• Like an emerging **AbbVie** for skin conditions, focused on developing new treatments for dermatological diseases like psoriasis and eczema.
• A focused **Amgen** in the field of dermatology, developing targeted therapies for common skin conditions.
• A **Gilead** focused on pioneering new therapies for dermatological diseases rather than antivirals.

• ZORYVE (roflumilast cream 0.3%): An FDA-approved topical cream for the treatment of plaque psoriasis in individuals aged 12 and older, and seborrheic dermatitis in individuals aged 9 and older.
• ZORYVE (roflumilast foam 0.3%): An FDA-approved topical foam for the treatment of seborrheic dermatitis in individuals aged 9 and older.

Arcutis Biotherapeutics (ARQT) Major Customers

Arcutis Biotherapeutics primarily sells its products to other companies, specifically a limited number of wholesale pharmaceutical distributors in the United States. These distributors then supply pharmacies and healthcare providers, who dispense the medications to individual patients.

The major customers, based on standard pharmaceutical distribution channels and company disclosures, are expected to include:

• McKesson Corporation (Symbol: MCK)
• Cencora, Inc. (formerly AmerisourceBergen Corporation) (Symbol: COR)
• Cardinal Health, Inc. (Symbol: CAH)

• Centrient Pharmaceuticals B.V.
• Jubilant HollisterStier LLC (parent company: Jubilant Pharmova Limited, NSE: JUBLPHARMA)
• Cambrex Corporation

Frank Watanabe, President and CEO

Frank Watanabe has served as the president of Arcutis Biotherapeutics since 2016 and chief executive officer since 2017. Prior to joining Arcutis, he was a co-founder and chief operating officer of Kanan Therapeutics, a cardiovascular drug development company, and before that, was vice president of strategy and corporate development at Kythera Biopharmaceuticals. Mr. Watanabe also held executive roles at Amgen, Inc. and Eli Lilly and Company. He was an official in the U.S. government and a commissioned officer in the U.S. Navy Reserves for 25 years.

Latha Vairavan, Chief Financial Officer

Latha Vairavan was promoted to Chief Financial Officer in May 2025, overseeing and managing all financial operations for Arcutis. She joined Arcutis in 2020 and has held roles of increasing responsibility, including executive director of financial planning and analysis and vice president of finance and corporate controller. Before Arcutis, Ms. Vairavan spent 12 years at Amgen, where she held various finance roles, ultimately serving as finance director for U.S. value and access. She began her career as a financial consultant with KPMG and Arthur Andersen.

Patrick Burnett, Executive Vice President, Chief Medical Officer

Patrick Burnett has served as Arcutis' chief medical officer since August 2020 and was promoted to executive vice president, chief medical officer in December 2024. Prior to joining Arcutis, Dr. Burnett was the chief medical officer at Verrica Pharmaceuticals since April 2018, and before that, associate vice president of clinical development at Sun Pharmaceuticals from September 2015 to March 2018. He also served as a global program medical director at Novartis from 2010 to August 2015.

L. Todd Edwards, Executive Vice President, Chief Commercial Officer

L. Todd Edwards joined Arcutis in September 2023 as chief commercial officer and was promoted to executive vice president, chief commercial officer in December 2024. He brings over 25 years of experience in sales, market access, marketing, and general management. Previously, Mr. Edwards was group vice president and business unit head of immunology at Incyte, where he led the launch and commercialization of their topical JAK inhibitor for atopic dermatitis. He also spent nearly eight years at UCB, serving as head of U.S. immunology and later head of global immunology operations and strategy.

Bethany Dudek, Chief Technical Officer

Bethany Dudek serves as the Chief Technical Officer at Arcutis Biotherapeutics. Prior to Arcutis, Ms. Dudek held various roles of increasing responsibility at Amgen, Inc., culminating in the position of director, global operations leader.

Clear Emerging Threats for Arcutis Biotherapeutics (ARQT):

1. Increased Competition from Novel Oral Systemic Treatments for Psoriasis: The recent launch and growing adoption of highly efficacious oral systemic therapies, such as Bristol Myers Squibb's Sotyktu (deucravacitinib, a TYK2 inhibitor) approved in September 2022 for moderate-to-severe plaque psoriasis, pose a significant emerging threat. While Arcutis's ZORYVE (roflumilast cream) is a topical treatment, Sotyktu offers a powerful, non-biologic oral alternative that could attract patients earlier in their treatment journey or those seeking systemic relief, potentially limiting the market share and growth potential for topical treatments like ZORYVE in the broader psoriasis landscape.
2. Intensifying Competition within the Topical Atopic Dermatitis Market: With the recent approval of ZORYVE for atopic dermatitis in December 2023, Arcutis faces substantial competition from already established and highly effective topical treatments. Notably, Incyte's Opzelura (ruxolitinib cream), a topical JAK inhibitor approved in September 2021, has already captured significant market share in the topical atopic dermatitis space. Opzelura represents a direct and potent topical competitor with a different mechanism of action, making it an immediate and strong threat to ZORYVE's market penetration and growth in atopic dermatitis.

Arcutis Biotherapeutics' primary product is ZORYVE (roflumilast), available in cream and foam formulations, approved for various dermatological conditions in the U.S. and Canada. The addressable markets for its main products or services are:

• For scalp psoriasis, the addressable market in the U.S. represents a $1.2 billion opportunity.
• The total U.S. addressable market for topical roflumilast (ZORYVE) across psoriasis, seborrheic dermatitis, and atopic dermatitis is estimated to be 13.1 million patients.

Arcutis Biotherapeutics (ARQT) is expected to drive future revenue growth over the next 2-3 years through several key factors:

1. Expansion of ZORYVE into New Indications and Age Groups: A significant driver is the recent FDA approval and launch of ZORYVE cream 0.05% for pediatric atopic dermatitis in children aged 2-5 years, which occurred in October 2025. Additionally, the company is actively pursuing new market opportunities by initiating Phase 2 trials for ZORYVE foam 0.3% in vitiligo and hidradenitis suppurativa. Analysts project that deepening the penetration of ZORYVE into large, underserved patient populations, such as pediatric atopic dermatitis and scalp psoriasis, will be a primary growth catalyst.
2. Increased Market Penetration and Adoption of Existing ZORYVE Products: Arcutis anticipates sustained growth from the continued conversion of patients from the topical corticosteroid market, which currently accounts for a substantial number of prescriptions annually within ZORYVE-approved indications. There is a rising demand for innovative non-steroidal treatments, and ZORYVE has already captured approximately 41% of non-steroidal topical psoriasis prescriptions, demonstrating strong market acceptance. The company has seen robust unit growth across its product portfolio.
3. Growth in Overall Prescription Volume and Prescriber Base for ZORYVE: The increasing number of healthcare providers prescribing ZORYVE is contributing to revenue growth. In Q2 2025, over 18,000 healthcare providers prescribed ZORYVE, with more than 26,000 since its launch. This expanding prescriber base and the resulting increase in total prescriptions across its approved indications, including plaque psoriasis, atopic dermatitis, and seborrheic dermatitis, are expected to fuel continued revenue momentum.
4. Strategic Pipeline Expansion Beyond ZORYVE Applications: While ZORYVE is a primary focus, Arcutis is also laying the groundwork for future growth by systematically evaluating new opportunities and expanding its pipeline with new molecules. The company is preparing a Phase 1 study for ARQ-234, indicating a commitment to developing additional differentiated therapies for inflammatory dermatological conditions, which could become a longer-term revenue driver.

Share Issuance

• Arcutis Biotherapeutics has significantly increased its shares outstanding, growing from 50,255,614 at December 31, 2021, to 122,492,192 as of October 22, 2025.
• In February 2024, the company priced an underwritten public offering of 15,789,474 shares of common stock at $9.50 per share, expecting to generate approximately $150.0 million in gross proceeds.
• The proceeds from such offerings are intended to fund the continued commercialization, development, and approval of its programs, including potential launches and patient expansion, and for general corporate purposes.

Capital Expenditures

• Capital expenditures were $1.00 million in 2021, $0.33 million in 2022, $0.43 million in 2023, and $0.14 million in 2024.
• These expenditures are typically directed towards supporting the company's research, development, and commercialization activities for dermatological treatments, such as laboratory equipment, facilities, and IT infrastructure.