Arcutis Biotherapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Arcutis Biotherapeutics (Nasdaq: ARQT) has announced a public offering of $150 million in common stock, with all shares being sold by the company. The offering is subject to market conditions and includes a 30-day option for underwriters to purchase an additional 15% of the shares. The offering will be made under an automatic shelf registration statement filed with the SEC. Morgan Stanley, Cowen, and Guggenheim Securities are leading the offering, while details are available on the SEC’s website.

Positive

• The intended use of offering proceeds could support the development of novel therapies targeting unmet dermatological needs.
• Arcutis has a robust pipeline of four novel drug candidates for inflammatory dermatological conditions.

Negative

• Public offering may lead to shareholder dilution.
• Market conditions may delay the completion of the offering.

WESTLAKE VILLAGE, Calif., Feb. 01, 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 commencement of an underwritten public offering of $150.0 million of shares of its common stock. All of the shares in the 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 proposed 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 15% of the shares of common stock offered in the public offering at the public offering price.

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

The proposed offering will be 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 preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering have been filed with the SEC and are available on the SEC's website located at http://www.sec.gov or may be obtained 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 - 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 proposed public offering and the grant to the underwriters of an option to purchase additional shares. 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 isks 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 size of the public offering by Arcutis (ARQT)?

Arcutis has announced a public offering of $150 million of its common stock.

Who are the underwriters for Arcutis' public offering?

Morgan Stanley, Cowen, and Guggenheim Securities are acting as bookrunning managers.

What is the purpose of Arcutis' public offering?

The proceeds are intended to support development for unmet needs in dermatological diseases.

Is there any risk associated with Arcutis' public offering?

Yes, the offering may result in shareholder dilution and is subject to market conditions.

Where can I find more information about Arcutis' public offering?

Details are available on the SEC's website and through the underwriters' prospectus.