Arcturus Therapeutics Q2 Revenue Surges on Collaboration Deals

TL;DR

Arcturus Q2 revenue up to $10.2M from $1.8M last year, driven by Janssen & CSL deals. Bullish!

AI Summary

Arcturus Therapeutics Holdings Inc. filed its 10-Q for the period ending June 30, 2024. The company reported collaboration revenue of $10.2 million for the three months ended June 30, 2024, compared to $1.8 million for the same period in 2023. This increase is partly due to revenue recognized under the CSL Collaboration Agreement and the Janssen Collaboration Agreement. The company also noted its manufacturing and supply of ARCT-154 drug product under an agreement with Seqirus Inc.

Why It Matters

The significant increase in collaboration revenue suggests positive progress and potential future value from Arcturus's partnerships with major pharmaceutical companies like Janssen and CSL.

Risk Assessment

Risk Level: medium — The company's reliance on collaboration revenue and ongoing development of drug candidates presents inherent risks in the pharmaceutical sector.

Key Numbers

• $10.2M — Collaboration Revenue (Q2 2024) (Significant increase from $1.8M in Q2 2023, indicating strong partnership performance.)
• $1.8M — Collaboration Revenue (Q2 2023) (Baseline for comparison showing substantial year-over-year growth.)

Key Players & Entities

• Arcturus Therapeutics Holdings Inc. (company) — Filer of the 10-Q
• Janssen (company) — Partner in a collaboration agreement
• CSL (company) — Partner in a collaboration agreement
• Seqirus Inc. (company) — Partner for ARCT-154 drug product manufacturing
• $10.2 million (dollar_amount) — Collaboration revenue for Q2 2024
• $1.8 million (dollar_amount) — Collaboration revenue for Q2 2023
• June 30, 2024 (date) — End of the reporting period

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share ARCT The NASDAQ Stock Mar

Filing Documents

• arct-20240630.htm (10-Q) — 1326KB
• arct-ex10_35.htm (EX-10.35) — 38KB
• arct-ex31_1.htm (EX-31.1) — 15KB
• arct-ex31_2.htm (EX-31.2) — 15KB
• arct-ex32_1.htm (EX-32.1) — 8KB
• arct-ex32_2.htm (EX-32.2) — 8KB
• img267163886_0.jpg (GRAPHIC) — 21KB
• img267163886_1.jpg (GRAPHIC) — 88KB
• img267163886_2.jpg (GRAPHIC) — 47KB
• 0000950170-24-090905.txt ( ) — 5780KB
• arct-20240630.xsd (EX-101.SCH) — 954KB
• arct-20240630_htm.xml (XML) — 678KB

Financial Statements (unaudited)

Financial Statements (unaudited) 1 Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 26 PART II. OTHER INFORMATION 28 Item 1.

Legal Proceedings

Legal Proceedings 28 Item 1A.

Risk Factors

Risk Factors 28 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 3. Defaults Upon Senior Securities 28 Item 4. Mine Safety Disclosures 28 Item 5. Other Information 28 Item 6. Exhibits 29

Signatures

Signatures 32 i Special Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q (this "Quarterly Report"), including the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations," and the documents incorporated by reference herein may contain express or implied "forward-looking statements" within the meaning of the federal securities laws, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth below under Part II, Item 1A, "Risk Factors" in this Quarterly Report. Except as required by law, we assume no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise. These statements, which represent our current expectations or beliefs concerning various future events, may contain words such as "may," "will," "expect," "anticipate," "intend," "plan," "believe," "estimate" or other words indicating future results, though not all forward-looking statements necessarily contain these identifying words. Such statements may include, but are not limited to, statements concerning the following: our compliance, and ability to remain in compliance, with the requirements of our collaboration agreements, including our collaboration with Seqirus Inc. ("CSL Seqirus"); the anticipated benefits and success of our collaboration agreement with CSL Seqirus related to the licensure of our STARR mRNA technology and LUNAR lipid-mediated delivery, including our timely receipt of upfront and potential royalty and other payments thereunder; the continued development activities of the LUNAR-COV19 and LUNAR-FL

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. ARCTURUS THERAPEUTICS HOLDINGS INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 December 31, 2023 (in thousands, except par value information) (unaudited) Assets Current assets: Cash and cash equivalents $ 260,329 $ 292,005 Restricted cash 55,000 55,000 Accounts receivable 24,085 32,064 Prepaid expenses and other current assets 7,594 7,521 Total current assets 347,008 386,590 Property and equipment, net 11,182 12,427 Operating lease right-of-use assets, net 28,533 28,500 Non-current restricted cash 1,885 1,885 Total assets $ 388,608 $ 429,402 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 13,905 $ 5,279 Accrued liabilities 35,450 31,881 Deferred revenue 42,362 44,829 Total current liabilities 91,717 81,989 Deferred revenue, net of current portion 11,344 42,496 Operating lease liability, net of current portion 26,964 25,907 Other non-current liabilities — 497 Total liabilities 130,025 150,889 Stockholders' equity Common stock, $ 0.001 par value; 60,000 shares authorized; issued and outstanding shares were 27,042 at June 30, 2024 and 26,828 at December 31, 2023 27 27 Additional paid-in capital 670,455 646,352 Accumulated deficit ( 411,899 ) ( 367,866 ) Total stockholders' equity 258,583 278,513 Total liabilities and stockholders' equity $ 388,608 $ 429,402 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 ARCTURUS THERAPEUTICS HOLDINGS INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2024 2023 2024 2023 Revenue: Collaboration revenue $ 45,976 $ 9,565 $ 78,574 $ 89,

View Full Filing

View this 10-Q filing on SEC EDGAR