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Investing.com -- Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) reported first quarter 2025 financial results that exceeded analyst expectations for revenue, but the stock fell 6.9% following the announcement.
The biopharmaceutical company posted revenue of $65.8 million, surpassing the consensus estimate of $63.66 million. Net product revenue for ZORYVE, its topical treatment for inflammatory skin conditions, reached $63.8 million, representing a 196% increase YoY. However, this marked a 2% sequential decrease from the fourth quarter of 2024, which the company attributed to typical first-quarter deductible resets and insurance changes.
Adjusted earnings per share came in at -$0.20, slightly better than the -$0.21 analysts had projected. Despite the revenue beat and narrower-than-expected loss, investors appeared to focus on the sequential revenue decline and ongoing net losses.
"In the first quarter we again delivered excellent performance driven by strong demand growth for our ZORYVE portfolio," said Frank Watanabe, President and CEO of Arcutis. He highlighted the company’s broad commercial coverage and expanding Medicaid coverage, with over 50% of recipients now having access to ZORYVE.
The company reported continued demand growth of 10% for ZORYVE, solidifying its position as the most prescribed branded non-steroidal topical treatment across three major inflammatory skin conditions. Over 425,000 prescriptions for ZORYVE cream have been filled since launch by more than 18,000 unique prescribers.
Arcutis maintains a positive outlook, citing multiple upcoming catalysts including potential additional indications for ZORYVE. The company has a PDUFA action date of May 22, 2025 for ZORYVE foam 0.3% in the treatment of plaque psoriasis of the scalp and body.
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