Goldman Sachs analyst Chris Shibutani maintained a Hold rating on Arcutis Biotherapeutics (ARQT – Research Report) today and set a price target of $6.00.
Chris Shibutani has given his Hold rating due to a combination of factors concerning Arcutis Biotherapeutics’ performance and market potential. The rating reflects moderate expectations for the company’s fourth-quarter earnings, with projected sales of Zoryve cream slightly surpassing consensus estimates. This projection is supported by a solid quarter-over-quarter growth in total prescriptions and management’s optimistic revenue growth statements. Additionally, improvements in gross-to-net (GTN) pricing are anticipated, although there remains debate regarding the extent of discounts and the pace at which management’s target discount levels will be reached.
Shibutani also considers the launch of Zoryve foam for seborrheic dermatitis to be a critical factor, noting significant interest from physicians and a patient population in need of new treatment options. However, sustainability of sales growth remains uncertain, prompting a need for further clarity on potential inflection points. The report anticipates further commentary on efforts to reduce operating expenses and the possibility of achieving self-sustainability without the need for additional financing. Despite minor updates to the financial model, the price target remains unchanged, leading to the decision to maintain a Neutral stance on Arcutis Biotherapeutics’ stock.
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Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ARQT in relation to earlier this year.
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Arcutis Biotherapeutics (ARQT) Company Description:
Arcutis Biotherapeutics, Inc. engages in the development and commercialization of treatments for dermatological diseases. Its piepline consists of topical treatments for plaque psoriasis, atopic dermatitis, eczema, vitiligo, alopecia areata, and seborrheic dermatitis. The company was founded by Bhaskar Chaudhuri and David W. Osborne on June 1, 2016 and is headquartered in Westlake Village, CA.
Read More on ARQT:
- Journal of the American Academy of Dermatology Publishes ZORYVE (roflumilast) Foam, 0.3% Results for Seborrheic Dermatitis from Pivotal Phase 3 Trial
- Arcutis Biotherapeutics announces launch of ZORYVE topical foam in U.S.
- Arcutis Biotherapeutics announces new individual patient response data
- Arcutis Biotherapeutics announces new subgroup analysis from STRATUM study
- Majority of Individuals with Atopic Dermatitis Improved with Arcutis’ Roflumilast Cream 0.15% According to New Data from Phase 3 Program
