Arcutis Biotherapeutics initiated with a Buy at Jefferies

Jefferies initiated coverage of Arcutis Biotherapeutics with a Buy rating and $15 price target. Arcutis is a commercial stage biotech company with a topical product, Zoryve, approved for treating plaque psoriasis, seborrheic dermatitis and atopic dermatitis, the analyst tells investors in a research note. The firm says Zoryve, a PDE4 inhibitor, is positioned as a cream, which is safer than steroids, with comparable efficacy and better formulation. It expects the company’s recent sales force expansion, atopic dermatitis approval, and primary care partnership “will be a boon to sales in the medium-term.”