Arcutis Biotherapeutics (ARQT) investor relations material

Market landscape and paradigm shift

• Topical therapies remain the standard of care for inflammatory skin conditions despite advances in biologics and systemic therapies.

• The market has been dominated by topical steroids for 70 years, but safety concerns are driving a shift toward advanced topical therapies.

• Advanced topical therapies, including Zoryve, are experiencing rapid growth, with the class growing 50% in volume year-over-year.

• Professional societies are increasingly highlighting the risks of topical steroids and advocating for advanced alternatives.

• The opportunity for advanced topicals is immense, with projected peak sales based on modest market share assumptions.

Pricing strategy and market access

• An orthogonal pricing strategy was adopted, launching at a lower price to optimize access and avoid payer barriers.

• Achieved high-quality commercial coverage, with 80% of patients able to access Zoryve with a single step.

• Priced below the CMS specialty drug threshold, resulting in strong Medicaid access and manageable copays.

• Medicare access has been challenging due to the Inflation Reduction Act, but expectations are for improvement by 2026.

• Ease of prescribing is a key strategy to drive habitual use among physicians.

Pediatric and new market opportunities

• Recent approval for atopic dermatitis in ages 2-5, with ongoing studies in younger age groups and psoriasis.

• Pediatric market is significant, as many AD patients are children and parents are wary of steroids.

• Lower age indications and partnerships in primary care expand reach into the pediatric segment.