Home Market News Mizuho Downgrades Arcutis Biotherapeutics to Neutral, Citing Disappointing Prescription Numbers

Mizuho Downgrades Arcutis Biotherapeutics to Neutral, Citing Disappointing Prescription Numbers

0
Mizuho Downgrades Arcutis Biotherapeutics to Neutral, Citing Disappointing Prescription Numbers
Psoriasis Blue Marker

IvelinRadkov/iStock via Getty Images

Mizuho, one of the leading investment banks, has downgraded its rating of Arcutis Biotherapeutics (NASDAQ:ARQT) to neutral and significantly reduced its price target. The downgrade comes as a result of lower-than-expected prescription numbers for the company’s pivotal drug, roflumilast.

Previously, Mizuho had been bullish on Arcutis Biotherapeutics, believing that the market potential for roflumilast in the treatment of psoriasis and other indications was underappreciated. This belief was based on positive feedback from dermatologists. However, despite the enthusiastic response from medical professionals, the drug’s sales performance fell short of expectations, leading to the downgrade.

In addition to the disappointing prescription numbers, Mizuho also highlighted concerns regarding the adoption of Arcutis Biotherapeutics’ drug, Zoryve, which also did not meet the bank’s forecasts. The investment bank further emphasized that the consensus sales forecast for 2024 is likely to be revised downward. Moreover, the bank raised concerns about a potential debt covenant breach, which could negatively impact the company’s stock.