Cost OffsetsThe initial revenue from the Japan COVID-19 vaccine order will be offset by 40% of past development costs, requiring significant sales to cover these expenses.
Revenue RecognitionARCT revenue recognition is still to be determined and likely delayed as Meiji reports revenue to CSL, who then calculates and reports to ARCT its share after cost offsets.
Safety And Efficacy RisksKey risks to the rating and price target include unforeseen safety or tolerability issues with ARCT-154, ARCT-810, or ARCT-032, and failure of Arcturus' mRNA drugs to be effective in human clinical trials.