Arcutis Biotherapeutics (ARQT) Goldman Sachs 46th Annual Global Healthcare Conference summary

Business overview and product updates

• Celebrated nine years in business with five FDA-approved indications for a potent topical PDE4 inhibitor, including recent foam approval for scalp and body psoriasis.

• Product offers efficacy comparable to high-potency steroids but with long-term safety, addressing a key unmet need in dermatology.

• Achieved $65 million in Q1 revenue with 10% volume growth; Q2 growth continues, driven by label expansion, coverage, and market shift from steroids.

• Recent launch of foam for seborrheic dermatitis exceeded expectations due to unmet need; scalp indication launched recently with high physician enthusiasm.

• Four main growth drivers: label expansion, coverage expansion, primary care/pediatrics partnership, and shift from steroids to advanced non-steroidals.

Market trends and physician adoption

• Advanced non-steroidal topicals have shifted dermatology practice since 2021, with growing momentum to reduce steroid use.

• Dermatologists increasingly advocate for advanced topicals as first-line for chronic conditions, supported by recent publications and presentations.

• Branded non-steroidal topical market grew 50% year-over-year from a low base, with significant conversion opportunity from steroids.

Product differentiation and formulation strategy

• Foam formulation developed for hair-bearing areas like the scalp, offering flexibility and improved patient experience.

• Cream and foam are used complementarily; stable cream users unlikely to switch, but foam preferred for scalp or body hair.

• Profitability is consistent across SKUs, with growth focus on overall franchise rather than individual product cannibalization.