• In the third quarter, New York-based Suvretta Capital Management sold nearly 1.1 million Arcutis Biotherapeutics shares, trimming its stake by about US$35.78 million while still keeping the company as its largest reported holding, as Arcutis reported strong ZORYVE adoption and FDA acceptance of a supplemental NDA for pediatric use.

• This combination of a major institutional investor rebalancing its position and a regulatory step toward pediatric expansion highlights how ZORYVE’s trajectory is central to Arcutis’s investment case.

• We’ll now examine how Suvretta’s reduced stake, alongside FDA acceptance of ZORYVE’s pediatric filing, could reshape Arcutis’s investment narrative.

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To own Arcutis, you need to believe ZORYVE can sustain broad, profitable adoption across multiple dermatology indications despite concentrated product risk. Suvretta trimming its position does not materially alter the near term focus, which still hinges on commercial execution for ZORYVE and managing spending so growth in prescriptions translates into durable profitability.

The FDA’s acceptance of the supplemental NDA for ZORYVE in children aged 2 to 5 directly ties into that thesis, because pediatric expansion could deepen the franchise and broaden its prescriber base. At the same time, Arcutis’s reliance on ZORYVE heightens the impact of any future competition or reimbursement pressure if the non steroidal topical category becomes more crowded.

Yet even with strong recent ZORYVE uptake, investors should be aware of the concentration risk if…

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Arcutis Biotherapeutics’ narrative projects $676.8 million revenue and $237.0 million earnings by 2028.

Uncover how Arcutis Biotherapeutics’ forecasts yield a $31.62 fair value, a 7% upside to its current price.

Six fair value estimates from the Simply Wall St Community span roughly US$18 to nearly US$70 per share, reflecting wide disagreement among individual investors. You should weigh these views against how dependent Arcutis remains on ZORYVE’s commercial performance and future payer decisions, and consider what that could mean for the company’s ability to sustain its recent momentum.

Explore 6 other fair value estimates on Arcutis Biotherapeutics – why the stock might be worth over 2x more than the current price!

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