What happened
Shares of Arcutis Biotherapeutics (ARQT 0.11%) climbed 21.2% for the week after rising as high as 23.8%, according to data provided by S&P Global Market Intelligence. The medical dermatology company's stock closed last week at $8.20 and rose to as high as $10.24 on Thursday. Arcutis' shares are down more than 32% so far this year.
So what
Arcutis focuses on treatments for inflammatory dermatological conditions, including scalp and body psoriasis, atopic dermatitis, seborrheic dermatitis, and alopecia areata. The healthcare stock's push this week coincided with an article in the British Journal of Dermatology that published data from Arcutis' phase 2b study of once-daily roflumilast foam made by Arcutis to treat scalp and body psoriasis. The study found a 59.1% response rate for the therapy compared to the control, with few side effects.
The company also received several updates from analysts recently, with Mizuho Securities maintaining a buy rating with a price target of $57. JonesTrading maintained a buy rating on the stock with a target of $44.
Now what
The company sees roflumilast as having a potential patient population of 13 million. The company is testing the therapy as a treatment for seborrheic dermatitis, atopic dermatitis, as well as scalp and body psoriasis. Zoryve (roflumilast cream) was approved last summer by the Food and Drug Administration (FDA) to treat plaque psoriasis. The FDA, in April, accepted the company's New Drug Application (NDA) for roflumilast foam. If approved by the FDA, the earliest launch of roflumilast foam would be to treat seborrheic dermatitis in the first half of 2024. The seven-year-old company reported $2.8 million in revenue from Zoryve in the first quarter but a net loss of $80.1 million due to increased marketing expenses. It also said it had $333.3 million in cash.
