Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), a late-stage
biopharmaceutical company focused on developing and commercializing
treatments for unmet needs in immune-mediated dermatological
diseases and conditions, or immuno-dermatology, today reported
financial results for the quarter ended September 30, 2020,
and provided a business update.
“Arcutis is rapidly advancing an innovative and
differentiated late-stage pipeline of potential best-in-class
topical dermatology therapies, with five important clinical data
readouts anticipated by mid-2021,” said Frank Watanabe, Arcutis’
President and Chief Executive Officer. “We expect to report topline
data from our pivotal Phase 3 trials evaluating roflumilast cream
as a potential once daily topical treatment for plaque psoriasis in
the first quarter of next year and, if positive, anticipate
submission of our New Drug Application to the U.S. Food and Drug
Administration (FDA) by the end of 2021. If approved, we
believe roflumilast cream has the potential to eliminate the need
for dermatologists and patients to compromise between efficacy and
safety. Our focus on addressing the gap in dermatology drug
development currently includes four product candidates in
development for seven indications, with an addressable U.S. market
of over 20 million patients.”
Pipeline Update
ARQ-151 (topical
roflumilast cream) - a highly potent and selective
phosphodiesterase type 4 (PDE4) inhibitor in a cream formulation,
being developed as a potential treatment for plaque psoriasis,
including intertriginous psoriasis, and atopic dermatitis.
- Completed enrollment in the two on-going pivotal Phase 3
clinical trials (DERMIS-1 and-2) in patients with plaque psoriasis,
with topline data anticipated in the first quarter of 2021.
- On-going Phase 2 long-term safety study in plaque
psoriasis has completed enrollment, with topline data anticipated
in the first quarter of 2021. In July, the Company announced
positive preliminary efficacy and safety data for the first patient
cohort from this study.
- Results from the positive Phase 1/2a trial of ARQ-151 for the
treatment of chronic plaque psoriasis were published in the Journal
of Drugs in Dermatology.
- Based on FDA feedback from an End-of-Phase 2 meeting, the
Company expects to begin pivotal Phase 3 trials of ARQ-151 in
patients with atopic dermatitis in late 2020 or early 2021.
ARQ-154 (topical roflumilast foam) - a
highly potent and selective phosphodiesterase type 4 (PDE4)
inhibitor in a foam formulation, designed to overcome the
challenges of delivering topical drugs in hair-bearing areas of the
body, being developed as a potential treatment for seborrheic
dermatitis and scalp psoriasis.
- Reported positive topline data from Phase 2 clinical trial in
seborrheic dermatitis, supporting pipeline advancement in an
indication that impacts 10 million patients in the U.S.
- Ongoing Phase 2b study in scalp psoriasis has completed
enrollment, with topline data anticipated by the end of 2020.
ARQ-252 - a potent and highly selective
topical small molecule inhibitor of Janus kinase type 1 (JAK1),
being developed as a potential treatment for chronic hand eczema
and other inflammatory dermatoses.
- Completed enrollment of the ongoing Phase 1/2b study in chronic
hand eczema, with topline data anticipated by mid-2021.
- The Company anticipates initiating a Phase 2a study in vitiligo
in late 2020 or early 2021.
ARQ-255 - an alternative topical
formulation of ARQ-252 designed to reach deeper into the
skin in order to potentially treat alopecia areata.
- Formulation and preclinical efforts are underway.
Recent Corporate Highlights
- Bethany Dudek joined the Company as Vice President,
Quality
- Completed underwritten public offering and concurrent private
placement of common stock with gross proceeds of $135 million.
Third Quarter 2020 Summary Financial
Results
Cash, cash equivalents and marketable
securities were $189.7 million as of
September 30, 2020, compared to $101.3 million as of
December 31, 2019. Arcutis believes that its current cash,
cash equivalents and marketable securities at over $300 million,
including the $128.4 million net proceeds from our recent
financing, will be sufficient to fund its operations into 2022.
Research and development (R&D)
expenses for the quarter ended September 30,
2020 were $32.7 million compared to $12.3 million for the
corresponding period in 2019. R&D expenses for the nine months
ended September 30, 2020 were $87.9 million compared to $25.8
million for the corresponding period in 2019. These year-over-year
increases were primarily due to the initiation of multiple clinical
trials during the last year.
General and administrative (G&A)
expenses for the quarter ended September 30,
2020 were $5.6 million compared to $2.3 million for the
corresponding period in 2019. G&A expenses for the nine months
ended September 30, 2020 were $14.6 million compared to $4.4
million for the corresponding period in 2019. These year-over-year
increases were primarily due to higher headcount and professional
services costs, including the costs associated with being a public
company.
Net loss was
$38.2 million, or $1.01 per basic and diluted share, for the
quarter ended September 30, 2020 compared to
$14.5 million, or $7.56 per basic and diluted share, for the
corresponding period in 2019. Net loss was $101.6 million, or
$3.06 per basic and diluted share, for the nine months ended
September 30, 2020 compared to $29.4 million, or $16.60 per basic
and diluted share, for the corresponding period in 2019.
About Arcutis - Bioscience, applied to the
skin.
Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) is
a late-stage biopharmaceutical company focused on developing and
commercializing treatments for unmet needs in immune-mediated
dermatological diseases and conditions, or immuno-dermatology. The
Company is leveraging recent advances in immunology and
inflammation to develop differentiated therapies against
biologically validated targets to solve persistent treatment
challenges in serious diseases of the skin. Arcutis’ robust
pipeline includes four novel drug candidates currently in
development for a range of inflammatory dermatological conditions.
The Company’s lead product candidate, topical roflumilast, has the
potential to become the standard of care for plaque psoriasis,
atopic dermatitis, scalp psoriasis, and seborrheic dermatitis. For
more information, visit www.arcutis.com or follow the company on
LinkedIn and Twitter.
Forward Looking Statements
This press release contains "forward-looking"
statements, including, among others, statements regarding the
potential for its topical drugs in development to address large
markets with significant unmet need; expectations with regard to
the timing of data events and initiation of clinical trials
anticipated during 2020/2021; and the Company’s belief that its
current cash, cash equivalents and marketable securities will be
sufficient to fund its operations into 2022. These statements
involve substantial known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to be
materially different from the information expressed or implied by
these forward-looking statements and you should not place undue
reliance on our forward-looking statements. Risks and uncertainties
that may cause our actual results to differ include risks inherent
in the clinical development process and regulatory approval
process, the timing of regulatory filings, and our ability to
defend our intellectual property. For a further description of the
risks and uncertainties applicable to our business, see the “Risk
Factors” section of our Form 10-Q filed with U.S.
Securities and Exchange Commission (SEC) on November 5, 2020, as
well as any subsequent filings with the SEC. We undertake no
obligation to revise or update information herein to reflect events
or circumstances in the future, even if new information becomes
available.
Contact:Heather Rowe Armstrong Vice President,
Investor Relations & Corporate
Communicationsharmstrong@arcutis.com 805-418-5006, Ext.
740
ARCUTIS BIOTHERAPEUTICS,
INC.Condensed Balance Sheets(In
thousands, except share and par value)
|
September 30, |
|
December 31, |
|
2020 |
|
2019 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
45,707 |
|
|
$ |
63,336 |
|
Marketable securities |
144,005 |
|
|
37,929 |
|
Prepaid expenses and other current assets |
4,409 |
|
|
5,209 |
|
Total current assets |
194,121 |
|
|
106,474 |
|
Property, plant, and
equipment, net |
322 |
|
|
227 |
|
Operating lease right-of-use
asset |
3,492 |
|
|
264 |
|
Other assets |
78 |
|
|
47 |
|
Total assets |
$ |
198,013 |
|
|
$ |
107,012 |
|
LIABILITIES,
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
(DEFICIT) |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
5,039 |
|
|
$ |
1,405 |
|
Accrued liabilities |
16,083 |
|
|
3,654 |
|
Operating lease liability |
32 |
|
|
178 |
|
Total current liabilities |
21,154 |
|
|
5,237 |
|
Operating lease liability,
noncurrent |
3,675 |
|
|
129 |
|
Other long-term
liabilities |
113 |
|
|
184 |
|
Total liabilities |
24,942 |
|
|
5,550 |
|
Convertible preferred stock |
— |
|
|
166,491 |
|
Stockholders’ equity
(deficit): |
|
|
|
Preferred stock |
— |
|
|
— |
|
Common stock |
4 |
|
|
— |
|
Additional paid-in capital |
340,964 |
|
|
1,244 |
|
Accumulated other comprehensive income (loss) |
4 |
|
|
(1 |
) |
Accumulated deficit |
(167,901 |
) |
|
(66,272 |
) |
Total stockholders’ equity (deficit) |
173,071 |
|
|
(65,029 |
) |
Total liabilities, convertible
preferred stock and stockholders’ equity (deficit) |
$ |
198,013 |
|
|
$ |
107,012 |
|
ARCUTIS BIOTHERAPEUTICS,
INC.
Condensed Statements of Operations and
Comprehensive Loss(In thousands, except share and
per share data)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
$ |
32,743 |
|
|
$ |
12,348 |
|
|
$ |
87,934 |
|
|
$ |
25,765 |
|
General and administrative |
5,560 |
|
|
2,300 |
|
|
14,647 |
|
|
4,373 |
|
Total operating expenses |
38,303 |
|
|
14,648 |
|
|
102,581 |
|
|
30,138 |
|
Loss from operations |
(38,303 |
) |
|
(14,648 |
) |
|
(102,581 |
) |
|
(30,138 |
) |
Other income, net |
99 |
|
|
168 |
|
|
952 |
|
|
710 |
|
Net loss |
$ |
(38,204 |
) |
|
$ |
(14,480 |
) |
|
$ |
(101,629 |
) |
|
$ |
(29,428 |
) |
Per share information: |
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(1.01 |
) |
|
$ |
(7.56 |
) |
|
$ |
(3.06 |
) |
|
$ |
(16.60 |
) |
Weighted-average shares used
in computing net loss per share, basic and diluted |
37,748,454 |
|
|
1,915,601 |
|
|
33,214,005 |
|
|
1,773,025 |
|
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