Arcutis stock soars on drug trial news; company announces $150M capital raise
Stock of Arcutis Biotherapeutics, a Westlake Village-based company developing dermatological treatments, shot up more than 30% on Feb. 1 after the company released positive results from a recent clinical trial. Later in the day, Arcutis said it plans to sell $150 million worth of its common stock.
Before stock trading opened, the company announced positive topline results from a Phase 3 study of a potential treatment for psoriasis. Arcutis’ stock closed the day at $35.58, up 30.4% from the previous day.
The Phase 3 studies were of a once-daily topical cream called roflumilast, known for now as ARQ-151 at Arcutis. Dr. Patrick Burnett, Arcutis’ chief medical officer, said in a company news release that Arcutis plans to submit the study data as part of its application to the U.S. Food and Drug Adminstration for ARQ-151 sometime in the second half of 2021.
“We are delighted with the strength of these Phase 3 data, which surpassed the already positive results we saw in our Phase 2 studies,” Burnett said. “These data reinforce our conviction that topical roflumilast is exceptionally well suited to address the unmet needs in the topical treatment of psoriasis.”
ARQ-151 is one of four drugs in development for Arcutis, all of them treatments for inflammatory skin conditions. Topical roflumilast cream is the company’s “lead product candidate,” Arcutis said.
The company did not specify when its planned $150 million public offering will take place. Arcutis said it intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering at the public offering price.
Morgan Stanley, Cowen, and Guggenheim Securities are acting as bookrunning managers, and Truist Securities and Cantor are acting as lead managers for the offering, Arcutis said.