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Mizuho has upgraded Arcutis Biotherapeutics (NASDAQ:ARQT) to buy, citing sales of the company’s drug Zoryve.
Mizuho said that recent adoption trends for Zoryve in the treatment of psoriasis have been better than expected, which increases confidence in the drug’s upcoming launch for seborrheic dermatitis. It also believes Zoryve 2024 sales estimates are now "reasonable," and that a November price increase raises confidence in the company’s ability to hit its 2024 sales forecast.
The Japanese investment bank added that a "key risk" is the company’s additional dilutive financing needs, but that they could be “mitigated with potential non-dilutive upfront payments from an expected Japanese out-licensing deal and a commercial partnership for atopic dermatitis in the primary care setting.”
Mizuho raised its price target for the stock to $8 from $4.
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