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Brookline starts Arcturus Therapeutics at buy; PT $25

Brookline Capital Markets launched coverage of Arcturus Therapeutics (NASDAQ:ARCT) with a “buy” rating and price target of $25. The stock closed at $11.80 on July 24.

Arcturus is developing RNA-based therapies leveraging its LUNAR liposome- mediated delivery platform to generate RNA therapeutics with unique characteristics.

The company also has a modified RNA platform with unlocked nucleobase monomers, called UNA, which can be used for making therapeutic RNA candidates. It has several partnerships in multiple disease areas, with high unmet need, which can generate significant value, writes analyst Kumaraguru Raja.

“Arcturus is an early-stage company but has immense value in its multiple partnerships,” he added.

The company is developing candidates for rare diseases and other important markets, with ornithine transcarbamylase deficiency (OTCD), cystic fibrosis (CF), glycogen storage disease 3, hepatitis B and NASH each representing significant and unmet medical needs. “We see a favorable risk reward, even with low probability of success,” Mr. Raja said.

An IND submission for ARCT-810 for the treatment of OTCD is expected in the first quarter of 2020 and for LUNAR-CF in the first half of 2020, he added.

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