Arcutis Biotherapeutics, Inc. Announces Termination of Promotion Agreement with Kowa

Rhea-AI Summary

Arcutis (Nasdaq: ARQT) announced on January 23, 2026 that it and Kowa mutually agreed to terminate their promotion agreement for ZORYVE promotion to primary care physicians and pediatricians in the U.S.

Arcutis will assume responsibility for sales and promotion to those clinicians, is finalizing promotional plans, and will provide further detail on the Q4 earnings call on February 25, 2026. Under the termination, Kowa will stop promotion and Arcutis will not be required to make any further payments. The company expects to remain cash flow break even and does not expect the change to negatively affect 2026 net product sales guidance.

Positive

• Arcutis will assume sales and promotion responsibility for pediatric and primary care settings
• Kowa will cease promotion and Arcutis is not required to make further payments
• Company expects to remain cash flow break even after the termination
• Company does not expect the change to negatively affect 2026 net product sales guidance

Negative

• Company will make incremental investments to drive primary care adoption of ZORYVE

News Market Reaction

+0.46%

1 alert

+0.46% News Effect

On the day this news was published, ARQT gained 0.46%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Termination date: January 23, 2026 Q4 earnings call: February 25, 2026 ZORYVE cream 0.05%: Ages 2 to 5 years +5 more

8 metrics

Termination date January 23, 2026 Date ARQT and Kowa agreed to terminate promotion agreement

Q4 earnings call February 25, 2026 Planned date for providing further promotion plan updates

ZORYVE cream 0.05% Ages 2 to 5 years Indication for mild to moderate atopic dermatitis

ZORYVE cream 0.15% Ages 6 years and older Indication for mild to moderate atopic dermatitis

ZORYVE cream 0.3% psoriasis Ages 6 years and older Topical treatment of plaque psoriasis, including intertriginous areas

ZORYVE foam 0.3% psoriasis Ages 12 years and older Treatment of plaque psoriasis of scalp and body

ZORYVE foam 0.3% seborrheic dermatitis Ages 9 years and older Indication in adult and pediatric patients

URTI incidence (0.05% cream) 4.1% Upper respiratory tract infection in pediatric AD patients 2–5 years

Market Reality Check

Price: $26.59 Vol: Volume 1,108,120 is 0.69x...

low vol

$26.59 Last Close

Volume Volume 1,108,120 is 0.69x the 20-day average, suggesting subdued trading interest pre-announcement. low

Technical Shares at $26.20 are trading above the 200-day MA at $19.27, and about 17.53% below the 52-week high of $31.77.

Peers on Argus

ARQT was down 1.69% with light volume, while peers like APGE (-10.43%) and TARS ...

ARQT was down 1.69% with light volume, while peers like APGE (-10.43%) and TARS (-3.79%) also declined. Moves appear company-specific rather than a uniform sector rotation.

Historical Context

5 past events · Latest: Jan 21 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 21	Market insight survey	Positive	+3.2%	Nationwide survey highlighting unmet need and preference for non-steroidal options.
Jan 12	Strategic outlook	Positive	-5.1%	Outlined 2026 priorities, reiterated ZORYVE sales guidance and pipeline milestones.
Dec 08	Board changes	Positive	-4.1%	New director appointment and leadership refresh with strong prior deal track record.
Nov 17	Regulatory milestone	Positive	+4.7%	FDA accepted sNDA for ZORYVE 0.3% in children ages 2–5 with set PDUFA date.
Nov 13	Clinical progress	Positive	-2.5%	Completed enrollment in INTEGUMENT-INFANT Phase 2 study in infants with AD.

Pattern Detected

Recent news tends to be fundamentally positive, with share reactions often mixed and skewed toward negative or muted responses.

Recent Company History

Over the past few months, Arcutis has delivered mostly constructive updates. On Nov 13, 2025 and Nov 17, 2025, clinical milestones for ZORYVE were announced, including FDA acceptance of an sNDA and completion of Phase 2 enrollment, yet share reactions were mixed. Strategic and governance updates on Dec 8, 2025 and commercial/milestone guidance on Jan 12, 2026 similarly saw negative price moves despite positive framing. The Jan 21, 2026 survey news drew a positive reaction, highlighting demand for non‑steroidal options. Today’s contract-termination update fits into a pattern where fundamentally constructive developments do not always translate into immediate upside.

Market Pulse Summary

This announcement details Arcutis’ decision to end its promotion agreement with Kowa and assume dire...

Analysis

This announcement details Arcutis’ decision to end its promotion agreement with Kowa and assume direct responsibility for ZORYVE promotion in primary care and pediatric settings, while keeping dermatology promotion on a separate, targeted track. Management indicated it expects to remain cash flow break even and does not foresee an impact on 2026 net product sales guidance. Investors may watch the February 25, 2026 earnings call for specifics on commercial execution, as well as upcoming clinical and regulatory milestones already outlined in recent updates.

Key Terms

atopic dermatitis, plaque psoriasis, seborrheic dermatitis, contraindicated, +4 more

8 terms

atopic dermatitis medical

"ZORYVE cream, 0.05%, is indicated for topical treatment of mild to moderate atopic dermatitis in pediatric patients..."

A chronic inflammatory skin condition, often called eczema, that causes dry, itchy, red patches and recurring flare-ups; think of it as a persistent rash that can come and go over a person’s life. It matters to investors because its chronic nature and large patient population create steady demand for treatments, influence drug development and approval decisions, affect healthcare costs and reimbursement, and can drive revenue and valuation shifts for companies working on therapies and diagnostics.

plaque psoriasis medical

"ZORYVE cream, 0.3%, is indicated for topical treatment of plaque psoriasis, including intertriginous areas..."

A chronic autoimmune skin condition that causes raised, red, scaly patches where the skin sheds too quickly, like a tree producing bark in clumps instead of renewing smoothly. It matters to investors because prevalence, severity, and treatment options drive demand for therapies, shape clinical trial design and regulatory review, and affect potential market size, pricing and reimbursement for drugs or devices aimed at relieving symptoms or altering the underlying immune response.

seborrheic dermatitis medical

"ZORYVE topical foam, 0.3%, is indicated for the treatment of seborrheic dermatitis in adult and pediatric patients..."

Seborrheic dermatitis is a common, chronic skin condition that causes red, flaky, itchy patches where oil-producing glands are concentrated, such as the scalp, face and chest. Investors care because it creates steady demand for over-the-counter and prescription treatments, influences clinical trial and regulatory risk for new therapies, and can affect sales, reimbursement and market share in dermatology—think of it as a recurring household problem that sustains a health-care product market.

contraindicated medical

"ZORYVE is contraindicated in patients with moderate to severe liver impairment (Child-Pugh B or C)."

An instruction that a drug, treatment, device, or procedure should not be used in a particular situation because it could harm the patient or make the therapy ineffective. For investors, contraindications matter because they narrow who can safely use a product, affect labeling and regulatory approval, limit market size, and raise potential liability — like a clear “do not use” warning that reduces the pool of customers and revenue potential.

child-pugh b or c medical

"ZORYVE is contraindicated in patients with moderate to severe liver impairment (Child-Pugh B or C)."

Child-Pugh B or C are categories in a clinical scoring system that assess how badly a person’s liver is failing, with B indicating moderate dysfunction and C indicating severe dysfunction. For investors, these labels matter because they determine who can safely receive a drug, shape clinical-trial eligibility and regulatory decisions, and therefore influence a therapy’s potential patient pool, safety profile, and commercial outlook—like road signs that restrict or allow access.

nasopharyngitis medical

"The most common adverse reactions reported ... for ZORYVE foam 0.3% for seborrheic dermatitis were nasopharyngitis..."

An inflammation of the nose and throat commonly called the common cold, marked by runny nose, sore throat and sneezing. Investors should note it because widespread cases can temporarily lower worker productivity, affect consumer behavior (fewer outings or purchases), increase healthcare and sick-leave costs, and influence demand for certain medicines or services — similar to a short-term weather event that disrupts normal business activity.

urinary tract infection medical

"The most common adverse reactions ... for ZORYVE cream 0.3% for plaque psoriasis were ... urinary tract infection (1.0%)."

An infection in any part of the urinary system—kidneys, bladder, ureters or urethra—caused by bacteria or, less often, other microbes. Think of it like a plumbing clog or leak in the body’s waste-removal pipes; symptoms can range from mild irritation to serious illness requiring antibiotics or hospitalization. For investors, urinary tract infections matter because they drive demand for diagnostics, drugs, medical devices and care services, influence clinical trial outcomes and can affect healthcare costs and company revenues.

topical use medical

"ZORYVE is for topical use only and not for ophthalmic, oral, or intravaginal use."

Topical use means a medicine or product is applied directly to the skin, eye, ear, or other body surface rather than swallowed or injected. For investors, the route matters because topical products often have different safety profiles, manufacturing needs, regulatory paths and market sizes compared with pills or injections — think of a cream versus a tablet, where ease of use and production can change costs, adoption and revenue potential.

AI-generated analysis. Not financial advice.

WESTLAKE VILLAGE, Calif., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), a commercial-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, today announced that on January 23, 2026, the Company and Kowa Pharmaceuticals America, Inc. mutually agreed to terminate their promotion agreement. The agreement covered sales and promotion of ZORYVE^® (roflumilast) by Kowa to primary care physicians and pediatricians in the United States.

Following the termination, Arcutis plans to assume responsibility for sales and promotion of ZORYVE in the pediatric and primary care settings. The Company is finalizing its plans for promotion to these clinicians and will provide further updates during the Q4 earnings call on February 25, 2026. This initiative is distinct from and in addition to the targeted expansion of the Company’s dermatology salesforce, which will remain focused on serving dermatology clinicians and growing prescriptions of ZORYVE in dermatology practices.

“Our promotion agreement with Kowa has laid important groundwork for the promotion of ZORYVE in the primary care and pediatric markets,” said Frank Watanabe, president and CEO of Arcutis. “As a once-daily topical that can be used anywhere on the body and for any duration, ZORYVE has the potential to simplify disease management across three major inflammatory skin diseases. In 2026, we are well-positioned to drive adoption and growth of ZORYVE in the primary care market through incremental investments that we will scale over time, while maximizing the growth of ZORYVE in dermatology.”

Under the terms of the Termination Agreement, Kowa will cease all sales and promotions of ZORYVE and Arcutis will not be required to make any further payments. The Company expects to remain cash flow break even and does not expect this change to negatively affect 2026 net product sales guidance.

INDICATIONS
ZORYVE cream, 0.05%, is indicated for topical treatment of mild to moderate atopic dermatitis in pediatric patients 2 to 5 years of age.

ZORYVE cream, 0.15%, is indicated for topical treatment of mild to moderate atopic dermatitis in adult and pediatric patients 6 years of age and older.

ZORYVE cream, 0.3%, is indicated for topical treatment of plaque psoriasis, including intertriginous areas, in adult and pediatric patients 6 years of age and older.

ZORYVE topical foam, 0.3%, is indicated for the treatment of plaque psoriasis of the scalp and body in adult and pediatric patients 12 years of age and older.

ZORYVE topical foam, 0.3%, is indicated for the treatment of seborrheic dermatitis in adult and pediatric patients 9 years of age and older.

IMPORTANT SAFETY INFORMATION
ZORYVE is contraindicated in patients with moderate to severe liver impairment (Child-Pugh B or C).

Flammability: The propellants in ZORYVE foam are flammable. Avoid fire, flame, and smoking during and immediately following application.

The most common adverse reactions reported (≥1%) for ZORYVE cream 0.05% for pediatric patients with atopic dermatitis 2 to 5 years of age were upper respiratory tract infection (4.1%), diarrhea (2.5%), vomiting (2.1%), rhinitis (1.6%), conjunctivitis (1.4%), and headache (1.1%).

The most common adverse reactions reported (≥1%) for ZORYVE cream 0.15% for patients with atopic dermatitis 6 years of age or older were headache (2.9%), nausea (1.9%), application site pain (1.5%), diarrhea (1.5%), and vomiting (1.5%).

The most common adverse reactions reported (≥1%) for ZORYVE cream 0.3% for plaque psoriasis were diarrhea (3.1%), headache (2.4%), insomnia (1.4%), nausea (1.2%), application site pain (1.0%), upper respiratory tract infection (1.0%), and urinary tract infection (1.0%).

The most common adverse reactions reported (≥1%) for ZORYVE foam 0.3% for plaque psoriasis were headache (3.1%), diarrhea (2.5%), nausea (1.7%), and nasopharyngitis (1.3%).

The most common adverse reactions reported (≥1%) for ZORYVE foam 0.3% for seborrheic dermatitis were nasopharyngitis (1.5%), nausea (1.3%), and headache (1.1%).

ZORYVE is for topical use only and not for ophthalmic, oral, or intravaginal use.

Please see full Prescribing Information for ZORYVE cream and full Prescribing Information for ZORYVE foam.

About Arcutis

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 of advanced targeted topicals approved to treat three major inflammatory skin diseases. Arcutis’ unique dermatology development platform coupled with our dermatology expertise allows us to develop differentiated therapies against biologically validated targets, and has produced a robust pipeline for a range of inflammatory dermatological conditions. For more information, visit www.arcutis.com or follow Arcutis on LinkedIn, Facebook, Instagram and X.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For example, statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the Company’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding Arcutis’ plans to promote ZORYVE and further penetrate the primary care and pediatric segments, as well as expectations regarding the adoption, growth, and commercial success of ZORYVE. These statements are subject to substantial known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. Risks and uncertainties that may cause our actual results to differ include risks inherent in our business, reimbursement and access to our products, the impact of competition and other important factors discussed in the “Risk Factors” section of our Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) on February 25, 2025, as well as any subsequent filings with the SEC. Any forward-looking statements that the company makes in this press release are made pursuant to the Private Securities Litigation Reform Act of 1995, as amended, and speak only as of the date of this press release. Except as required by law, we undertake 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
media@arcutis.com

Investors
Brian Schoelkopf, Head of Investor Relations
ir@arcutis.com

FAQ

What did Arcutis (ARQT) announce about its agreement with Kowa on January 23, 2026?

Arcutis and Kowa mutually agreed to terminate the promotion agreement for ZORYVE promotion to U.S. primary care physicians and pediatricians.

Who will handle ZORYVE promotion to pediatricians and primary care after the termination?

Arcutis will assume responsibility for sales and promotion to pediatric and primary care clinicians.

Will the termination affect Arcutis's 2026 net product sales guidance for ARQT?

Arcutis stated it does not expect the termination to negatively affect 2026 net product sales guidance.

Will Arcutis owe any further payments to Kowa after the termination?

Under the termination agreement, Arcutis will not be required to make any further payments to Kowa.

When will Arcutis provide more details about its promotion plans for ZORYVE (ARQT)?

The company said it will provide further updates on promotion plans during its Q4 earnings call on February 25, 2026.

How will assuming promotion duties affect Arcutis's cash flow position for 2026?

Arcutis expects to remain cash flow break even following the change.