Arcutis Announces Pricing of $150 Million Public Offering

Rhea-AI Summary

Arcutis Biotherapeutics, Inc. (ARQT) announced the pricing of its underwritten public offering of common stock, selling 15,789,474 shares at $9.50 per share. The gross proceeds are expected to be approximately $150.0 million. The offering is expected to close on March 4, 2024, with the intention to fund commercialization, development, and approval of various programs.

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 pricing of its underwritten public offering of common stock. Arcutis is selling 15,789,474 shares of common stock in the offering. The shares of common stock are being sold at a public offering price of $9.50 per share. All shares of common stock to be sold in the offering are being offered by Arcutis. In addition, Arcutis has granted the underwriters a 30-day option to purchase up to an additional 2,368,421 shares of its common stock at the public offering price per share, less underwriting discounts and commissions. The gross proceeds to Arcutis from the offering are expected to be approximately $150.0 million, before deducting underwriting discounts and commissions and 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 March 4, 2024.

Arcutis intends to use the net proceeds from this offering, together with its existing cash, cash equivalents, restricted cash, and marketable securities, to fund the continued commercialization, development and approval of its multiple programs, including for its potential launches in atopic dermatitis and scalp psoriasis and further patient expansion within psoriasis, with the remainder for working capital and other general corporate purposes.

Morgan Stanley, TD Cowen, and Guggenheim Securities are acting as joint lead bookrunning managers for the offering. Mizuho and Needham & Company are acting as co-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 January 31, 2024. 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, 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.

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 public offering. 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 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 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

How many shares of common stock is Arcutis selling in the offering?

Arcutis is selling 15,789,474 shares of common stock in the offering.

What is the public offering price per share for Arcutis' common stock?

The public offering price per share for Arcutis' common stock is $9.50.

How much are the gross proceeds expected to be from the offering?

The gross proceeds from the offering are expected to be approximately $150.0 million.

When is the offering expected to close?

The offering is expected to close on March 4, 2024.

What is the intended use of the net proceeds from the offering?

Arcutis intends to use the net proceeds from the offering to fund the continued commercialization, development, and approval of its multiple programs, including potential launches in atopic dermatitis and scalp psoriasis, and further patient expansion within psoriasis.