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

Business overview and recent developments

• 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 is safe for indefinite use on any body location.

• Achieved nearly $65 million in Q1 revenue with 10% volume growth; Q2 growth continues.

• Growth drivers include label expansion, coverage expansion, primary care/pediatrics partnership, and shift from steroids to advanced non-steroidals.

• First patient enrolled in a trial for atopic dermatitis in ages 3-24 months; another approval expected in October for younger children.

Market trends and physician adoption

• Advanced topical therapies have shifted dermatology's approach since 2021, with increased momentum to reduce steroid use.

• Recent medical articles and presentations advocate for moving patients to advanced topicals.

• Branded non-steroidal market grew about 50% year-over-year, driven by new therapies.

Product performance and formulation strategy

• Initial cream launch in psoriasis was slow but improved; foam launch in seborrheic dermatitis exceeded expectations.

• Foam developed for hair-bearing areas like the scalp, offering flexibility for patient and physician choice.

• No significant cannibalization between cream and foam; both can be used synergistically.