ARQT - Arcutis Biotherapeutics agrees to acquire LifeArc portfolio company Ducentis BioTherapeutics for up to $400M

• Arcutis Biotherapeutics ( NASDAQ: ARQT ) to acquire Ducentis BioTherapeutics Ltd., a preclinical-stage biotechnology company focused on developing novel therapies for inflammation and autoimmune diseases.
• Per the terms, Arcutis will acquire the outstanding shares of Ducentis for an upfront cash payment of ~$16M and Arcutis stock valued at ~$14M, as well as future contingent payments based on development and commercial success.
• The move leverages Arcutis’ deep dermatology expertise and broad biologics experience to accelerate Ducentis’ lead compound, DS-234, in atopic dermatitis.
• DS-234 offers a potential best-in-class profile, as well as a highly complementary treatment option to roflumilast cream which is in late-stage development for atopic dermatitis.
• Ducentis’ Chief Scientific Officer, Dr. Rebecca Ashfield, will be retained by Arcutis as a consultant to ensure knowledge transfer, integration of ongoing workstreams, and lead future technical and manufacturing operations related to DS-234.
• As of June 30, 2022, Arcutis had approximately $283M in cash, cash equivalents, and marketable securities and received over $285M from additional financings in early August.
• Given the early-stage nature of the DS-234 program, the Ducentis acquisition is not expected to have a material impact on Arcutis’ financial plans.
• Shares of ARQT are down 2.5% after-hours .

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