Key points:
- Arcturus Therapeutics announced a collaboration with CSL Seqirus
- Arcturus will receive an upfront payment of $200m
- ARCT stock jumped 32%
Arcturus Therapeutics (NASDAQ: ARCT) stock jumped premarket Wednesday on the back of its announcement of a collaboration with CSL Seqirus.
The collaboration will see Arcturus work with CSL on the research, development, manufacturing, and global commercialization of vaccines.
Arcturus shares are up 32% at $24.15 before the start of Wednesday's session. They closed the previous session at $18.28 per share.
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As part of the deal, Arcturus will be paid $200 million upfront and more than $4 billion in potential development and commercial milestones, while there will also be a 40% profit sharing for Covid-19 vaccines, up to double-digit royalties for influenza, three additional respiratory infectious disease vaccines, and pandemic preparedness.
“We are excited to embark on this collaboration with CSL Seqirus, a respected world leader in the development, manufacture and commercialization of vaccines,” said Joseph Payne, President and CEO of Arcturus Therapeutics.
Following the news, Barclays analyst Gena Wang lifted Arcturus Therapeutics to Equal Weight from Underweight, raising the firm's price target on the stock to $25 from $16 per share. Wang described the deal as “favorable,” adding that it strengthens the company's near-term balance sheet, partially validates its RNA platform, and supports commercial upside.
Meanwhile, reacting to the announcement, Cantor Fitzgerald analyst Pete Stavropoulos boosted the firm's price target on Arcturus to $44 from $39, maintaining an Overweight rating. The analyst said the collaboration provides further external validation of the platform technologies and reduces execution risk.