Arcturus Therapeutics Announces First Quarter 2022 Financial Update and Pipeline Progress ARCT-154 booster data show 54- and 46-fold increases in neutralizing antibody response against Omicron BA.1 and BA.2 Investor conf

Therapeutics Announces First Quarter 2022 Financial Update and Pipeline Progress

ARCT-154 booster data show 54- and 46-fold increases

in neutralizing antibody response against Omicron BA.1 and BA.2

Investor conference call at 4:30 p.m. ET today

SAN DIEGO-(BUSINESS WIRE)-May 9, 2022 - Arcturus

Therapeutics Holdings Inc. (the "Company", "Arcturus",

Nasdaq: ARCT), a global late-stage clinical messenger RNA medicines company focused on the development of infectious disease vaccines

and significant opportunities within liver and respiratory rare diseases, today announced its financial results for the first quarter

ended March 31, 2022, and provided corporate updates.

first quarter of this year has been commemorated by several key achievements for Arcturus. Our self-amplifying mRNA platform has been

the first of its kind to demonstrate meaningful protection against COVID-19 disease in a pivotal primary vaccination trial," said

Joseph Payne, President and CEO of Arcturus Therapeutics. "In addition, ARCT-154 has shown promising booster data against all SARS-CoV-2

variants tested, including Omicron BA.1 and BA.2. We are expanding development activities of ARCT-154 into a global registrational

booster trial and expect to begin dosing soon."

Recent Corporate Highlights

https://covariants.org/per-country;

https://covid19.who.int/region/wpro/country/vn;

https://ourworldindata.org (Vietnam

Pseudovirus MNT assay (exploratory assay; Moore Laboratory, National

Institute for Communicable Diseases and University

of the Witwatersrand, South

Africa) showing GMFR levels of neutralizing antibody responses over Day 1 (baseline levels prior to boosting with ARCT-154) calculated

using geometric mean concentrations (with 95% confidence intervals) obtained from participants measured at Days 1 and 29 (n = 12/12).

Financial Results for the First Quarter Ended March 31, 2022

Revenues in conjunction with strategic alliances and collaborations:

Arcturus' primary sources of revenues were from consulting and related technology transfer fees, license fees and collaborative

payments received from research and development arrangements with pharmaceutical and biotechnology partners. Total revenue for the three

months ended March 31, 2022, was $5.2 million, compared with $2.1 million in the three months ended March 31, 2021, and $5.8 million for

the three months ended December 31, 2021. The increase in revenue during the three months ended March 31, 2022, when compared with the

three months ended March 31, 2021, is primarily due to the recognition of revenue from manufacturing technology transfer and clinical

consulting services provided that are related to the Vinbiocare agreement.

Operating expenses: Total operating expenses for the three months

ended March 31, 2022, were $55.6 million compared with $59.8 million for the three months ended March 31, 2021, and $43.4 million for

the three months ended December 31, 2021. The increase in operating expenses of $12.2 million sequentially was primarily due to the increase

in research and development expenses.

Research and development expenses: Research and development

expenses for the three months ended March 31, 2022, were $44.9 million compared with $50.0 million for the three months ended March 31,

2021, and $32.6 million for the three months ended December 31, 2021. The increase in the three months ended March 31, 2022, when compared

with the three months ended December 31, 2021, is primarily attributable manufacturing and quality runs for covid products and an increase

in costs associated with the start-up activities toward initiation of the booster trial. In January 2022, the Company entered into an

agreement with a pharmaceutical company, whereby the pharmaceutical company agreed to fund up to $25 million for a clinical trial for

a LUNAR-COV19 vaccine candidate as a booster.

Net Loss: For the three months ended March 31, 2022, Arcturus

reported a net loss of approximately $51.2 million, or ($1.94) per basic and diluted share, compared with a net loss of $56.3 million,

or ($2.15) per basic and diluted share in the three months ended March 31, 2021, and a net loss of $38.7 million, or ($1.47) per basic

and diluted share in the three months ended December 31, 2021.

Cash Position: Cash and cash equivalents were $319.7 million

as of March 31, 2022, and $370.5 million at December 31, 2021. Based on the current pipeline, the Company's cash position is expected

to be sufficient to support operations into late 2023.

About Arcturus Therapeutics

and based in San Diego, California, Arcturus Therapeutics

Holdings Inc. (Nasdaq: ARCT) is a global late-stage clinical mRNA medicines

and vaccines company with enabling technologies: (i) LUNAR lipid-mediated delivery, (ii) STARR mRNA Technology and (iii)

mRNA drug substance along with drug product manufacturing expertise. Arcturus' diverse pipeline of RNA therapeutic and vaccine

candidates includes mRNA vaccine programs for SARS-CoV-2 (COVID-19) and influenza, and other programs to potentially treat ornithine

transcarbamylase (OTC) deficiency, and cystic fibrosis along with partnered programs including glycogen storage disease type III (GSD

III), hepatitis B virus (HBV), and non-alcoholic steatohepatitis (NASH). Arcturus' versatile RNA therapeutics platforms can be

applied toward multiple types of nucleic acid medicines including messenger RNA, self-amplifying mRNA, small interfering RNA, circular

RNA, antisense RNA, microRNA, DNA, and gene editing therapeutics. Arcturus' technologies are covered by its extensive patent portfolio

(with patents and patent applications issued in the U.S., Europe, Japan, China and

other countries). Arcturus' commitment to the development of novel RNA therapeutics has led to collaborations with Janssen

Pharmaceuticals, Inc., part of the Janssen Pharmaceutical Companies of Johnson

& Johnson, Ultragenyx Pharmaceutical, Inc., Takeda Pharmaceutical Company Limited, CureVac AG, Duke-NUS Medical School,

and the Cystic Fibrosis Foundation. For more information visit www.ArcturusRx.com.

In addition, please connect with us on Twitter and LinkedIn.

contains forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the

Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact included in this press release,

are forward-looking statements, including those regarding strategy, future operations, the expectations for or likelihood of success

of any collaborations, the promise of the company's platform technologies for multiple types of nucleic acid medicines, the likelihood

of success (including safety and efficacy) of the Company's pipeline (including ARCT-154, ARCT-810, ARCT-032 and a STARR mRNA candidate

for influenza), the likelihood that any independent verification by Arcturus, or any regulatory body's assessment of, of data will

be consistent with the information shared by Vinbiocare from the ARCT-154 study in Vietnam, the likelihood that the clinical results

of ARCT-154 studies (including the efficacy, booster durability or other antibody responses), or any other non-clinical or clinical data,

will be predictive of future clinical results or efficacy, predictive of results against existing or future COVID variants, or sufficient

for any regulatory approval, the likelihood of regulatory clearance to proceed with, and the planned timing, design (including number

of participants), screening, enrollment, initiation or completion of, and data readouts of, a booster study of ARCT-154, a Phase 2 study

for ARCT-810, or any other clinical trials, the timing of interim data from the ARCT-810 study or any other data, the likelihood or timing

of an EUA or regulatory approval in Vietnam for ARCT-154 or for

any regulatory approval, the likelihood, and timing for, a filing to proceed with a clinical study of ARCT-032, the likelihood that a

patent will issue from any patent application, its financial projections, current cash position and expected cash burn and the impact

of general business and economic conditions. Arcturus may not actually achieve the plans, carry out the intentions or meet the expectations

or projections disclosed in any forward-looking statements such as the foregoing and you should not place undue reliance on such forward-looking

statements. These statements are only current predictions or expectations, and are subject to known and unknown risks, uncertainties,

and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially

different from those anticipated by the forward-looking statements, including those discussed under the heading "Risk Factors"

in Arcturus' most recent Annual Report on Form 10-K, and in subsequent filings with, or submissions to, the SEC,

which are available on the SEC's website at www.sec.gov.

Except as otherwise required by law, Arcturus disclaims any intention or obligation to update or revise any forward-looking statements,

which speak only as of the date they were made, whether as a result of new information, future events or circumstances or otherwise.

Trademark Acknowledgements

The Arcturus logo and other trademarks of Arcturus appearing in this

announcement, including LUNAR and STARR , are the property of Arcturus. All other trademarks, services marks, and trade names

in this announcement are the property of their respective owners.

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