Upgrading ARQT to buy due to explosive revenue growth, improving margins, and strong ZORYVE market adoption across multiple indications. ZORYVE now commands ~41% of non-steroidal topical psoriasis prescriptions, benefiting from dermatologist preference for steroid-sparing options and favorable insurance coverage. Key risks include fierce competition, potential generic entry, and single-asset dependency, but IP protections remain robust for now.
The average of price targets set by Wall Street analysts indicates a potential upside of 44.8% in Arcutis Biotherapeutics (ARQT). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Here is how Arcutis Biotherapeutics, Inc. (ARQT) and Tenet Healthcare (THC) have performed compared to their sector so far this year.
Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT ) Q2 2025 Earnings Conference Call August 6, 2025 4:30 PM ET Company Participants Frank Watanabe - Corporate Participant Latha Vairavan - Corporate Participant Patrick E. Burnett - Executive VP & Chief Medical Officer Todd Edwards - Corporate Participant Conference Call Participants Lin Tsai - Jefferies LLC, Research Division Richard J.
Arcutis Biotherapeutics, Inc. (ARQT) came out with a quarterly loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to a loss of $0.42 per share a year ago.
Upgrading Arcutis Biotherapeutics, Inc. from Hold to Buy due to Zoryve's strong regulatory and commercial momentum, with revenue and prescription growth exceeding expectations. Zoryve's expanding label, superior safety profile, and new foam formulation position it as a potential new standard of care in plaque psoriasis and atopic dermatitis. ARQ-255's upcoming Phase Ib results could unlock a first-in-class topical treatment for alopecia areata, adding long-term pipeline value.
Arcutis Biotherapeutics (ARQT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Arcutis Biotherapeutics' ZORYVE (roflumilast) offers superior efficacy and safety over current topical treatments for mild-to-moderate atopic dermatitis. The atopic dermatitis market is large and shifting away from steroids, positioning Arcutis to capture significant share, especially via primary care channels. Arcutis is financially strong, with over 30 months of cash runway and no anticipated need for equity dilution before reaching profitability in 2026.
Shares of Arcutis Biotherapeutics have fallen by 5% since my March update. Zoryve's 4th approval in scalp & body psoriasis should further boost sales and contribute to the "portfolio effect". IP developments suggest the company's protection for Zoryve, though related to formulation instead of composition of matter, is stronger than originally thought.
Arcutis Biotherapeutics stands out in biotech for its impressive factor grades, which are rare in this sector. The recent FDA approval of ZORYVE Topical foam opens a significant revenue and profitability opportunity for Arcutis. FDA approval removes a major risk, allowing the company to commercialize and market its drug after years of costly R&D.
Arcutis Biotherapeutics has de-risked significantly post-2023, with approvals, revenue growth and a clear path to cash flow breakeven by 2026. Recent financials show a temporary and insignificant revenue dip and rising costs, but cash reserves and market expansion support near term stability. Pipeline progress and strategic partnerships, especially with Kowa, could multiply ARQT's market reach and addressable patient base.