10 Worst ARK Stocks To Buy According To Short Sellers

2. Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT)

Short Interest as % of  Shares Outstanding: 20.17%

Number of Hedge Fund Investors In Q2 2024: 19

Ark Invest’s Q2 2024 Stake: $47.8 million

Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) is a California based biotechnology firm that is in the late clinical stages for several drugs. Its two key treatments are ARCT-810 and ARCT-032. These drugs target ammonia buildup in the blood and cystic fibrosis. The fact that it is in late stage clinical trials removes some of the risk from Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT)’s that is present in other biotechnology companies. Amongst the two drugs, ARCT-032 is further ahead in the development pipeline, with the firm aiming to start a phase two study of the drug later this year. For ACT-810, the leading treatment among the two, Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) expects that data from an initial phase two trial in Europe should be available soon. Another drug that the firm is developing is ARCT-2301, which is a coronavirus treatment.

Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT)’s management shared key details for its licensing revenue during the Q2 2024 earnings call:

“Arcturus achieved a total of approximately $437.1 million in upfront payments and milestones from CSL as of June 30th, 2024.

We continue to expect to receive future milestone payments from CSL supporting the ongoing development of the COVID and flu programs and three additional vaccine programs by CSL. I am happy to report the expected cash runway extend through the first quarter of fiscal year 2027 based on the current pipeline and programs. In summary, we believe that the Company remains on a strong financial position and has the resources needed to achieve multiple near term value creating milestones for the vaccine and therapeutic programs. Furthermore, with the anticipated launch of Kostaive later this year in Japan, we look forward to beginning to report potential commercial milestones and revenues.”