Strong Buy Rating for Arcutis Biotherapeutics Driven by Zoryve’s Growth and Market Expansion

H.C. Wainwright analyst Douglas Tsao has reiterated their bullish stance on ARQT stock, giving a Buy rating today.

Douglas Tsao has given his Buy rating due to a combination of factors including the strong performance and growth potential of Arcutis Biotherapeutics’ product, Zoryve. The successful launch of Zoryve in both foam and cream formulations has significantly boosted sales, with a notable increase in net product revenue for the fourth quarter. This growth is attributed to Zoryve’s unique position as the only topical PDE4 inhibitor available in multiple formulations, catering to major inflammatory skin conditions such as plaque psoriasis, atopic dermatitis, and seborrheic dermatitis.
Moreover, the diverse formulations of Zoryve provide dermatologists with flexible treatment options, enhancing its appeal and leading to high refill rates, which indicate strong patient satisfaction. The expansion of insurance coverage further broadens Zoryve’s market reach, and management anticipates continued revenue growth driven by new indications and expanded coverage. Additionally, upcoming FDA approvals for new indications are expected to sustain the momentum, making Zoryve a preferred non-steroidal topical treatment in the US market.

In another report released today, Needham also maintained a Buy rating on the stock with a $20.00 price target.

Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ARQT in relation to earlier this year.