Arcutis Announces Proposed Public Offering

Rhea-AI Summary

Arcutis Biotherapeutics, Inc. (ARQT) announces a public offering of $150.0 million of common stock and pre-funded warrants. The underwritten offering includes an option for additional shares. Morgan Stanley, TD Cowen, and Guggenheim Securities are the lead bookrunning managers. The offering is subject to market conditions and regulatory approvals.

Insights

Financial Analyst

The initiation of an underwritten public offering by Arcutis Biotherapeutics is a significant financial event that warrants attention from investors and market analysts. The decision to raise $150 million through the sale of common stock and pre-funded warrants is a strategic move to bolster the company's capital. This infusion of funds could be allocated towards advancing the company's pipeline, expanding commercial operations, or funding further research and development in immuno-dermatology.

Investors should note the potential dilution effect of such offerings on existing shares. However, the offering also reflects the company's confidence in its growth prospects, given the willingness to provide a 30-day option for underwriters to purchase additional shares. The involvement of high-profile financial institutions as bookrunners and managers indicates credibility and could potentially facilitate a successful capital raise.

Market Research Analyst

From a market perspective, Arcutis's move to commence a public offering is indicative of the health of the biopharmaceutical sector, particularly in niche areas like immuno-dermatology. The demand for innovative treatments in dermatology is on the rise and Arcutis's focus on this area could position the company favorably in the market. The success of this offering will largely depend on market conditions and investor appetite for risk in the biotech sector.

It is also critical to understand the timing of the offering. If the biopharmaceutical sector is experiencing an uptick in investment, Arcutis may benefit from favorable market conditions. Conversely, if the sector is facing headwinds, the offering could encounter challenges. Market research data on sector performance and investor sentiment will be key in predicting the outcome of this capital raise.

Medical Research Analyst

For stakeholders in the biopharmaceutical industry, the capital raise by Arcutis Biotherapeutics could signal an acceleration of the company's immuno-dermatology programs. The field of immuno-dermatology is rapidly evolving, with significant research being directed towards understanding how the immune system interacts with skin diseases. The additional funds may enable Arcutis to expedite clinical trials, invest in cutting-edge research and potentially bring innovative therapies to market more quickly.

It's crucial to evaluate the company's current pipeline and past performance in clinical trials to assess the potential impact of this financial move. If Arcutis has a strong track record and promising candidates in its pipeline, the offering could greatly enhance its ability to compete in the market and deliver value to patients and shareholders alike.

WESTLAKE VILLAGE, Calif., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), a commercial-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, today announced the commencement of an underwritten public offering of $150.0 million of shares of its common stock and, in lieu of common stock to certain investors, pre-funded warrants to purchase shares of its common stock. All of the shares of common stock and pre-funded warrants in this offering are being sold by Arcutis. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. In addition, Arcutis intends to grant the underwriters a 30-day option to purchase up to an additional $22.5 million of shares of its common stock at the public offering price per share.

Morgan Stanley, TD Cowen, and Guggenheim Securities are acting as joint lead bookrunning managers for the proposed offering. Mizuho and Needham & Company are acting as co-lead managers for the proposed offering.

The securities are being offered pursuant to an effective shelf registration statement that was filed with the U.S. Securities and Exchange Commission (the “SEC”) on January 31, 2024. This proposed offering will be made only by means of a prospectus supplement and the accompanying prospectus which forms a part of the effective shelf registration statement.

A preliminary prospectus supplement related to the proposed offering (including the accompanying prospectus) will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus may also be obtained, when available, from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, by telephone at (833) 297-2926, or by email at Prospectus_ECM@cowen.com; or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Arcutis Biotherapeutics, Inc.
Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) is a commercial-stage medical dermatology company that champions meaningful innovation to address the urgent needs of individuals living with immune-mediated dermatological diseases and conditions. With a commitment to solving the most persistent patient challenges in dermatology, Arcutis has a growing portfolio including two FDA approved products that harness our unique dermatology development platform coupled with our dermatology expertise to build differentiated therapies against biologically validated targets. Arcutis’ dermatology development platform includes a robust pipeline with multiple clinical programs for a range of inflammatory dermatological conditions including scalp and body psoriasis, atopic dermatitis, and alopecia areata.

Forward-Looking Statements
Statements in this press release may contain “forward-looking statements” that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions, and include, but are not limited to, statements regarding the size, completion and timing of the proposed public offering and the expectation to grant the underwriters a 30-day option to purchase additional shares. Any forward-looking statements are based on Arcutis’ current expectations, forecasts, and assumptions and are subject to a number of risks and uncertainties that could cause actual outcomes and results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the proposed public offering. For a discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in Arcutis’ most recent Annual Report on Form 10-K, its other reports filed with the SEC, as well as in the preliminary prospectus supplement related to the proposed public offering. Forward-looking statements contained in this announcement are based on information available to Arcutis as of the date hereof and are made only as of the date of this release. Arcutis undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Arcutis’ views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Arcutis.

Contacts:

Media
Amanda Sheldon, Head of Corporate Communications
asheldon@arcutis.com

Investors
Latha Vairavan, Vice President, Finance and Investor Relations
lvairavan@arcutis.com

Derek Cole
Investor Relations Advisory Solutions
derek.cole@iradvisory.com

FAQ

What is the ticker symbol for Arcutis Biotherapeutics, Inc.?

The ticker symbol for Arcutis Biotherapeutics, Inc. is ARQT.

How much is the public offering for Arcutis Biotherapeutics, Inc.?

Arcutis Biotherapeutics, Inc. is commencing a public offering of $150.0 million of common stock and pre-funded warrants.

Who are the lead bookrunning managers for the proposed offering by Arcutis Biotherapeutics, Inc.?

Morgan Stanley, TD Cowen, and Guggenheim Securities are acting as joint lead bookrunning managers for the proposed offering.

Is the proposed offering of Arcutis Biotherapeutics, Inc. subject to any conditions?

Yes, the proposed offering by Arcutis Biotherapeutics, Inc. is subject to market and other conditions.

Where can one find more information about the proposed offering by Arcutis Biotherapeutics, Inc.?

More information about the proposed offering by Arcutis Biotherapeutics, Inc. can be found on the SEC's website located at www.sec.gov.