Arcturus Therapeutics Stock Plunges Over 58% Today: What’s Causing The Sell-Off?

• The company said that treatment-related adverse events were observed in the study for the first few doses but ceased with continuous dosing.
• The Data Monitoring Committee found no convincing evidence that the serious adverse event is related to ARCT-032 and approved the study to proceed.
   

Arcturus Therapeutics Holdings (ARCT) on Wednesday announced interim results from a mid-stage trial of its ARCT-032 therapy in people with cystic fibrosis.

In a cohort of the study, six patients with cystic fibrosis received inhaled 10 mg doses of ARCT-032 daily over 28 days.

What’s Driving Down The Stock?

The company reported that treatment-related adverse events were observed in the study during the initial doses but ceased with continuous dosing.

However, the Data Monitoring Committee found no convincing evidence that the serious adverse event is related to ARCT-032 and approved the study to proceed, the company said. One treatment-related adverse event also occurred in a participant after the end of the dosing period, it said. Furthermore, the treatment was generally safe and well-tolerated, the company added.

However, shares of the company fell 58% on Wednesday. On Stocktwits, retail sentiment around ARCT stock rose from ‘bearish’ to ‘extremely bullish’ over the past 24 hours, while message volume rose from ‘low’ to ‘high’ levels.

What Are The Firm’s Plans Ahead?

Arcturus noted on Wednesday that an expanded third cohort is ongoing. The company aims to enroll up to six subjects in the cohort if there is a dose escalation response at 15 mg and if ARCT-032 continues to be generally safe and well-tolerated.

The company also said that it intends to kickstart a 12-week safety and preliminary efficacy study in up to 20 cystic fibrosis participants in the first half of 2026.

Cystic fibrosis (CF) is an inherited genetic disorder that causes thick, sticky mucus to build up in the body's organs, primarily affecting the lungs and pancreas. It is caused by mutations in the cystic fibrosis transmembrane conductance regulator (CFTR) gene.

“We are particularly encouraged by the early signals of mucus plug reduction in Class I CF participants treated with ARCT-032 because Class I CF individuals do not produce CFTR and therefore do not respond to available CFTR modulator therapy.”

— Juergen Froehlich, Chief Medical Officer, Arcturus

ARCT stock is down 43% this year and 51% over the past 12 months.

Read also: Tesla To Recall Nearly 13,000 Vehicles In US, But Retail Has Its Eyes Set On Q3 Earnings

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on