Arcturus Therapeutics Streamlines Operations, Refocuses on mRNA Therapeutics

San Diego-based RNA biotech Arcturus Therapeutics has announced a strategic shift in its operations, prioritizing its mRNA therapeutics pipeline while scaling back early-stage vaccine programs. The move, revealed in the company's first-quarter financial results, aims to extend Arcturus' cash runway and streamline resources in response to current market conditions.

Prioritizing Key Programs

Arcturus CEO Joseph Payne stated that the company has "made a strategic decision to streamline resources to focus on our mRNA therapeutics pipeline." This decision primarily affects early-stage vaccine programs, including those targeting chlamydia, gonorrhea, and Lyme disease.

The company will now concentrate on two critical programs:

1. ARCT-032: An inhaled cystic fibrosis treatment expected to yield phase 2 data later this year.
2. ARCT-810: An intravenous mRNA therapeutic currently in midstage testing for ornithine transcarbamylase deficiency.

CFO Andrew Sassine emphasized the difficulty of the decision, stating, "It was not an easy decision ... but, as you know in this environment, I think it was very prudent for us to focus on our two most critical programs."

Financial Implications and Future Outlook

The strategic realignment is expected to significantly extend Arcturus' financial runway. Sassine revealed that the company's cash reserves are now projected to last until the first quarter of 2028, a considerable extension from previous forecasts.

Analysts at Citi praised the move as a "smart decision," noting that the discontinued programs had "low [return on investment] visibility." The decision also involved some cost reductions, including the elimination of early development in R&D programs and consolidation of facilities.

Ongoing Vaccine Development

Despite the shift away from early-stage vaccine programs, Arcturus' work on mRNA COVID-19 vaccines appears to be continuing. The company anticipates filing for potential FDA approval in 2026, with its CSL Seqirus-partnered COVID vaccine, Kostaive, already approved in Europe.

Additionally, Arcturus has been developing LUNAR-H5N1 (ARCT-2304), a self-amplifying mRNA vaccine for bird flu. This project, which entered phase 1 testing in December, is fully funded by a Biomedical Advanced Research and Development Authority (BARDA) contract worth up to $63 million. However, the status of this program following the recent restructuring remains unclear.