Arcutis Biotherapeutics, Inc. Common Stock Morgan Stanley 24th Annual Global Healthcare Conference

Sure. Yeah. We just celebrated our 10th anniversary in June, and I have my 10th anniversary in 6 weeks. I think it's coming up pretty fast. The company was actually founded by Frazier Healthcare. They saw an opportunity in the dermatology space where there wasn't a lot of innovation happening at that point in time, and they thought that there was a good opportunity. So they created the company and they hired our founder, David Osborne, and said, "Invent a dermatology product." David went down in his basement. He literally has a laboratory in his basement.

Wow and invented what became ZORYVE.

The minute he came up with ZORYVE, they thought, "Okay, well, we've got a company now." So they hired a dermatologist and myself, and the three of us went from there. Over the last 10 years, we've gone from three people, and I think we had $150,000 in the bank at the beginning, to we're about 450 now and with about a $3 billion market cap, depending on the day of the week.

Wow. So it's been an amazing journey.

All of it really built on ZORYVE, but we're at a really exciting point now where ZORYVE is generating enough money. We've become a cash flow positive, usually profitable, self-sustaining biotechnology company, and that's giving us the resources now to invest not only in our inland ZORYVE business, but into expanding the use of ZORYVE and also in building and advancing a pipeline.

I think the difference from non-steroidals is probably the most important, and Patrick is a dermatologist, so he's going to keep me honest, but for inflammatory skin diseases like psoriasis, seborrheic dermatitis, and atopic dermatitis, steroids have been the foundational therapy literally for decades, for 70 years, right? It's what dermatologists go to first. And steroids are effective therapies in treating these diseases. The problem is there's this mismatch that steroids are safe for short-term use, and these are all chronic conditions.

Dermatologists had invented these complicated regimens of multiple different therapies, different steroids, different formulations, some non-steroidals all combined together in these complicated regimens to try and manage these chronic diseases with a drug that's really only safe acutely, right? Making trade-offs between safety and tolerability on the one hand and efficacy on the other. With ZORYVE, we solved that problem. We have a product that's essentially comparable to a steroid in terms of its efficacy, but it can be used anywhere on the body, which steroids can't. It can be used for however long the patient wants, which steroids can't, and it can be used any amount that they want, which steroids can't.

That's really, I think it's revolutionizing the treatment of these inflammatory skin conditions, making it easier for the doctor and for the patients, quite frankly, to manage these diseases, and ultimately then producing better outcomes.

Well, I mean, the foam is a really unique asset, right? ZORYVE itself is a very unique asset. You asked about the other non-steroidals. We have a very effective drug with no safety concerns and very, very clean tolerability, and we have good access for the product, right? So that combination is very unique, but then you layer on top of that the foam. There are no other non-steroidals in a foam formulation or frankly, a formulation that is suitable for hair-bearing areas of the body, like the scalp, the face, the groin. We have a foam that is a very nice foam. People like it. Patients like it. You can put it in your hair. You leave it in. You don't have to wash it out. It doesn't disrupt hairstyle or hair color or anything like that. So that's been a real standout star for us.

It's over half of all of our sales is the foam. It also has indications for both seborrheic dermatitis and plaque psoriasis as well. All of our SKUs are continuing to grow. Atopic dermatitis is actually the newest indication, and we're seeing the highest growth, frankly, in AD, partially because it's new, but also that is a disease that continues to have a pretty high unmet need. I think the growth is because the product performs really well for customers. I think we have really got our commercialization engine dialed in, and it's very effective. Again, as I mentioned earlier, we have the resources now where we can invest into new initiatives that allow us to sustain that growth rate or hopefully even accelerate that growth rate going forward.