Arcutis Biotherapeutics Inc (ARQT) Reports Q3 2023 Earnings: Revenue Soars to $38.1 Million
Arcutis Biotherapeutics Inc (NASDAQ:ARQT) reported total revenues of $38.1 million in Q3 2023.
Net product revenues for ZORYVE cream 0.3% were $8.1 million, a 70% increase compared to Q2 2023.
The company strengthened its balance sheet with a $100 million follow-on offering.
Net loss was $44.8 million, or $0.73 per basic and diluted share.
On November 3, 2023, Arcutis Biotherapeutics Inc (NASDAQ:ARQT), an early commercial-stage biopharmaceutical company, announced its financial results for the quarter ended September 30, 2023. The company reported total revenues of $38.1 million, with net product revenues for ZORYVE cream 0.3% reaching $8.1 million, marking a 70% increase compared to the second quarter of 2023.
Financial Highlights
Other revenues for the quarter were $30.0 million, related to the upfront payment in connection with the Huadong collaboration and licensing agreement. Research and development (R&D) expenses for the quarter were $26.2 million, a significant decrease from $69.7 million for the corresponding period in 2022. Selling, general, and administrative (SG&A) expenses for the quarter were $47.6 million, up from $35.5 million for the same period in 2022. The net loss for the quarter was $44.8 million, or $0.73 per basic and diluted share.
Company Performance and Future Prospects
Frank Watanabe, President and CEO of Arcutis, expressed satisfaction with the company's performance this quarter. He stated,
We are very pleased with the performance this quarter, and believe we are well-positioned for continued strong net product revenue growth in the fourth quarter and to accelerate that momentum into 2024."
He also highlighted the company's strategic goals and the steady flow of clinical successes and regulatory milestones achieved during this quarter.
Key Milestones and Corporate Highlights
Arcutis received FDA approval for ZORYVE for an expanded indication for the treatment of plaque psoriasis in children down to 6 years of age. The company also submitted an sNDA to the FDA for roflumilast cream 0.15% for the treatment of atopic dermatitis down to the age of 6, with potential approval as early as the third quarter of 2024. In addition, the company strengthened its balance sheet with a $100 million follow-on offering and negotiated improvements in the financial covenants on the SLR debt facility.
Summary of Financial Results
As of September 30, 2023, the company's cash, cash equivalents, restricted cash, and marketable securities were $228.0 million, compared to $410.8 million as of December 31, 2022. Net cash used in operating activities was $44.0 million during the third quarter.
Explore the complete 8-K earnings release (here) from Arcutis Biotherapeutics Inc for further details.
This article first appeared on GuruFocus.
