Arcutis Biotherapeutics Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) has announced a public offering of 7,500,000 shares at $20.00 per share, with expected proceeds of $150 million. The offering also includes a 30-day option for underwriters to purchase an additional 1,125,000 shares. Proceeds will fund the development and commercialization of its programs, including ZORYVE, along with general corporate purposes. The offering is set to close on August 5, 2022, and follows an effective shelf registration statement filed on February 1, 2021.

Positive

• Expected gross proceeds of $150 million to support the development and commercialization of its programs.
• Funds allocated for the commercial launch of ZORYVE and hiring personnel, indicating growth potential.

Negative

• Dilution of existing shareholders due to new share issuance.
• Market reaction uncertainty, which may impact stock performance.

WESTLAKE VILLAGE, Calif., Aug. 02, 2022 (GLOBE NEWSWIRE) -- Arcutis Biotherapeutics, Inc. (“Arcutis”) (Nasdaq: ARQT), an early commercial-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, today announced the pricing of its underwritten public offering of 7,500,000 shares of its common stock at a public offering price of $20.00 per share, representing a premium to the closing price of $19.50 per share on August 2, 2022. In addition, Arcutis has granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds to Arcutis from the offering are expected to be $150.0 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Arcutis, and assuming no exercise of the underwriters’ option to purchase additional shares. Subject to the satisfaction of customary conditions, the offering is expected to close on August 5, 2022.

Arcutis intends to use the net proceeds from the offering, together with its existing cash, cash equivalents, restricted cash, and marketable securities, to fund the continued development, approval and commercialization of our multiple programs, including commercial launch for ZORYVE, and the remainder for working capital and other general corporate purposes, including hiring of additional personnel.

Morgan Stanley, Cowen and Guggenheim Securities are acting as bookrunning managers for the offering. Cantor and Mizuho Securities are acting as lead managers for the offering.

The public offering is being made pursuant to an effective shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission (the “SEC”) on February 1, 2021. A final prospectus supplement and accompanying prospectus relating to and describing the final terms of the offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov or may be obtained, when available, from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, or by email at prospectus@morganstanley.com; Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Attention: Prospectus Department, by telephone at (833) 297-2926, or by email at PostSaleManualRequests@broadridge.com; or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison, 8th Floor, New York, New York 10017, by telephone at (212) 518-9658, 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 the securities described herein, 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
Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) is a medical dermatology company that champions meaningful innovation to address the urgent needs of patients living with immune-mediated dermatological diseases and conditions. With a commitment to solving the most persistent patient challenges in dermatology, Arcutis harnesses 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 plaque psoriasis, atopic dermatitis, and seborrheic dermatitis.

Forward Looking Statements
This press release contains “forward-looking” statements, including, among others, statements regarding the timing, size and completion of the public offering and the intended use of proceeds from the offering. These statements involve substantial known and unknown risks, uncertainties and other factors that may cause Arcutis’ actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements and you should not place undue reliance on Arcutis’ forward-looking statements. Risks and uncertainties that may cause Arcutis’ actual results to differ include risks inherent in the clinical development process and regulatory approval process, the timing of regulatory filings, and Arcutis’ ability to defend its intellectual property. For a further description of the risks and uncertainties applicable to Arcutis’ business, see the “Risk Factors” section of its Form 10-K filed with U.S. Securities and Exchange Commission (SEC) on February 22, 2022, as amended on March 3, 2022, as well as any subsequent filings with the SEC. Arcutis undertakes no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available.

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

Investors
Eric McIntyre, Head of Investor Relations
emcintyre@arcutis.com

FAQ

What is the public offering price for Arcutis (ARQT) shares?

The public offering price for Arcutis shares is $20.00 per share.

How many shares is Arcutis planning to offer?

Arcutis plans to offer 7,500,000 shares of common stock.

What are the intended uses of the proceeds from Arcutis's offering?

Proceeds will be used for development, commercialization of ZORYVE, and general corporate purposes.

When is the expected closing date for the Arcutis stock offering?

The expected closing date is August 5, 2022.

Does the offering include an option for underwriters?

Yes, underwriters have a 30-day option to purchase an additional 1,125,000 shares.