Arcturus Therapeutics Announces First Quarter Financial Results and Provides a Corporate Update
“We are pleased with our progress in 2019, as we continue to work to strengthen our leadership position in intravenous and inhaled mRNA medicines,” said Joseph Payne, President & CEO of Arcturus Therapeutics. “The development of our preclinical product pipeline continues to move forward, and we have several target milestones that we aim to reach later this year, including the planned Investigational New Drug (IND) application submission for ARCT-810 as a treatment for OTC Deficiency, in the fourth quarter of the year.”
Recent Highlights
Continued
Arcturus remains on track to file an IND for ARCT-810 with the U.S. Food and Drug Administration (
Completed manufacture of Drug Substance and Drug Product using Arcturus proprietary processes:
- GMP-grade OTC mRNA Drug Substance (> 10 grams)
- Multiple batches of LUNAR®-formulated OTC mRNA Drug Product (> 10 grams each)
- Current inventory is sufficient to support IND-enabling studies and early clinical development
Corporate Developments
Arcturus remains on track to redomicile from an Israeli limited company to a
- Redomiciliation is subject to a vote at a shareholder meeting
May 17, 2019 - Arcturus has already received proxies representing a majority (> 50%) of shareholder votes in favor
- Following formal approval by shareholders on
May 17 , the Company will seek ratification from the Israeli Court, expected to occur within several weeks thereafter
Financial Results for the Quarter Ended
Revenues in conjunction with strategic alliances and collaborations: Collaboration revenue was
Operating expenses: Operating expenses were
Net Loss: Net loss for the three months ended
Cash: At
About
Founded in 2013 and based in San Diego, California,
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 regarding strategy, future operations, collaborations, future financial position, prospects, plans and objectives of management, the likelihood of success of the Company’s technology or potential development of any products, including statements relating to the completion and timing of the Redomiciliation from
Contact
(858) 900-2682
IR@ArcturusRx.com
Arcturus Investor Contacts
(646) 597-6983
mwood@lifesciadvisors.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands, except par value information)
| March 31, 2019 |
December 31, 2018 |
|||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 31,220 | $ | 36,709 | ||||
| Accounts receivable | 4,457 | 4,481 | ||||||
| Prepaid expenses and other current assets | 929 | 638 | ||||||
| Total current assets | 36,606 | 41,828 | ||||||
| Property and equipment, net | 2,016 | 1,975 | ||||||
| Operating lease right-of-use asset | 5,690 | — | ||||||
| Equity-method investment | — | 288 | ||||||
| Non-current restricted cash | 107 | 107 | ||||||
| Total assets | $ | 44,419 | $ | 44,198 | ||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,118 | $ | 2,398 | ||||
| Accrued liabilities | 2,766 | 3,907 | ||||||
| Deferred revenue | 7,728 | 6,272 | ||||||
| Total current liabilities | 14,612 | 12,577 | ||||||
| Deferred revenue, net of current portion | 8,025 | 7,534 | ||||||
| Long-term debt | 9,945 | 9,911 | ||||||
| Operating lease liability, net of current portion | 5,483 | — | ||||||
| Deferred rent | — | 534 | ||||||
| Total liabilities | $ | 38,065 | $ | 30,556 | ||||
| Shareholders' equity | ||||||||
| Ordinary shares: NIS 0.07 par value; 30,000 shares authorized, 10,762 issued, 10,719 outstanding and 43 held in treasury at March 31, 2019; NIS 0.07 par value; 30,000 shares authorized, 10,762 issued, 10,719 outstanding and 43 held in treasury at December 31, 2018 | 214 | 214 | ||||||
| Additional paid-in capital | 58,701 | 58,302 | ||||||
| Accumulated deficit | (52,561 | ) | (44,874 | ) | ||||
| Total shareholders' equity | 6,354 | 13,642 | ||||||
| Total liabilities and shareholders' equity | $ | 44,419 | $ | 44,198 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
U.S. dollars in thousands (except per share data)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| Collaboration revenue | $ | 4,350 | $ | 2,367 | ||||
| Operating expenses: | ||||||||
| Research and development, net | 7,324 | 3,941 | ||||||
| General and administrative | 3,534 | 5,098 | ||||||
| Total operating expenses | 10,858 | 9,039 | ||||||
| Net loss from operations | (6,508 | ) | (6,672 | ) | ||||
| Loss from equity-method investment | (288 | ) | — | |||||
| Finance (expense) income, net | (88 | ) | 101 | |||||
| Net loss | $ | (6,884 | ) | $ | (6,571 | ) | ||
| Net loss per share, basic and diluted | $ | (0.68 | ) | $ | (0.66 | ) | ||
| Weighted-average shares outstanding, basic and diluted | 10,095 | 10,028 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | $ | (6,884 | ) | $ | (6,571 | ) | ||
| Unrealized loss on short-term investments | — | (2 | ) | |||||
| Comprehensive loss | $ | (6,884 | ) | $ | (6,573 | ) | ||
Source: Arcturus Therapeutics, Inc.