Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Arcturus Therapeutics Stock Soared Today

By Keith Speights - Nov 10, 2020 at 3:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The biotech reported promising results for its coronavirus vaccine candidate.

What happened

Shares of Arcturus Therapeutics Holdings ( ARCT 5.30% ) were soaring 12.7% higher as of 3:28 p.m. EST on Tuesday. The big jump came after the clinical-stage biotech provided its third-quarter update following the market close on Monday. Investors were less interested in Arcturus' financial results than they were in the company's encouraging interim phase 1/2 results for its coronavirus vaccine candidate ARCT-021.

So what

There's no question that ARCT-021 looked promising based on the company's interim phase 1/2 results. What's especially attractive is that it could be effective at low doses.

Gloved hands holding syringe and vaccine bottle

Image source: Getty Images.

Investors' excitement about Arcturus' third-quarter update comes hot on the heels of Pfizer and BioNTech reporting efficacy of 90% or greater for their experimental coronavirus vaccine BNT162b2 on Monday. Both ARCT-021 and BNT162b2 use messenger RNA (mRNA). The apparent success for BNT162b2 could bode well for Arcturus' COVID-19 vaccine candidate.

It's important not to get too carried away just yet, though. Arcturus hasn't advanced ARCT-021 to late-stage clinical testing yet. There are several key hurdles to jump before we know if the experimental vaccine is safe and effective. Also, just because another mRNA-based vaccine achieved impressive results doesn't guarantee that ARCT-021 will follow suit.

Now what

Arcturus plans to talk with regulatory authorities in Singapore this week about its design for a late-stage study of ARCT-021. The company also stated that it will engage with the U.S. Food and Drug Administration about advancing the experimental vaccine to late-stage testing "very shortly." With the promising early results for ARCT-021, the biotech stock appears to be one for aggressive investors to keep on their radars.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Arcturus Therapeutics Holdings Inc. Stock Quote
Arcturus Therapeutics Holdings Inc.
$39.75 (5.30%) $2.00
Pfizer Inc. Stock Quote
Pfizer Inc.
$53.73 (2.54%) $1.33
BioNTech SE Stock Quote
BioNTech SE
$351.74 (-2.97%) $-10.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.