Arcturus Therapeutics’ Earnings Call: Mixed Outlook with Strategic Wins

Arcturus Therapeutics ((ARCT)) has held its Q4 earnings call. Read on for the main highlights of the call.

The earnings call for Arcturus Therapeutics presented a mixed outlook, highlighting both significant achievements and financial challenges. The company celebrated the European approval of KOSTAIVE and progress in various clinical programs. However, these successes were tempered by decreased revenue and an increased net loss. Despite these hurdles, Arcturus’ strong cash position and expected cash runway offer some reassurance to stakeholders.

European Commission Approval for KOSTAIVE

Arcturus Therapeutics achieved a major milestone with the European Commission’s approval of KOSTAIVE, the world’s first approved self-amplifying mRNA COVID-19 vaccine. This approval covers all 27 EU member states and 3 additional European Economic Area countries, marking a significant achievement in the company’s portfolio.

Significant Gross Profit from KOSTAIVE

The company reported a substantial gross profit of approximately $28 million from the sale of KOSTAIVE during the fourth quarter of 2024. This profit is expected to offset development costs, providing a financial cushion amidst the company’s broader fiscal challenges.

Initiation of Phase I Study for ARCT-2304

Arcturus has initiated a Phase I study for ARCT-2304, a self-amplifying mRNA vaccine candidate targeting H5N1 influenza. This study is fully funded by BARDA, with interim data anticipated in the second half of 2025, showcasing the company’s ongoing commitment to expanding its vaccine pipeline.

Continued Progress in Cystic Fibrosis Program

The company’s cystic fibrosis program is advancing, with the first participant dosed in a Phase II study of ARCT-032. Interim data from this study is expected by the end of the second quarter of 2025, indicating steady progress in this critical therapeutic area.

Strong Cash Position

Arcturus reported cash and cash equivalents totaling $293.9 million as of December 31, 2024. This robust cash position is expected to sustain the company through the end of the first quarter of 2027, providing a solid financial foundation for ongoing and future projects.

Decrease in Revenue

The company experienced a decrease in revenue for the year ended 2024, with total revenues falling by $14.5 million to $152.3 million compared to 2023. This decline was primarily due to lower milestone achievements from the CSL agreement, highlighting a key area of financial concern.

Increased Net Loss

Arcturus reported a net loss of approximately $80.9 million for the year ended 2024, a significant increase from the net loss of $29.7 million in 2023. This increase in net loss underscores the financial challenges the company faces amidst its operational expansions.

Increased Operating Expenses

Operating expenses rose to $248 million in 2024 from $245 million in 2023, driven by higher clinical trial costs. This increase reflects the company’s investment in its clinical programs, despite the pressure it places on financial performance.

Forward-Looking Guidance

Looking ahead, Arcturus anticipates continued revenue from its ongoing clinical programs and maintains a strong cash position to support its operations. The company is progressing with its pipeline, including the Phase I study of ARCT-2304 for H5N1 influenza and the Phase II study for ARCT-032 in cystic fibrosis. Key data readouts are expected in 2025, which could influence future financial performance and strategic directions.

In summary, the earnings call for Arcturus Therapeutics highlighted a balanced narrative of achievements and challenges. While the company faces financial hurdles with decreased revenue and increased net loss, its strategic milestones, such as the approval of KOSTAIVE and progress in clinical programs, provide a positive outlook. The strong cash position further reassures stakeholders of the company’s capacity to navigate its financial landscape.