Arcutis Biotherapeutics Starts U.S. IPO Process

Summary

• Arcutis Biotherapeutics has filed to raise development capital from an IPO.
• The firm is advancing a pipeline of skin condition treatment candidates.
• ARQT expects next trial data readouts in 2021 from its promising lead candidate ARQ-151.
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Quick Take

Arcutis Biotherapeutics (NASDAQ:ARQT) has filed to raise $100 million in an IPO of its common stock, according to an S-1 registration statement.

The company is advancing a pipeline of drug treatment candidates for various chronic skin conditions.

ARQT is in Phase 3 trials for its lead candidate and expects top line data readout in 2021 for its most advanced programs.

I’ll provide an update when we learn more about the IPO’s valuation and pricing assumptions.

Company And Technology

Westlake Village, California-based Arcutis was founded to develop treatment for psoriasis and dermatitis skin conditions via topical creams and foams.

Management is headed by Todd Watanabe, who has been with the firm since 2017 and was previously Chief Operating Officer at Kanan Therapeutics, a cardiovascular drug development company and prior to that was VP - Strategy at Kythera Biopharmaceuticals.

Below is a brief overview video of chronic plaque psoriasis:

Source: Dermnet.com

The firm's lead candidate is ARQ-151, a PDE4 inhibitor for the treatment of both plaque psoriasis and atopic dermatitis.

Plaque psoriasis is a chronic autoimmune disease that creates patches of thick, red, scaly skin in various locations on the body.The status of the company's pipeline of treatments is shown below:

Source: S-1

Investors in the firm have invested at least $72.3 million and include Bain Capital Life Sciences, Frazier Life Sciences, and OrbiMed.

Market And Competition

According to a 2019 report by ResearchandMarkets, the global market for the treatment psoriasis conditions of all types is expected to reach $46.6 billion by 2022.

This represents a forecast CAGR (Compound Annual Growth Rate) of 11.5% from 2019 to 2022.

Key elements driving this expected growth are a rise in incidence of psoriasis among patients possibly attributed to climate changes, increased stress and unhealthy lifestyles. According to the WHO, more than 100 million people suffered

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.