and Cash Position
As of September 30, 2023, Arcturus had cash, cash equivalents, and restricted cash totaling $369.1 million, a slight decrease from $394.0 million on December 31, 2022. The company has received approximately $365.0 million in upfront payments and milestones from CSL Seqirus as of the end of the third quarter. The expected cash runway, bolstered by these payments and strategic financial management, is now projected to extend to the end of 2026.
Operational Highlights and Pipeline Progress
Arcturus Therapeutics continues to make strides in its clinical programs. The monovalent ARCT-154 COVID vaccine is on track for approval in Japan by December 2023, and the bivalent COVID vaccine Phase 3 study has reached its enrollment target. The ARCT-032 program for cystic fibrosis has initiated enrollment in a Phase 1b study, with the first patient dosing expected within the month. Additionally, ARCT-032 has received Rare Pediatric Disease Designation from the FDA.
President & CEO Joseph Payne expressed optimism about the company's progress, stating,
Our monovalent ARCT-154 COVID vaccine remains on track for approval in December and we reached our target enrollment for the bivalent COVID vaccine Phase 3 study, with PMDA-approval anticipated Q3 2024."
CFO Andrew Sassine highlighted the extended cash runway, crediting
a combination of lower expenses, additional development milestones, and accelerated timelines for manufacturing technology transfer to CSL."
Arcturus Therapeutics' commitment to advancing its pipeline while maintaining a strong financial position reflects a promising outlook for the company's future. Investors and stakeholders can look forward to the investor conference call scheduled for 4:30 p.m. ET on November 14, 2023, for further insights into the company's progress and plans.
For a more detailed look at Arcturus Therapeutics Holdings Inc (NASDAQ:ARCT)'s financials and operational achievements, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Arcturus Therapeutics Holdings Inc for further details.
This article first appeared on GuruFocus.
