Arcutis Biotherapeutics Announces Pricing of Upsized Public Offering of Common Stock

Rhea-AI Summary

Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) announced a successful public offering of 5,500,000 shares at $35.00 each, aiming to raise $192.5 million before expenses. This upsized offering includes a 30-day option for underwriters to purchase an additional 825,000 shares. The proceeds will support the development of key programs, including ARQ-151 for psoriasis, and general operational needs. The offering is expected to close on February 5, 2021. Morgan Stanley, Cowen, and Guggenheim Securities are managing the offering.

Positive

• Gross proceeds expected at $192.5 million, enhancing funding for program developments.
• Funds intended for significant projects, including NDA filing and launch of ARQ-151.

Negative

• Potential dilution of shares due to the offering impacting existing shareholders.

WESTLAKE VILLAGE, Calif,, Feb. 02, 2021 (GLOBE NEWSWIRE) -- Arcutis Biotherapeutics, Inc. (“Arcutis”) (Nasdaq: ARQT), a late-stage biopharmaceutical company focused on developing and commercializing treatments for unmet needs in immune-mediated dermatological diseases and conditions, or immuno-dermatology, today announced the pricing of its upsized underwritten public offering of 5,500,000 shares of its common stock at a public offering price of $35.00 per share. In addition, Arcutis has granted the underwriters a 30-day option to purchase up to an additional 825,000 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 $192.5 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 customary conditions, the offering is expected to close on February 5, 2021.

Arcutis currently 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 of its multiple programs, including ARQ-151, ARQ-154, ARQ-252 and ARQ-255 programs, filing of the NDA for ARQ-151 in psoriasis, approval and commercial launch for ARQ-151 in psoriasis, and the remainder for working capital and other general corporate purposes.

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

The public offering is being made pursuant to an automatic shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission (the "SEC") on February 1, 2021 and automatically became effective upon filing. 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, Attention: Prospectus Department, 1155 Long Island Avenue, Edgewood, New York 11717, 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 - Bioscience, applied to the skin.

Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) is a late-stage biopharmaceutical company focused on developing and commercializing treatments for unmet needs in immune-mediated dermatological diseases and conditions, or immuno-dermatology. The company is leveraging recent advances in immunology and inflammation to develop differentiated therapies against biologically validated targets to solve persistent treatment challenges in serious diseases of the skin. Arcutis’ robust pipeline includes four novel drug candidates currently in development for a range of inflammatory dermatological conditions. The company’s lead product candidate, topical roflumilast, has the potential to revitalize the standard of care for plaque psoriasis, atopic dermatitis, scalp psoriasis, 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. 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 our forward-looking statements. Risks and uncertainties that may cause Arcutis’ actual results to differ include risks and uncertainties associated with the effect of changing economic conditions, risks inherent in the clinical development process and regulatory approval process, the timing of regulatory filings, and Arcutis’ ability to defend its intellectual property. Arcutis’ business could be affected by a number of other factors, including the risk factors discussed in the preliminary prospectus supplement relating to the offering and the documents incorporated by reference therein, which include Arcutis’ Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. The forward-looking statements contained in this press release speak only as of the date hereof and Arcutis cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, Arcutis disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.

Contact:
Heather Rowe Armstrong
Vice President, Investor Relations & Corporate Communications
harmstrong@arcutis.com
805-418-5006, Ext. 740

FAQ

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

The public offering price for Arcutis shares is $35.00 per share.

How many shares is Arcutis offering in this public offering?

Arcutis is offering 5,500,000 shares in this public offering.

What will Arcutis use the proceeds from the offering for?

Arcutis plans to use proceeds for the development of programs including ARQ-151, as well as for general corporate purposes.

When is the expected closing date for Arcutis's public offering?

The expected closing date for Arcutis's public offering is February 5, 2021.

Who are the underwriters for the Arcutis offering?

Morgan Stanley, Cowen, and Guggenheim Securities are the bookrunning managers for the offering.