In this bear market, public companies rushed to investors mainly only after presenting impressive clinical data or reaching other important milestones. And with the IPO window remaining closed, the latest company to jump on the bandwagon is Arcutis Biotherapeutics.
The California-based company announced a public offering of $150 million in shares of its common stock on Thursday. The news comes days after Arcutis won FDA approval for its phosphodiesterase-4 (PDE4) inhibitor, roflumilast, marketed as Zoryve, for plaque psoriasis in children and adults. 12 years and older.
Zoryve is “the first and only topical phosphodiesterase-4 (PDE4) inhibitor approved for the treatment of plaque psoriasis,” the company said in a press release. “ZORYVE provides rapid clearance of psoriasis plaques and reduces itching in all affected areas of the body,” he added.
PDE4 inhibitors have long been used to treat skin and other inflammatory conditions, Otezla being one of the most notable. However, previous generations have distressing side effects, most commonly nausea, diarrhea and vomiting that “really limited the usefulness of PDE4s,” CEO Frank Watanabe said. Terminal news.
Plaque psoriasis is a common immune-mediated skin disease that affects about nine million people in the United States and is the most common type of psoriasis in adults and adolescents, the society said.
Last February, Arcutis touted the results of two pivotal trials in which a cream containing 0.3% roflumilast had an IGA (a visual assessment of improvement in plaque psoriasis trials) success rate of 42, 4% versus 6.1% on the control vehicle, and 37.5% versus 6.9%, respectively.
Arcutis isn’t the only biotech rushing to investors after showing impressive clinical results, as many others have gone down the same path in recent months. For example, Phathom Pharmaceuticals raised $260 million in May after winning FDA approval to treat adults infected with H. pylori bacteria. Another biotech, Rezolute secured $130 million after a drop in Phase II data, also in May.
Meanwhile, Arcutis $ARQT stock has risen 20% since market close on Tuesday after the stock offerings were announced.