ARQT: Pediatric Approvals And Long-Term Data Will Support Gradual Portfolio Expansion

Analysts have nudged their price target on Arcutis Biotherapeutics slightly higher, from 31 dollars to approximately 31 dollars and 63 cents, citing modest improvements in long term revenue growth, profit margin expectations, and valuation multiples.

What's in the News

• FDA accepted a supplemental new drug application to extend ZORYVE cream 0.3 percent plaque psoriasis treatment to children aged 2 to 5, with a PDUFA target action date of June 29, 2026 (Company press release).
• FDA approved ZORYVE cream 0.05 percent for once daily, steroid-free treatment of mild to moderate atopic dermatitis in children 2 to 5 years of age in the United States (Company press release).
• Arcutis commercially launched ZORYVE cream 0.05 percent for children 2 to 5 with atopic dermatitis, supported by patient access programs such as ZORYVE Direct and Arcutis Cares (Company press release).
• New long-term data showed ZORYVE foam 0.3 percent is safe, well tolerated, and efficacious for up to 52 weeks in seborrheic dermatitis, with high rates of clear or almost clear skin (American Journal of Clinical Dermatology publication, company summary).
• Company issued 2026 guidance, projecting between 455 million dollars and 470 million dollars in net product revenue, underscoring expectations for continued portfolio growth (Company guidance).

Valuation Changes

• The fair value estimate has risen slightly, from 31 dollars to approximately 31 dollars and 63 cents per share.
• The discount rate has increased marginally, from about 7.04 percent to roughly 7.05 percent, reflecting a very small adjustment to perceived risk.
• The revenue growth assumption has risen slightly, from around 31.56 percent to approximately 31.84 percent, indicating modestly higher growth expectations.
• The net profit margin has increased modestly, from roughly 35.91 percent to about 36.29 percent, implying a small improvement in long term profitability.
• The future P/E multiple has edged up slightly, from about 19.60 times to roughly 19.66 times forward earnings, signaling a minor upward shift in valuation multiples.