Arcutis Biotherapeutics (NASDAQ:ARQT) raised its full-year 2026 net revenue guidance after third-quarter sales of its ZORYVE skin treatments rose 45% from a year earlier, driven primarily by increased patient demand.
The company reported $143.9 million in third-quarter net product revenue, up 11% from the second quarter. Arcutis now expects full-year net revenue of $535 million to $545 million, compared with its prior forecast of $525 million to $540 million.
Executives said they are reinvesting in marketing, sales representatives and patient-access initiatives with the aim of accelerating ZORYVE sales growth in 2027. Chief Financial Officer Latha Vairavan declined to offer a 2027 revenue forecast, saying the company would provide more detail after the year ends.
Demand growth and commercial spending
ZORYVE demand exceeded 300,000 prescriptions in the third quarter, with growth across its formulations and approved indications, Chief Commercial Officer Rob Lisicki said. The product is used to treat plaque psoriasis, atopic dermatitis and seborrheic dermatitis.
Lisicki said the company expects substantial sequential demand growth in the fourth quarter, supported by its existing business, commercial initiatives and seasonal factors. He expects gross-to-net discounts to remain stable, with minimal sales growth driven by pricing.
Arcutis launched a campaign in September with gymnast Simone Biles to raise awareness of eczema and seborrheic dermatitis and encourage discussions about non-steroidal treatments. Lisicki said the effect on prescription demand should become more visible in early 2027.
The company has also expanded its dermatology sales force and deployed a pilot team of roughly 20 representatives focused on primary care providers and pediatricians. Lisicki said Arcutis had begun to see an initial contribution from the dermatology expansion, while it expects a clearer picture of the pilot team’s impact next year.
President and CEO Frank Watanabe announced that Lisicki had agreed to remain permanently as chief commercial officer.
Profit rises as expenses increase
Arcutis reported third-quarter net income of $8.8 million, up from $7.4 million a year earlier. Research and development expenses rose to $22.4 million from $19.6 million, primarily because of increased clinical development costs for its experimental biologic ARQ-234.
Selling, general and administrative expenses increased 60% to $99.6 million, driven by media spending, primarily for the Biles campaign, and personnel costs related to the sales force expansion. Vairavan said she expects expenses to remain at that level in the fourth quarter as Arcutis continues to invest in commercialization and its pipeline.
The company ended the quarter with $259.8 million in cash and marketable securities and $109.4 million in total debt. Operating activities generated $18.9 million in cash during the quarter, and Vairavan said Arcutis expects to maintain positive cash flow through year-end.
Upcoming trial results and FDA decision
Arcutis expects fourth-quarter results from a phase II proof-of-concept study of ZORYVE foam in vitiligo and plans to announce whether it will advance the program. The open-label study enrolled 20 patients and is measuring the number who achieve a 50% improvement in a facial vitiligo scoring index at week 24.
Chief Medical Officer Patrick Burnett discussed a published case of a patient who experienced substantial facial repigmentation while using ZORYVE cream alongside narrow-band ultraviolet B therapy. He cautioned that case reports can represent particularly strong responses and should not establish expectations for every patient.
The company also expects results and an advancement decision for phase II studies in hidradenitis suppurativa, a chronic inflammatory skin condition, late in the first quarter of 2027. Arcutis is preparing a study of ZORYVE cream for skin reactions in cancer patients receiving certain checkpoint inhibitor therapies.
Separately, a trial has begun evaluating ZORYVE cream 0.3% in moderate to severe atopic dermatitis. Burnett said the company selected the higher-strength formulation to evaluate its potential benefit in patients with more severe disease, including those who might later require systemic treatment.
The Food and Drug Administration has a February 23, 2027, action date for Arcutis’ application to expand the use of ZORYVE cream 0.05% to infants aged three to 24 months with mild to moderate atopic dermatitis. The company is preparing for a launch if the application is approved.
Beyond ZORYVE, Burnett said Arcutis has begun enrolling patients with atopic dermatitis in the multiple ascending dose portion of its ARQ-234 trial. The company plans a small proof-of-concept cohort afterward and does not expect to report trial results until that cohort is complete.
About Arcutis Biotherapeutics (NASDAQ:ARQT)
Arcutis Biotherapeutics, Inc is a commercial-stage biopharmaceutical company focused on developing and delivering treatments for dermatologic conditions. The company’s portfolio is centered on therapies designed to address inflammatory skin diseases, with an emphasis on nonsteroidal topical medicines that may help patients manage chronic conditions.
Arcutis’s lead product is ZORYVE (roflumilast), a topical phosphodiesterase-4 inhibitor. ZORYVE has received U.S. Food and Drug Administration approvals for multiple dermatological uses, including plaque psoriasis, seborrheic dermatitis and atopic dermatitis, in different cream and foam formulations.
