Mizuho Sees Buying Opportunity Despite Weakness In This Skin-Disease Focused Stock

Mizuho remains bullish on Arcutis Biotherapeutics Inc ARQT. It sees buying opportunity in the weakness as the company heads into 2H of 2022 with four potentially transformative catalysts for ARQT.
The most important catalyst is the potential approval of roflumilast cream in plaque psoriasis around July 29, 2022, transforming Arcutis from a developmental- to a commercial-stage company.
Mizuho believes the three ongoing Phase 3 clinical programs remain underappreciated by investors.
Related: Arcutis Secures $225M Debt Financing To Fund Potential Launch Of Roflumilast.
The topline data for seborrheic dermatitis is expected in mid-2022. The analyst expects positive data given the similar trial size and patient enrollment number to the highly positive Phase 2 trial.
The analyst expects a positive readout from Phase 3 in scalp psoriasis for scalp psoriasis.
The likelihood of success of the Phase 3 studies in atopic dermatitis is questionable as Phase 2 missed the EASI primary endpoint. The Phase 2 trial was also underpowered.
Price Action: Yesterday's shares fell from $22.33 to $19.60. Today the stock is trading 0.26% higher at $19.65 during the market session on the last check Thursday.

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