Arcutis Biotherapeutics (ARQT) TD Cowen 46th Annual Health Care Conference summary

Financial performance and growth

• Achieved $127.5 million in Q4 net revenue, exceeding consensus by $15 million, and $372 million for the year, with TRX doubling year-over-year.

• Portfolio-wide growth in Q4, with 19% demand growth and gross-to-net maintained in the 50s; expecting typical seasonality in Q1 2026.

• Cash flow breakeven reached last quarter, with commitment to maintain positive cash flow and operating leverage as top-line grows faster than expenses.

• Profitable in Q3 and Q4, with profits expected to fluctuate due to non-cash items, but cash management remains a priority.

Commercial strategy and market expansion

• Holds nearly 50% of the branded nonsteroidal topical market, with strong execution and additional product approvals in 2025.

• Dermatology sales force expanding by 30 representatives to 160, targeting mid-decile prescribers for broader reach.

• Building a dedicated primary care and pediatric sales force, starting with a pilot of 30, aiming for impact in the back half of the year.

• Partnership with PGA golfer Max Homa to raise awareness for seborrheic dermatitis and ZORYVE.

• Medicare formulary win gives access to one-third of Medicare lives, with plans to expand further in 2026-2027.

Product pipeline and R&D updates

• NDA filing for ZORYVE in infants (3-24 months) planned for Q2, with anticipated approval for plaque psoriasis in ages 2-5 by end of June.

• Ongoing Phase II trials in hidradenitis suppurativa (HS) and vitiligo, with promising early case reports; POC studies to guide further development.

• ARQ-234, a novel atopic dermatitis treatment, entering the clinic this quarter, targeting immune checkpoint agonism for potential disease remission.

• Additional POC studies in other indications planned for 2024, with prioritization based on clinical promise.