Guggenheim maintains Buy rating on Arcutis Biotherapeutics stock amid prescription growth

Published 21/07/2025, 12:58
Guggenheim maintains Buy rating on Arcutis Biotherapeutics stock amid prescription growth

Investing.com - Guggenheim has reiterated a Buy rating and $29.00 price target on Arcutis Biotherapeutics Inc . (NASDAQ:ARQT), representing a potential 98% upside from current levels for the $1.75 billion market cap company. According to InvestingPro data, the stock is currently trading below its Fair Value, with impressive gross profit margins of 88%.

Total (EPA:TTEF) Zoryve franchise prescriptions reached 16,289 for the week ending July 11, up from 14,764 the previous week, according to data cited by Guggenheim. Zoryve foam prescriptions increased to 8,040 from 7,443, while Zoryve 0.3% cream prescriptions rose to 4,834 from 4,249.

Zoryve 0.15% cream, which launched the week of July 29, 2024, saw prescriptions increase to 3,415 for the week ending July 11 from 3,072 the prior week. New-to-brand prescriptions for the total Zoryve franchise were 6,365 for the week ending July 4, down from 7,651 the previous week.

Guggenheim noted that IQVIA has restated prior period demand estimates, resulting in downward revisions for multiple products including Zoryve. The firm also pointed out that week-over-week prescription comparisons were impacted by the July 4th holiday. Get deeper insights into ARQT’s financial health, valuation metrics, and comprehensive analysis with a InvestingPro subscription, which includes exclusive access to the detailed Pro Research Report.

The Zoryve product line has expanded over the past year, with Zoryve foam for scalp and body receiving approval on May 27, 2025, following the seborrheic dermatitis launch in January 2024 and the 0.15% cream atopic dermatitis launch in July 2024. The company maintains a strong liquidity position with a current ratio of 3.55, operating with moderate debt levels.

In other recent news, Arcutis Biotherapeutics has received approval from the U.S. Food and Drug Administration (FDA) for Zoryve foam 0.3% to treat plaque psoriasis on the scalp and body in individuals aged 12 and older. This marks the fifth approval for Zoryve in less than three years, offering new treatment options for those affected by plaque psoriasis. Clinical trials have shown that Zoryve foam provides significant improvements in psoriasis symptoms, including rapid itch relief, with a favorable safety profile. In a Phase 3 study published in JAMA Dermatology, over 66% of participants achieved significant improvement in scalp psoriasis symptoms after eight weeks of treatment with Zoryve foam.

Morgan Stanley (NYSE:MS) has assumed coverage of Arcutis Biotherapeutics with an Overweight rating, setting a price target of $20. The firm highlighted the potential market share gains for Zoryve cream and foam in the dermatology sector. H.C. Wainwright also reiterated its Buy rating and $19 price target, emphasizing the strength of recent study data for Zoryve cream in treating atopic dermatitis. The firm expressed confidence in the upcoming Prescription Drug User Fee Act (PDUFA) decision for Zoryve cream 0.05%, anticipated on October 13, based on Arcutis’ track record in achieving label expansions. These developments underscore the growing recognition of Arcutis’ products in the dermatology field.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.