Arcturus Therapeutics Announces Third Quarter Financial Results and Provides Corporate Update
SAN DIEGO, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Arcturus Therapeutics Holdings Inc. (“Arcturus Therapeutics”) (NASDAQ: ARCT), a leading messenger RNA medicines company focused on the discovery, development and commercialization of therapeutics for rare diseases, today reported its financial results for the three- and nine-month periods ended September 30, 2019 and provided a corporate update.
Highlights
- IND application for ARCT-810, a treatment of ornithine transcarbamylase (OTC) deficiency, is on track for Q1 2020 filing
- Expanded platform with STARR technology™ to enable LUNAR® formulated RNA-based vaccines
- Raised $23 Million from institutional investors at $11.50 per share of Common Stock
- Strengthened the Board of Directors with the addition of Edward W. Holmes, M.D.
“We continue to develop our LUNAR® delivery and mRNA technology platforms, strengthening our leadership position in mRNA medicines. Our flagship program, ARCT-810, remains on track – we have completed the in-life phase of the IND-enabling toxicology studies to support First-in-Human clinical trials, and plan to file an IND application during the first quarter of 2020,” said Joseph Payne, President and Chief Executive Officer of Arcturus. “Earlier this morning, we announced the expansion of our technology platform to include self-replicating RNA (STARR technology™) for human and animal health vaccine applications. Furthermore, we have successfully raised significant capital from institutional and strategic investors to fund our operations into 2021,” concluded Payne.
Financial Results for the Third quarter Ended September 30, 2019
Revenues in conjunction with strategic alliances and collaborations: Collaboration revenue was $3.3 million during the quarter ended September 30, 2019, compared to $3.4 million in the quarter ended September 30, 2018.
Operating Expenses: Operating expenses were $10.9 million in the quarter ended September 30, 2019, compared to $7.8 million in the quarter ended September 30, 2018.
Net Loss: Net loss for the quarter ended September 30, 2019 was approximately $7.4 million, or ($0.56) per basic and diluted share, compared with a net loss of $4.3 million, or ($0.42) per basic and diluted share, in the quarter ended September 30, 2018.
Cash: At September 30, 2019, Arcturus had cash and cash equivalents totaling $74.2 million, compared to cash and cash equivalents of $36.7 million at December 31, 2018. Subsequent to the end of the fiscal quarter we received approximately $7.0 million as a result of increasing our bank facility and an insurance settlement. This provides adequate funding to support the Company’s current programs through at least the first quarter of 2021.
Financial Results for the Nine months Ended September 30, 2019
Revenues in conjunction with strategic alliances and collaborations: Collaboration revenue was $17.8 million during the nine months ended September 30, 2019, compared to $8.2 million in the nine months ended September 30, 2018.
Operating expenses: Operating expenses were $32.5 million in the nine months ended September 30, 2019, compared to $29.3 million in the nine months ended September 30, 2018.
Net Loss: Net loss for the nine-month period ended September 30, 2019 was approximately $15.0 million, or ($1.18) per basic and diluted share, compared with a net loss of $20.8 million, or ($2.07) per basic and diluted share, in the nine-month period ended September 30, 2018.
| Conference Call | |
| Thursday, November 7th @ 4:30pm Eastern Time | |
| Domestic: International: Conference ID: Webcast: | 800-458-4121 323-794-2597 7909937 |
About Arcturus Therapeutics
Founded in 2013 and based in San Diego, California, Arcturus Therapeutics Holdings Inc. (Nasdaq: ARCT) is an RNA medicines company with enabling technologies – LUNAR® lipid-mediated delivery, Unlocked Nucleomonomer Analog (UNA) chemistry, STARR technology™ – and mRNA drug substance along with drug product manufacturing. Arcturus’ diverse pipeline of RNA therapeutics includes programs to potentially treat Ornithine Transcarbamylase (OTC) Deficiency, Cystic Fibrosis, Glycogen Storage Disease Type 3, Hepatitis B, and non-alcoholic steatohepatitis (NASH). Arcturus’ versatile RNA therapeutics platforms can be applied toward multiple types of nucleic acid medicines including messenger RNA, small interfering RNA, replicon RNA, antisense RNA, microRNA, DNA, and gene editing therapeutics. Arcturus’ technologies are covered by its extensive patent portfolio (177 patents and patent applications, issued in the U.S., Europe, Japan, China and other countries). Arcturus’ commitment to the development of novel RNA therapeutics has led to collaborations with Janssen Pharmaceuticals, Inc., part of the Janssen Pharmaceutical Companies of Johnson & Johnson, Ultragenyx Pharmaceutical, Inc., Takeda Pharmaceutical Company Limited, CureVac AG, Synthetic Genomics Inc. and the Cystic Fibrosis Foundation. For more information visit .
Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact included in this press release, including those regarding strategy, future operations, collaborations, the likelihood of success of the Company’s technology or potential development of any products, the status of preclinical and clinical development programs, the planned initiation of clinical trials, the expected employment of key personnel, the adequacy of the Company’s funding relative to its capital requirements and the Company’s future cash and financial position, are forward-looking statements. Arcturus may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in any forward-looking statements such as the foregoing and you should not place undue reliance on such forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties, including those discussed under the heading “Risk Factors” in Arcturus’ Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the SEC on March 18, 2019 and in subsequent filings with, or submissions to, the SEC. Except as otherwise required by law, Arcturus disclaims any intention or obligation to update or revise any forward- looking statements, which speak only as of the date they were made, whether as a result of new information, future events or circumstances or otherwise.
Contact
Neda Safarzadeh
Arcturus Therapeutics
(858) 900-2682
Arcturus Investor Contacts
Michael Wood
LifeSci Advisors LLC
(646) 597-6983
ARCTURUS THERAPEUTICS HOLDINGS INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands, except par value information)
| September 30, 2019 | December 31, 2018 | ||||
| (unaudited) | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 74,172 | $ | 36,709 | |
| Accounts receivable | 2,625 | 4,481 | |||
| Prepaid expenses and other current assets | 2,611 | 638 | |||
| Total current assets | 79,408 | 41,828 | |||
| Property and equipment, net | 2,073 | 1,975 | |||
| Operating lease right-of-use asset, net | 5,324 | — | |||
| Equity-method investment | 303 | 288 | |||
| Non-current restricted cash | 107 | 107 | |||
| Total assets | $ | 87,215 | $ | 44,198 | |
| Liabilities and shareholders’ equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 4,013 | $ | 2,398 | |
| Accrued liabilities | 6,676 | 3,907 | |||
| Deferred revenue | 10,999 | 6,272 | |||
| Total current liabilities | 21,688 | 12,577 | |||
| Deferred revenue, net of current portion | 14,551 | 7,534 | |||
| Long-term debt | 10,016 | 9,911 | |||
| Operating lease liability, net of current portion | 5,065 | — | |||
| Deferred rent | — | 534 | |||
| Total liabilities | 51,320 | 30,556 | |||
| Total stockholders’ equity | 35,895 | 13,642 | |||
| Total liabilities and stockholders’ equity | $ | 87,215 | $ | 44,198 | |
ARCTURUS THERAPEUTICS HOLDINGS INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
U.S. dollars in thousands (except per share data)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Collaboration revenue | $ | 3,318 | $ | 3,423 | $ | 17,821 | $ | 8,176 | |||||||
| Operating expenses: | |||||||||||||||
| Research and development, net | 7,053 | 3,969 | 21,646 | 12,135 | |||||||||||
| General and administrative | 3,881 | 3,810 | 10,871 | 17,141 | |||||||||||
| Total operating expenses | 10,934 | 7,779 | 32,517 | 29,276 | |||||||||||
| Loss from operations | (7,616 | ) | (4,356 | ) | (14,696 | ) | (21,100 | ) | |||||||
| Gain (loss) from equity-method investment | 303 | (47 | ) | 15 | (47 | ) | |||||||||
| Finance (expense) income, net | (120 | ) | 150 | (321 | ) | 373 | |||||||||
| Net loss | $ | (7,433 | ) | $ | (4,253 | ) | $ | (15,002 | ) | $ | (20,774 | ) | |||
| Net loss per share, basic and diluted | $ | (0.56 | ) | $ | (0.42 | ) | $ | (1.18 | ) | $ | (2.07 | ) | |||
| Weighted-average shares outstanding, basic and diluted | 13,201 | 10,093 | 12,734 | 10,059 | |||||||||||
| Comprehensive loss: | |||||||||||||||
| Net loss | $ | (7,433 | ) | $ | (4,253 | ) | $ | (15,002 | ) | $ | (20,774 | ) | |||
| Unrealized gain on short-term investments | — | 2 | — | 7 | |||||||||||
| Comprehensive loss | $ | (7,433 | ) | $ | (4,251 | ) | $ | (15,002 | ) | $ | (20,767 | ) | |||
