Arcturus Therapeutics Holdings Inc. recently released its 10-K report, revealing insights into the company's financial performance and strategic initiatives. The San Diego-based late-stage clinical messenger RNA medicines and vaccine company focuses on developing infectious disease vaccines and products for liver and respiratory rare diseases. Arcturus leverages its proprietary LUNAR lipid-mediated delivery and STARR mRNA technology platforms to advance a pipeline of mRNA-based vaccines and therapeutics. The company's notable developments include the initiation of clinical studies for mRNA-based therapeutic candidates and the achievement of marketing approval for its self-amplifying mRNA vaccine against COVID-19 in Japan.
In its 10-K report, Arcturus Therapeutics highlighted its liquidity and capital resources. The company has funded its operations through collaboration agreements, government contracts, the sale of capital stock, and long-term debt. Notably, during fiscal year 2023, Arcturus received milestone payments totaling $147.9 million from CSL Seqirus and additional milestone payments of $23.8 million subsequent to December 31, 2023. As of December 31, 2023, the company's balance of cash and cash equivalents, including restricted cash, stood at $348.9 million. Arcturus also entered into a Collaboration and License Agreement with CSL Seqirus, receiving an up-front payment of $200.0 million and becoming eligible for development milestones totaling more than $1.3 billion, as well as up to $3.0 billion in commercial milestones based on "net sales" of vaccines in various fields. Additionally, the company is entitled to receive a 40% share of net profits from COVID-19 vaccine sales and up to low double-digit royalties of annual net sales for vaccines against influenza and other specified infectious disease pathogens.
Arcturus Therapeutics also disclosed its Wells Fargo Credit Agreement, which saw its wholly-owned subsidiary, Arcturus Therapeutics, Inc., entering into a credit agreement for a $50.0 million revolving credit line. Moreover, the company secured a cost reimbursement contract with the Biomedical Advanced Research and Development Authority (BARDA) to support the development of a low-dose pandemic influenza candidate, with BARDA agreeing to reimburse permitted costs up to $63.2 million. Additionally, in 2021, Arcturus entered into technology license and technical support agreements with Vinbiocare, receiving an upfront payment of $40.0 million as part of the agreements.
Looking ahead, Arcturus anticipates utilizing a portion of its current cash balance to fund various activities, including the continued Phase 2 trial of its LUNAR-OTC candidate, advances to its LUNAR-CF program in clinical trials, and expenses incurred prior to customer payments under collaboration agreements. The company acknowledges the difficulty in forecasting future capital requirements but expresses its intent to seek additional capital through equity and/or debt financings, collaborative or other funding arrangements with partners, or other sources of financing when needed.
As a result of these announcements, the company's shares have moved -4.2% on the market, and are now trading at a price of $36.31. If you want to know more, read the company's complete 10-K report here.
