Arcutis Biotherapeutics (ARQT) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 net product revenues of $30.9 million, up 547% year-over-year and 43% sequentially, driven by strong prescription growth for ZORYVE cream and foam across multiple indications.

• ZORYVE cream 0.3% for plaque psoriasis generated $17.3 million and foam 0.3% for seborrheic dermatitis delivered $13.6 million in Q2 2024.

• Entered a co-promotion agreement with Kowa Pharmaceuticals to expand into primary care and pediatric markets, with revenue impact expected in 2025.

• Expanded ZORYVE portfolio with launches in psoriasis, seborrheic dermatitis, and atopic dermatitis, with a fourth indication pending FDA approval.

• Improved financial flexibility through a favorable loan amendment, equity raise, and new licensing deals.

Financial highlights

• Net product revenues for Q2 2024 were $30.9 million, compared to $4.8 million in Q2 2023 and $21.6 million in Q1 2024.

• Net loss for Q2 2024 was $52.3 million ($0.42 per share), improved from $71.0 million ($1.16 per share) in Q2 2023.

• R&D expenses decreased to $19.3 million from $25.2 million year-over-year; SG&A expenses rose to $58.2 million from $46.0 million.

• Cash, cash equivalents, and marketable securities totaled $363.1 million as of June 30, 2024.

• Net cash used in operating activities was $45.2 million in Q2 2024.

Outlook and guidance

• Sustained revenue growth expected in 2H 2024, supported by atopic dermatitis launch, expanding insurance coverage, and continued prescription demand.

• Anticipates further gross-to-net improvements, especially for ZORYVE foam, with cream approaching steady state.

• Kowa co-promotion and new product launches expected to contribute to revenue growth starting in 2025.