A Look at Arcutis Biotherapeutics's Valuation Following New ZORYVE Data and Clinical Recognition

Arcutis Biotherapeutics (ARQT) recently shared new data on its ZORYVE cream at the 2025 Fall Clinical Dermatology Conference, spotlighting clear improvements in quality of life for people dealing with atopic dermatitis.

The company’s announcement focused on reduced sleep disruption and lasting control of symptoms, along with positive safety results over long-term use. This adds to growing recognition from updated clinical guidelines and industry awards, which all suggest ZORYVE's evolving place in dermatology care.

See our latest analysis for Arcutis Biotherapeutics.

Arcutis Biotherapeutics has enjoyed a surge in momentum following its latest clinical updates, with the company’s 90-day share price return hitting 34.2% and year-to-date share price up 38.1%. Looking at the bigger picture, Arcutis’s one-year total shareholder return stands at an impressive 130.9%. This highlights a dramatic turnaround and builds confidence that recent clinical wins could have a lasting impact for investors.

If the recent news around ZORYVE has you thinking about the next breakout in healthcare, explore See the full list for free. for more companies making headway in this fast-moving sector.

But after such a sharp rally, does Arcutis Biotherapeutics still offer hidden value for investors? Or has the market already priced in the company's pipeline progress and future growth trajectory?

Most Popular Narrative: 49.7% Undervalued

With Arcutis Biotherapeutics closing at $20.11, the most influential narrative estimates a fair value double that, hinting at major upside if events unfold as projected.

It is almost impossible to obtain a drug label from the FDA for pediatric use. This topical non-steroidal drug ZORYVE is very safe and highly effective for both pediatric and adult patients. The drug is potent in the skin, it is not well absorbed and is quickly metabolized, which limits systemic exposure and minimizes side effect risks.

Read the complete narrative.

Curious what underpins such a bold valuation? The narrative banks on breakneck revenue growth rates, a leap from losses to profits, and a transformation in enterprise value almost overnight. The full story reveals just how high the bar is set for this forecast. Do not miss the breakdown behind the confidence.

Result: Fair Value of $40.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, delays in uptake or setbacks in reimbursement could quickly challenge the optimistic outlook that has fueled recent gains for Arcutis Biotherapeutics.

Find out about the key risks to this Arcutis Biotherapeutics narrative.

Build Your Own Arcutis Biotherapeutics Narrative

If you'd rather chart your own path or have a different perspective, you can dive into the numbers yourself and craft a custom narrative in just a few minutes. Do it your way

A great starting point for your Arcutis Biotherapeutics research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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