Arcutis Biotherapeutics (ARQT) Morgan Stanley 24th Annual Global Healthcare Conference summary

Company evolution and commercial performance

• Celebrated 10-year anniversary, growing from 3 employees to 450 and a ~$3B market cap.

• ZORYVE is now cash flow positive, enabling reinvestment in the business and pipeline.

• Q2 ZORYVE franchise sales reached $130M, up 23% sequentially, with foam formulation driving over half of sales.

• Raised full-year sales guidance to $525M–$540M, expecting Q4 to be the strongest quarter due to seasonality.

• Dermatology sales force expanded from 130 to 160, with primary care and pediatric teams launched; impact expected in 2027.

Product differentiation and market trends

• ZORYVE offers steroid-like efficacy with improved safety, suitable for long-term, full-body use.

• Foam formulation uniquely addresses hair-bearing areas, contributing to rapid adoption and high patient satisfaction.

• Branded non-steroidal topicals have grown from 2% to nearly 10% of the market, with ZORYVE nearing 50% share in this segment.

• Nurse practitioners and PAs now prescribe over half of medical dermatology treatments and are highly receptive to ZORYVE.

Growth drivers and forward outlook

• Investments in sales force, primary care, marketing, and DTC initiatives are expected to sustain and accelerate growth.

• AI partnerships are improving prescription workflow, and TeleDerm platform enables rapid patient access to dermatologists.

• Peak ZORYVE sales are projected at $2.5B–$3B, with current penetration at 3.5% and a target of 15–20%.

• Robust commercial reimbursement achieved; Medicaid and Medicare access expanding, with further progress expected in 2025.