Arcutis Announces Closing of Public Offering of Common Stock and Full Exercise by Underwriters of Option to Purchase Additional Shares
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The completion of Arcutis Biotherapeutics' underwritten public offering represents a significant capital infusion for the company, amounting to approximately $172.5 million in gross proceeds. This financial maneuver is indicative of the company's strategic initiatives to bolster its cash reserves, potentially to accelerate its R&D efforts or to expand its commercial footprint within the immuno-dermatology sector.
Investors should note that the offering price of $9.50 per share provides a reference point for the market valuation of the company at the time of the offering. The full exercise of the underwriters' option to purchase additional shares suggests a strong market demand and confidence in the company's future prospects.
It is also noteworthy that the offering was managed by prominent financial institutions, which may enhance investor perception of the company's credibility and the offering's success. However, it is important to consider the dilutive effect on existing shareholders, as the increase in outstanding shares could potentially reduce earnings per share in the short term.
Arcutis Biotherapeutics' successful public offering is a testament to the market's interest in the immuno-dermatology space, a niche within the biopharmaceutical industry that focuses on treating immune-mediated skin diseases. This sector has been gaining attention due to the unmet medical needs and the potential for innovative treatments to disrupt the current market.
From a market perspective, the capital raised may enable Arcutis to invest in marketing and sales efforts to gain a competitive edge or to fund further clinical trials, which could lead to new product offerings and drive long-term growth. The company's ability to secure funding through a shelf registration statement also demonstrates a well-planned financial strategy, providing flexibility to access capital markets swiftly in the future.
Additionally, the involvement of multiple reputable underwriters could enhance the stock's liquidity and broaden its investor base, which might have positive implications for the stock's trading volume and stability.
The closing of this substantial public offering by Arcutis Biotherapeutics is indicative of the company's stage of development and its trajectory within the biopharmaceutical industry. For a commercial-stage company, securing such an amount of funding is crucial for sustaining operations and advancing the pipeline of products, particularly in a field like immuno-dermatology where research and development costs can be high.
Investors and stakeholders should be aware of the inherent risks and long development cycles associated with the biopharmaceutical industry. The capital raised could mitigate some of these risks by ensuring that the company has sufficient resources to overcome regulatory hurdles, conduct pivotal clinical trials and navigate the complex approval processes.
The use of a shelf registration statement for the offering is a strategic approach that allows the company to remain agile and responsive to market conditions, which is especially important in the fast-evolving biopharmaceutical sector.
WESTLAKE VILLAGE, Calif., March 04, 2024 (GLOBE NEWSWIRE) -- Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) a commercial-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, today announced the closing of its previously announced underwritten public offering of 18,157,895 shares of common stock at a public offering price of
Morgan Stanley, TD Cowen, and Guggenheim Securities acted as joint lead bookrunning managers for the offering. Mizuho and Needham & Company acted as co-lead managers for the offering.
The shares in the public offering were offered by Arcutis pursuant to an effective shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission (the “SEC”) on January 31, 2024. A final prospectus supplement and accompanying prospectus relating to and describing the final terms of the offering has been filed with the SEC and is 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, 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 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 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.
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
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