GICS Sector : Healthcare
Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases.Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis.The company is also developing ARQ-154, a topical foam formulation of roflumilast for the treatment of seborrheic dermatitis and scalp psoriasis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; and ARQ-255, a topical formulation of ARQ-252 designed to reach deeper into the skin in order to treat alopecia areata.
The company's financial performance in Q3 2025 was impressive, with net product revenues reaching $99.2 million, reflecting a 22% sequential growth and a 122% increase compared to the same quarter of 2024. The earnings per share (EPS) came in at $0.06, beating estimates of -$0.1. The revenue growth was driven by the increasing adoption of the ZORYVE portfolio by both patients and clinicians across all approved indications. The company's cash and marketable securities balance as of September 30, 2025, stood at $191 million, with total debt of $108.5 million.
Publication Date: Nov -19
The company's financial results were bolstered by the strong performance of ZORYVE, particularly in the foam product, which increased by more than 25% versus the prior quarter. The company's guidance for cash flow breakeven in Q4 2025 is expected to be driven by the continued momentum of ZORYVE net sales growth, combined with expense discipline. Analysts estimate next year's revenue growth at 30.7%.
To understand what's priced into the stock, we can look at various valuation metrics. The current P/S Ratio is 10.51, indicating that the stock may be overvalued relative to its sales. The EV/EBITDA ratio is -137.79, suggesting that the company's enterprise value is not justified by its earnings before interest, taxes, depreciation, and amortization. The ROE is -29.69%, indicating that the company is not generating profits from shareholders' equity.
ZORYVE's unique profile, with its pleotropic mechanism of action and variety of formulations, positions it as a leading treatment option for patients with immune-mediated inflammatory skin conditions. The company is expanding its commercial efforts to primary care and pediatric settings, where over 13 million topical prescriptions are written annually. With a targeted high-frequency approach, ZORYVE is poised to drive adoption among high-volume prescribers and ultimately, growth.
The company is also making progress in its pipeline, with ARQ-234, a CD200R agonist, showing promise in atopic dermatitis. The company is evaluating externally sourced assets and is prioritizing dermatology, but not limiting itself to it. The company's focus on achieving cash flow breakeven in Q4 2025 and its flexibility with its debt facility will be crucial in driving growth.
The market opportunity for ZORYVE is significant, with the company poised to capture a larger share of the topical anti-inflammatory market. The company's confidence in reaching its peak sales guidance is based on several factors, including the increased focus on stewardship of topical steroids, expansion into new treatment settings, and incremental data generation. As the company continues to execute on its strategy, it is well-positioned to drive growth and create value for shareholders.
Is the Options Market Predicting a Spike in Arcutis Biotherapeutics Stock?
Dec -02
Why Shares in Arcutis Biotherapeutics Surged Again This Week
Nov -21
Campbell & CO Investment Adviser LLC Lowers Holdings in Arcutis Biotherapeutics, Inc. $ARQT
Nov -18
Arcutis Biotherapeutics, Inc. (ARQT) Recently Broke Out Above the 20-Day Moving Average
Nov -17
FDA Accepts Supplemental New Drug Application for Arcutis' ZORYVE® (roflumilast) Cream 0.3% for the Treatment of Plaque Psoriasis in Children Ages 2 to 5
Nov -17
PGIM Jennison Health Sciences Fund Q3 2025 Contributors And Detractors
Nov -16
CrowdStrike Leads Five Stocks To Watch Near Buy Points
Nov -15
Arcutis Completes Enrollment in INTEGUMENT-INFANT Phase 2 Study Evaluating ZORYVE® (roflumilast) Cream 0.05% in Infants with Atopic Dermatitis
Nov -13
Arcutis Biotherapeutics' 8.9% growth in dermatological treatments is driven by increasing demand for topical treatments, rising prevalence of skin conditions, and a growing elderly population. Additionally, the company's innovative pipeline, strategic partnerships, and expanding commercial presence contribute to its growth momentum.
ARQ-151 is a topical cream for the treatment of plaque psoriasis, atopic dermatitis, and other inflammatory skin conditions.
ARQ-252 is a topical cream for the treatment of chronic inflammatory skin conditions, including atopic dermatitis and psoriasis.
Arcutis Biotherapeutics, Inc. has a moderate threat of substitutes due to the presence of alternative treatments and therapies for skin conditions and diseases.
Arcutis Biotherapeutics, Inc. has a low bargaining power of customers due to the specialized nature of its products and the lack of substitutes.
Arcutis Biotherapeutics, Inc. has a moderate bargaining power of suppliers due to the presence of multiple suppliers for raw materials and equipment.
Arcutis Biotherapeutics, Inc. has a high threat of new entrants due to the growing demand for skin care products and the relatively low barriers to entry in the industry.
Arcutis Biotherapeutics, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 69.55% |
| Debt Cost | 9.86% |
| Equity Weight | 30.45% |
| Equity Cost | 9.86% |
| WACC | 9.86% |
| Leverage | 228.42% |
Value: 6.2
Growth: 7.0
Quality: 5.5
Yield: 0.0
Momentum: 9.5
Volatility: 1.7
1-Year Total Return ->
Value: 9.6
Growth: 6.9
Quality: 3.5
Yield: 0.0
Momentum: 0.0
Volatility: 2.0
1-Year Total Return ->
Value: 7.2
Growth: 5.0
Quality: 5.8
Yield: 0.0
Momentum: 1.5
Volatility: 0.3
1-Year Total Return ->
Value: 6.6
Growth: 3.6
Quality: 4.8
Yield: 0.0
Momentum: 1.5
Volatility: 2.7
1-Year Total Return ->
Value: 8.6
Growth: 5.4
Quality: 3.8
Yield: 0.0
Momentum: 0.5
Volatility: 0.7
1-Year Total Return ->
Value: 6.6
Growth: 3.2
Quality: 4.4
Yield: 0.0
Momentum: 2.0
Volatility: 0.3
1-Year Total Return ->