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On Tuesday, H.C. Wainwright analysts reiterated their Buy rating and maintained a $19 price target on Arcutis Biotherapeutics Inc . (NASDAQ:ARQT), which currently trades below its InvestingPro Fair Value. The reaffirmation follows the recent FDA approval of Zoryve foam 0.3%, which expands its application for psoriasis treatment. The stock has shown impressive performance with a 65% return over the past year, despite its volatile nature.
The analysts noted that Zoryve foam, now approved for treating plaque psoriasis on the scalp and body in adults and adolescents aged 12 and older, enhances the drug’s versatility. The foam formulation is particularly beneficial for application in hair-bearing areas, offering an alternative to creams and ointments without the need for daily shampooing. With an impressive gross profit margin of 88% and revenue growth of 100% in the last twelve months, the company’s $1.61 billion market cap reflects strong market confidence. Get deeper insights into ARQT’s financial health with a comprehensive Pro Research Report, available exclusively on InvestingPro.
Zoryve has been gaining traction due to its rapid onset of action and tolerability. The recent approval for scalp and body psoriasis is expected to sustain the growth trajectory of the Zoryve franchise, though not at the explosive rate seen with its initial approval for seborrheic dermatitis.
Arcutis is extending its existing contracts with pharmacy benefit managers and payers for seborrheic dermatitis to include psoriasis. The company anticipates that coverage for psoriasis will commence soon, as no additional contracting or negotiations are required.
In other recent news, Arcutis Biotherapeutics, Inc. reported impressive first-quarter 2025 financial results, with revenue reaching $65.8 million, surpassing the consensus estimate of $63.66 million. The net product revenue for ZORYVE, a topical treatment for inflammatory skin conditions, was $63.8 million, marking a 196% year-over-year increase. However, this represented a slight 2% decrease from the previous quarter, attributed to typical first-quarter deductible resets and insurance changes. Despite this dip, Jefferies maintained a Buy rating on Arcutis and raised the stock target to $20, acknowledging the promising outlook for second-quarter prescriptions.
The U.S. Food and Drug Administration (FDA) recently approved ZORYVE foam 0.3% for treating plaque psoriasis in adults and children aged 12 and older, marking its fifth approval in under three years. Clinical trials have shown significant improvements in psoriasis symptoms, with a high percentage of participants achieving success in global assessments. Additionally, a Supplemental New Drug Application for ZORYVE foam is under FDA review, with a decision expected in May 2025. Arcutis continues to focus on expanding treatment options for the nearly 9 million Americans affected by plaque psoriasis.
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