Arcutis Biotherapeutics (ARQT) Goldman Sachs 45th Annual Global Healthcare Conference summary

Business evolution and product launches

• Focused on innovating in dermatology, targeting large markets with unmet needs, especially where biologics are less suitable.

• Launched first cream for plaque psoriasis in July 2022, showing strong clinician feedback and momentum.

• Foam for seborrheic dermatitis approved in December, with rapid uptake due to high unmet need and prior product familiarity.

• Awaiting FDA decision for atopic dermatitis cream (PDUFA July 7), with launch planned for later this summer.

• Planning to file for scalp psoriasis approval in Q3, leveraging clinical performance and expanding coverage.

Formulation strategy and patient experience

• Emphasizes formulation as a key differentiator, avoiding penetration enhancers and matching skin pH to improve efficacy and compliance.

• Designed products to be cosmetically elegant, non-irritating, and easy to use, enhancing patient adherence.

• Foam and cream presentations address specific patient needs and disease locations, with the foam particularly effective for scalp and seborrheic dermatitis.

• Clinical data show rapid itch relief and high efficacy, with 80% IGA success at week 8 for seborrheic dermatitis.

Commercialization, pricing, and access

• Pricing strategy aimed at broad access, securing both commercial and government (Medicare/Medicaid) coverage without sacrificing margin.

• Achieved significant wins in Medicaid (Florida, Texas) and expects further Medicare coverage this year.

• Gross-to-net has improved to low 60s, targeting steady state in the 50s by year-end, with foam and cream both progressing well.

• Direct-to-consumer marketing is part of the mix, but linear TV is not cost-effective for lower-priced drugs.

• Sampling is used for cream but not foam; avoids free drug and coupon programs to prevent dependency and ensure sustainable coverage.