Arcutis Biotherapeutics (ARQT) 24th Annual Needham Virtual Healthcare Conference summary

Company overview and product portfolio

• Commercial-stage biotherapeutics company focused on medical dermatology with three FDA-approved products: cream for plaque psoriasis, foam for seborrheic dermatitis, and cream for atopic dermatitis.

• Two key regulatory decisions expected in 2024: PDUFA for foam in scalp/body psoriasis (May) and for eczema in younger children (October).

• Specialty sales force covers 90% of dermatology prescribing volume; partner Kowa covers primary care and pediatrics.

• Strong capital position, not anticipating need to raise additional funds for existing business.

Market dynamics and growth drivers

• 2024 marked by transformational growth, driven by foam launch and strong performance across all three products.

• 2025 growth expected from new launches in scalp/body psoriasis and atopic dermatitis (ages 2–5), plus expanding insurance coverage, especially Medicaid.

• Conversion from topical steroids to non-steroidal treatments is a major opportunity, with Zoryve positioned as the leading branded non-steroidal.

• Physician and patient push to move away from chronic steroid use is accelerating adoption.

Sales force and commercial partnerships

• Dermatology sales force expanded to 140 reps in 2023, covering majority of high-volume prescribers.

• Kowa partnership adds 220 reps in primary care/pediatrics, with Zoryve as first-position product; impact expected to grow through 2025.

• Kowa chosen for its dedicated sales force, willingness to prioritize Zoryve, and experience with co-promotions.