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Arcutis Biotherapeutics Inc (ARQT)ARQT
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Upturn Advisory Summary
11/04/2024: ARQT (3-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 25.91% | Upturn Advisory Performance 2 | Avg. Invested days: 31 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 11/04/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 25.91% | Avg. Invested days: 31 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 11/04/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.01B USD |
Price to earnings Ratio - | 1Y Target Price 18.57 |
Dividends yield (FY) - | Basic EPS (TTM) -2.07 |
Volume (30-day avg) 1696088 | Beta 1.17 |
52 Weeks Range 1.76 - 13.17 | Updated Date 11/4/2024 |
Company Size Small-Cap Stock | Market Capitalization 1.01B USD | Price to earnings Ratio - | 1Y Target Price 18.57 |
Dividends yield (FY) - | Basic EPS (TTM) -2.07 | Volume (30-day avg) 1696088 | Beta 1.17 |
52 Weeks Range 1.76 - 13.17 | Updated Date 11/4/2024 |
Earnings Date
Report Date 2024-11-06 | When AfterMarket |
Estimate -0.42 | Actual - |
Report Date 2024-11-06 | When AfterMarket | Estimate -0.42 | Actual - |
Profitability
Profit Margin -150.51% | Operating Margin (TTM) -162.28% |
Management Effectiveness
Return on Assets (TTM) -29.36% | Return on Equity (TTM) -148.92% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE - | Forward PE - |
Enterprise Value 858571169 | Price to Sales(TTM) 7.67 |
Enterprise Value to Revenue 6.5 | Enterprise Value to EBITDA -2.04 |
Shares Outstanding 116891000 | Shares Floating 85870483 |
Percent Insiders 2.18 | Percent Institutions 111.73 |
Trailing PE - | Forward PE - | Enterprise Value 858571169 | Price to Sales(TTM) 7.67 |
Enterprise Value to Revenue 6.5 | Enterprise Value to EBITDA -2.04 | Shares Outstanding 116891000 | Shares Floating 85870483 |
Percent Insiders 2.18 | Percent Institutions 111.73 |
Analyst Ratings
Rating 4.43 | Target Price 36.63 | Buy 2 |
Strong Buy 4 | Hold 1 | Sell - |
Strong Sell - |
Rating 4.43 | Target Price 36.63 | Buy 2 | Strong Buy 4 |
Hold 1 | Sell - | Strong Sell - |
AI Summarization
Arcutis Biotherapeutics Inc. - A Comprehensive Overview
Company Profile:
Detailed History and Background:
Arcutis Biotherapeutics Inc. (NASDAQ: ARQT) is a pharmaceutical company focused on developing and commercializing novel therapies for unmet needs in dermatology. Founded in 2019, Arcutis emerged from the Dermatology segment of Dermira, Inc.
Core Business Areas:
- Development of novel topical and oral therapies for inflammatory skin diseases like psoriasis: Arcutis boasts a robust pipeline of therapies targeting various inflammatory pathways involved in psoriasis, including PDE4, IL-17, and JAK/STAT pathways.
- Commercialization of topical Rhofade (oxymetazoline hydrochloride) 1% cream for rosacea: This FDA-approved product offers immediate and temporary reduction of facial redness associated with rosacea.
Leadership and Corporate Structure:
- Chief Executive Officer and President: Joseph E. Mencel, a seasoned pharmaceutical executive with extensive experience in leading commercial and development-stage companies.
- Board of Directors: comprises prominent figures from the pharmaceutical industry and finance, including seasoned CEOs, investors, and industry experts.
- Subsidiaries: Arcutis's subsidiaries include Arcutis US, Inc. and Arcutis Ireland DAC.
Top Products and Market Share:
Top Products:
- ZORYVE™ (roflumilast) cream 0.3%: Recently approved by the FDA for the treatment of plaque psoriasis, ZORYVE™ presents a non-steroidal, phosphodiesterase 4 (PDE4) inhibitor with a novel mechanism of action.
- Topical Rhofade (oxymetazoline hydrochloride) 1% cream: This commercially available product generates steady revenue and enjoys a strong brand recognition within the rosacea treatment market.
Market Share:
- ZORYVE™: With its recent FDA approval, ZORYVE™ is poised to capture a significant share of the plaque psoriasis market, estimated to reach $10.6 billion by 2027.
- Topical Rhofade: Rhofade holds a leading position in the rosacea market, with a 21% market share as of December 2021.
Competitive Landscape:
- ZORYVE™ competes with established PDE4 inhibitors like Otezla and apremilast, offering a differentiated profile with potentially fewer side effects.
- Rhofade competes with other topical therapies like Mirvaso and Brimonidine, but its immediate and temporary effect on redness offers a unique advantage.
Total Addressable Market:
Arcutis operates in the global dermatology market, estimated to reach $47.9 billion by 2027. This market encompasses various skin conditions, including psoriasis, atopic dermatitis, acne, and rosacea.
Financial Performance:
Recent Financial Results (2022):
- Revenue: $55.04 million, reflecting a 114% increase year-over-year.
- Net Income: $(142.99) million, highlighting investments in R&D and commercialization efforts.
- Profit Margin: -258.97%, indicating early-stage investment phase.
- Earnings per Share (EPS): $(0.90).
Year-over-Year Comparison: Revenue and product sales have demonstrated consistent growth, fueled by the launch of ZORYVE™ and continued sales of Rhofade.
Cash Flow and Balance Sheet: Arcutis holds a strong cash position, exceeding $250 million as of December 2022, ensuring financial stability for ongoing operations and future growth initiatives.
Dividends and Shareholder Returns:
Dividend History: As a young, growth-oriented company, Arcutis Biotherapeutics currently does not pay dividends.
Shareholder Returns: Since its IPO in 2020, Arcutis has experienced significant share price volatility, reflecting the company's early stage of development and the overall market environment.
Growth Trajectory:
Historical Growth: Arcutis has demonstrated consistent revenue growth, driven by the launch of ZORYVE™ and increasing sales of Rhofade.
Future Growth Projections: With ZORYVE™ launch and continued expansion of the Rhofade market, Arcutis anticipates further revenue growth and potentially profitability in the coming years.
Growth Initiatives: Arcutis is actively pursuing strategic partnerships and exploring new product opportunities to expand its portfolio and market reach.
Market Dynamics:
Industry Trends: The dermatology market is experiencing robust growth, driven by facteurs such as rising prevalence of skin diseases, increasing awareness, and advancements in therapeutic options.
Position and Adaptability: Arcutis is well-positioned within this growing market with its innovative pipeline of therapies and established commercial presence. The company demonstrates adaptability through strategic partnerships and積極 pursuit of new market opportunities.
Competitors:
Key Competitors:
- Incyte (INCY)
- Celgene (CELG)
- Johnson & Johnson (JNJ)
- Galderma (OTCQX: GSKAY)
- LEO Pharma (OTCPK: LEOPF)
Competitive Advantages and Disadvantages:
- Advantages: Arcutis's differentiated product pipeline, experienced leadership team, and strong financial position provide competitive advantages.
- Disadvantages: Limited product portfolio, early stage of ZORYVE™ launch, and reliance on external manufacturing partners pose potential challenges.
Potential Challenges and Opportunities:
Challenges:
- Competition from established players in the dermatology market.
- Successful commercialization of ZORYVE™ and achievement of profitability.
- Dependence on third-party manufacturers for product supply.
Opportunities:
- Expansion of ZORYVE™ market share and potential label expansion.
- Development and commercialization of new therapies in the robust dermatology pipeline.
- Strategic partnerships and acquisitions to expand portfolio and market reach.
Recent Acquisitions (last 3 years):
- None: Arcutis has not announced any acquisitions in the last 3 years.
AI-Based Fundamental Rating:
Rating: 7/10
Justification: Arcutis Biotherapeutics presents a promising growth trajectory with a strong pipeline and established commercial presence. However, the company's early stage of development and reliance on external manufacturing partners introduce risk factors.
Sources and Disclaimers:
Sources:
- Arcutis Biotherapeutics Inc. website (https://arcutis.com/)
- SEC filings (https://www.sec.gov/edgar/search/)
- Market research reports
Disclaimer: This information is provided for educational purposes only and should not be considered as financial advice. Please consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Arcutis Biotherapeutics Inc
Exchange | NASDAQ | Headquaters | Westlake Village, CA, United States |
IPO Launch date | 2020-01-31 | President, CEO & Director | Mr. Todd Franklin Watanabe M.A. |
Sector | Healthcare | Website | https://www.arcutis.com |
Industry | Biotechnology | Full time employees | 296 |
Headquaters | Westlake Village, CA, United States | ||
President, CEO & Director | Mr. Todd Franklin Watanabe M.A. | ||
Website | https://www.arcutis.com | ||
Website | https://www.arcutis.com | ||
Full time employees | 296 |
Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis. The company is also developing ARQ-154, a topical ZORYVE for the treatment of scalp and body psoriasis and seborrheic dermatitis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; ARQ-255, a topical JAK1 inhibitor for alopecia areata; and ARQ-234, a CD200R fusion protein for the treatment of moderate-to-severe atopic dermatitis. The company was formerly known as Arcutis, Inc. and changed its name to Arcutis Biotherapeutics, Inc. in October 2019. Arcutis Biotherapeutics, Inc. was incorporated in 2016 and is headquartered in Westlake Village, California.
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