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Monday, H.C. Wainwright reaffirmed its Buy rating and $19.00 price target for Arcutis Biotherapeutics Inc . (NASDAQ: NASDAQ:ARQT), currently trading at $14.37, emphasizing the strength of the recent open-label extension study data for Zoryve cream. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $19 to $29, suggesting significant upside potential. According to the firm, the study results underscore the cream’s durability and favorable tolerability profile as a treatment for atopic dermatitis (AD), particularly noting its potential for safe and long-term use in patients of various ages, including young children. The company’s impressive gross profit margin of 88% demonstrates strong operational efficiency in producing Zoryve.
The analyst from H.C. Wainwright highlighted the significance of the long-term data in promoting the use of Zoryve cream in both adults and children aged 6 and above, as well as the anticipation of its use in children aged 2-5 following approval. The firm expressed confidence in the upcoming Prescription Drug User Fee Act (PDUFA) decision for Zoryve cream 0.05%, which is scheduled for October 13, citing Arcutis’ successful history in achieving label expansions for the product.
The positive remarks from H.C. Wainwright come as a boon for Arcutis, as the company prepares for the PDUFA date. The analyst’s confidence in a timely approval is based on the company’s track record with Zoryve, which is currently awaiting the potential to expand its label to include a younger pediatric audience.
In the report, H.C. Wainwright remained optimistic about the future of Zoryve cream and its role in the treatment of AD. The firm’s reiterated Buy rating and price target reflect their belief in the product’s market potential and Arcutis’ ability to navigate the approval process successfully.
In other recent news, Arcutis Biotherapeutics announced that the U.S. Food and Drug Administration (FDA) has approved ZORYVE foam 0.3% for the treatment of plaque psoriasis, adding to its growing list of applications. This approval expands treatment options for both adults and children aged 12 and older, particularly benefiting those with scalp and body psoriasis. Analysts at H.C. Wainwright reiterated a Buy rating on Arcutis, maintaining a $19 price target, citing the versatility of ZORYVE foam in treating psoriasis. Meanwhile, Jefferies increased its price target for Arcutis to $20, following strong first-quarter ZORYVE product revenues of $63.8 million, surpassing expectations.
The company reported a 196% year-over-year increase in net product revenue for ZORYVE, despite a slight 2% decrease from the previous quarter due to typical insurance changes. Arcutis’ adjusted earnings per share for the first quarter came in at -$0.20, slightly better than analyst projections. The company highlighted the continued demand growth for ZORYVE, with over 425,000 prescriptions filled since its launch. Additionally, Arcutis anticipates further growth, with a Prescription Drug User Fee Act (PDUFA) action date set for May 2025 for ZORYVE foam 0.3% for plaque psoriasis.
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