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Psorilax: prezzo, funziona, recensioni, opinioni, dove si compra

Una recente revisione ha esaminato tutti gli articoli che descrivono le manifestazioni cutanee associate a COVID-19 – 46 articoli con un totale di 130 immagini cliniche – e non ha trovato nessuno che documentasse le condizioni dermatologiche nelle persone con pelle scura. Ciò nonostante l'incidenza sproporzionata della malattia nelle popolazioni di colore nero, latino-americano e nativo americano / indiano americano.



Temitayo A. Ogunleye, MD

Cosa sta succedendo? Temitayo Ogunleye, MD, assistente professore di dermatologia presso l'Università della Pennsylvania e membro del comitato consultivo di Medscape Dermatology, ha parlato con la ricercatrice capo Jenna Lester, MD, dermatologa e direttrice della Skin of Color Clinic presso l'Università della California, San Francisco, le implicazioni della sua ricerca.

Ogunleye: Cosa ti ha spinto a fare questo studio in primo luogo?



Jenna Lester, MD

Lester: In realtà è stato guidato dalla frustrazione. Mentre stiamo riconoscendo queste manifestazioni dermatologiche correlate a COVID, stiamo ancora cercando di capire il loro significato clinico. Abbiamo appreso quali cambiamenti potrebbero essere un segno precoce di infezione e cosa potrebbe verificarsi in persone che sono altrimenti asintomatiche e dovrebbero essere testate. Ma nel processo, tralasciamo il gruppo di persone – popolazioni dalla pelle scura – che sono maggiormente colpite da COVID. Questa è un'ingiustizia per le persone che potrebbero trarne il massimo beneficio se scoprissero di avere un segno visibile e precoce della malattia sulla loro pelle. Ad esempio, lesioni pernio-simili ed eritema, entrambi osservati nei pazienti COVID, sono più difficili da identificare nella pelle più scura.

Come dermatologi, sappiamo che la pelle è l'organo più grande e ha il vantaggio di essere visibile. Collaboriamo con i pazienti perché possono vedere ciò che possiamo vedere. Possiamo spiegare cosa significano i cambiamenti della pelle e avere esempi per mostrarli è davvero potente. Poiché i medici in genere rispondono meglio ai numeri, ho riconosciuto che avevamo bisogno di dati per dimostrare che questa mancanza di rappresentazione delle persone di colore nella nostra documentazione COVID era effettivamente vera.

Puoi dirci i principali risultati della tua ricerca?

Abbiamo incluso qualsiasi articolo che descriveva le manifestazioni cutanee di COVID – e includeva anche una fotografia – ed è stato pubblicato in un periodo di 5 mesi. Quindi abbiamo classificato ciascuna immagine utilizzando la scala del tipo di pelle di Fitzpatrick. Abbiamo scoperto che la maggior parte delle foto erano di persone con la pelle chiara; non c'erano affatto immagini di pazienti con pelle scura, tipo Fitzpatrick V o VI. Una manciata, circa il 6%, ha rappresentato i cambiamenti della pelle nei pazienti con pelle Fitzpatrick di tipo IV.



Sei rimasto sorpreso dai risultati?

No. Non ero affatto sorpreso, per un paio di motivi. Innanzitutto, molti dei rinvii che avevo ricevuto per valutare possibili manifestazioni COVID provenivano da medici di assistenza primaria. E come sappiamo entrambi, l'eritema, l'iperpigmentazione e lo scolorimento possono essere difficili da rilevare anche per un dermatologo esperto. Quindi, se questi pazienti con alterazioni della pelle potenzialmente indicative di COVID si stanno presentando al loro medico di base che non è stato in grado di determinare cosa fossero, forse perché non li avevano mai visti in qualcuno con la pelle più scura, significa che è improbabile che quegli stessi medici li documentino eruzioni cutanee. Sospetto che molte di queste foto provengano da cure primarie.

L'altro motivo per la mia mancanza di sorpresa è che ho già esaminato questo problema in precedenza. In uno studio che ho fatto nel 2019 guardando le immagini nei libri di testo di dermatologia, i miei coautori e io abbiamo scoperto che c'era una sottorappresentazione piuttosto drammatica della pelle di colore nel complesso. Un'altra analisi delle immagini nei libri di testo di dermatologia di base, pubblicata all'inizio di quest'anno da uno dei tuoi colleghi dell'Università della Pennsylvania, Jules Lipoff, MD, ha mostrato che la percentuale di immagini di pelle scura variava da un minimo del 4% a un massimo di circa 18%.

Quindi mi chiedo se questo ci renda meno propensi a cercare cose nei pazienti con la pelle più scura, ad eccezione di quelle condizioni che ci viene insegnato sono più comuni nelle persone con la pelle più scura, come i cheloidi, la vitiligine o alcuni tipi di perdita di capelli. Mi chiedo se semplicemente non pensiamo ad altre condizioni perché tutte le foto che vediamo di psoriasi o rosacea, ad esempio, sono di persone con la pelle più chiara.

Hai sollevato una buona osservazione sulla natura ciclica di questo processo. Se non vedi le condizioni della pelle nella pelle più scura, allora non sai cosa cercare e quindi non lo cerchi mai.

Esattamente. E se un paziente nero dicesse, ad esempio, “Questo sembra diverso sulla mia pelle; pensi che potrebbe essere correlato a COVID?” E il loro dottore guarda la loro pelle e dice di no. Non perché non lo sia, ma perché non l'hanno visto prima. Poi non ne fanno una foto e non sapremo mai cosa potrebbe essere stato.

La cosa inquietante che ho scoperto è che c'è una sovrarappresentazione della pelle scura nelle immagini di infezioni a trasmissione sessuale. Quindi, in base a ciò che ti viene insegnato, inizi a creare questi potenti pregiudizi cognitivi nel tuo cervello come medico e inizi a mettere le persone in categorie: “Questa persona è più probabile che ottenga questo perché ho visto molte foto di esso. “

Prendi l'esempio di una donna nera sulla quarantina con la tosse che si presume abbia la sarcoidosi, perché ci è stato insegnato a tutti. Ma quello che non ci è stato insegnato, almeno non in modo così definitivo, è che la più alta prevalenza di sarcoidosi è nei paesi nordici, dove non ci sono molti neri.

Quindi questi cicli ti insegnano cose che non rappresentano necessariamente la realtà. Ci viene insegnato a riconoscere i modelli, ma i modelli che abbiamo creato non sono necessariamente validi e portano i pregiudizi delle persone che hanno deciso che erano importanti per noi da imparare.

Quindi la sottorappresentazione delle persone di colore nelle immagini che raffigurano i cambiamenti della pelle in COVID-19 è, nella tua prospettiva, una continuazione di questo modello di pregiudizio?

Penso decisamente che lo sia. È importante comprendere la storia della fotografia e lo sviluppo della pellicola a colori per contestualizzare questa domanda. Kodak Gold è stata una delle prime pellicole a colori realizzate. Per assistere i fotografi, l'azienda ha sviluppato una scheda Shirley che potrebbe essere utilizzata per il bilanciamento del colore nello sviluppo di questo film. Quella carta, che è stata distribuita ai laboratori di sviluppo cinematografico in tutto il paese, raffigurava una donna bianca dalla pelle chiara come standard per come le persone dovrebbero apparire nella fotografia. La tecnologia cinematografica è stata costruita attorno a questa idea.

Di conseguenza, le persone con la pelle più scura non sono mai state ritratte in modo accurato e non avevano molti dettagli sui loro lineamenti o sulla loro pelle. Un certo numero di famosi fotografi boicottati non utilizzando la pellicola.

Ma è stato solo quando i produttori di cioccolato e le industrie del mobile hanno deciso che la pellicola Kodak Gold non mostrava i loro prodotti marroni in modo sufficientemente dettagliato che Kodak è stata costretta a cambiare.



Foto per gentile concessione della dott.ssa Lorna Roth, Concordia University, Montreal, Canada. Riprodotto con il permesso di Eastman Kodak Company.

Ci sono volute queste grandi industrie dicendo “non useremo più il tuo film” per stimolare lo sviluppo delle carte multiculturali di Shirley che includevano immagini di donne asiatiche, bianche e nere (una latina è stata aggiunta più tardi). Ciò non accadde fino al 1995. A quel punto, la fotografia digitale aveva già iniziato a decollare. Sfortunatamente, quell'avanzamento si basava sulla pellicola a colori originale e continuava a nutrire alcuni degli stessi problemi.

Quindi, oltre alle preoccupazioni sui medici che non riconoscono un cambiamento di pelle in una persona dalla pelle più scura, se lo riconoscono e decidono di fotografarlo, potrebbe non venire fuori bene. Quindi è possibile che i medici decidano semplicemente di smettere di scattare foto.

Questo è un altro esempio di razzismo strutturale – cose che sono appena inserite nel sistema di cui le persone non sono consapevoli. Temo che continueremo a perpetuare questi pregiudizi inconsci con lo sviluppo dell'intelligenza aumentata o di vari algoritmi.

Penso che questa storia – di cui non ero a conoscenza – metta in evidenza cosa succede quando la pelle bianca diventa lo standard. Sicuramente spiega il problema che entrambi abbiamo visto di medici che non riconoscono l'eritema sulla pelle scura.

Quello è grande. E penso che sia importante perché è un segno di presentazione condiviso di molte eruzioni cutanee diverse. Può anche essere un segno di un'emergenza dermatologica che richiede un rapido riconoscimento e trattamento. L'eritema può essere molto sottile, specialmente nella pelle di colore. È una delle cose che usiamo per valutare la gravità della psoriasi e, poiché non è apprezzata nelle persone con la pelle più scura, quei pazienti non sono stati inclusi in molti studi clinici.


Eritema osservato con rosacea granulomatosa in una donna con pelle Fitzpatrick tipo VI. Fotografia per gentile concessione di Susan C. Taylor, MD (Philadelphia, Pennsylvania).

Si è persino discusso se l'eritema sia qualcosa che dovremmo ritenere una scoperta importante nelle persone con la pelle più scura.

Forse uno dei problemi è la terminologia. “Eritema” connota una colorazione rosa o rossa, e questo non si manifesta apertamente sulla pelle scura.

Esattamente. Anche l'uso di emollienti è diverso nelle persone di colore. Quindi le scale “classiche” della psoriasi spesso non sono presenti in chi usa molte lozioni.

Oltre al diverso aspetto clinico di molte condizioni della pelle comuni, le pratiche culturali potrebbero essere diverse in diversi gruppi, il che può anche alterare le diagnosi differenziali e le raccomandazioni di trattamento, ad esempio l'uso di creme idratanti, la frequenza dello shampoo o l'uso di diversi prodotti per lo styling dei capelli.

Sono totalmente d'accordo. I capelli sono un altro grande. L'identificazione di peli rotti, peli corti, cambiamenti di consistenza e variabilità nella dimensione del fusto del capello è diversa nei capelli neri e arrotolati e non è realmente applicabile alle persone con modelli di capelli più strutturati. Persone di etnie e culture diverse fanno cose diverse. Gli standard che usiamo tradizionalmente, come il test della trazione, non funzionano altrettanto bene in gruppi diversi.

Penso che questo parli dei cambiamenti che dobbiamo anche apportare nell'educare sia i dermatologi che i non dermatologi sui criteri diagnostici e sui risultati clinici.

La dermatologia è la seconda specialità meno diversificata. E questo significa che i nostri esperti – docenti, docenti, mentori – non sono probabilmente persone di colore. Non sai cosa non sai. Hai solo le tue esperienze. Se non hai persone in grado di spiegare perché qualcosa può essere diverso per un diverso gruppo di persone, non hai l'opportunità di ampliare la tua comprensione. Io e te l'abbiamo notato perché sappiamo cosa vuol dire avere questo tipo di capelli. Ma non è qualcosa su cui altre persone che non condividono lo stesso tipo di capelli avrebbero la stessa prospettiva.

È un motivo in più per assicurarci che la nostra forza lavoro in dermatologia rispecchi la nostra popolazione. Circa il 3% dei dermatologi negli Stati Uniti sono neri; i numeri sono altrettanto negativi per Latinx e dermatologi autoctoni. Se non hai abbastanza persone nelle tue immediate vicinanze che possono aiutarti ad ampliare la tua prospettiva, questo diventa un problema che può danneggiare i pazienti.

Se non abbiamo un gruppo eterogeneo di persone nel campo che contribuiscono alla letteratura, cambiando alcuni dei modi in cui pensiamo alla pratica, allora tutti continueranno a fare la cosa sbagliata.

Dobbiamo costruire le nostre prove e prestare maggiore attenzione alla ripartizione razziale dei pazienti inclusi negli studi. Stiamo riconoscendo di avere punti ciechi ma non abbiamo persone o dati che possano cambiarlo. Se ciò che pubblichiamo rappresenta una rappresentazione eccessiva di un certo gruppo, come impareremo mai a fare le cose in modo diverso?

Riconosco il fatto che questa non è un'idea nuova. Altri hanno lavorato su questi temi per molto tempo. La tua collega, Susan Taylor, professoressa presso l'Università della Pennsylvania e fondatrice della Skin of Color Society, ha usato la sua energia e la sua frustrazione per questo problema e ha pubblicato un intero libro di testo sulla dermatologia per Skin of Color. Quando ho provato a pubblicare il mio primo articolo su questo numero, ho ricevuto molte critiche, ma sono felice che ora sia qualcosa di cui tutti parlano. Quindi, solo nell'arco di un paio d'anni, l'accettazione di questa idea è cambiata radicalmente.

Mi auguro che questo sia l'inizio di cambiamenti sistemici e sostenibili che possano avere un impatto reale.

Permettimi una domanda tecnica. La scusa per non sapere come fotografare la pelle più scura è solo una scusa? O questa preoccupazione è veramente valida?

È un'ottima domanda. Ci sono alcune tecniche che si possono impiegare. E sì, può essere più difficile se non sei abituato a scattare foto di persone con la pelle più scura, ma sicuramente si può imparare.

Penso che un gruppo intelligente di persone che hanno affrontato cose prima che si sentissero insormontabili possa continuare a spingere per capire come farlo. Ma è qualcosa che richiede abilità, e in parte perché c'è questo pregiudizio incorporato nella fotocamera, quindi devi rimediare.

Penso che ogni singolo dermatologo abbia questa capacità e devi solo sapere che vale la pena farlo perché il tuo paziente è così prezioso.

Temitayo A. Ogunleye, MD, è un assistente professore presso l'Università della Pennsylvania e mantiene una pratica clinica a tempo pieno a Philadelphia. Ha pubblicato numerosi articoli sulle sfumature della dermatologia nelle persone di colore per pubblicazioni sia professionali che profane.

Jenna Lester, MD, è assistente professore presso il Dipartimento di Dermatologia presso l'Università della California, San Francisco Health, dove è la direttrice della Skin of Color Clinic.

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Psorilax:Tutorial gratuiti |crema ucraina per psoriasi

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Psorilax: prezzo, funziona, recensioni, opinioni, come si usa

HORSHAM, Pa., 30 settembre 2020 / PRNewswire / – Le società farmaceutiche Janssen di Johnson & Johnson hanno annunciato oggi che la Food and Drug Administration (FDA) statunitense ha approvato SIMPONI ARIA® (golimumab) per i pazienti di età pari o superiore a 2 anni per il trattamento della AIGP attiva e ha esteso l'indicazione della PsA per questa stessa popolazione di pazienti.

“Questa ultima approvazione della FDA del SIMPONI ARIA per l'uso pediatrico nell'AIGP attiva e nella PsA attiva non solo offre una nuova opzione ai giovani pazienti che convivono con queste malattie, ma si aggiunge anche al crescente corpo di prove per questo trattamento”, ha affermato Mathai Mammen, M.D., Ph.D., Responsabile globale, Ricerca e sviluppo Janssen, Johnson & Johnson. “Per più di 20 anni, noi di Janssen ci siamo impegnati nella ricerca di agenti biologici anti-TNF per malattie immuno-mediate e siamo incoraggiati ad espandere le opzioni di trattamento per questi pazienti”.

A proposito di AIG e PsA

L'AIG è un gruppo di disturbi caratterizzati da artrite che persiste per almeno sei settimane prima dei 16 anni.io Circa 300.000 bambini soffrono di una qualche forma di AIG in gli Stati Uniti.ii La forma poliarticolare dell'AIG è la più comune ed è caratterizzata da infiammazione in più di quattro articolazioni e ricorda l'artrite reumatoide (AR) dell'adulto.iii La PsA nei pazienti pediatrici è uno dei sottotipi più rari di AIG ed è caratterizzata sia da infiammazioni articolari che da lesioni cutanee associate a psoriasi simili alla PsA adulta.iv, v Data l'eterogeneità di queste malattie, sono necessarie ulteriori opzioni di trattamento per queste condizioni.

“Per troppo tempo, i bambini con AIG o PsA hanno avuto opzioni di trattamento limitate”, ha detto Seth D. Ginsberg, Co-fondatore e presidente della Global Healthy Living Foundation e CreakyJoints. “Questa approvazione rappresenta un importante passo avanti per questi bambini e le loro famiglie”.

Approvazione a supporto dei dati

L'approvazione si è basata sui risultati della sperimentazione clinica di fase 3 GO-VIVA, uno studio in aperto su bambini con AIG con poliartrite attiva di età compresa tra 2 e 17 anni che avevano artrite attiva in cinque o più articolazioni, nonostante ricevessero un trattamento con metotrexato per almeno due mesi. I risultati degli studi hanno dimostrato che l'esposizione farmacocinetica (PK) di SIMPONI ARIA era coerente con quella di due studi clinici cardine di Fase 3 di SIMPONI ARIA in pazienti adulti con AR da moderatamente a gravemente attiva e PsA attiva.

L'efficacia è stata valutata come endpoint di supporto fino alla settimana 52. L'efficacia è stata generalmente coerente con le risposte nei pazienti adulti con AR. Le reazioni avverse osservate in GO-VIVA erano coerenti con il profilo di sicurezza stabilito di SIMPONI ARIA nei pazienti adulti con AR e PsA.

“A causa della limitata disponibilità di pazienti pediatrici per l'inclusione negli studi clinici, può essere difficile costruire studi clinici per questa giovane popolazione di pazienti”, ha detto Daniel J. Lovell, Joseph E. Levinson, Professore di Reumatologia Pediatrica presso il Cincinnati Children's Hospital Medical Center. “Alla luce di queste sfide, sono lieto di vedere Janssen avanzare l'approvazione di una nuova opzione di trattamento per i pazienti pediatrici con AIG e AP, una pietra miliare importante nel trattamento di queste malattie complesse ed eterogenee”.

Accesso al SIMPONI ARIA

Janssen si impegna a lavorare a stretto contatto con i pagatori, i fornitori e i gestori delle prestazioni farmaceutiche nel tentativo di garantire che SIMPONI ARIA sia ampiamente accessibile ai pazienti appropriati.

Janssen CarePath offre un programma di supporto completo che aiuta i pazienti a iniziare a utilizzare SIMPONI ARIA ea rimanere in pista. Janssen CarePath fornisce informazioni sulla copertura assicurativa, sui potenziali costi vivi e sul supporto del trattamento e identifica le opzioni che possono contribuire a rendere il trattamento più accessibile, incluso il programma di risparmio CarePath di Janssen per i pazienti con assicurazione commerciale che ne hanno diritto.

Informazioni sulla sperimentazione clinica GO-VIVA

GO-VIVA è uno studio multicentrico di fase 3, in aperto, a braccio singolo, condotto in nove paesi con trattamento ricevuto da 127 pazienti con AIG con poliartrite attiva, nonostante l'attuale trattamento con metotrexato. GO-VIVA è stato condotto come requisito post-marketing ai sensi del Pediatric Research Equity Act (PREA) a seguito dell'approvazione iniziale di SIMPONI ARIA per adulti con AR da moderatamente a gravemente attiva nel 2013.

GO-VIVA è stato progettato per valutare il dosaggio di SIMPONI ARIA nei bambini necessario per raggiungere livelli di farmaco ed esposizioni simili a quelli che si sono dimostrati sicuri ed efficaci negli adulti con AR da moderatamente a gravemente attiva, poiché pJIA attiva, attiva La PsA nei pazienti pediatrici e l'AR negli adulti mostrano somiglianze nella malattia.

Informazioni su SIMPONI ARIA (golimumab)

Oltre al trattamento di bambini di età pari o superiore a 2 anni con AIG attiva o PsA attiva, SIMPONI ARIA è approvato negli Stati Uniti per il trattamento di adulti con AR da moderatamente a gravemente attiva, PsA attiva e spondilite anchilosante (AS) attiva. Il SIMPONI ARIA è attualmente approvato per una o più di queste indicazioni in 24 paesi.

SIMPONI ARIA è un anticorpo monoclonale anti-TNF-alfa completamente umano che prende di mira le forme bioattive sia solubili che transmembrana del TNF-alfa umano, una proteina che, se prodotta in eccesso nel corpo a causa di malattie infiammatorie croniche, può causare infiammazioni.

Per gli adulti con AR, PsA e AS, il regime posologico basato sul peso di SIMPONI ARIA è di 2 mg / kg somministrato come infusione endovenosa nell'arco di 30 minuti alle settimane 0 e 4 e successivamente ogni 8 settimane. SIMPONI ARIA viene somministrato con metotrexato per il trattamento dell'AR.

Per i pazienti pediatrici con AIG e AP, il regime di dosaggio basato sulla superficie corporea (BSA) di SIMPONI ARIA è di 80 mg / m22 somministrato come infusione endovenosa della durata di 30 minuti alle settimane 0 e 4 e successivamente ogni 8 settimane.

Maggiori informazioni su SIMPONI ARIA sono disponibili su www.SimponiARIA.com.

Janssen Biotech, Inc. ha scoperto e sviluppato SIMPONI ARIA.

Cos'è SIMPONI ARIA® (golimumab)?

SIMPONI ARIA® è un medicinale da prescrizione usato per trattare:

  • Artrite reumatoide (AR) da moderata a grave negli adulti, usata in combinazione con metotrexato
  • Artrite psoriasica attiva (AP) nelle persone di età pari o superiore a 2 anni
  • Spondilite anchilosante attiva (AS) negli adulti
  • Artrite idiopatica giovanile poliarticolare attiva (AIGP) in persone di età pari o superiore a 2 anni

INFORMAZIONI IMPORTANTI SULLA SICUREZZA

INFEZIONI GRAVI

SIMPONI ARIA® (golimumab) è un medicinale soggetto a prescrizione. SIMPONI ARIA® può ridurre la tua capacità di combattere le infezioni. Ci sono segnalazioni di infezioni gravi causate da batteri, funghi o virus che si sono diffusi in tutto il corpo, tra cui la tubercolosi (TB) e l'istoplasmosi. Alcune di queste infezioni sono state fatali. Il tuo medico ti sottoporrà a un test per la tubercolosi prima di iniziare SIMPONI ARIA® e ti monitorerà attentamente per i segni di tubercolosi durante il trattamento. Informi il medico se è stato a stretto contatto con persone affette da tubercolosi. Informi il medico se sei stato in una regione (come il Ohio e le valli del fiume Mississippi e il sud-ovest) dove sono comuni alcune infezioni fungine come l'istoplasmosi o la coccidioidomicosi.

Non dovresti ricevere SIMPONI ARIA® se ha qualsiasi tipo di infezione. Informi il medico se si è inclini o si ha una storia di infezioni o se si ha il diabete, l'HIV o un sistema immunitario debole. Deve anche informare il medico se è attualmente in trattamento per un'infezione o se ha o sviluppa segni di infezione come:

  • febbre, sudore o brividi
  • dolori muscolari
  • tosse
  • fiato corto
  • sangue nella flemma
  • perdita di peso
  • pelle o piaghe calde, arrossate o dolorose sul corpo
  • diarrea o mal di stomaco
  • bruciore quando urini o urini più del normale
  • mi sento molto stanco

Il tuo medico ti esaminerà per la tubercolosi ed eseguirà un test per vedere se hai la tubercolosi. Se il medico ritiene che sia a rischio di tubercolosi, potrebbe essere trattato con medicinali per la tubercolosi prima di iniziare il trattamento con SIMPONI ARIA® e durante il trattamento con SIMPONI ARIA®. Anche se il tuo test TB è negativo, il tuo medico dovrebbe monitorarti attentamente per infezioni da TB mentre stai assumendo SIMPONI ARIA®. Persone che hanno avuto un test cutaneo TB negativo prima di ricevere SIMPONI ARIA® hanno sviluppato TB attiva. Informi il medico se manifesta uno dei seguenti sintomi durante o dopo l'assunzione di SIMPONI ARIA®:

  • tosse che non va via
  • febbre bassa
  • perdita di peso
  • perdita di grasso corporeo e muscolare (deperimento)

CANCRO

Tumori insoliti sono stati segnalati in bambini e adolescenti che assumevano medicinali bloccanti il ​​fattore di necrosi tumorale (TNF). Per bambini e adulti che ricevono bloccanti del TNF, incluso SIMPONI ARIA®, le possibilità di contrarre linfoma o altri tumori possono aumentare. Il linfoma epatosplenico a cellule T, un linfoma raro e fatale, si è verificato principalmente in adolescenti o giovani maschi adulti con malattia di Crohn o colite ulcerosa che stavano assumendo un bloccante del TNF con azatioprina o 6-mercaptopurina. Informi il medico se ha avuto o sviluppa un linfoma o altri tumori.

Alcune persone trattate con SIMPONI ARIA® ha sviluppato il cancro della pelle. Informi il medico se si verificano cambiamenti nell'aspetto della pelle o escrescenze sulla pelle durante o dopo il trattamento con SIMPONI ARIA®. Il medico dovrebbe esaminare periodicamente la tua pelle, soprattutto se hai una storia di cancro della pelle.

USO CON ALTRI FARMACI

Informa il tuo medico di tutti i farmaci che prendi, incluso ORENCIA® (abatacept), KINERET® (anakinra), ACTEMRA® (tocilizumab), RITUXAN® (rituximab) o un altro bloccante del TNF o se è programmato o è stato recentemente ricevuto un vaccino. Persone che ricevono SIMPONI ARIA® non dovrebbe ricevere vaccini vivi o trattamenti con batteri indeboliti (come BCG per il cancro della vescica).

INFEZIONE DA EPATITE B.

La riattivazione del virus dell'epatite B è stata segnalata in pazienti che sono portatori di questo virus e che stanno assumendo medicinali anti-TNF, come SIMPONI ARIA®. Alcuni di questi casi sono stati fatali. Il medico dovrebbe eseguire esami del sangue prima e dopo l'inizio del trattamento con SIMPONI ARIA®. Informi il medico se sa o pensa di poter essere un portatore del virus dell'epatite B o se manifesta segni di infezione da epatite B, come:

  • mi sento molto stanco
  • urina scura
  • la pelle o gli occhi sembrano gialli
  • poco o nessun appetito
  • vomito
  • dolori muscolari
  • movimenti intestinali color argilla
  • febbre
  • brividi
  • fastidio allo stomaco
  • eruzione cutanea

INSUFFICIENZA CARDIACA

L'insufficienza cardiaca può verificarsi o peggiorare nelle persone che usano i bloccanti del TNF, incluso SIMPONI ARIA®. Se sviluppa insufficienza cardiaca nuova o in peggioramento con SIMPONI ARIA®, potrebbe essere necessario un trattamento in ospedale e potrebbe causare la morte. Il medico la terrà sotto stretto controllo se soffre di insufficienza cardiaca. Informi immediatamente il medico se manifesta sintomi nuovi o in peggioramento di insufficienza cardiaca come mancanza di respiro, gonfiore della parte inferiore delle gambe o dei piedi o improvviso aumento di peso.

PROBLEMI DEL SISTEMA NERVOSO

Raramente, le persone che usano i bloccanti TNF, incluso SIMPONI ARIA®, può avere problemi al sistema nervoso come la sclerosi multipla o la sindrome di Guillain-Barré. Informi immediatamente il medico se manifesta sintomi come alterazioni della vista, debolezza alle braccia o alle gambe o intorpidimento o formicolio in qualsiasi parte del corpo.

PROBLEMI DEL SISTEMA IMMUNITARIO

Raramente, le persone che usano i bloccanti del TNF hanno sviluppato sintomi simili al lupus. Informi il medico se manifesta qualsiasi sintomo come eruzione cutanea sulle guance o su altre parti del corpo, sensibilità al sole, nuovo dolore alle articolazioni o ai muscoli, forte stanchezza, dolore toracico o mancanza di respiro o gonfiore dei piedi, caviglie o gambe.

PROBLEMI AL FEGATO

Gravi problemi al fegato possono verificarsi nelle persone che utilizzano bloccanti del TNF, incluso SIMPONI ARIA®. Contatti immediatamente il medico se sviluppa sintomi come sensazione di grande stanchezza, pelle o occhi gialli, scarso appetito o vomito o dolore al lato destro dello stomaco.

PROBLEMI DI SANGUE

Sono state osservate basse conte ematiche con persone che usano bloccanti del TNF, incluso SIMPONI ARIA®. In questo caso, il tuo corpo potrebbe non produrre abbastanza globuli per combattere le infezioni o aiutare a fermare il sanguinamento. Il medico controllerà la conta ematica prima e durante il trattamento. Informi il medico se ha segni come febbre, lividi, sanguinamento facile o pallore.

REAZIONI ALLERGICHE

Le reazioni allergiche possono verificarsi nelle persone che usano medicinali bloccanti il ​​TNF, incluso SIMPONI ARIA®. Informi il medico se manifesta sintomi di una reazione allergica durante il trattamento con SIMPONI ARIA® come orticaria, gonfiore del viso, difficoltà respiratorie o dolore al petto. Alcune reazioni possono essere gravi e pericolose per la vita.

ALTRE CONSIDERAZIONI DA DIRE AL TUO MEDICO

Informi il medico se soffre di psoriasi.

Informi il medico se è incinta, sta pianificando una gravidanza, sta allattando o pianifica di allattare, o se ha un bambino e ha ricevuto SIMPONI ARIA® durante la gravidanza. Informi il medico del bambino prima che il bambino riceva qualsiasi vaccino a causa di un aumentato rischio di infezione fino a 6 mesi dopo la nascita.

EFFETTI COLLATERALI COMUNI

Gli effetti collaterali più comuni di SIMPONI ARIA® includono: infezione delle vie respiratorie superiori, esami del fegato anormali, diminuzione delle cellule del sangue che combattono le infezioni, infezioni virali, bronchite, ipertensione ed eruzione cutanea.

Si prega di leggere per intero Informazioni sulla prescrizione e Guida ai farmaci per SIMPONI ARIA® e discuti di qualsiasi domanda tu abbia con il tuo medico.

Sei incoraggiato a segnalare gli effetti collaterali negativi dei farmaci da prescrizione alla FDA. Visita www.fda.gov/medwatcho chiama il numero 1-800-FDA-1088.

Informazioni sulle società farmaceutiche Janssen di Johnson & Johnson

In Janssen, stiamo creando un futuro in cui la malattia è una cosa del passato. Siamo le aziende farmaceutiche di Johnson & Johnson, che lavorano instancabilmente per rendere quel futuro una realtà per i pazienti di tutto il mondo combattendo la malattia con la scienza, migliorando l'accesso con l'ingegno e curando la disperazione con il cuore. Ci concentriamo sulle aree della medicina in cui possiamo fare la differenza più grande: cardiovascolare e metabolismo, immunologia, malattie infettive e vaccini, neuroscienze, oncologia e ipertensione polmonare.

Ulteriori informazioni su www.janssen.com. Seguici su www.twitter.com/JanssenGlobal o www.twitter.com/JanssenUS. Janssen Research & Development, LLC e Janssen Biotech, Inc. sono società farmaceutiche Janssen di Johnson & Johnson.

Precauzioni relative alle dichiarazioni previsionali

Questo comunicato stampa contiene “dichiarazioni previsionali” come definite nel Private Securities Litigation Reform Act del 1995 riguardante SIMPONI ARIA. Si invita il lettore a non fare affidamento su queste dichiarazioni previsionali. Queste dichiarazioni si basano sulle attuali aspettative di eventi futuri. Se le ipotesi sottostanti si rivelano imprecise o si verificano rischi o incertezze noti o sconosciuti, i risultati effettivi potrebbero variare sostanzialmente dalle aspettative e dalle proiezioni di Janssen Ricerca e Sviluppo, LLC, qualsiasi altra società farmaceutica Janssen e / o Johnson & Johnson. I rischi e le incertezze includono, ma non sono limitati a: sfide e incertezze inerenti alla ricerca e allo sviluppo del prodotto, inclusa l'incertezza del successo clinico e dell'ottenimento di approvazioni normative; incertezza del successo commerciale; difficoltà e ritardi nella produzione; concorrenza, inclusi progressi tecnologici, nuovi prodotti e brevetti ottenuti dai concorrenti; sfide ai brevetti; problemi di efficacia o sicurezza del prodotto che comportano richiami del prodotto o azioni normative; cambiamenti nel comportamento e nei modelli di spesa degli acquirenti di prodotti e servizi sanitari; modifiche alle leggi e ai regolamenti applicabili, comprese le riforme sanitarie globali; e tendenze verso il contenimento dei costi sanitari. Un ulteriore elenco e le descrizioni di questi rischi, incertezze e altri fattori possono essere trovati nella relazione annuale di Johnson & Johnson sul modulo 10-K per l'anno fiscale terminato 29 dicembre 2019, comprese le sezioni intitolate “Nota cautelativa relativa alle dichiarazioni previsionali” e “Elemento 1A. Fattori di rischio” e nell'ultima relazione trimestrale depositata dalla società sul modulo 10-Q e nei successivi documenti depositati dalla società presso la Securities and Exchange Commission . Copie di questi documenti sono disponibili online all'indirizzo www.sec.gov, www.jnj.com o su richiesta di Johnson & Johnson. Nessuna delle società farmaceutiche Janssen né Johnson & Johnson si impegna ad aggiornare alcuna dichiarazione previsionale a seguito di nuove informazioni o eventi o sviluppi futuri.

io Mayo Clinic. Artrite idiopatica giovanile. Panoramica. Accesso 29 settembre 2020. Disponibile su https://www.mayoclinic.org/diseases-conditions/juvenile-idiopathic-arthritis/symptoms-causes/syc-20374082.

ii Istituto Nazionale della Salute. Biblioteca nazionale di medicina degli Stati Uniti. Riferimento domestico di genetica. Artrite idiopatica giovanile. Frequenza. Accesso 29 settembre, 2020. Disponibile su https://ghr.nlm.nih.gov/condition/juvenile-idiopathic-arthritis#.

iii Istituto Nazionale della Salute. Biblioteca nazionale di medicina degli Stati Uniti. Riferimento domestico di genetica. Artrite idiopatica giovanile. Descrizione. Accesso 29 settembre 2020. Disponibile su https://ghr.nlm.nih.gov/condition/juvenile-idiopathic-arthritis#.

iv Ravelli A, Martini A. Artrite idiopatica giovanile. Lancetta. 2007; 369 (9563): 767-778.

v Stoll ML, Punaro M. Psoriatic artrite idiopatica giovanile: un racconto di due sottogruppi. Curr Opin Rheumatol. 2011; 23 (5): 437-443.

FONTE Società farmaceutiche Janssen di Johnson & Johnson

Link correlati

https://www.janssen.com/

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Come depositato presso la Securities and Exchange Commission il 29 settembre 2020.

Registrazione n. 333-

STATI UNITI

COMMISSIONE TITOLI E CAMBIO

Washington, D.C. 20549

MODULO S-1

DICHIARAZIONE DI REGISTRAZIONE

SOTTO

IL SECURITIES ACT DEL 1933

ARCUTIS BIOTHERAPEUTICS, INC.

(Nome esatto del dichiarante come specificato nel suo statuto)

Delaware

2834

81-2974255

(Stato o altra giurisdizione di
incorporazione o organizzazione)

(Primary Standard Industrial

Numero codice classificazione)

(I.R.S. Datore di lavoro

Numero di identificazione.)

2945 Townsgate Road, Suite 110

Westlake Village, California 91361

Telefono: (805) 418-5006

(Indirizzo, compreso il codice postale e numero di telefono, compreso il prefisso, dei principali uffici esecutivi del registrante)

Todd Franklin Watanabe

Presidente e Amministratore Delegato

Arcutis Biotherapeutics, Inc.

2945 Townsgate Road, Suite 110

Westlake Village, California 91361

Telefono: (805) 418-5006

(Nome, indirizzo, incluso codice postale e numero di telefono, incluso prefisso, dell'agente per il servizio)

Copie a:

Brian J. Cuneo

J. Ross McAloon

Latham e Watkins LLP

140 Scott Drive

Menlo Park, CA 94025

(650) 328-4600

Kristin E. VanderPas

Charles S. Kim

David Peinsipp

Cooley LLP

101 California Street, 5 ° piano

San Francisco, CA 94111

(415) 693-2000

Data approssimativa di inizio della proposta di vendita al pubblico: non appena possibile dopo la dichiarazione di efficacia della presente Dichiarazione di registrazione.

Se uno qualsiasi dei titoli registrati in questo modulo deve essere offerto in modo ritardato o continuo ai sensi della regola 415 ai sensi del Securities Act del 1933, selezionare la casella seguente. ☐

Se il presente modulo viene depositato per registrare ulteriori titoli per un'offerta ai sensi della regola 462 (b) ai sensi del Securities Act, selezionare la casella seguente ed elencare il numero della dichiarazione di registrazione del Securities Act della precedente dichiarazione di registrazione effettiva per la stessa offerta. ☐

Se questo modulo è un emendamento post-efficace depositato ai sensi della regola 462 (c) ai sensi del Securities Act, selezionare la casella seguente ed elencare il numero della dichiarazione di registrazione del Securities Act della precedente dichiarazione di registrazione effettiva per la stessa offerta. ☐

Se questo modulo è un emendamento post-efficace depositato ai sensi della regola 462 (d) ai sensi del Securities Act, selezionare la casella seguente ed elencare il numero della dichiarazione di registrazione del Securities Act della precedente dichiarazione di registrazione effettiva per la stessa offerta. ☐

Indicare con un segno di spunta se il dichiarante è un archiviatore accelerato di grandi dimensioni, un compilatore accelerato, un compilatore non accelerato, una società di segnalazione più piccola o una società in crescita emergente. Vedere le definizioni di “filer accelerato di grandi dimensioni”, “filer accelerato”, “società di segnalazione più piccola” e “società in crescita emergente” nella regola 12b-2 dell'Exchange Act.

Filer accelerato di grandi dimensioni Filer accelerato
Filer non accelerato Società di segnalazione più piccola
Azienda in crescita emergente

Se si tratta di una società in crescita emergente, indicare con un segno di spunta se il dichiarante ha scelto di non utilizzare il periodo di transizione esteso per conformarsi a qualsiasi principio contabile finanziario nuovo o rivisto fornito ai sensi della Sezione 7 (a) (2) (B) del Securities Act . ☐

CALCOLO DELLA QUOTA DI ISCRIZIONE

Titolo di ciascuna classe di titoli da registrare Aggregato massimo proposto
Prezzo di offerta (1)

Quantità di

Quota di registrazione (2)

Azioni ordinarie, valore nominale di $ 0,0001 per azione $ 123.096.000 $ 15.978

(1) Stimato esclusivamente allo scopo di calcolare la quota di registrazione ai sensi della regola 457 (o) ai sensi del Securities Act del 1933, come modificato. Include azioni ordinarie che i sottoscrittori possono acquistare.

(2) Calcolato ai sensi della regola 457 (o) sulla base di una stima del prezzo di offerta aggregato massimo proposto.

Il Registrant con la presente modifica la presente Dichiarazione di registrazione alla data o alle date necessarie per ritardarne la data di entrata in vigore fino a quando il Registrant non presenterà un ulteriore emendamento che afferma specificamente che la presente Dichiarazione di registrazione diventerà successivamente efficace in conformità con la Sezione 8 (a) del Securities Act del 1933 o fino a quando la Dichiarazione di registrazione non entrerà in vigore alla data stabilita dalla Commissione, che agisce ai sensi di detta Sezione 8 (a).


Le informazioni in questo prospetto non sono complete e possono essere modificate. Non possiamo vendere questi titoli fino a quando la dichiarazione di registrazione depositata presso la Securities and Exchange Commission non sarà effettiva. Il presente prospetto non costituisce un'offerta di vendita di questi titoli e non sollecita un'offerta di acquisto di tali titoli in qualsiasi giurisdizione in cui l'offerta o la vendita non è consentita.

SOGGETTO A COMPLETAMENTO, IN DATA 29 SETTEMBRE 2020

PROSPETTO PRELIMINARE

4.000.000 di azioni

image011.jpg

Azione comune

_____________________________

Stiamo offrendo 4.000.000 di azioni delle nostre azioni ordinarie. Le nostre azioni ordinarie sono quotate sul Nasdaq Global Select Market con il simbolo “ARQT”. Il 28 settembre 2020, l'ultimo prezzo di vendita riportato delle nostre azioni ordinarie riportato sul Nasdaq Global Select Market era di $ 26,76 per azione.

Siamo una “società in crescita emergente” come definita dalle leggi federali sui titoli e, in quanto tale, abbiamo scelto di conformarci a determinati requisiti di rendicontazione delle società pubbliche.

_____________________________

Investire nelle nostre azioni ordinarie comporta un alto grado di rischio. Vedere “Fattori di rischio” a partire da pagina 14.

_____________________________

Né la Securities and Exchange Commission né qualsiasi altra commissione statale sui titoli ha approvato o disapprovato questi titoli né ha valutato l'adeguatezza o l'accuratezza del presente prospetto. Qualsiasi dichiarazione contraria è un reato penale.

_____________________________

Per azione Totale
Prezzo di offerta pubblica $ $
Sconti e commissioni di sottoscrizione (1) $ $
Procede a Arcutis Biotherapeutics, Inc., prima delle spese $ $

_________________

(1)Vedere “Sottoscrizione” per una descrizione del risarcimento dovuto ai sottoscrittori.

Si prevede che una o più entità gestite da OrbiMed, un'affiliata di uno dei nostri direttori, acquistino $ 35,0 milioni delle nostre azioni ordinarie in un collocamento privato simultaneo esente dai requisiti di registrazione del Securities Act del 1933, come modificato, a un prezzo per quota pari all'offerta pubblica o al contestuale collocamento privato. Riceveremo l'intero ricavato e non pagheremo alcuno sconto o commissione di sottoscrizione rispetto alle azioni vendute nel concomitante collocamento privato. Il collocamento privato simultaneo è subordinato alla chiusura di questa offerta e al soddisfacimento di alcune altre condizioni abituali. Tuttavia, questa offerta non è subordinata al completamento del collocamento privato simultaneo.

Abbiamo concesso ai sottoscrittori un'opzione per un periodo di 30 giorni per acquistare fino a 600.000 azioni aggiuntive di azioni ordinarie.

I sottoscrittori prevedono di consegnare le azioni agli acquirenti intorno al 2020.

_____________________________

Goldman Sachs & Co. LLC Cowen Titoli Guggenheim

Titoli Truist

Cantore

_____________________________

Prospetto datato, 2020.


SOMMARIO

Né noi né i sottoscrittori abbiamo autorizzato nessuno a fornire informazioni o fare dichiarazioni diverse da quelle contenute o incorporate per riferimento in questo prospetto o in qualsiasi prospetto scritto gratuito preparato da o per conto di noi oa cui vi abbiamo fatto riferimento. Noi e i sottoscrittori non ci assumiamo alcuna responsabilità e non possiamo fornire alcuna garanzia in merito all'affidabilità di qualsiasi altra informazione che altri potrebbero darvi. Il presente prospetto è un'offerta di vendita solo delle azioni ordinarie offerte con il presente documento, ma solo in circostanze e giurisdizioni in cui è lecito farlo. Le informazioni contenute in o incorporate mediante riferimento in questo prospetto o in qualsiasi prospetto a scrittura gratuita applicabile sono aggiornate solo alla data della sua data, indipendentemente dal momento della consegna o dell'eventuale vendita di azioni delle nostre azioni ordinarie. La nostra attività, le condizioni finanziarie, i risultati delle operazioni e le prospettive potrebbero essere cambiate da quella data.

Nella misura in cui esiste un conflitto tra le informazioni contenute nel presente prospetto, da un lato, e le informazioni contenute in qualsiasi documento incorporato mediante riferimento depositato presso la Securities and Exchange Commission, o la SEC, prima della data del presente prospetto, il d'altra parte, dovresti fare affidamento sulle informazioni contenute in questo prospetto. Se una qualsiasi dichiarazione in un documento incorporato per riferimento è incoerente con una dichiarazione in un altro documento incorporato per riferimento avente una data successiva, la dichiarazione nel documento con la data tarda modifica o sostituisce la dichiarazione precedente.

Non l'abbiamo fatto e i sottoscrittori non hanno intrapreso alcuna azione che consenta questa offerta o possesso o distribuzione del presente prospetto in qualsiasi giurisdizione in cui è richiesta un'azione a tal fine, tranne che negli Stati Uniti. Le persone che sono entrate in possesso del presente prospetto in una giurisdizione al di fuori degli Stati Uniti sono tenute a informarsi e ad osservare eventuali limitazioni relative a questa offerta e alla distribuzione del presente prospetto.


SOMMARIO DEL PROSPETTO

La seguente sintesi evidenzia le informazioni contenute altrove nel presente prospetto e nei documenti incorporati per riferimento. Questo riepilogo non è completo e potrebbe non contenere tutte le informazioni da considerare prima di investire nelle nostre azioni ordinarie. È necessario leggere attentamente l'intero prospetto e i documenti incorporati per riferimento in questo prospetto, in particolare i rischi di investire nelle nostre azioni ordinarie discussi sotto il titolo “Fattori di rischio” e il nostro bilancio e le note correlate incorporate per riferimento in questo prospetto prima di effettuare una decisione di investimento. Salvo quanto diversamente indicato nel presente documento o come altrimenti richiesto dal contesto, i riferimenti nel presente prospetto e nei documenti incorporati mediante riferimento in questo prospetto ad “Arcutis Biotherapeutics”, “Arcutis”, “la Società”, “noi”, “noi” e “nostro “Fare riferimento a Arcutis Biotherapeutics, Inc.

Panoramica

Siamo una società biofarmaceutica in fase avanzata focalizzata sullo sviluppo e sulla commercializzazione di trattamenti per malattie dermatologiche con elevate esigenze mediche insoddisfatte. Il nostro portafoglio attuale comprende trattamenti topici con un potenziale significativo per affrontare malattie e condizioni dermatologiche immuno-mediate o immuno-dermatologia. La nostra strategia consiste nell'identificare e sviluppare trattamenti contro target biologici convalidati in dermatologia che forniscano un profilo clinico differenziato che affronti le principali carenze delle terapie esistenti nelle nostre indicazioni mirate. Riteniamo che questa strategia ci posizioni in modo univoco per progredire rapidamente verso il nostro obiettivo di colmare il divario di innovazione del trattamento in dermatologia, massimizzando la nostra probabilità di successo tecnico e risorse finanziarie.

Il nostro prodotto principale candidato, ARQ-151 (crema topica roflumilast), è in Phase 3 studi clinici nella psoriasi a placche. ARQ-151 è una formulazione topica in crema di roflumilast, un inibitore della fosfodiesterasi di tipo 4 o PDE4 altamente potente e selettivo, che stiamo sviluppando per il trattamento della psoriasi a placche, inclusa la psoriasi nelle regioni intertriginose come l'inguine, le ascelle e il sottomammario aree, così come la dermatite atopica. La PDE4 è un obiettivo biologico consolidato in dermatologia, con più inibitori della PDE4 approvati dalla Food and Drug Administration statunitense o FDA. Abbiamo completato con successo uno studio di Fase 2b sull'ARQ-151 nella psoriasi a placche, dimostrando un potenziale miglioramento sintomatico e una tollerabilità favorevole dell'ARQ-151 in questa popolazione. Abbiamo completato l'arruolamento in tre studi di Fase 3 sulla psoriasi a placche, con dati di punta attesi nel primo trimestre del 2021 e una presentazione di domanda di nuovo farmaco anticipata entro la fine del 2021. Abbiamo anche completato l'arruolamento in uno studio sulla sicurezza a lungo termine di ARQ -151 nei pazienti con psoriasi a placche, ha riportato dati preliminari positivi per la coorte 1 e si prevede di riportare i dati di punta per l'intera popolazione dello studio di entrambe le coorti 1 e 2 nel primo trimestre del 2021.

Abbiamo anche completato uno studio di Fase 2 sull'ARQ-151 nella dermatite atopica, che ha dimostrato che ARQ-151 potrebbe fornire un miglioramento sintomatico e un profilo di tollerabilità favorevole negli adulti con dermatite atopica. A seguito di un incontro di fine fase 2 con la FDA nel settembre 2020, abbiamo annunciato la nostra intenzione di far progredire l'ARQ-151 negli studi di fase 3 sulla dermatite atopica, bypassando il nostro studio di fase 2b precedentemente pianificato in tale indicazione. Prevediamo che il programma di Fase 3 includerà almeno due studi cardine di Fase 3 su circa 650 pazienti ciascuno, oltre a un'estensione in aperto, e includerà un numero sufficiente di pazienti per soddisfare i requisiti FDA per un'applicazione supplementare di un nuovo farmaco nella dermatite atopica. Prevediamo di avviare gli studi di fase 3 alla fine del 2020 o all'inizio del 2021.

Inoltre, stiamo sviluppando ARQ-154 (schiuma roflumilast topica), una formulazione in schiuma topica di ARQ-151, nella dermatite seborroica e nella psoriasi del cuoio capelluto. Abbiamo completato con successo uno studio di fase 2 sull'ARQ-154 nella dermatite seborroica, dimostrando un potenziale miglioramento sintomatico e una tollerabilità favorevole dell'ARQ-154 in questa popolazione. Abbiamo anche completato l'arruolamento di uno studio di fase 2b sulla psoriasi del cuoio capelluto e prevediamo di riportare i dati di punta nel quarto trimestre del 2020.

Inoltre, abbiamo avviato uno studio clinico di Fase 1 / 2bdy di ARQ-252, una Janus chinasi topica di tipo 1 potente e altamente selettiva, o JAK1, inibitore per il trattamento dell'eczema alle mani. Abbiamo completato la parte di fase 1 di questo studio clinico e iniziato la parte di fase 2b e ci aspettiamo dati di prim'ordine in


seconda metà del 2021. Abbiamo anche in programma di avviare uno studio clinico di ARQ-252 in vitiligine nella seconda metà del 2020. Inoltre, abbiamo formulazione e psforzi reclinici in corso per ARQ-255, una formulazione topica alternativa di ARQ-252 progettata per raggiungere più in profondità la pelle al fine di trattare potenzialmente l'alopecia areata.

Malattie dermatologiche come la psoriasi, la dermatite atopica, la dermatite seborroica, l'eczema delle mani, l'alopecia areata e la vitiligine colpiscono centinaia di milioni di persone in tutto il mondo ogni anno, influenzando la loro qualità di vita e il benessere fisico, funzionale ed emotivo. Esistono molti trattamenti approvati per queste condizioni, ma rimane una grande opportunità a causa di problemi con i trattamenti esistenti. I trattamenti topici vengono utilizzati per quasi tutti i pazienti, ma sono limitati da uno o più dei seguenti: tassi di risposta modesti, effetti collaterali, aderenza del paziente, limitazioni al sito di applicazione e limiti alla durata della terapia. I corticosteroidi topici, o TCS, sono comunemente usati come terapia di prima linea per il trattamento di condizioni infiammatorie della pelle come la psoriasi e la dermatite atopica. Mentre molti pazienti vedono miglioramenti, il trattamento TCS a lungo termine comporta il rischio di una varietà di effetti collaterali significativi. Di conseguenza, i TCS vengono generalmente utilizzati in modo intermittente, il che può portare a riacutizzazioni della malattia. Nella psoriasi, gli analoghi della vitamina D hanno dimostrato tassi di risposta inferiori rispetto al TCS e sono spesso irritanti. Nella dermatite atopica, gli inibitori topici della calcineurina, o TCIs, e Eucrisa, un inibitore topico non steroideo PDE4, hanno tassi di risposta inferiori rispetto al TCS e sono associati a bruciore al sito di applicazione. I TCI hanno anche un avviso in scatola per il rischio di cancro.

Sono disponibili anche terapie biologiche e sistemiche che hanno mostrato tassi di risposta impressionanti, ma sono indicate solo per la minoranza di pazienti con forme di malattia da moderate a gravi, sono costose e spesso devono affrontare rimborsi e restrizioni di accesso. Anche l'uso di terapie sistemiche orali come il metotrexato e Otezla è limitato ai pazienti con psoriasi più grave e presenta significativi rischi di effetti collaterali. Inoltre, molti pazienti in terapia biologica e sistemica richiedono ancora una terapia topica aggiuntiva.

Date le limitazioni associate alla TCS, ad altre terapie topiche, biologiche e sistemiche, riteniamo che i pazienti con malattie infiammatorie della pelle non siano soddisfatti delle loro attuali opzioni di trattamento. Riteniamo che ci sia una significativa opportunità per sfruttare gli sviluppi in altri campi della medicina, in particolare infiammazione e immunologia, per affrontare la significativa necessità di trattamenti cronici efficaci in immuno-dermatologia. Il nostro obiettivo iniziale è quello di affrontare il significativo bisogno dei pazienti di trattamenti topici innovativi che prendono di mira direttamente i mediatori molecolari della malattia, hanno il potenziale per mostrare un significativo miglioramento sintomatico, mantenere un basso rischio di tossicità o effetti collaterali e sono adatti per l'uso cronico in tutte le aree del corpo.

Stiamo sviluppando ARQ-151 per il trattamento della psoriasi a placche e della dermatite atopica. Gli steroidi ad alta potenza sono l'attuale standard di cura per la psoriasi a placche e gli steroidi di potenza da bassa a media sono l'attuale standard di cura per la dermatite atopica, ma gli steroidi sono associati alla soppressione dell'asse ipotalamo-ipofisi-surrene, o asse HPA (uno dei quattro sistemi neuroendocrini del corpo, che svolge un ruolo centrale nella regolazione di porzioni del sistema metabolico, cardiovascolare, immunitario, riproduttivo e nervoso centrale), atrofia cutanea (assottigliamento), strie (smagliature) e teleangectasie (vene del ragno), tra gli altri effetti collaterali. Inoltre, alcuni di questi effetti collaterali (es. Strie) sono irreversibili e persistono anche dopo l'interruzione della terapia. Sulla base delle ricerche di mercato e delle nostre stime interne, stimiamo che la popolazione di pazienti trattati con terapie topiche prescritte negli Stati Uniti sia di circa 2,5 milioni di pazienti e 5,4 milioni di pazienti rispettivamente per la psoriasi e la dermatite atopica. Stimiamo che la nostra opportunità di mercato indirizzabile, che si concentra sui pazienti trattati da dermatologi con terapie topiche, per ciascuno di psoriasi e dermatite atopica è rispettivamente di 2,0 milioni di pazienti e 1,0 milioni di pazienti.


La nostra pipeline

I grafici seguenti riassumono la nostra pipeline di prodotti, incluso il nostro candidato principale, ARQ-151, e le nostre prossime tappe previste:

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ARQ-151

Il nostro prodotto principale candidato, ARQ-151, è una crema topica contenente roflumilast, un inibitore della PDE4, che riteniamo abbia il potenziale per offrire un miglioramento sintomatico simile a uno steroide ad alta potenza, un profilo di tollerabilità favorevole, la capacità di trattare cronicamente e poche o nessuna delle reazioni al sito di applicazione associate a molti trattamenti esistenti. Attualmente stiamo sviluppando ARQ-151 per la psoriasi a placche, compresa la psoriasi intertriginosa, così come la dermatite atopica. Abbiamo completato con successo uno studio di Fase 2b sull'ARQ-151 nella psoriasi a placche. Abbiamo completato l'arruolamento in tre studi clinici di fase 3 sulla psoriasi a placche e prevediamo di riportare i dati migliori per tutti e tre gli studi nel primo trimestre del 2021. Inoltre, abbiamo completato l'arruolamento in uno studio sulla sicurezza a lungo termine di ARQ-151 nella placca psoriasi, ha riportato dati preliminari positivi per la coorte 1 e si prevede di riportare i dati di punta per l'intera popolazione dello studio di entrambe le coorti 1 e 2 nel primo trimestre del 2021.

Abbiamo anche completato uno studio di Fase 2 sull'ARQ-151 nella dermatite atopica, che ha dimostrato che ARQ-151 potrebbe fornire un miglioramento sintomatico e un profilo di tollerabilità favorevole negli adulti con dermatite atopica. A seguito di un incontro di fine fase 2 con la FDA nel settembre 2020, abbiamo annunciato il nostro


intenzione di far progredire l'ARQ-151 negli studi di Fase 3 sulla dermatite atopica, aggirando il nostro studio di Fase 2b precedentemente pianificato in tale indicazione. Prevediamo che il programma di Fase 3 includerà almeno due studi cardine di Fase 3 su circa 650 pazienti ciascuno, nonché un'estensione in aperto, e includerà un numero sufficiente di pazienti per soddisfare i requisiti della FDA per un'applicazione supplementare di un nuovo farmaco nella dermatite atopica. Prevediamo di avviare gli studi di fase 3 alla fine del 2020 o all'inizio del 2021.

Nel luglio 2018, abbiamo stipulato un accordo di licenza con AstraZeneca AB per i diritti esclusivi mondiali di roflumilast, l'inibitore della PDE4 utilizzato come ingrediente farmaceutico attivo in ARQ-151 e ARQ-154, come prodotto topico nell'uomo esclusivamente per indicazioni dermatologiche. Abbiamo costruito il nostro portafoglio di proprietà intellettuale attorno agli usi topici di roflumilast, con formulazione rilasciata e in attesa e brevetti / domande farmacocinetiche negli Stati Uniti e in altre giurisdizioni da quattro distinte famiglie di brevetti, che dovrebbero fornirci l'esclusiva per la formulazione a cui essere commercializzato almeno fino al 2037.

ARQ-154

Stiamo anche sviluppando ARQ-154, una formulazione in schiuma di ARQ-151, per il trattamento della dermatite seborroica e della psoriasi del cuoio capelluto. ARQ-154 contiene roflumilast, lo stesso inibitore PDE4 altamente potente e selettivo trovato in ARQ-151, ed è quasi identico a ARQ-151, con tutti gli ingredienti in ARQ-154 che sono gli stessi di quelli in ARQ-151, a parte l'olio ridotto contenuto e l'aggiunta di un propellente nella lattina per creare la schiuma. Abbiamo progettato ARQ-154 come una versione in schiuma topica di ARQ-151 per superare le sfide della somministrazione di farmaci topici nelle aree del corpo portatrici di peli. Abbiamo completato con successo uno studio di fase 2 sull'ARQ-154 nella dermatite seborroica, dimostrando un potenziale miglioramento sintomatico e una tollerabilità favorevole dell'ARQ-154 in questa popolazione. Abbiamo anche completato l'arruolamento di uno studio di Fase 2b sulla psoriasi del cuoio capelluto e prevediamo di riportare i dati di punta nel quarto trimestre del 2020. Riteniamo che ARQ-154 offrirà a medici e pazienti un profilo clinico altamente differenziato che è idealmente adatto per affrontare esigenze insoddisfatte nel trattamento topico della psoriasi del cuoio capelluto e della dermatite seborroica.

ARQ-252

ARQ-252 è un potente e altamente selettivo inibitore topico di piccole molecole di JAK1 che stiamo sviluppando per l'eczema della mano e la vitiligine. JAK1 fa parte della famiglia Janus di tirosin chinasi proteiche non recettoriali, o JAK, tra cui JAK1, Janus chinasi tipo 2 o JAK2, Janus chinasi tipo 3 o JAK3 e tirosin chinasi tipo 2 o Tyk2. Collettivamente, queste chinasi sono coinvolte nella crescita, sopravvivenza, sviluppo e differenziazione cellulare di una varietà di cellule. Riteniamo che a causa della sua elevata selettività per JAK1 rispetto a JAK2, ARQ-252 abbia il potenziale per trattare malattie infiammatorie senza causare effetti avversi ematopoietici, come anemia, trombocitopenia e neutropenia, associati all'inibizione di JAK2.

Nel gennaio 2018, abbiamo sottoscritto un'opzione esclusiva e un accordo di licenza, o l'accordo di licenza Hengrui, con Jiangsu Hengrui Medicine Co., Ltd. of China, o Hengrui, per l'ingrediente farmaceutico attivo in ARQ-252 per tutti gli usi dermatologici topici nel Stati Uniti, Canada, Europa e Giappone. Abbiamo esercitato la nostra opzione esclusiva nel dicembre 2019 e abbiamo anche modificato contemporaneamente l'accordo per espandere il territorio includendo anche il Canada. L'accordo di licenza Hengrui include la composizione dei brevetti in materia negli Stati Uniti e questi brevetti non scadono fino al 2033. Riteniamo che ci sia il potenziale per ottenere una protezione aggiuntiva per ARQ-252 attraverso possibili formulazioni future e altri brevetti.

Abbiamo avviato uno studio di Fase 1 / 2b su ARQ-252 in pazienti adulti con eczema della mano nella prima metà del 2020. Abbiamo completato la parte di Fase 1 di questo studio clinico e iniziato la parte di Fase 2b e ci aspettiamo dati di massimo livello nella seconda metà del 2021. Abbiamo anche in programma di avviare uno studio di fase 2a su ARQ-252 nella vitiligine nella seconda metà del 2020.

ARQ-255

Stiamo anche sviluppando ARQ-255, una formulazione topica alternativa di ARQ-252 progettata per raggiungere più in profondità la pelle al fine di trattare potenzialmente l'alopecia areata. Crediamo che l'inibitore topico JAK


la terapia per l'alopecia areata richiede che il farmaco venga somministrato nel sito dell'infiammazione, in profondità nella pelle alla base (bulbo) del follicolo pilifero. Sebbene la somministrazione orale di inibitori della JAK possa raggiungere i livelli di farmaco richiesti nel sito dell'infiammazione, è improbabile che le applicazioni topiche convenzionali forniscano concentrazioni di inibitori della JAK nel sito dell'infiammazione adeguate per il trattamento dell'alopecia areata. Abbiamo intrapreso uno sforzo di formulazione che chiamiamo Deep Dermal Drug Delivery (tecnologia “4D”), che sfrutta alcune delle proprietà fisiche uniche dell'ingrediente farmaceutico attivo in ARQ-255 e che riteniamo possa consentirci di fornire a livello topico una quantità sufficiente concentrazioni del farmaco per trattare potenzialmente l'alopecia areata tramite somministrazione topica. La formulazione e gli esperimenti preclinici sono in corso per sviluppare una versione 4D di ARQ-252, che chiamiamo ARQ-255, e se questi sforzi di formulazione avranno successo, prevediamo di entrare in clinica con ARQ-255 come potenziale trattamento per l'alopecia areata .

La nostra opportunità di mercato

Crediamo che ci siano significative opportunità di mercato da cogliere in ciascuno dei nostri mercati indirizzabili.

Candidato di prodotto

Meccanismo di

Azione

Formulazione

Indicazione

Primaria opportunità di mercato indirizzabile negli Stati Uniti

ARQ-151

Inibitore PDE4

Crema topica

Psoriasi

Circa 2,0 milioni di pazienti trattati da dermatologi con terapie topiche di prescrizione

Dermatite atopica

Circa 1,0 milioni di pazienti trattati da dermatologi con terapie topiche su prescrizione

ARQ-154

Inibitore PDE4

Schiuma topica

Dermatite seborroica

Circa 1,8 milioni di pazienti trattati da dermatologi con terapie topiche su prescrizione

Psoriasi del cuoio capelluto

Circa 850.000 pazienti trattati da dermatologi con terapie topiche su prescrizione

ARQ-252

JAK1 Inibitore

Crema topica

Eczema alle mani

Circa 8,3 milioni di pazienti

Vitiligine

Circa 2,6 milioni di pazienti

ARQ-255

JAK1 Inibitore

Sospensione topica

Alopecia areata

Circa 6,2 milioni di pazienti

La nostra squadra

Per sfruttare la nostra opportunità, abbiamo creato un team di gestione con una profonda esperienza nello sviluppo, nella formulazione e nella commercializzazione di prodotti dermatologici. Il nostro team di gestione ha ricoperto ruoli chiave in numerose società biotecnologiche e farmaceutiche con un focus sulla dermatologia, tra cui Pfizer Inc., Amgen Inc., Gilead Sciences, Inc., Kythera Biopharmaceuticals, Inc., Verrica Pharmaceuticals Inc. e Fougera Pharmaceuticals Inc. Attraverso Questi ruoli, il nostro team di gestione è stato integralmente coinvolto nello sviluppo, approvazione e / o commercializzazione di oltre cinquanta prodotti approvati dalla FDA (inclusi diciotto prodotti topici) come Enbrel, Jublia, CeraVe, Aczone e Xeljanz. Questa vasta esperienza ci fornisce intuizioni e capacità uniche nello sviluppo e nella commercializzazione di farmaci dermatologici.

La nostra strategia

La nostra strategia è quella di sfruttare le recenti innovazioni nel campo dell'infiammazione e dell'immunologia per identificare molecole contro bersagli biologici convalidati in dermatologia e sviluppare e commercializzare i migliori prodotti che soddisfano esigenze significative insoddisfatte in immuno-dermatologia. Gli elementi chiave della nostra strategia includono:

Sviluppa e commercializza rapidamente il nostro prodotto principale candidato ARQ-151 per il trattamento di pazienti con psoriasi a placche e dermatite atopica. Abbiamo in programma di sviluppare ARQ-151 per il trattamento della psoriasi a placche e della dermatite atopica. Sulla base dei dati clinici generati fino ad oggi, riteniamo che ARQ-151 abbia il potenziale per essere il miglior trattamento topico non steroideo della categoria con un miglioramento sintomatico simile agli steroidi ad alta potenza pur offrendo un basso rischio di effetti collaterali e un profilo di tollerabilità favorevole che consente la somministrazione cronica, anche per pazienti pediatrici. Nella psoriasi a placche, abbiamo completato l'arruolamento in tre cliniche di Fase 3


e ci aspettiamo di riportare i dati migliori per tutti e tre gli studi nel primo trimestre del 2021. Inoltre, abbiamo completato l'arruolamento in uno studio sulla sicurezza a lungo termine di ARQ-151 nella psoriasi a placche, abbiamo riportato dati preliminari positivi per la coorte 1 e ci aspettiamo per riportare i dati più importanti per l'intera popolazione dello studio da entrambe le coorti 1 e 2 nel primo trimestre del 2021. Nella dermatite atopica, abbiamo completato uno studio di prova del concetto di fase 2 di ARQ-151 e abbiamo in programma di avviare il nostro programma chiave di fase 3 in dermatite atopica alla fine del 2020 o all'inizio del 2021.

Espandi il nostro mercato indirizzabile con ARQ-154. ARQ-154 è una formulazione in schiuma di ARQ-151 per il trattamento della psoriasi del cuoio capelluto e della dermatite seborroica che abbiamo sviluppato per trattare le aree del corpo portatrici di capelli come il cuoio capelluto dove una crema non è adatta. Abbiamo completato con successo uno studio di fase 2 sull'ARQ-154 nella dermatite seborroica, dimostrando un potenziale miglioramento sintomatico e una tollerabilità favorevole dell'ARQ-154 in questa popolazione. Sulla base dei risultati dei nostri studi di Fase 2 con ARQ-151, riteniamo che ARQ-154 abbia il potenziale per offrire ai pazienti con psoriasi del cuoio capelluto un miglioramento sintomatico simile agli steroidi ad alta potenza, pur mantenendo potenzialmente un basso rischio di effetti collaterali e una tollerabilità favorevole. Abbiamo completato l'arruolamento di uno studio di Fase 2b sulla psoriasi del cuoio capelluto e prevediamo di riportare i dati di punta nel quarto trimestre del 2020.

Continuare a innovare e sviluppare la nostra pipeline di prodotti terapeutici che riteniamo abbiano il potenziale per essere i migliori in immuno-dermatologia. Abbiamo in programma di sviluppare ARQ-252, un inibitore di JAK1 con un'elevata selettività relativa a JAK1 rispetto a JAK2, per il trattamento dell'eczema della mano e potenzialmente vitiligine e alopecia areata. Data la sua elevata selettività relativa a JAK1 rispetto a JAK2, riteniamo che ARQ-252 abbia il potenziale per trattare malattie infiammatorie senza causare gli effetti avversi ematopoietici associati all'inibizione di JAK2, dandogli il potenziale per essere il migliore della categoria. Abbiamo avviato uno studio di fase 1 / 2b su ARQ-252 in pazienti adulti con eczema della mano. We have completed the Phase 1 portion of this clinical study and commenced the Phase 2b portion, and expect topline data in the second half of 2021. We also plan to initiate a Phase 2a study of ARQ-252 in vitiligo in the second half of 2020. Additionally, we have formulation and preclinical efforts underway for ARQ-255, an alternative topical formulation of ARQ-252 designed to reach deeper into the skin in order to potentially treat alopecia areata.

Establish an integrated development and commercial organization. We believe the concentrated prescriber base of the U.S. dermatology segment provides us with the opportunity to build a fully integrated commercial organization and targeted sales force for the commercialization of our product candidates among dermatology specialists. To further enhance the value of our product candidates, we may selectively seek partners to commercialize our products outside of the dermatology specialist segment, and to develop and commercialize our products outside of the U.S. market.

Evaluate strategic opportunities to in-license best-in-class dermatology assets consistent with our core strategy. Leveraging our deep expertise in identifying promising drug candidates in dermatology, we will continue to seek best-in-class assets across treatment modalities directed against validated targets. We will continue to explore opportunities to in-license assets and develop them to address unmet medical needs in dermatology.

Risks Affecting Our Business

Our business is subject to a number of risks, including risks that may prevent us from achieving our business objectives or may adversely affect our business, financial condition, results of operations, cash flows and prospects that you should consider before making a decision to invest in our common stock. These risks are discussed more fully in the section titled “Risk Factors” beginning on page 14 of this prospectus, and include the following:

We are a late-stage biopharmaceutical company with a limited operating history and no products approved for commercial sale, and we have incurred significant losses since our inception. We


anticipate that we will continue to incur losses for the foreseeable future, which, together with our limited operating history, makes it difficult to assess our future viability.

We will require substantial additional financing to achieve our goals, and a failure to obtain this necessary capital when needed on acceptable terms, or at all, could force us to delay, limit, reduce or terminate our product development, other operations or commercialization efforts.

Our operating results may fluctuate significantly, which makes our future operating results difficult to predict and could cause our future operating results to fall below expectations.

Our business is dependent on the development, regulatory approval and commercialization of our current product candidates.

Clinical drug development involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of our product candidates.

We may be unable to obtain regulatory approval for our product candidates under applicable regulatory requirements. The denial or delay of any such approval would delay commercialization of our product candidates and adversely impact our potential to generate revenue, our business and our results of operations.

Our estimated market opportunities for our product candidates are subject to numerous uncertainties and may prove to be inaccurate. If we have overestimated the size of our market opportunities, our future growth may be limited.

We face significant competition from other biotechnology and pharmaceutical companies targeting medical dermatological indications, and our operating results will suffer if we fail to compete effectively.

We currently rely on single source third-party suppliers to manufacture preclinical and clinical supplies of our product candidates and we intend to rely on third parties to produce commercial supplies of any approved product candidate. The loss of these suppliers, or their failure to provide us with sufficient quantities at acceptable quality levels or prices, or at all, would materially and adversely affect our business.

We may not be able to obtain, maintain or enforce patent rights or other intellectual property rights that cover our product candidates and technologies that are of sufficient breadth to prevent third parties from competing against us.

We may become subject to claims alleging infringement of third parties’ patents or proprietary rights and/or claims seeking to invalidate our patents, which would be costly, time consuming and, if successfully asserted against us, delay or prevent the development and commercialization of ARQ-151, ARQ-154, ARQ-252, ARQ-255 or any future product candidates.

Epidemic and pandemic diseases, such as COVID-19, or the perception of their effects, could have a material adverse effect on our business, financial condition, results of operations or cash flows.

Recent Developments

On September 29, 2020, we announced positive topline results from our completed Phase 2 study of ARQ-154 in seborrheic dermatitis. The study was a multi-center, multi-national, double-blind, vehicle-controlled study in which 226 adults with moderate-to-severe seborrheic dermatitis received 8 weeks of (1) 0.3% ARQ-154 topical foam once daily, or (2) matching vehicle once daily.

Results from the eight-week treatment period demonstrated statistically significant improvement compared to the matching vehicle on key efficacy endpoints. On the primary efficacy endpoint of


percentage of patients achieving an Investigator’s Global Assessment, or IGA, score of “clear” or “almost clear” PLUS a 2-grade improvement from baseline at week 8, 73.8% of patients treated with ARQ-154 achieved “clear” or “almost clear”, compared to 40.9% of patients treated with vehicle (p < 0.0001). ARQ-154 separated from vehicle with statistical significance on the primary efficacy endpoint and multiple secondary endpoints as early as week 2, the first visit after baseline. ARQ-154 also statistically separated from vehicle in reductions of itch as measured by Worst Itch-Numerical Rating Scale, or WI-NRS, with 64.6% of patients with substantial itching (baseline WI-NRS > 4) treated with ARQ-154 experiencing at least a 4-point reduction in their WI-NRS score at week 8, compared to 34.0% of patients treated with vehicle (p = 0.0007). Altri endpoint secondari includevano la valutazione complessiva dell'eritema e la valutazione complessiva del ridimensionamento, che ha avuto anche esiti positivi.

ARQ-154 was well-tolerated by the patient population, with rates of application site adverse events, treatment-related adverse events and discontinuations due to adverse events low and similar to vehicle. Two out of 154 patients (1.3%) treated with ARQ-154 discontinued the study due to an adverse event, compared to one out of 72 (1.4%) treated with vehicle. Two patients missed the IGA score assessment at week 8 due to concerns arising from COVID-19. As a result, the intent-to-treat and modified intent-to-treat populations differed by two patients, with the results above reflecting the modified intent-to-treat.

Concurrent Private Placement

One or more entities managed by OrbiMed, an affiliate of one of our directors, are expected to purchase $35.0 million of our common stock in a concurrent private placement exempt from the registration requirements of the Securities Act at a price per share equal to the public offering price in this offering, or the concurrent private placement. We will receive the full proceeds and will not pay any underwriting discounts or commissions with respect to the shares that are sold in the concurrent private placement. The concurrent private placement is contingent on the closing of this offering and the satisfaction of certain other customary conditions. However, this offering is not contingent on the consummation of the concurrent private placement. In connection with the concurrent private placement, the Company will enter into a securities purchase agreement and grant certain customary registration rights pursuant to a registration rights agreement.

Implications of Being an Emerging Growth Company

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. These include, but are not limited to:

reduced obligations with respect to financial data, including presenting only two years of audited financial statements and only two years of selected financial data in this prospectus;

reduced disclosure obligations regarding executive compensation in this prospectus and in our periodic reports and proxy statements;

an exception from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act; e

exemptions from the requirements of holding a non-binding advisory vote on executive compensation and the requirement to obtain stockholder approval of any golden parachute payments not previously approved.

We may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company if we have more than $1.07 billion in annual revenue, we are deemed to be a large accelerated filer under rules of the SEC, or we issue more than $1.0 billion of non-convertible debt over a three-year period. We may choose to take advantage of some, but not all, of the available exemptions. We have taken advantage of certain reduced reporting burdens in this prospectus and in the documents incorporated by reference in


this prospectus. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock.

In addition, Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain new or revised accounting standards until those standards would otherwise apply to private companies. We have elected to use this extended transition period and, as a result, our financial statements may not be comparable to companies that comply with public company effective dates.

Corporate Information

We were formed under the laws of the State of Delaware in June 2016 under the name Arcutis, Inc. and changed our name to Arcutis Biotherapeutics, Inc. in October 2019. Our principal executive offices are located at 2945 Townsgate Road, Suite 110, Westlake Village, California 91361, and our telephone number is (805) 418-5006. Our website address is www.arcutis.com. The information contained on, or that can be accessed through, our website is not incorporated by reference into this prospectus and should not be considered a part of this prospectus.


THE OFFERING

Common stock offered by us 4,000,000 shares
Option to purchase additional shares

We have granted the underwriters an option to purchase up to 600,000 additional shares of common stock from us. The underwriters can exercise this option at any time within 30 days from the date of this prospectus.

Concurrent private placement

One or more entities managed by OrbiMed, an affiliate of one of our directors, are expected to purchase $35.0 million of our common stock in a concurrent private placement exempt from the registration requirements of the Securities Act at a price per share equal to the public offering price in this offering. Based on an assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, this would be 1,307,922 shares. We will receive the full proceeds and will not pay any underwriting discounts or commissions with respect to the shares that are sold in the concurrent private placement. The concurrent private placement is contingent on the closing of this offering and the satisfaction of certain other customary conditions. However, this offering is not contingent on the consummation of the concurrent private placement. In connection with the concurrent private placement, the Company will enter into a securities purchase agreement and grant certain customary registration rights pursuant to a registration rights agreement.

Common stock to be outstanding immediately after this offering and the concurrent private placement

42,997,980 shares (or 43,597,980 shares if the underwriters exercise in full their option to purchase additional shares)

Use of proceeds

We estimate the net proceeds from this offering and the concurrent private placement will be approximately $135.1 million (or approximately $150.2 million if the underwriters exercise their option to purchase additional shares in full), assuming a public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

We currently intend to use the net proceeds from this offering and the concurrent private placement, together with our existing cash, cash equivalents and marketable securities, to fund the continued development of our multiple programs, including our ARQ-151, ARQ-154, ARQ-252 and ARQ-255 programs, commercial launch planning and preparation for ARQ-151 in psoriasis, and the remainder for working capital and other general corporate purposes, which may include hiring of additional personnel, capital expenditures and the costs of operating as a public company. See “Use of Proceeds” for more information.


Risk factors See “Risk Factors” and other information included in or incorporated by reference in this prospectus for a discussion of factors that you should consider carefully before deciding to invest in our common stock.
Nasdaq Global Select Market symbol

“ARQT”

The number of shares of common stock to be outstanding after this offering and the concurrent private placement is based on 37,690,058 shares of common stock outstanding as of June 30, 2020, and excludes:

3,244,771 shares of common stock issuable upon the exercise of options outstanding as of June 30, 2020, with a weighted-average exercise price of $9.87 per share;

130,060 shares of common stock issuable upon the vesting and settlement of restricted stock units, or RSUs, outstanding as of June 30, 2020;

412,500 shares of common stock issuable upon the exercise of options outstanding that were granted after June 30, 2020, with a weighted-average exercise price of $26.04 per share;

33,500 shares of common stock issuable upon the vesting and settlement of RSUs, that were granted after June 30, 2020;

499,235 shares of unvested common stock subject to repurchase by us as of June 30, 2020;

2,702,765 shares of common stock that were reserved for future issuance as of June 30, 2020 under our 2020 Equity Incentive Plan, or the 2020 Plan, as well as any automatic increases in the number of shares of our common stock reserved for future issuance under the 2020 Plan; e

331,138 shares of common stock that were reserved for future issuance as of June 30, 2020 under our 2020 Employee Stock Purchase Plan, or ESPP, as well as any automatic increases in the number of shares of our common stock reserved for future issuance under the ESPP.

Unless otherwise indicated, all information in this prospectus assumes or gives effect to:

the issuance of 1,307,922 shares of our common stock to one or more entities managed by OrbiMed upon the closing of the concurrent private placement, based on an assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020;

no repurchase by us of any shares of unvested common stock subject to repurchase;

no exercise of the outstanding options or settlement of the outstanding RSUs referred to above; e

no exercise of the underwriters’ option to purchase additional shares from us.


SUMMARY FINANCIAL DATA

The following tables set forth our summary statements of operations and balance sheet data. The summary statements of operations data for the years ended December 31, 2018 and 2019 have been derived from our audited financial statements and related notes thereto incorporated by reference in this prospectus. We have derived the summary statements of operations data for the six months ended June 30, 2019 and 2020, and the summary balance sheet data as of June 30, 2020, from our unaudited interim condensed financial statements and related notes thereto incorporated by reference in this prospectus. Our unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles on the same basis as our audited annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair statement of our financial position as of June 30, 2020 and our results of operations for the six months ended June 30, 2019 and 2020. The following summary financial data should be read in conjunction with our audited financial statements and unaudited condensed consolidated financial statements incorporated by reference in this prospectus. Our historical results are not necessarily indicative of the results that may be expected in any future period.

(in thousands, except per share data)

Year Ended
December 31,
Six Months Ended
June 30,
2018 2019 2019 2020
(unaudited)
Statements of Operations Data:
Operating expenses:

Research and development

$ 17,940 $ 36,522 $ 13,417 $ 55,191
General and administrative 1,795 6,610 2,073 9,087
Total operating expenses 19,735 43,132 15,490 64,278
Loss from operations (19,735) (43,132) (15,490) (64,278)
Other income, net 480 1,136 542 853
Net loss $ (19,255) $ (41,996) $ (14,948) $ (63,425)
Other comprehensive income (loss):

Unrealized gain (loss) on marketable securities

(1) 3 1

Comprehensive loss

$ (19,255) $ (41,997) $ (14,945) $ (63,424)

Net loss per share, basic and diluted

$ (15.53) $ (22.78) $ 8.79 $ 2.05

Weighted-average shares used in computing net loss per share, basic and diluted

1,239,689 1,843,213 1,700,549 30,921,866
As of June 30, 2020
(in thousands) Actual

As Adjusted(1)(2)

(unaudited)
Balance Sheet Data:

Cash, cash equivalents and marketable securities

$ 223,975 $ 359,043

Working capital(3)

208,754 343,822

Total assets

231,970 367,038

Total liabilities

23,047 23,047

Total stockholders’ equity

208,923 343,991

________________

(1)Gives effect to the issuance and sale by us of 5,307,922 shares of common stock in this offering and the concurrent private placement, based on an assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us.


(2)Each $1.00 increase (decrease) in the assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, would increase (decrease) the as adjusted amount of each of cash, cash equivalents and marketable securities, working capital, total assets and total stockholders’ equity by approximately $3.8 million, assuming the number of shares we are offering, as set forth on the cover page of this prospectus, remains the same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares we are offering. Each increase (decrease) of 1,000,000 in the number of shares we are offering would increase (decrease) the as adjusted amounts of each of cash, cash equivalents and marketable securities, working capital, total assets and total stockholders’ equity by approximately $25.2 million, assuming the assumed public offering price per share remains the same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. The as adjusted information is illustrative only, and will depend on the actual public offering price, number of shares offered and other terms determined at pricing.

(3)We define working capital as current assets less current liabilities. See our audited financial statements and unaudited condensed consolidated financial statements and related notes incorporated by reference in this prospectus for further details regarding our current assets and current liabilities.


RISK FACTORS

Before you invest in our common stock, you should understand the high degree of risk involved. You should consider carefully the risk factors discussed below, and all other information contained in or incorporated by reference in this prospectus before making an investment decision. The following risks may adversely impact our business, financial condition and operating results. As a result, the trading price of our common stock could decline and you could lose part or all of your investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations.

Risks Related to Our Limited Operating History, Financial Condition and Capital Requirements

We are a late-stage biopharmaceutical company with a limited operating history and no products approved for commercial sale, and we have incurred significant losses since our inception. We anticipate that we will continue to incur losses for the foreseeable future, which, together with our limited operating history, makes it difficult to assess our future viability.

We are a late-stage biopharmaceutical company with a limited operating history. Biopharmaceutical product development is a highly speculative undertaking and involves a substantial degree of risk. We have no products approved for commercial sale and have not generated any revenue from product sales and have incurred losses in each year since our inception in June 2016. We have a limited operating history upon which you can evaluate our business and prospects, and have not yet demonstrated an ability to successfully overcome many of the risks and uncertainties frequently encountered by companies in new and rapidly evolving fields. Our operations to date have been limited to organizing and staffing our company, business planning, raising capital, identifying potential product candidates, establishing licensing arrangements, undertaking various research and preclinical studies and conducting clinical trials for our product candidates.

We have never generated any revenue from product sales and have incurred losses in each year since our inception in June 2016. We have not yet demonstrated our ability to successfully complete later-stage clinical trials, obtain regulatory approvals, manufacture a drug on a commercial scale, or arrange for a third party to do so on our behalf, or conduct sales and marketing activities necessary for successful commercialization.

Our net loss for the three and six months ended June 30, 2020 was approximately $35.4 million and $63.4 million, respectively. As of June 30, 2020, we had an accumulated deficit of $129.7 million. We expect to continue to incur losses for the foreseeable future, and we anticipate these losses will increase as we continue to develop our product candidates, conduct clinical trials and pursue research and development activities. We may never achieve profitability and, even if we do, we may not be able to sustain profitability in subsequent periods. We will continue to incur significant research and development and other expenses related to our ongoing operations and the development of our product candidates. Our prior losses, combined with expected future losses, have had and will continue to have an adverse effect on our stockholders’ equity and working capital.

We may encounter unforeseen expenses, difficulties, complications, delays and other known or unknown factors in achieving our business objectives. We will need to transition at some point from a company with a development focus to a company capable of supporting commercial activities. We may not be successful in such a transition.

We will require substantial additional financing to achieve our goals, and a failure to obtain this necessary capital when needed on acceptable terms, or at all, could force us to delay, limit, reduce or terminate our product development, other operations or commercialization efforts.

Since our inception, we have invested substantially all of our efforts and financial resources in research and development activities, and we expect to continue to expend substantial resources for the foreseeable future in connection with the development of our current product candidates, roflumilast


cream, roflumilast foam, ARQ-252 and ARQ-255, the development or acquisition of additional product candidates and the maintenance and expansion of our business operations and capabilities. These expenditures will include costs associated with conducting preclinical studies and clinical trials, obtaining regulatory approvals, and securing manufacturing and supply of product candidates, and marketing and selling any products approved for sale. These expenditures may also include costs associated with in-licensing dermatology assets consistent with our core strategy. In addition, other unanticipated costs may arise. Because the outcome of any preclinical study or clinical trial is highly uncertain, we cannot reasonably estimate the actual amounts necessary to successfully complete the development and commercialization of our lead product candidates and any future product candidates.

As of June 30, 2020, we had capital resources consisting of cash, cash equivalents and marketable securities of $224.0 million. Based on our planned operations, we believe that our existing cash, cash equivalents and marketable securities will be sufficient to fund our operations through 2021. However, our operating plans may change as a result of many factors currently unknown to us, and we may need to seek additional funds sooner than planned, through public or private equity or debt financings or other sources, such as strategic collaborations. Such financing may result in dilution to stockholders, imposition of burdensome debt covenants and repayment obligations, or other restrictions that may affect our business. In addition, we may seek additional capital due to favorable market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans.

Our future capital requirements depend on many factors, including, but not limited to:

the scope, progress, results and costs of researching and developing our lead product candidates or any future product candidates, and conducting preclinical studies and clinical trials, in particular our currently ongoing Phase 3 clinical trials of roflumilast cream in plaque psoriasis, our planned Phase 3 studies of roflumilast cream in atopic dermatitis, our ongoing programs to study roflumilast foam in patients with seborrheic dermatitis and scalp psoriasis, our currently ongoing Phase 1/2b study of ARQ-252 in hand eczema, our planned Phase 2a study of ARQ-252 in vitiligo and our formulation and preclinical efforts for ARQ-255 in alopecia areata;

suspensions or delays in the enrollment, issues with data collection, or changes to the number of patients we decide to enroll in our ongoing clinical trials as a result of the COVID-19 pandemic;

the number and scope of clinical programs we decide to pursue;

the cost, timing and outcome of regulatory review of our product candidates;

the cost of manufacturing our product candidates and any products we commercialize, including costs associated with building out our supply chain;

the cost of commercialization activities if any of our product candidates are approved for sale, including marketing, sales and distribution costs, and any discounts or rebates to channel to obtain access

the cost of building a sales force in anticipation of product commercialization;

our ability to establish and maintain strategic collaborations, licensing or other arrangements and the financial terms of any such agreements that we may enter into;

the timing and amount of milestone payments due to AstraZeneca, Jiangsu Hengrui Medicine Co., Ltd., or Hengrui, or any future collaboration or licensing partners upon the achievement of negotiated milestones;

the expenses needed to attract and retain skilled personnel;

the costs associated with being a public company; e


the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing our intellectual property portfolio; e

the timing, receipt and amount of sales of any future approved products, if any.

Adequate additional funds may not be available when we need them, on terms that are acceptable to us, or at all. If adequate funds are not available to us on a timely basis or on attractive terms, we may be required to reduce our workforce, delay, limit, reduce or terminate our research and development activities, preclinical studies, clinical trials or other development activities and future commercialization efforts, or grant rights to develop and market product candidates, such as roflumilast cream, that we would otherwise develop and market ourselves.

Our operating results may fluctuate significantly, which makes our future operating results difficult to predict and could cause our future operating results to fall below expectations.

Our operations to date have been primarily limited to researching and developing our product candidates and undertaking preclinical studies and clinical trials of our product candidates. We have not yet obtained regulatory approvals for any of our product candidates. Furthermore, our operating results may fluctuate due to a variety of factors, many of which are outside of our control and may be difficult to predict, including the following:

delays in the commencement, enrollment and the timing of clinical testing for our product candidates, especially in light of the COVID-19 pandemic;

the timing and success or failure of clinical trials for our product candidates or competing product candidates, or any other change in the competitive landscape of our industry, including consolidation among our competitors or partners;

any delays in regulatory review and approval of product candidates in clinical development, or failure to obtain such approvals;

the timing and cost of, and level of investment in, research and development activities relating to our product candidates, which may change from time to time;

the cost of manufacturing our product candidates, which may vary depending on U.S. Food and Drug Administration, or FDA, guidelines and requirements, and the quantity of production

our ability to obtain additional funding to develop our product candidates;

expenditures that we will or may incur to acquire or develop additional product candidates and technologies, which may include obligations to make significant upfront and milestone payments;

the level of demand for our product candidates, should they receive approval, which may vary significantly;

potential side effects of our product candidates that could delay or prevent commercialization or cause an approved drug to be taken off the market;

the ability of patients or healthcare providers to obtain coverage of or sufficient reimbursement for our product candidates, if approved;

the willingness of patients to pay out-of-pocket for our product candidates, if approved, in the absence of such coverage or sufficient reimbursement;

our dependency on Contract Research Organizations (CROs) and third-party manufacturers to supply or manufacture our product candidates;

our ability to establish an effective sales, marketing and distribution infrastructure in a timely manner;


market acceptance of our product candidates, if approved, and our ability to forecast demand for those product candidates;

our ability to receive approval and commercialize our product candidates both within and outside of the United States;

our ability to establish and maintain collaborations, licensing or other arrangements with respect to our product candidates;

our ability to maintain and enforce our intellectual property position;

costs related to and outcomes of potential litigation or other disputes in respect of our product candidates and our business;

our ability to adequately support future growth;

our ability to attract and retain key personnel to manage our business effectively;

potential liabilities associated with hazardous materials;

our ability to maintain adequate insurance policies; e

future accounting pronouncements or changes in our accounting policies.

In addition, we measure compensation cost for stock-based awards made to employees at the grant date of the award, based on the fair value of the award as determined by our board of directors, and recognize the cost as an expense over the employee’s requisite service period. As the variables that we use as a basis for valuing these awards change over time, including our underlying stock price and stock price volatility, the magnitude of the expense that we must recognize may vary significantly.

Our estimated market opportunities for our product candidates are subject to numerous uncertainties and may prove to be inaccurate. If we have overestimated the size of our market opportunities, our future growth may be limited.

Our estimated addressable markets and market opportunities for our product candidates are based on a variety of inputs, including data published by third parties, our own market insights and internal market intelligence, and internally generated data and assumptions. We have not independently verified any third-party information and cannot assure you of its accuracy or completeness. Market opportunity estimates, whether obtained or derived from third-party sources or developed internally, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. While we believe our market opportunity estimates are reasonable, such information is inherently imprecise. In addition, our assumptions and estimates of market opportunities are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including but not limited to those described herein. If this third-party or internally generated data prove to be inaccurate or we make errors in our assumptions based on that data, our actual market may be more limited than our estimates. In addition, these inaccuracies or errors may cause us to misallocate capital and other critical business resources, which could harm our business. The estimates of our market opportunities included herein should not be taken as indicative of our ability to grow our business.

Risks Related to Development and Commercialization

Our business is dependent on the development, regulatory approval and commercialization of our current product candidates.

We currently have no products that are approved for commercial sale. Our current portfolio includes our lead product candidate roflumilast cream, a potent PDE4 inhibitor topical cream for the treatment of plaque psoriasis and atopic dermatitis, and our additional product candidates roflumilast foam, a topical foam formulation of roflumilast cream for the treatment of scalp psoriasis and seborrheic dermatitis,


ARQ-252, a potent and highly selective topical JAK1 inhibitor for the treatment of chronic hand eczema, and ARQ-255, a potential topical treatment for alopecia areata. We currently do not have a drug discovery or research and development effort to discover new product candidates, and we have no intention to develop one. The success of our business, including our ability to finance our company and generate any revenue in the future, will primarily depend on the successful development, regulatory approval and commercialization of these current product candidates. We expect to conduct most of our clinical trials in the United States and Canada, with current limited plans for clinical trials in Australia and the European Union. We currently anticipate seeking regulatory approvals in the United States and Canada, but may in the future be subject to additional foreign regulatory authorities and may out-license our product candidates or approved products, if any, in additional foreign markets. In the future, we may also become dependent on other product candidates that we may acquire or in-license. The clinical and commercial success of our product candidates will depend on a number of factors, including the following:

the ability to raise any additional required capital on acceptable terms, or at all;

timely completion of our preclinical studies and clinical trials, which may be significantly slower or cost more than we currently anticipate, particularly as a result of the impact of the COVID-19 pandemic, and will depend substantially upon the performance of third-party contractors;

whether we are required by the FDA or similar foreign regulatory authorities to conduct additional clinical trials or other studies beyond those planned to support the approval and commercialization of our product candidates or any future product candidates;

acceptance of our proposed indications and primary and secondary endpoint assessments relating to the proposed indications of our product candidates by the FDA and similar foreign regulatory authorities;

the prevalence, duration and severity of potential side effects or other safety issues experienced with our product candidates or future approved products, if any;

the timely receipt of necessary marketing approvals from the FDA and similar foreign regulatory authorities;

achieving and maintaining, and, where applicable, ensuring that our third-party contractors achieve and maintain, compliance with our contractual obligations and with all regulatory requirements applicable to our lead product candidates or any future product candidates or approved products, if any;

the willingness of physicians and patients to utilize or adopt our product candidates;

the ability of third parties upon which we rely to manufacture clinical trial and commercial supplies of our product candidates or any future product candidates to remain in good standing with relevant regulatory authorities and to develop, validate and maintain commercially viable manufacturing processes that are compliant with current good manufacturing practices, or cGMP;

our ability to successfully develop a commercial strategy and thereafter commercialize our product candidates or any future product candidates in the United States and internationally, if approved for marketing, reimbursement, sale and distribution in such countries and territories, whether alone or in collaboration with others;

acceptance by physicians, payors and patients of the benefits, safety and efficacy of our product candidates or any future product candidates, if approved, including relative to alternative and competing treatments;

patient demand for our product candidates, if approved;

our ability to establish and enforce intellectual property rights in and to our product candidates or any future product candidates; e


our ability to avoid third-party patent interference, intellectual property challenges or intellectual property infringement claims.

Furthermore, because each of our product candidates targets one or more indications in the medical dermatology field, if any of our product candidates encounter safety or efficacy problems, developmental delays, regulatory issues, supply issues, or other problems, our development plans for the affected product candidate and some or all of our other product candidates could be significantly harmed, which would harm our business. Further, competitors who are developing products in the dermatology field or that target the same indications as us with products that have a similar mechanism of action may experience problems with their products that could indicate or result in class-wide problems or additional requirements that would potentially harm our business.

The factors outlined above, many of which are beyond our control, could cause us to experience significant delays or an inability to obtain regulatory approvals or commercialize our product candidates. Accordingly, we cannot provide assurances that we will be able to generate sufficient revenue through the sale of our product candidates or any future product candidates to continue our business.

Clinical drug development involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of our product candidates.

The risk of failure for our product candidates is high. It is impossible to predict when or if any of our product candidates will prove effective or safe in humans or will receive regulatory approval. Before obtaining marketing approval from regulatory authorities for the sale of any product candidate, we must complete preclinical development and then conduct extensive clinical trials to demonstrate the safety and efficacy of our product candidates in humans. Clinical testing is expensive, difficult to design and implement, can take many years to complete and is inherently uncertain as to outcome. A failure of one or more clinical trials can occur at any stage of testing. The outcome of preclinical testing and early clinical trials may not be predictive of the success of later clinical trials, and interim results of a clinical trial do not necessarily predict final results. For example, our Phase 2 proof-of-concept study in atopic dermatitis had a limited number of patients and did not reach statistical significance for the primary endpoint or the secondary endpoint of IGA Success. However, this study did provide evidence that ARQ-151 could provide symptomatic improvement and a favorable tolerability profile in adults with atopic dermatitis and, following an End of Phase 2 meeting with the FDA in September 2020, we announced our intention to progress ARQ-151 into Phase 3 studies in atopic dermatitis, bypassing our previously planned Phase 2b study in that indication. Moreover, preclinical and clinical data are often susceptible to varying interpretations and analyses, and many companies that have believed their product candidates performed satisfactorily in preclinical studies and clinical trials have nonetheless failed to obtain marketing approval of their drugs. For example, we are developing roflumilast foam, including ongoing programs in patients with seborrheic dermatitis and in patients with scalp psoriasis, based on our clinical experience with roflumilast cream in psoriasis. Despite our observations of roflumilast cream in a similar dermatological indication, roflumilast foam may not demonstrate comparable results in scalp psoriasis. In addition, given its different formulation there is a risk that we selected an incorrect dose for roflumilast foam, as the clinical effect of roflumilast foam may differ from roflumilast cream at a similar dosing level or we may observe unexpected side effects not previously observed with roflumilast cream. We may experience numerous unforeseen events during or as a result of clinical trials that could delay or prevent our ability to receive marketing approval or commercialize our product candidates, including:

clinical site closures, delays to patient enrollment, subjects discontinuing treatment or follow up visits, issues with data collection, or changes to trial protocols as a result of the COVID-19 pandemic;

regulators or institutional review boards may not authorize us or our investigators to commence a clinical trial or conduct a clinical trial at a prospective trial site;


we may experience delays in reaching, or fail to reach, agreement on acceptable clinical trial contracts or clinical trial protocols with prospective trial sites or prospective CROs, the terms of which can be subject to extensive negotiation and may vary significantly among different CROs and trial sites;

clinical trials of our product candidates may produce negative or inconclusive results, including failure to demonstrate statistical significance, and we may decide, or regulators may require us, to conduct additional clinical trials or abandon drug development programs;

the number of patients required for clinical trials of our product candidates may be larger than we anticipate, enrollment in these clinical trials may be slower than we anticipate or participants may drop out of these clinical trials or fail to return for post-treatment follow-up at a higher rate than we anticipate;

our product candidates may have undesirable side effects or other unexpected characteristics, causing us or our investigators, regulators or institutional review boards to suspend or terminate the trials;

our third-party contractors may fail to comply with regulatory requirements or meet their contractual obligations to us in a timely manner, or at all;

regulators or institutional review boards may require that we or our investigators suspend or terminate clinical development for various reasons, including noncompliance with regulatory requirements or a finding that the participants are being exposed to unacceptable health risks;

the cost of clinical trials of our product candidates may be greater than we anticipate; e

the supply or quality of our product candidates or other materials necessary to conduct clinical trials of our product candidates may be insufficient or inadequate.

We could also encounter delays if a clinical trial is suspended or terminated by us, by the institutional review boards of the institutions in which such trials are being conducted, by the data safety monitoring board for such trial or by the FDA or other regulatory authorities. Such authorities may impose such a suspension or termination due to a number of factors, including failure to conduct the clinical trial in accordance with regulatory requirements or our clinical protocols, inspection of the clinical trial operations or trial site by the FDA or other regulatory authorities resulting in the imposition of a clinical hold, unforeseen safety issues or side effects, failure to demonstrate a benefit from using a drug, changes in governmental regulations or administrative actions or lack of adequate funding to continue the clinical trial.

If we experience delays in the completion of, or termination of, any clinical trial of our product candidates, the commercial prospects of our product candidates will be harmed, and our ability to generate product revenues from any of these product candidates will be delayed. In addition, any delays in completing our clinical trials will increase our costs, slow down our product candidate development and approval process and jeopardize our ability to commence product sales and generate revenues. Any of these occurrences may harm our business, financial condition and prospects significantly.

We may be unable to obtain regulatory approval for our product candidates under applicable regulatory requirements. The denial or delay of any such approval would delay commercialization of our product candidates and adversely impact our potential to generate revenue, our business and our results of operations.

To gain approval to market our product candidates, we must provide the FDA and foreign regulatory authorities with preclinical and clinical data that adequately demonstrate the safety and efficacy of the product for the intended indication applied for in the applicable regulatory filing. Product development is long, expensive and uncertain processes, and delay or failure can occur at any stage of any of our preclinical and clinical development programs. A number of companies in the biotechnology and


pharmaceutical industries have suffered significant setbacks in clinical trials, even after promising results in earlier preclinical or clinical studies. These setbacks have been caused by, among other things, preclinical findings made while clinical studies were underway and safety or efficacy observations made in clinical studies, including previously unreported adverse events. Success in preclinical testing and early clinical trials does not ensure that later clinical trials will be successful, and the results of clinical trials by other parties may not be indicative of the results in trials we may conduct.

Our lead product candidate, roflumilast cream, and roflumilast foam, its foam formulation, are currently in clinical development. Our product candidate ARQ-252 is in clinical development for chronic hand eczema and plan to initiate a Phase 2a study of ARQ-252 in vitiligo in the second half of 2020. Additionally, we have formulation and preclinical efforts underway for ARQ-255, an alternative topical formulation of ARQ-252 designed to reach deeper into the skin in order to potentially treat alopecia areata. We currently have no products approved for sale, and we may never obtain regulatory approval to commercialize our lead product candidates. The research, testing, manufacturing, labeling, approval, sale, marketing and distribution of drug products are subject to extensive regulation by the FDA and other regulatory authorities in the United States and other countries, and such regulations differ from country to country. We are not permitted to market our product candidates in the United States or in any foreign countries until they receive the requisite approval from the applicable regulatory authorities of such jurisdictions, including pricing approval in the European Union.

The FDA or any foreign regulatory authorities can delay, limit or deny approval of our product candidates for many reasons, including:

our inability to demonstrate to the satisfaction of the FDA or the applicable foreign regulatory authority that any of our product candidates is safe and effective for the requested indication;

the FDA or other relevant foreign regulatory authorities may disagree with the number, design, size, conduct or implementation of our clinical trials, including the design of our Phase 3 clinical trials of roflumilast cream for the treatment of plaque psoriasis;

the FDA or other relevant foreign regulatory authorities may not find the data from preclinical studies or clinical trials sufficient to demonstrate that the clinical and other benefits of these products candidates outweigh their safety risks or that there is an acceptable risk-benefit profile;

the results of our clinical trials may not meet the level of statistical significance or clinical meaningfulness required by the FDA or other relevant foreign regulatory authorities for marketing approval;

the FDA’s or the applicable foreign regulatory authority’s requirement for additional preclinical studies or clinical trials which would increase our costs and prolong our development timelines;

the FDA or other relevant foreign regulatory authorities may disagree with our interpretation of data or significance of results from the preclinical studies and clinical trials of any product candidate, or may require that we conduct additional studies;

the FDA or other relevant foreign regulatory authorities may not accept data generated from our clinical trial sites;

the CROs that we retain to conduct clinical trials may take actions outside of our control, or otherwise commit errors or breaches of protocols, that adversely impact our clinical trials and ability to obtain market approvals;

if our new drug application (NDA) or other foreign application is reviewed by an advisory committee, the FDA or other relevant foreign regulatory authority, as the case may be, may have difficulties scheduling an advisory committee meeting in a timely manner or the advisory committee may recommend against approval of our application or may recommend that the FDA or other relevant foreign regulatory authority, as the case may be, require, as a condition of


approval, additional preclinical studies or clinical trials, limitations on approved labeling or distribution and use restrictions;

the FDA or other relevant foreign regulatory authorities may require development of a risk evaluation and mitigation strategy, or REMS, or its equivalent, as a condition of approval;

the FDA or other relevant foreign regulatory authorities may require additional post-marketing studies and/or a patient registry, which would be costly;

the FDA or other relevant foreign regulatory authorities may find the chemistry, manufacturing and controls data insufficient to support the quality of our product candidates;

the FDA or other relevant foreign regulatory authorities may identify deficiencies in the manufacturing processes or facilities of our third-party manufacturers; o

the FDA or other relevant foreign regulatory authorities may change their approval policies or adopt new regulations.

the FDA’s or the applicable foreign regulatory authority’s non-approval of the formulation, dosing, labeling or specifications;

the FDA’s or the applicable foreign regulatory authority’s failure to approve the manufacturing processes of third-party manufacturers upon which we rely or the failure of the facilities of our third-party manufacturers to maintain a compliance status acceptable to the FDA or the applicable foreign regulatory authority; o

the potential for approval policies or regulations of the FDA or the applicable foreign regulatory authorities to significantly change in a manner rendering our clinical data insufficient for approval.

Of the large number of biopharmaceutical products in development, only a small percentage successfully complete the FDA or other regulatory approval processes and are commercialized.

Even if we eventually complete clinical testing and receive approval from the FDA or applicable foreign agencies for any of our product candidates, the FDA or the applicable foreign regulatory authority may grant approval contingent on the performance of costly additional clinical trials which may be required after approval. The FDA or the applicable foreign regulatory authority also may approve our lead product candidates for a more limited indication or a narrower patient population than we originally requested, and the FDA, or applicable foreign regulatory authority, may not approve our product candidates with the labeling that we believe is necessary or desirable, or may approve them with labeling that includes warnings or precautions or limitations of use that may not be desirable, for the successful commercialization of such product candidates. Any delay in obtaining, or inability to obtain, applicable regulatory approval would delay or prevent commercialization of our product candidates and would materially adversely impact our business and prospects.

Interim, topline or preliminary data from our clinical trials that we announce or publish from time to time may change as more patient data become available and are subject to audit and verification procedures that could result in material changes in the final data.

From time to time, we may publicly disclose interim, topline, or preliminary data from our clinical trials, which is based on a preliminary analysis of then-available data, and the results and related findings and conclusions are subject to change following a full analyses of all data related to the particular trial. We also make assumptions, estimations, calculations and conclusions as part of our analyses of data, and we may not have received or had the opportunity to fully and carefully evaluate all data. As a result, the interim, topline, or preliminary results that we report may differ from future results of the same trials, or different conclusions or considerations may qualify such results, once additional data have been received and fully evaluated. Topline data also remain subject to audit and verification procedures that may result in the final data being materially different from the preliminary data we previously published. As a result,


topline data should be viewed with caution until the final data are available. We may also disclose interim data from our clinical trials. Interim data from clinical trials that we may complete are subject to the risk that one or more of the clinical outcomes may materially change as patient enrollment continues and more patient data become available. Adverse differences between interim, topline, or preliminary data and final data could significantly harm our business prospects.

Further, others, including regulatory agencies, may not accept or agree with our assumptions, estimates, calculations, conclusions or analyses or may interpret or weigh the importance of data differently, which could impact the value of the particular program, the approvability or commercialization of the particular product candidate or product and our business in general. In addition, the information we choose to publicly disclose regarding a particular study or clinical trial is based on what is typically extensive information, and you or others may not agree with what we determine is the material or otherwise appropriate information to include in our disclosure, and any information we determine not to disclose may ultimately be deemed significant with respect to future decisions, conclusions, views, activities or otherwise regarding a particular drug, product candidate or our business. If the interim, topline, or preliminary data that we report differ from actual results, or if others, including regulatory authorities, disagree with the conclusions reached, our ability to obtain approval for and commercialize our product candidates, our business, operating results, prospects or financial condition may be harmed.

Certain of the endpoints in our planned clinical trials rely on a subjective assessment of the effect of the product candidate in the subject by either the physician or patient, and may prove difficult to meet in patients with more severe disease, which exposes us to a variety of risks for the successful completion of our clinical trials.

Certain of our primary and secondary endpoints in our clinical trials, including our currently ongoing Phase 3 clinical trials of roflumilast cream in plaque psoriasis and Phase 2 clinical trial of roflumilast foam in seborrheic dermatitis, involve subjective assessments by physician and patients, which can increase the uncertainty of clinical trial outcomes. For example, one of the secondary endpoints requires patients to report pruritus (itching) as measured by the Worst Itch – Numeric Rating Scale and complete or deliver patient or caregiver reported outcomes over the course of our clinical trials. This and other assessments are inherently subjective, which can increase the variability of clinical results across clinical trials and create a significant degree of uncertainty in determining overall clinical benefit. Such assessments can be influenced by factors outside of our control, and can vary widely from day-to-day for a particular patient, and from patient-to-patient and site-to-site within a clinical trial. In addition, frequent reporting requirements may lead to rating fatigue and a loss of accuracy and reliability of the data resulting from our clinical trials. Further, the FDA or comparable foreign regulatory authority may not accept such patient or caregiver reported outcomes as sufficiently validated. Accordingly, these subjective assessments can complicate clinical trial design, adversely impact the ability of a study to show a statistically significant improvement and generally adversely impact a clinical development program by introducing additional uncertainties.

Patient reported outcome instruments, their use in, among others, our Phase 3 clinical trials of roflumilast cream and the inclusion of such data in the product labeling will depend on, but is not limited to, the FDA’s review of the following:

the relevance and importance of the concept(s) of interest to the target patient population;

the strengths and limitations of the instrument within the given context of use;

the design and conduct of the trials;

the adequacy of the submitted data, for example, rigorous data collection and methods to handle missing data; e

the magnitude of the statistically significant treatment effect should be meaningful to patients.


Further, different results may be achieved depending upon the characteristics of the population enrolled in our studies and which analysis population is used to analyze results. For example, the primary endpoint in our Phase 3 clinical trials of roflumilast cream in plaque psoriasis and our Phase 2 clinical trial of roflumilast foam in seborrheic dermatitis is based on the percentage of patients achieving a score of “clear” or “almost clear” plus at least a 2-grade improvement from baseline on the 5 point IGA scale, referred to as “IGA Success”. Success in our clinical trials with these or similar endpoints requires the enrollment of patients with conditions that are severe enough to facilitate a two-grade improvement in the IGA scale, but not so severe that they cannot achieve a “clear” or “almost clear” in IGA score in light of the severity of their disease. It is therefore possible that we enroll patients with conditions so severe that they do not or are unable to realize an IGA of 0 (clear) or 1 (almost clear) during the period covered by the clinical trial. As a result, there is no guarantee that our clinical trials will produce the same statistically significant results in “IGA Success”, which will serve as the primary endpoint, as our prior clinical trials, and there can be no guarantee that the characteristics of the population enrolled in our clinical trials, including our Phase 3 clinical trials, does not adversely impact the results reported for such trial, any of which could have an adverse effect on our ability to secure regulatory approval for our product candidates.

Enrollment and retention of subjects in clinical trials is expensive and time consuming and may result in additional costs and delays in our product development activities, or in the failure of such activities.

We may not be able to initiate or continue clinical trials for roflumilast cream or our other product candidates if we are unable to locate and enroll a sufficient number of eligible patients to participate in these trials as required by the FDA or similar regulatory authorities outside the United States. In addition, some of our competitors are currently conducting clinical trials for product candidates that treat the same indications as roflumilast cream, roflumilast foam, ARQ-252 and ARQ-255, and patients who are otherwise eligible for our clinical trials may instead enroll in clinical trials of our competitors’ product candidates.

Patient enrollment is affected by other factors including:

the severity of the disease under investigation;

the selection of the patient population required for analysis of the trial’s primary endpoints;

the eligibility criteria for the study in question;

the frequency and extent of clinical trial site visits and study assessments;

the perceived risks and benefits of the product candidate under study;

the efforts to facilitate timely enrollment in clinical trials;

the patient referral practices of physicians;

the ability to monitor patients adequately during and after treatment; e

the proximity and availability of clinical trial sites for prospective patients.

Furthermore, any negative results that we may report in preclinical studies or clinical trials of our product candidates may make it difficult or impossible to recruit and retain subjects in other clinical trials of that same or any similar product candidate. Our inability to enroll a sufficient number of patients for our clinical trials would result in significant delays, could require us to abandon one or more clinical trials altogether and could delay or prevent our receipt of necessary regulatory approvals. Enrollment delays in our clinical trials may result in increased development costs for our product candidates, which would cause the value of our company to decline and impede our ability to obtain additional financing.


Serious adverse or unacceptable side effects may be identified during the development of our product candidates, which could prevent or delay regulatory approval and commercialization, increase our costs or necessitate the abandonment or limitation of the development of some of our product candidates.

As we continue our development of our product candidates and initiate additional preclinical studies or clinical trials of these or future product candidates, if any, serious adverse events, unacceptable levels of toxicity, undesirable side effects or unexpected characteristics may emerge, causing us to abandon these product candidates or limit their development to more narrow uses, lower potency levels or subpopulations in which the serious adverse events, unacceptable levels of toxicity, undesirable side effects or other characteristics are less prevalent, less severe or more acceptable from a risk/benefit perspective.

If our product candidates are associated with adverse effects in clinical trials or have characteristics that are unexpected, we may need to abandon their development, institute burdensome monitoring programs, or limit development to more narrow uses or lower or less frequent dosing in which the side effects or other characteristics are less prevalent, less severe or more acceptable from a risk-benefit perspective. The FDA or an institutional review board, or similar regulatory authorities outside the United States, may also require that we suspend, discontinue, or limit our clinical trials based on safety information. Such findings could further result in regulatory authorities failing to provide marketing authorization for our product candidates. Many product candidates that initially showed promise in early stage testing have later been found to cause side effects that prevented further development of the product candidate.

Additionally, if one or more of our product candidates receives marketing approval, and we or others identify undesirable side effects caused by such products, a number of potentially significant negative consequences could result, including:

regulatory authorities may withdraw approvals of such product;

regulatory authorities may require additional warnings on the labels;

we may be required to create a medication guide outlining the risks of such side effects for distribution to patients;

we may be required to implement a risk evaluation and mitigation strategy, or REMS;

we may be required to conduct Phase 4 clinical trials as post-marketing requirements, or PMRs;

we could be sued and held liable for harm caused to patients; e

our reputation and physician or patient acceptance of our products may suffer.

Any of these events could prevent us from achieving or maintaining market acceptance of the particular product candidate, if approved, and could significantly harm our business, results of operations and prospects.

As a company, we have never completed a Phase 3 program or obtained marketing approval for any product candidate and we may be unable to successfully do so in a timely manner, if at all, for any of our product candidates.

Conducting Phase 3 clinical trials and preparing, and obtaining marketing approval for, a product candidate is a complicated process. Although members of our management team have participated in pivotal trials and obtained marketing approvals for product candidates in the past while employed at other companies, we as a company have not done so. As a result, these activities may require more time and cost more than we anticipate, and we may be unable to successfully complete them for any of our product candidates.


To date, we have completed two Phase 2 studies in plaque psoriasis, a Phase 2 study in atopic dermatitis with roflumilast cream, and a Phase 2 study in seborrheic dermatitis with roflumilast foam, and have completed enrollment in a Phase 3 program in plaque psoriasis, which includes three studies comprised of two pivotal studies (DERMIS-1 and DERMIS-2) and an open label extension. We also anticipate commencing pivotal Phase 3 clinical trials of roflumilast cream for the treatment of atopic dermatitis in late 2020 or early 2021. Failure to successfully complete, or delays in, our pivotal trials or related regulatory submissions would prevent us from or delay us in obtaining regulatory approval for our product candidates. In addition, it is possible that the FDA may refuse to accept for substantive review any NDAs that we submit for our product candidates or may conclude after review of our applications that they are insufficient to obtain marketing approval of our product candidates. We are finalizing the study designs for our Phase 3 program to evaluate ARQ-151 in patients with atopic dermatitis. While the FDA encouraged us at our End of Phase 2 meeting to generate additional clinical data on the two ARQ-151 doses studied in our Phase 2 study, they also did not raise objections to us proceeding into Phase 3 with a single dose. If the FDA does not accept our applications or issue marketing authorizations for our product candidates, it may require that we conduct additional clinical, preclinical or manufacturing validation studies and submit that data before it will reconsider our applications. Depending on the extent of these or any other FDA-required studies, approval of any NDA for any other applications that we submit may be delayed by several years, or may require us to expend more resources than we have available. It is also possible that additional studies, if performed and completed, may not be considered sufficient by the FDA to approve our NDAs. Additionally, similar risks could apply to receipt of marketing authorizations by comparable regulatory authorities in foreign jurisdictions.

Any delay in obtaining, or an inability to obtain, marketing approvals would prevent us from commercializing our product candidates, generating revenues and achieving and sustaining profitability. If any of these outcomes occur, we may be forced to abandon our development efforts for our product candidates, which could significantly harm our business.

Even if our lead product candidate or our other product candidates receive marketing approval, they may fail to achieve market acceptance by physicians, patients, third-party payors or others in the medical community necessary for commercial success.

Even if our lead product candidate or our other product candidates receive marketing approval, they may nonetheless fail to gain sufficient market acceptance by physicians, patients, third-party payors and others in the medical community. If our product candidates do not achieve an adequate level of acceptance, we may not generate adequate product revenue or become profitable. The degree of market acceptance of a product candidate, if approved for commercial sale, will depend on a number of factors, including but not limited to:

the safety, efficacy, risk-benefit profile and potential advantages compared to alternative or existing treatments, such as steroids topical treatments, oral treatments, and biologic injections for the treatment of psoriasis, which physicians may perceive to be adequately effective for some or all patients;

side effects that may be attributable to our product candidates and the difficulty of or costs associated with resolving such side effects;

limitations or warnings contained in the labeling approved for our product candidates by FDA or other applicable foreign regulatory authorities;

any restrictions on the use of our products, and the prevalence and severity of any side effects;

the content of the approved product label;

the effectiveness of sales and marketing efforts;

the cost of treatment in relation to alternative treatments, including any similar generic treatments and over-the-counter, or OTC treatments;


our ability to offer our products for sale at competitive prices;

the convenience and ease of administration compared to alternative treatments;

the willingness of the target patient population to try new therapies and of physicians to prescribe these therapies over existing therapies;

the strength of marketing and distribution support;

the availability of third-party coverage and adequate reimbursement at any given price level of each of our product candidates;

the willingness of patients to pay out-of-pocket for our product candidates, if approved, in the absence of such coverage or sufficient reimbursement;

utilization controls imposed by third-party payors, such as prior authorizations and step edits; e

any restrictions on the use of any of our product candidates.

We cannot assure you that our current or future product candidates, if approved, will achieve market acceptance among physicians, patients, third-party payors or others in the medical community necessary for commercial success. Any failure by our product candidates that obtain regulatory approval to achieve market acceptance or commercial success would harm our results of operations.

We may choose not to continue developing or commercializing any of our product candidates at any time during development or after approval, which would reduce or eliminate our potential return on investment for those product candidates.

At any time, we may decide to discontinue the development or commercialization of any of our products or product candidates for a variety of reasons, including the appearance of new technologies that render our product obsolete, competition from a competing product or changes in or inability to comply with applicable regulatory requirements. If we terminate a program in which we have invested significant resources, we will not receive any return on our investment and we will have missed the opportunity to allocate those resources to potentially more productive uses.

If we are unable to achieve and maintain coverage and adequate levels of reimbursement for any of our product candidates for which we receive regulatory approval, or any future products we may seek to commercialize, their commercial success may be severely hindered.

As to any of our product candidates that become available by prescription only, our success will depend on the availability of coverage and adequate reimbursement for our product from third-party payors. Patients who are prescribed medicine for the treatment of their conditions generally rely on third-party payors to reimburse all or part of the costs associated with their prescription drugs. The availability of coverage and adequate reimbursement from governmental healthcare programs, such as Medicare and Medicaid, and private third-party payors is critical to new product acceptance. Coverage decisions may depend upon clinical and economic standards that disfavor new drug products when more established or lower cost therapeutic alternatives are already available or subsequently become available. If any of our product candidates fail to demonstrate attractive efficacy profiles, they may not qualify for coverage and reimbursement. Even if we obtain coverage for a given product, the resulting reimbursement payment rates might not be adequate or may require co-payments that patients find unacceptably high. Patients are unlikely to use our prescription-only products unless coverage is provided and reimbursement is adequate to cover a significant portion of the cost of our products.

In addition, the market for certain of our product candidates will depend significantly on access to third-party payors’ drug formularies, or lists of medications for which third-party payors provide coverage and reimbursement. The industry competition to be included in such formularies often leads to downward pricing pressures on pharmaceutical companies.


Further, third-party payors, whether foreign or domestic, or governmental or commercial, are developing increasingly sophisticated methods of controlling healthcare costs. In addition, in the United States, although private third-party payors tend to follow Medicare, no uniform policy of coverage and reimbursement for drug products exists among third-party payors. Therefore, coverage and reimbursement for drug products can differ significantly from payor to payor. As a result, the coverage determination process is often a time-consuming and costly process that will require us to provide scientific and clinical support for the use of our product candidates to each payor separately, with no assurance that coverage and adequate reimbursement will be obtained.

Further, we believe that future coverage and reimbursement will likely be subject to increased restrictions in both the United States and in international markets. Third-party coverage and reimbursement for any of our product candidates for which we may receive regulatory approval may not be available or adequate in either the United States or international markets, which could harm our business, financial condition, operating results and prospects.

We currently have limited sales, marketing or distribution capabilities and have no experience as a company in commercializing products.

Our current sales and marketing organization consists of four employees, including our Chief Commercial Officer. To achieve commercial success for any product for which we obtain marketing approval, we will need to build a significantly more robust sales and marketing organization. We do not currently have any infrastructure for the sales, marketing, or distribution of any product, and the cost of establishing and maintaining such an organization may exceed the cost-effectiveness of doing so. In order to market any product that may be approved, we must build our sales, distribution, marketing, managerial and other nontechnical capabilities or make arrangements with third parties to perform these services.

We currently expect to build a dermatologist-focused sales, distribution and marketing infrastructure to market our product candidates in North America, if approved. There are significant expenses and risks involved with establishing our own sales, marketing and distribution capabilities, including our ability to hire, retain and appropriately incentivize qualified individuals, provide adequate training to sales and marketing personnel, and effectively manage geographically dispersed sales and marketing teams to generate sufficient demand. Any failure or delay in the development of our internal sales, marketing and distribution capabilities could delay any product launch, which would adversely impact its commercialization. If the commercial launch of any of our product candidates, if approved, for which we recruit a sales force and establish marketing capabilities is delayed or does not occur for any reason, we would have prematurely or unnecessarily incurred these commercialization expenses. This may be costly, and our investment would be lost if we cannot retain or reposition our sales and marketing personnel.

If we are unable to establish adequate sales, marketing, and distribution capabilities, either on our own or in collaboration with third parties, we will not be successful in commercializing any of our product candidates and may not become profitable. We will be competing with many companies that currently have extensive and well-funded marketing and sales operations. Without an internal team or the support of a third party to perform marketing and sales functions, we may be unable to compete successfully against these more established companies.

If we seek to market any products in our pipeline in countries other than the United States, we will need to comply with the regulations of each country in which we seek to market our products.

None of our product candidates are currently approved for sale by any government authority in any jurisdiction. If we fail to comply with regulatory requirements in any market we decide to enter, or to obtain and maintain required approvals, or if regulatory approvals in the relevant markets are delayed, our target market will be reduced and our ability to realize the full market potential of our product candidates will be harmed. Marketing approval in one jurisdiction, including the United States, does not ensure marketing approval in another, but a failure or delay in obtaining marketing approval in one jurisdiction may have a


negative effect on the regulatory process in others. Failure to obtain a marketing approval in countries in which we seek to market our products or any delay or setback in obtaining such approval would impair our ability to develop foreign markets for any of our products.

Our license agreements obligate us to make certain milestone payments, some of which will be triggered prior to our commercialization of any of our product candidates.

Certain of the milestone payments payable by us to AstraZeneca and Hengrui, are due upon events that will occur prior to our planned commercialization of the applicable product candidates. Accordingly, we will be required to make such payments prior to the time at which we are able to generate revenue, if any, from sales of any of our product candidates, if approved.

For example, upon regulatory approval from the FDA to commercialize roflumilast cream in the United States, but prior to commencement of commercialization or sales of roflumilast cream, we will be required to make certain milestone payments to AstraZeneca. We paid AstraZeneca the first milestone cash payment of $2.0 million upon the completion of a Phase 2b study of roflumilast cream in plaque psoriasis in August 2019 for the achievement of positive Phase 2 data for an AZ-Licensed Product (as defined below). We have agreed to make additional cash payments to AstraZeneca of up to an aggregate of $12.5 million upon the achievement of specified regulatory approval milestones with respect to products containing roflumilast in topical forms, as well as delivery systems sold with or for the administration of roflumilast, or collectively, AZ-Licensed Products, and payments up to an additional aggregate amount of $15.0 million upon the achievement of certain aggregate worldwide net sales milestones. With respect to any AZ-Licensed Products we commercialize under the agreement, we will pay AstraZeneca a low to high single-digit percentage royalty rate on our, our affiliates’ and our sublicensees’ net sales of such AZ-Licensed Products, until, as determined on an AZ-Licensed Product-by-AZ-Licensed Product and country-by-country basis, the later of the date of the expiration of the last-to-expire AstraZeneca-licensed patent right containing a valid claim in such country and ten years from the first commercial sale of such AZ-Licensed Product in such country.

In connection with the exercise of our exclusive option with Hengrui in December 2019, we made a $1.5 million cash payment and also contemporaneously amended the agreement to expand the territory to additionally include Canada. In addition, we have agreed to make cash payments of up to an aggregate of $20.5 million upon our achievement of specified clinical development and regulatory approval milestones with respect to the licensed products and cash payments of up to an additional $200.0 million in sales-based milestones based on achieving certain aggregate annual net sales volumes with respect to a licensed product. With respect to any products we commercialize under the agreement, we will pay tiered royalties to Hengrui on net sales of each licensed product by us, or our affiliates, or our sublicensees, ranging from mid single-digit to sub-teen percentage rates based on tiered annual net sales bands subject to specified reductions. We are obligated to pay royalties until the later of (1) the expiration of the last valid claim of the licensed patent rights covering such licensed product in such country and (2) the expiration of regulatory exclusivity for the relevant licensed product in the relevant country, on a licensed product-by-licensed product and country-by-country basis. Additionally, we are obligated to pay Hengrui a specified percentage, ranging from the low-thirties to the sub-teens, of certain non-royalty sublicensing income we receive from sublicensees of our rights to the licensed products, such percentage decreasing as the development stage of the licensed products advance.

There can be no assurance that we will have the funds necessary to make such payments, or be able to raise such funds when needed, on terms acceptable to us, or at all. Furthermore, if we are forced to raise additional funds, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts, or grant rights to develop and market product candidates that we would otherwise develop and market ourselves. If we are unable to raise additional funds or maintain sufficient liquidity to make our payment obligations if and when they become due, including payment obligations under the license agreement with AstraZeneca and under the option and license agreement with Hengrui, we may be in material breach of our agreements and our counterparties may seek legal action or


remedies against us (including by seeking to terminate the relevant agreements), which would harm our business, financial condition, results of operations and prospects.

We face significant competition from other biotechnology and pharmaceutical companies targeting medical dermatological indications, and our operating results will suffer if we fail to compete effectively.

The markets for dermatological therapies are competitive and are characterized by significant technological development and new product introduction. For example, there are several large and small pharmaceutical companies focused on delivering therapeutics for our targeted inflammatory and medical dermatological indications. We anticipate that, if we obtain regulatory approval of our product candidates, we will face significant competition from other approved therapies or drugs that become available in the future for the treatment of our target indications. If approved, our product candidates may also compete with unregulated, unapproved and off-label treatments. Even if another branded or generic product or OTC product is less effective than our product candidates, a less effective branded, generic or OTC product may be more quickly adopted by physicians and patients than our competing product candidates based upon cost or convenience.

Certain of our product candidates, if approved, will have to compete with existing therapies, some of which are widely known and accepted by physicians and patients. To compete successfully in this market, we will have to demonstrate that the relative cost, safety and efficacy of our approved products, if any, provide an attractive alternative to existing and other new therapies to gain a share of some patients’ discretionary budgets and for physicians’ attention within their clinical practices. Some of the companies that offer competing products also have a broad range of other product offerings, large direct sales forces and long-term customer relationships with our target physicians, which could inhibit our market penetration efforts. Such competition could lead to reduced market share for our product candidates and contribute to downward pressure on the pricing of our product candidates, which could harm our business, financial condition, operating results and prospects.

We are aware of several companies that are working to develop drugs that would compete against our product candidates for the treatment of psoriasis, atopic dermatitis, hand eczema, vitiligo and alopecia areata.

For psoriasis, our primary competitors include injected biologic therapies such as Humira, marketed by AbbVie Inc. and Eisai Co., Ltd., and Enbrel, marketed by Amgen Inc. and Pfizer Inc.; non-injectable systemic therapies used to treat plaque psoriasis such as Otezla, marketed by Amgen Inc.; topical therapies such as branded and generic versions of clobetasol, such as Clobex, marketed by Galderma Laboratories, LP, generic versions of calcipotriene and the combination of betamethasone dipropionate/calcipotriene; and other treatments including various lasers and ultraviolet light-based therapies. In addition, there are several prescription product candidates under development that could potentially be used to treat psoriasis and compete with roflumilast cream, including topical tapinarof, under development by Dermavant Sciences, Inc., and PF-06700841, an oral Tyk2/JAK1 inhibitor under development by Pfizer, Inc.

For atopic dermatitis, our primary competitors include topical therapies such as Eucrisa, marketed by Pfizer Inc., and generic and branded versions of low to mid-potency steroids such as hydrocortisone and betamethasone; and the injected biologic therapy Dupixent, marketed by Regeneron Pharmaceuticals, Inc. In addition, there are several prescription product candidates under development that could potentially be used to treat atopic dermatitis and compete with roflumilast cream, including but not limited to: topical tapinarof and topical cerdulatinib, both under development by Dermavant Sciences, Inc., topical ruxolitinib, under development by Incyte Corporation, topical delgocitinib, under development by LEO Pharma A/S and Japan Tobacco, Inc., topical PF-06700841, a Tyk2/JAK1 inhibitor under development by Pfizer, Inc., topical difamilast ointment, under development by Medimetriks/Otsuka Pharma, oral PF-04965842, under development by Pfizer Inc., oral upatacitinib, under development by AbbVie, Inc., and injectable lebrikizumab, under development by Eli Lilly and Company.


For hand eczema, our primary competitors include topical therapies such as branded and generic versions of clobetasol, such as Clobex, and generic versions of betamethasone dipropionate. The only other prescription product candidate we are aware of under development for the treatment of hand eczema that would compete with ARQ-252 is delgocitinib, which recently showed proof-of-concept in a Phase 2a trial and has been approved in a different formulation in Japan (Corectim).

For vitiligo, our primary competitors include topical therapies such as generic and branded versions of calcineurin inhibitors, including Elidel, marketed by Bausch Health; branded and generic versions of high potency steroids, including Clobex, marketed by Galderma Laboratories, LP; and other treatments including various lasers and ultraviolet light-based therapies. In addition, there are several prescription product candidates under development that could potentially be used to treat vitiligo and compete with ARQ-252, including but not limited to: topical cerdulatinib, under development by Dermavant Sciences, Inc., topical ruxolitinib, under development by Incyte Corporation, and both oral PF-06651600 and oral PF-06700841, under development by Pfizer Inc.

For alopecia areata, our primary competitors include topical therapies such as branded and generic versions of high potency steroids, including Clobex, marketed by Galderma Laboratories, LP; intralesional corticosteroid injections such as branded and generic versions of triamcinolone, including Kenalog, marketed by Bristol-Myers Squib; and systemic immunosuppressants including generic versions of systemic steroids such as prednisone, branded and generic versions of cyclosporine, including Sandimmune, marketed by Sandoz, and branded systemic JAK inhibitors, including Xeljanz, marketed by Pfizer, Inc. In addition, there are several prescription product candidates under development that could potentially be used to treat alopecia areata and compete with ARQ-255, including but not limited to: topical PF-06700841 and oral PF-06651600, under development by Pfizer, Inc., oral CTP-543, under development by Concert Pharmaceuticals, and oral baricitinib, under development by Eli Lilly and Company.

Many of our existing or potential competitors have substantially greater financial, technical and human resources than we do and significantly greater experience in the discovery and development of product candidates, as well as in obtaining regulatory approvals of those product candidates in the United States and in foreign countries. Many of our current and potential future competitors also have significantly more experience commercializing drugs that have been approved for marketing. Mergers and acquisitions in the pharmaceutical and biotechnology industries could result in even more resources being concentrated among a smaller number of our competitors. Competition may reduce the number and types of patients available to us to participate in clinical trials, because some patients who might have opted to enroll in our trials may instead opt to enroll in a trial being conducted by one of our competitors.

Due to less stringent regulatory requirements in certain foreign countries, there are many more dermatological products and procedures available for use in those international markets than are approved for use in the United States. In certain international markets, there are also fewer limitations on the claims that our competitors can make about the effectiveness of their products and the manner in which they can market their products. As a result, we expect to face more competition in these markets than in the United States.

Our ability to compete successfully will depend largely on our ability to:

develop and commercialize therapies that are superior to other products in the market;

demonstrate through our clinical trials that our product candidates are differentiated from existing and future therapies;

attract qualified scientific, product development and commercial personnel;

obtain patent or other proprietary protection for our technologies and product;

obtain required regulatory approvals, including approvals to market our product candidates in ways that are differentiated from existing and future therapies and OTC products and treatments;


successfully commercialize our product candidates, if approved;

obtain coverage and adequate reimbursement from, and negotiate competitive pricing with, third-party payors; e

successfully collaborate with pharmaceutical companies in the discovery, development and commercialization of new therapies.

The availability of our competitors’ products could limit the demand and the price we are able to charge for any product candidate we develop. The inability to compete with existing or subsequently introduced drugs or OTC treatments would have an adverse impact on our business, financial condition and prospects.

Risks Related to Our Business and Operations

We will need to increase the size of our organization, and we may experience difficulties in executing our growth strategy and managing any growth.

As of June 30, 2020, we had 49 full-time employees. We will need to continue to expand our managerial, operational, finance and other resources in order to manage our operations and clinical trials, continue our development activities and commercialize our lead product candidates or any future product candidates.

Our management and personnel, systems and facilities currently in place are not adequate to support our future growth. In order to effectively execute our growth strategy, we will need to identify, recruit, retain, incentivize and integrate additional employees in order to expand our ability to:

manage our clinical trials effectively;

manage our internal development and operational efforts effectively while carrying out our contractual obligations to third parties;

continue to improve our operational, financial, management and regulatory compliance controls and reporting systems and procedures;

develop a marketing, sales and distribution capability;

manage our commercialization activities for our product candidates effectively and in a cost-effective manner;

establish and maintain relationships with development and commercialization partners; e

manage our third-party supply and manufacturing operations effectively and in a cost-effective manner, while increasing production capabilities for our current product candidates to commercial levels.

If we are unable to successfully identify, recruit, retain, incentivize and integrate additional employees and otherwise expand our managerial, operational, finance and other resources, our business and operational performance will be materially and adversely affected.

If we are not successful in acquiring, developing, and commercializing additional product candidates, our ability to expand our business and achieve our strategic objectives would be impaired.

Although a substantial amount of our effort will focus on the continued preclinical and clinical testing and potential approval of our current product candidates, a key element of our strategy is to acquire, develop and commercialize a diverse portfolio of product candidates to serve the dermatology market. We do not currently intend to conduct drug discovery or research and development efforts to discover new product candidates, but rather we intend to acquire or in-license rights to existing molecules to develop for


dermatological indications. In addition, while we believe that our strategy allows us to move more rapidly through clinical development and at a potentially lower cost, we may be unable to progress product candidates more quickly or at a lower cost.

In the event we seek to identify and acquire or in-license additional product candidates in the dermatology field, our process for doing so may be slow and may ultimately be unsuccessful for a number of reasons, including those discussed in these risk factors and also:

potential product candidates may, upon further study, be shown to have harmful side effects or other characteristics that indicate that they are unlikely to be products that will receive marketing approval and achieve market acceptance;

potential product candidates may not be effective in treating their targeted diseases; o

the acquisition or in-licensing transactions can entail numerous operational and functional risks, including exposure to unknown liabilities, disruption of our business, or incurrence of substantial debt or dilutive issuances of equity securities to pay transaction consideration or costs, or higher than expected acquisition or integration costs.

We may choose to focus our efforts and resources on an in-licensing or acquiring a potential product candidate that ultimately proves to be unsuccessful. We also cannot be certain that, following an acquisition or in-licensing transaction, we will achieve the revenue or specific net income that justifies such transaction. If we are unable to identify and acquire suitable product candidates for clinical development, this would adversely impact our business strategy, our financial position and share price.

Any collaboration arrangements that we may enter into in the future may not be successful, which could adversely affect our ability to develop and commercialize future product candidates.

We may seek collaboration arrangements for the commercialization, or potentially for the development, of certain of our product candidates depending on the merits of retaining commercialization rights for ourselves as compared to entering into collaboration arrangements. We will face, to the extent that we decide to enter into collaboration agreements, significant competition in seeking appropriate collaborators. Moreover, collaboration arrangements are complex and time-consuming to negotiate, document, implement and maintain. We may not be successful in our efforts to establish and implement collaborations or other alternative arrangements should we so chose to enter into such arrangements. The terms of any collaborations or other arrangements that we may establish may not be favorable to us. Any future collaborations that we enter into may not be successful. The success of our collaboration arrangements will depend heavily on the efforts and activities of our collaborators. Collaborations are subject to numerous risks, which may include risks that:

collaborators have significant discretion in determining the efforts and resources that they will apply to collaborations;

collaborators may not pursue development and commercialization of our product candidates or may elect not to continue or renew development or commercialization programs based on clinical trial results, changes in their strategic focus due to their acquisition of competitive products or their internal development of competitive products, availability of funding or other external factors, such as a business combination that diverts resources or creates competing priorities;

collaborators may delay clinical trials, provide insufficient funding for a clinical trial program, stop a clinical trial, abandon a product candidate, repeat or conduct new clinical trials or require a new formulation of a product candidate for clinical testing;

collaborators could independently develop, or develop with third parties, products that compete directly or indirectly with our products or product candidates;


a collaborator with sales, marketing, manufacturing and distribution rights to one or more products may not commit sufficient resources to or otherwise not perform satisfactorily in carrying out these activities;

we could grant exclusive rights to our collaborators that would prevent us from collaborating with others;

collaborators may not properly maintain or defend our intellectual property rights or may use our intellectual property or proprietary information in a way that gives rise to actual or threatened litigation that could jeopardize or invalidate our intellectual property or proprietary information or expose us to potential liability;

disputes may arise between us and a collaborator that causes the delay or termination of the research, development or commercialization of our current or future product candidates or that results in costly litigation or arbitration that diverts management attention and resources;

collaborations may be terminated, and, if terminated, this may result in a need for additional capital to pursue further development or commercialization of the applicable current or future product candidates;

collaborators may own or co-own intellectual property covering products that results from our collaborating with them, and in such cases, we would not have the exclusive right to develop or commercialize such intellectual property;

disputes may arise with respect to the ownership of any intellectual property developed pursuant to our collaborations; e

a collaborator’s sales and marketing activities or other operations may not be in compliance with applicable laws resulting in civil or criminal proceedings.

Furthermore, we cannot assure you that following any such collaboration, or other strategic transaction, we will achieve the expected synergies to justify the transaction. For example, such transactions may require us to incur non-recurring or other charges, increase our near- and long-term expenditures and pose significant integration or implementation challenges or disrupt our management or business. These transactions would entail numerous operational and financial risks, including exposure to unknown liabilities, disruption of our business and diversion of our management’s time and attention in order to manage a collaboration or develop acquired products, product candidates or technologies, incurrence of substantial debt or dilutive issuances of equity securities to pay transaction consideration or costs, higher than expected collaboration, acquisition or integration costs, write-downs of assets or goodwill or impairment charges, increased amortization expenses, difficulty and cost in facilitating the collaboration or combining the operations and personnel of any acquired business, impairment of relationships with key suppliers, manufacturers or customers of any acquired business due to changes in management and ownership and the inability to retain key employees of any acquired business.

If we fail to attract and retain management and other key personnel, we may be unable to continue to successfully develop our current and any future product candidates, commercialize our product candidates or otherwise implement our business plan.

Our ability to compete in the highly competitive pharmaceuticals industry depends upon our ability to attract and retain highly qualified managerial, scientific, medical, sales and marketing and other personnel. We are highly dependent on our management and scientific personnel, including our Chief Executive Officer, Todd Franklin Watanabe and our Chief Technical Officer, David W. Osborne, Ph.D, and our Chief Medical Officer, Patrick Burnett, M.D., Ph.D. The loss of the services of any of these individuals could impede, delay or prevent the successful development of our product pipeline, completion of our planned clinical trials, commercialization of our products or in-licensing or acquisition of new assets and could negatively impact our ability to successfully implement our business plan. If we lose the services of any of these individuals, we might not be able to find suitable replacements on a timely basis or at all, and


our business could be harmed as a result. We do not maintain “key man” insurance policies on the lives of these individuals or the lives of any of our other employees.

We employ all of our executive officers and key personnel on an at-will basis and their employment can be terminated by us or them at any time, for any reason and without notice. In order to retain valuable employees at our company, in addition to salary and cash incentives, we provide stock options and restricted stock units that vest over time. The value to employees of stock options and restricted stock units that vest over time will be significantly affected by movements in our stock price that are beyond our control, and may at any time be insufficient to counteract offers from other companies.

We might not be able to attract or retain qualified management and other key personnel in the future due to the intense competition for qualified personnel among biotechnology, pharmaceutical and other businesses, particularly in the Northern Los Angeles Area where we are headquartered. We could have difficulty attracting experienced personnel to our company and may be required to expend significant financial resources in our employee recruitment and retention efforts. Many of the other pharmaceutical companies with whom we compete for qualified personnel have greater financial and other resources, different risk profiles and longer histories in the industry than we do. They also may provide more diverse opportunities and better chances for career advancement. If we are not able to attract and retain the necessary personnel to accomplish our business objectives, we may experience constraints that will harm our ability to implement our business strategy and achieve our business objectives.

In addition, we have scientific and clinical advisors who assist us in formulating our development and clinical strategies. These advisors are not our employees and may have commitments to, or consulting or advisory contracts with, other entities that may limit their availability to us. In addition, our advisors may have arrangements with other companies to assist those companies in developing products or technologies that may compete with ours.

If product liability lawsuits are brought against us, we may incur substantial liabilities and may be required to limit commercialization of our current or future product candidates.

We face an inherent risk of product liability as a result of the clinical testing of our product candidates and will face an even greater risk if we commercialize any products. For example, we may be sued if any product we develop allegedly causes injury or is found to be otherwise unsuitable during product testing, manufacturing, marketing or sale. Any such product liability claims may include allegations of defects in manufacturing, defects in design, a failure to warn of dangers inherent in the product, negligence, strict liability, and a breach of warranty. Claims could also be asserted under state consumer protection acts. If we cannot successfully defend ourselves against product liability claims, we may incur substantial liabilities or be required to limit commercialization of our product candidates. Even successful defense would require significant financial and management resources. Regardless of the merits or eventual outcome, liability claims may result in:

decreased demand for our current or future product candidates;

injury to our reputation;

withdrawal of clinical trial participants;

costs to defend the related litigation;

a diversion of management’s time and our resources;

substantial monetary awards to trial participants or patients;

regulatory investigations, product recalls, withdrawals or labeling, marketing or promotional restrictions;

loss of revenue; e


the inability to commercialize our current or any future product candidates.

Our inability to obtain and maintain sufficient product liability insurance at an acceptable cost and scope of coverage to protect against potential product liability claims could prevent or inhibit the commercialization of our current or any future product candidates we develop. Although we currently carry product liability insurance covering our clinical trials, any claim that may be brought against us could result in a court judgment or settlement in an amount that is not covered, in whole or in part, by our insurance or that is in excess of the limits of our insurance coverage. Our insurance policies also have various exclusions and deductibles, and we may be subject to a product liability claim for which we have no coverage. We will have to pay any amounts awarded by a court or negotiated in a settlement that exceed our coverage limitations or that are not covered by our insurance, and we may not have, or be able to obtain, sufficient funds to pay such amounts. Moreover, in the future, we may not be able to maintain insurance coverage at a reasonable cost or in sufficient amounts to protect us against losses. If and when we obtain approval for marketing any of our product candidates, we intend to expand our insurance coverage to include the sale of such product candidate; however, we may be unable to obtain this liability insurance on commercially reasonable terms or at all.

As a new public company, we will incur significant costs as a result of operating as a public company, and our management will devote substantial time to new compliance initiatives. We may fail to comply with the rules that apply to public companies, including Section 404 of the Sarbanes-Oxley Act of 2002, which could result in sanctions or other penalties that would harm our business.

We completed our IPO in January 2020 and are subject to public company reporting obligations under the Securities Exchange Act of 1934, as amended, or the Exchange Act, We will incur significant legal, accounting and other expenses as a public company, including costs resulting from such public company reporting obligations and regulations regarding corporate governance practices. The listing requirements of the Nasdaq Global Select Market and the rules of the Securities and Exchange Commission, or SEC, require that we satisfy certain corporate governance requirements relating to director independence, filing annual and interim reports, stockholder meetings, approvals and voting, soliciting proxies, conflicts of interest and a code of conduct. Our management and other personnel will need to devote a substantial amount of time to ensure that we comply with all of these requirements. Moreover, the reporting requirements, rules and regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costly. Any changes we make to comply with these obligations may not be sufficient to allow us to satisfy our obligations as a public company on a timely basis, or at all. These reporting requirements, rules and regulations, coupled with the increase in potential litigation exposure associated with being a public company, could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors or board committees or to serve as executive officers, or to obtain certain types of insurance, including directors’ and officers’ insurance, on acceptable terms.

We are subject to Section 404 of The Sarbanes-Oxley Act of 2002, or Section 404, and the related rules of the SEC, which generally require our management and independent registered public accounting firm to report on the effectiveness of our internal control over financial reporting. Beginning with our next annual report that we will be required to file with the SEC, Section 404 requires an annual management assessment of the effectiveness of our internal control over financial reporting. However, for so long as we remain an emerging growth company as defined in the JOBS Act, we intend to take advantage of certain exemptions from various reporting requirements, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404. Once we are no longer an emerging growth company and otherwise do not meet the definition of a “smaller reporting company” (SRC) and non-accelerated filer or, if prior to such date, we opt to no longer take advantage of the applicable exemption, we will be required to include an opinion from our independent registered public accounting firm on the effectiveness of our internal controls over financial reporting. We will remain an emerging growth company until the last day of our fiscal year following the fifth anniversary of the completion of our IPO. However, if certain events occur prior to the end of such five-year period, including if we become a


“large accelerated filer,” our annual gross revenues exceed $1.07 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period.

In addition, we have begun to implement an enterprise resource planning, or ERP, system for our company. An ERP system is intended to combine and streamline the management of our financial, accounting, human resources, sales and marketing and other functions, enabling us to manage operations and track performance more effectively. However, the ERP system is requiring us to complete many processes and procedures for the effective use of the system or to run our business using the system, which may result in substantial costs. Additionally, during the conversion process, we may be limited in our ability to convert any business that we acquire to the ERP. Any disruptions or difficulties in implementing or using an ERP system could adversely affect our controls and harm our business, including our ability to forecast or make sales and collect our receivables. Moreover, such disruption or difficulties could result in unanticipated costs and diversion of management attention.

To date, we have never conducted a review of our internal control for the purpose of providing the reports required by these rules. During the course of our review and testing, we may identify deficiencies and be unable to remediate them before we must provide the required reports. Furthermore, if we have a material weakness in our internal controls over financial reporting, we may not detect errors on a timely basis and our financial statements may be materially misstated. We or our independent registered public accounting firm may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting, which could harm our operating results, cause investors to lose confidence in our reported financial information and cause the trading price of our stock to fall. In addition, as a public company we will be required to file accurate and timely quarterly and annual reports with the SEC under the Exchange Act. Any failure to report our financial results on an accurate and timely basis could result in sanctions, lawsuits, delisting of our shares from the Nasdaq Global Select Market or other adverse consequences that would materially harm to our business.

Unfavorable global economic or political conditions could adversely affect our business, financial condition or results of operations.

Our results of operations could be adversely affected by general conditions in the global economy and in the global financial markets. A global financial crisis or a global or regional political disruption could cause extreme volatility in the capital and credit markets. For example, outbreaks of epidemic, pandemic, or contagious diseases, such as the recent COVID-19 outbreak, could disrupt our business. Business disruptions could include disruptions to the enrollment, clinical site availability, patient accessibility and conduct of our clinical trials, as well as temporary closures of the facilities of suppliers or contract manufacturers in the biotechnology supply chain. In addition, the COVID-19 outbreak may result in a severe economic downturn and has already significantly affected the financial markets of many countries. A severe or prolonged economic downturn or political disruption could result in a variety of risks to our business, including our ability to raise capital when needed on acceptable terms, if at all. A weak or declining economy or political disruption could also strain our manufacturers or suppliers, possibly resulting in supply disruption, or cause our customers to delay making payments for our services. Any of the foregoing could harm our business and we cannot anticipate all of the ways in which the political or economic climate and financial market conditions could adversely impact our business.

We or the third parties upon whom we depend may be adversely affected by earthquakes or other natural disasters and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster.

Our corporate headquarters and other facilities are located in the Northern Los Angeles Area, which in the past has experienced both severe earthquakes and wildfires. We do not carry earthquake insurance. Earthquakes, wildfires or other natural disasters could severely disrupt our operations, and have a material adverse effect on our business, results of operations, financial condition and prospects.


If a natural disaster, power outage or other event occurred, including an epidemic, pandemic or contagious disease outbreak such as COVID-19 that disrupted operations, we may experience difficulties in operating our business for a substantial period of time. The disaster recovery and business continuity plans we have in place currently are limited and are unlikely to prove adequate in the event of a serious disaster or similar event. We may incur substantial expenses as a result of the limited nature of our disaster recovery and business continuity plans, which, particularly when taken together with our lack of earthquake insurance, could have a material adverse effect on our business.

Furthermore, our third-party manufacturers or suppliers are similarly vulnerable to natural disasters or other sudden, unforeseen and severe adverse events. If such an event were to affect our supply chain, it could have a material adverse effect on our business.

We depend on our information technology systems, and any failure of these systems, or those of our CROs or other contractors or consultants we may utilize, could harm our business. Security breaches, cyber-attacks, loss of data, and other disruptions could compromise sensitive information related to our business or prevent us from accessing critical information and expose us to liability, which could adversely affect our business, results of operations, financial condition and prospects.

We collect and maintain information in digital form that is necessary to conduct our business, and we are increasingly dependent on information technology systems and infrastructure to operate our business. In the ordinary course of our business, we collect, store and transmit large amounts of confidential information, including intellectual property, proprietary business information and personal information. It is critical that we do so in a secure manner to maintain the confidentiality and integrity of such confidential information. We have established physical, electronic, and organizational measures to safeguard and secure our systems to prevent a data compromise, and rely on commercially available systems, software, tools, and monitoring to provide security for our information technology systems and the processing, transmission and storage of digital information. We have also outsourced elements of our information technology infrastructure, and as a result a number of third-party vendors may or could have access to our confidential information. Our internal information technology systems and infrastructure, and those of our current and any future collaborators, contractors and consultants and other third parties on which we rely, are vulnerable to damage from computer viruses, malware, natural disasters, terrorism, war, telecommunication and electrical failures, cyber-attacks or cyber-intrusions over the Internet, attachments to emails, persons inside our organization, or persons with access to systems inside our organization.

The risk of a security breach or disruption, particularly through cyber-attacks or cyber intrusion, including by computer hackers, foreign governments, and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. In addition, the prevalent use of mobile devices that access confidential information increases the risk of data security breaches, which could lead to the loss of confidential information or other intellectual property. The costs to us to mitigate network security problems, bugs, viruses, worms, malicious software programs and security vulnerabilities could be significant, and while we have implemented security measures to protect our data security and information technology systems, our efforts to address these problems may not be successful, and these problems could result in unexpected interruptions, delays, cessation of service and other harm to our business and our competitive position. If such an event were to occur and cause interruptions in our operations, it could result in a material disruption of our product development programs. For example, the loss of clinical trial data from completed or ongoing or planned clinical trials could result in delays in our regulatory approval efforts and significantly increase our costs to recover or reproduce the data. Moreover, if a computer security breach affects our systems or results in the unauthorized release of personally identifiable information, our reputation could be materially damaged. In addition, such a breach may require notification to governmental agencies, the media or individuals pursuant to various federal and state privacy and security laws (and other similar non-U.S. laws), if applicable, including the Health Insurance Portability and Accountability Act of 1996, or HIPAA, as amended by the Health Information Technology for Clinical Health Act of 2009, or HITECH, and its implementing rules and regulations, as well as regulations


promulgated by the Federal Trade Commission and state breach notification laws. By way of example, on June 28, 2018, California enacted the California Consumer Privacy Act, or CCPA, which took effect on January 1, 2020. The CCPA creates individual privacy rights for California consumers and increases the privacy and security obligations of entities handling certain personal information. The CCPA provides for civil penalties for violations, as well as a private right of action for data breaches that is expected to increase data breach litigation. The CCPA may increase our compliance costs and potential liability, and similar laws have been proposed at the federal level and in other states as well as in non-U.S. jurisdictions. We would also be exposed to a risk of loss or litigation and potential liability, which could materially adversely affect our business, results of operations and financial condition.

Our future commercial partners, as well as our employees and independent contractors, including principal investigators, consultants, suppliers, service providers and other vendors may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements, which could have an adverse effect on our results of operations

We are exposed to the risk that our future commercial partners, as well as our employees and independent contractors, including principal investigators, consultants, suppliers, service providers and other vendors may engage in misconduct or other illegal activity. Misconduct by these parties could include intentional, reckless and/or negligent conduct or other unauthorized activities that violate the laws and regulations of the FDA and other similar foreign regulatory authorities, including those laws that require the reporting of true, complete and accurate information to such foreign regulatory authorities; manufacturing standards; U.S. federal and state healthcare fraud and abuse, data privacy laws and other similar non-U.S. laws; or laws that require the true, complete and accurate reporting of financial information or data. Activities subject to these laws also involve the improper use or misrepresentation of information obtained in the course of clinical trials, the creation of fraudulent data in our preclinical studies or clinical trials, or illegal misappropriation of product, which could result in regulatory sanctions and cause serious harm to our reputation. It is not always possible to identify and deter misconduct by employees and other third-parties, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with such laws or regulations. In addition, we are subject to the risk that a person or government could allege such fraud or other misconduct, even if none occurred. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business and financial results, including, without limitation, the imposition of significant civil, criminal and administrative penalties, damages, monetary fines, disgorgements, possible exclusion from participation in Medicare, Medicaid and other U.S. healthcare programs, imprisonment, other sanctions, contractual damages, reputational harm, diminished profits and future earnings and curtailment of our operations, any of which could adversely affect our ability to operate our business and our results of operations.

Our business involves the use of hazardous materials and we and our third-party manufacturers and suppliers must comply with environmental laws and regulations, which can be expensive and restrict how we do business.

Our research and development activities and our third-party manufacturers’ and suppliers’ activities involve the controlled storage, use and disposal of hazardous materials owned by us, including the components of our product and product candidates and other hazardous compounds. We and our manufacturers and suppliers are subject to laws and regulations governing the use, manufacture, storage, handling and disposal of these hazardous materials. In some cases, these hazardous materials and various wastes resulting from their use are stored at our and our manufacturers’ facilities pending their use and disposal. We cannot eliminate the risk of contamination, which could cause an interruption of our commercialization efforts, research and development efforts and business operations, environmental damage resulting in costly clean-up and liabilities under applicable laws and regulations governing the use, storage, handling and disposal of these materials and specified waste products. Although we believe that the safety procedures utilized by our third-party manufacturers for handling and disposing of these


materials generally comply with the standards prescribed by these laws and regulations, we cannot guarantee that this is the case or eliminate the risk of accidental contamination or injury from these materials. In such an event, we may be held liable for any resulting damages and such liability could exceed our resources and state or federal or other applicable authorities may curtail our use of certain materials and/or interrupt our business operations. Furthermore, environmental laws and regulations are complex, change frequently and have tended to become more stringent. We cannot predict the impact of such changes and cannot be certain of our future compliance. We do not currently carry biological or hazardous waste insurance coverage.

Risks Related to Our Reliance on Third Parties

We currently rely on single source third-party manufacturers to manufacture preclinical and clinical supplies of our product candidates and we intend to rely on third parties to produce commercial supplies of any approved product candidate. The loss of these manufacturers, or their failure to provide us with sufficient quantities at acceptable quality levels or prices, or at all, would materially and adversely affect our business.

We do not currently have nor do we plan to build or acquire the infrastructure or capability internally to manufacture supplies of our product candidates or the materials necessary to produce our product candidates for use in the conduct of our preclinical studies or clinical trials, and we lack the internal resources and the capability to manufacture any of our product candidates on a preclinical, clinical or commercial scale. Instead, we currently rely on single source third-party manufacturers to manufacture preclinical and clinical supplies of our product candidates and we intend to rely on third parties to produce commercial supplies of any approved product candidate. In the fourth quarter of 2019, we received a batch of our product candidate that we believe is representative of our anticipated early commercial batch requirements. However, as a late-stage company with no prior history of product sales or commercialization of products, representative batches of our product candidate received to date may not represent what will be required to meet our future commercial requirements or be manufactured at scale.

We and the manufacturers of our products rely on suppliers of raw materials used in the production of our products. Some of these materials are available from only one source. Additionally, we have not yet engaged any manufacturer for the commercial supply of our product candidates. Although we intend to enter into such agreements prior to commercial launch of any of our product candidates, we may be unable to enter into any such agreement or do so on commercially reasonable terms, which could have a material adverse impact upon our business. Moreover, if there is a disruption to one or more of our third-party suppliers’ relevant operations, or if we are unable to enter into arrangements for the commercial manufacture of our product candidates, we will have no other means of producing our lead product candidates until they restore the affected facilities or we or they procure alternative manufacturing facilities or sources of supply. Our ability to progress our preclinical and clinical programs could be materially and adversely impacted if any of the third-party suppliers upon which we rely were to experience a significant business challenge, disruption or failure due to issues such as financial difficulties or bankruptcy, issues relating to other customers such as regulatory or quality compliance issues, or other financial, legal, regulatory or reputational issues. Additionally, any damage to or destruction of our third-party manufacturer’s facilities or equipment may significantly impair our ability to manufacture our product candidates on a timely basis.

Furthermore, there are a limited number of suppliers for materials we use in our product candidates, which exposes us to the risk of disruption in the supply of the materials necessary to manufacture our product candidates for our preclinical studies and clinical trials, and if approved, ultimately for commercial sale. In the case of ARQ-252 and ARQ-255, we have an agreement with Hengrui for the supply of SHR0302 API for preclinical studies and clinical trials. We do not have any control over the process or timing of the acquisition or manufacture of materials by our manufacturers. In addition, any significant delay in, or quality control problems with respect to, the supply of a product candidate, or the raw material components thereof, for an ongoing study or trial could considerably delay completion of our preclinical studies or clinical trials, product testing and potential regulatory approval of our product candidates.


In addition, to manufacture our product candidates in the quantities that we believe would be required to meet anticipated market demand, our third-party manufacturers may need to increase manufacturing capacity and, in some cases, we plan to secure alternative sources of commercial supply, which could involve significant challenges and may require additional regulatory approvals Neither we nor our third-party manufacturers may successfully complete any required increase to existing manufacturing capacity in a timely manner, or at all. If our manufacturers or we are unable to purchase the raw materials necessary for the manufacture of our product candidates on acceptable terms, at sufficient quality levels, or in adequate quantities, if at all, the commercial launch of our lead product candidates or any future product candidates would be delayed or there would be a shortage in supply, which would impair our ability to generate revenues from the sale of such product candidates, if approved.

The loss of these suppliers, or their failure to comply with applicable regulatory requirements or to provide us with sufficient quantities at acceptable quality levels or prices, or at all, would materially and adversely affect our business.

If our third-party manufacturers fail to comply with manufacturing or other regulations, our financial results and financial condition will be adversely affected.

If our contract manufacturers cannot successfully manufacture material that conforms to our specifications and the strict regulatory requirements of the FDA or comparable regulatory authorities in foreign jurisdictions, we may not be able to rely on their manufacturing facilities for the manufacture or our product candidates.

Before beginning commercial manufacture of roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255, the process and systems used in the manufacture of roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255 must be approved and each facility must have a compliance status that is acceptable to the FDA and other regulatory authorities. In addition, pharmaceutical manufacturing facilities are continuously subject to inspection by the FDA and foreign regulatory authorities, before and after product approval. Due to the complexity of the processes used to manufacture pharmaceutical products and product candidates, any potential third-party manufacturer may be unable to continue to pass or initially pass federal, state or international regulatory inspections. Furthermore, although we do not have day-to-day control over the operations of our contract manufacturers, we are responsible for ensuring compliance with applicable laws and regulations, including cGMPs.

If a third-party manufacturer with whom we contract is unable to comply with applicable laws and regulations, including cGMPs, roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255 may not be approved, or we may be subject to fines, unanticipated compliance expenses, recall or seizure of our products, total or partial suspension of production and/or enforcement actions, including injunctions, and criminal or civil prosecution. These possible sanctions would adversely affect our financial results and financial condition.

We rely on third parties to conduct our non-clinical studies and our clinical trials. If these third parties do not successfully carry out their contractual duties or meet expected deadlines, we may be unable to obtain regulatory approval for or commercialize roflumilast cream, roflumilast foam, ARQ-252, ARQ-255 or any future product candidates.

We do not have the ability to independently conduct non-clinical studies and clinical trials. We rely on third parties, such as CROs, to conduct preclinical studies and clinical trials of roflumilast cream, roflumilast foam, ARQ-252 and ARQ-255. The third parties with whom we contract for execution of our preclinical studies and clinical trials play a significant role in the conduct of these studies and trials and the subsequent collection and analysis of data. However, these third parties are not our employees, and except for contractual duties and obligations, we have limited ability to control the amount or timing of resources that they devote to our programs. These third parties may also have relationships with other commercial entities, some of which may compete with us. In some cases, these third parties could


terminate their agreements with us without cause. Furthermore, external events such as the COVID-19 pandemic could interfere with some operations of these CROs.

Although we rely on third parties to conduct our preclinical studies and clinical trials, we remain responsible for ensuring that each of our preclinical studies and clinical trials is conducted in accordance with its investigational plan and protocol. Moreover, the FDA and foreign regulatory authorities require us to comply with regulations and standards, including some regulations commonly referred to as good clinical practices, or GCPs, for conducting, monitoring, recording and reporting the results of clinical trials to ensure that the data and results are scientifically credible and accurate, and that appropriate human subjects protections are in place, including that the trial subjects are adequately informed of the potential risks and other consequences of participating in clinical trials.

In addition, the execution of non-clinical studies and clinical trials, and the subsequent compilation and analysis of the data produced, requires coordination among various parties. In order for these functions to be carried out effectively and efficiently, it is imperative that these parties communicate and coordinate with one another. If the third parties conducting our clinical trials do not perform their contractual duties or obligations, experience work stoppages, do not meet expected deadlines, terminate their agreements with us or need to be replaced, or if the quality or accuracy of the clinical data they obtain is compromised due to the failure to adhere to our clinical trial protocols or GCPs, or for any other reason, we may need to enter into new arrangements with alternative third parties, which could be difficult, costly or impossible, and our clinical trials may be extended, delayed or terminated or may need to be repeated, which would have a material adverse effect on our business.

Risks Related to Intellectual Property

We may not be able to obtain, maintain or enforce patent rights or other intellectual property rights that cover our product candidates and technologies that are of sufficient breadth to prevent third parties from competing against us.

Our success with respect to our product candidates and technologies will depend in part on our and our licensors’ ability to obtain and maintain patent protection in both the United States and other countries, to preserve our trade secrets and to prevent third parties from infringing upon our proprietary rights. Our ability to protect any of our product candidates from unauthorized or infringing use by third parties depends in substantial part on our ability to obtain and maintain valid and enforceable patents.

Our patent portfolio includes patents and patent applications in the United States and foreign jurisdictions where we believe there is a market opportunity for our products. The covered technology and the scope of coverage vary from country to country. For those countries where we do not have granted patents, we may not have any ability to prevent the unauthorized use of our technologies. Any patents that we may obtain may be narrow in scope and thus easily circumvented by competitors. Further, in countries where we do not have granted patents, third parties may be able to make, use or sell products identical to or substantially similar to, our product candidates.

The patent application process, also known as patent prosecution, is expensive and time-consuming, and we and our current licensors, or any future licensors or licensees may not be able to prepare, file and prosecute all necessary or desirable patent applications at a reasonable cost or in a timely manner. It is also possible that we or our current licensors, or any future licensors or licensees, will fail to identify patentable aspects of inventions made in the course of development and commercialization activities before it is too late to obtain patent protection on them. Therefore, our patents and applications may not be prosecuted, and as a result may not be able to be enforced in a manner consistent with the best interests of our business. It is possible that defects of form in the preparation or filing of our patents or patent applications may exist, or may arise in the future, such as with respect to proper priority claims, inventorship, claim scope or patent term adjustments. If there are material defects in the form or preparation of our patents or patent applications, such patents or applications may be invalid and unenforceable. Moreover, our competitors may independently develop equivalent knowledge, methods


and know-how to our processes, methods, and know-how which we consider our trade secrets. Any of these outcomes could impair our ability to prevent competition from third parties, which may have an adverse impact on our business, financial condition and operating results.

Due to legal standards relating to patentability, validity, enforceability and claim scope of patents covering pharmaceutical inventions, our and our licensor’s ability to obtain, maintain and enforce patents is uncertain and involves complex legal and factual questions. Accordingly, rights under our existing patents or any patents we might obtain or license may not cover our product candidates, or may not provide us with sufficient protection for our product candidates to afford a commercial advantage against competitive products or processes, including those from branded and generic pharmaceutical companies. In addition, we cannot guarantee that any patents will issue from any pending or future patent applications owned by or licensed to us. Even with respect to our patents that have issued or will issue, we cannot guarantee that the claims of these patents are or will be held valid or enforceable by the courts or will provide us with any significant protection against competitive products or otherwise be commercially valuable to us. Publications of discoveries in the scientific literature often lag behind the actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until 18 months after filing, or in some cases not at all. Therefore, we cannot know with certainty whether we or our licensors were the first to make the inventions claimed in our patents or pending patent applications, or that we or our licensors were the first to file for patent protection of such inventions. As a result, the issuance, scope, validity, enforceability and commercial value of our patent rights are highly uncertain. Our pending and future patent applications may not result in patents being issued that protect our technology or drugs, in whole or in part, or which effectively prevent others from commercializing competitive technologies and drugs. Changes in either the patent laws or interpretation of the patent laws in the United States and other countries may diminish the value of our patents or narrow the scope of our patent protection.

Competitors in the field of dermatologic therapeutics have created a substantial amount of prior art, including scientific publications, patents and patent applications. Our ability to obtain and maintain valid and enforceable patents depends on whether the differences between our technology and the prior art allow our technology to be patentable over the prior art. Although we believe that our technology includes certain inventions that are unique and not duplicative of any prior art, we do not have outstanding issued patents covering all of the recent developments in our technology and we are unsure of the patent protection that we will be successful in obtaining, if any, over such aspects of our technology. Even if patents do successfully issue covering such aspects of our technology, third parties may design around or challenge the validity, enforceability or scope of such issued patents or any other issued patents we own or license, which may result in such patents being narrowed, invalidated or held unenforceable. If the breadth or strength of protection provided by the patents we own or license with respect to our product candidates is challenged, it could dissuade companies from collaborating with us to develop, or threaten our ability to commercialize, our product candidates. Even if the patent applications that we own or license issue as patents, they may not issue in a form that will provide us with any meaningful protection, prevent competitors from competing with us or otherwise provide us with any competitive advantage. Our competitors may be able to circumvent our patents by developing similar or alternative technologies or drugs in a non-infringing manner.

The laws of some foreign jurisdictions do not provide intellectual property rights to the same extent as in the United States and many companies have encountered significant difficulties in protecting and defending such rights in foreign jurisdictions. If we encounter such difficulties in protecting or are otherwise precluded from effectively protecting our intellectual property in foreign jurisdictions, our business prospects could be substantially harmed. The patent positions of pharmaceutical and biotechnology companies can be highly uncertain and involve complex legal and factual questions for which important legal principles remain unresolved. Changes in either the patent laws or in the interpretations of patent laws in the United States and other countries may diminish the value of our intellectual property. Accordingly, we cannot predict the breadth of claims that may be allowed or enforced in our patents or in third-party patents.


The degree of future protection of our proprietary rights is uncertain. Patent protection may be unavailable or severely limited in some cases and may not adequately protect our rights or permit us to gain or keep our competitive advantage. For example:

we might not have been the first to invent or the first to file the inventions covered by each of our pending patent applications and issued patents;

others may independently develop similar or alternative technologies or duplicate any of our technologies;

the patents of others may have an adverse effect on our business;

any patents we obtain or our licensors’ issued patents may not encompass commercially viable products, may not provide us with any competitive advantages or may be challenged by third parties;

for some product candidates, we expect that composition of matter patent protection for the active pharmaceutical ingredient will not be available at the time we expect to commercialize, and we will therefore need to rely on formulation, method of use and other forms of claims for patent protection;

any patents we obtain or our in-licensed issued patents may not be valid or enforceable; e

we may not develop additional proprietary technologies that are patentable.

Patents have a limited lifespan. In the United States, the natural expiration of a patent is generally 20 years after it is filed. Various extensions may be available; however, the life of a patent, and the protection it affords, is limited. Without patent protection for our product candidates, we may be open to competition from generic versions of our product candidates. Further, the extensive period of time between patent filing and regulatory approval for a product candidate limits the time during which we can market a product candidate under patent protection, which may particularly affect the profitability of our early-stage product candidates. Our issued U.S. patents relating to roflumilast cream and roflumilast foam with claims directed to, among other things, formulating roflumilast in combination with hexylene glycol are currently projected to expire on June 7, 2037 and the issued U.S. patents which we have exclusive rights to from Hengrui as a result of the exercise of our exclusive option with Hengrui in December 2019 for the amount of $1.5 million cash, related to the composition of matter of the active ingredient in ARQ-252 and ARQ-255 (or bisulfate or crystal forms thereof) are currently projected to expire between January 21, 2033 and October 15, 2035 unless a patent term extension is granted. Proprietary trade secrets and unpatented know-how are also very important to our business. Although we have taken steps to protect our trade secrets and unpatented know-how by entering into confidentiality agreements with third parties, and intellectual property protection agreements with certain employees, consultants and advisors, third parties may still obtain this information or we may be unable to protect our rights. We also have limited control over the protection of trade secrets used by our suppliers, manufacturers and other third parties. There can be no assurance that binding agreements will not be breached, that we would have adequate remedies for any breach or that our trade secrets and unpatented know-how will not otherwise become known or be independently discovered by our competitors. If trade secrets are independently discovered, we would not be able to prevent their use. Enforcing a claim that a third party illegally obtained and is using our trade secrets or unpatented know-how is expensive and time-consuming, and the outcome is unpredictable. In addition, courts outside the United States may be less willing to protect trade secret information.


We may become subject to claims alleging infringement of third parties’ patents or proprietary rights and/or claims seeking to invalidate our patents, which would be costly, time consuming and, if successfully asserted against us, delay or prevent the development and commercialization of roflumilast cream, roflumilast foam, ARQ-252, ARQ-255 or any future product candidates.

There have been many lawsuits and other proceedings asserting patents and other intellectual property rights in the pharmaceutical and biotechnology industries. We cannot assure you that our exploitation of roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255 will not infringe existing or future third-party patents. Because patent applications can take many years to issue and may be confidential for 18 months or more after filing, there may be applications now pending of which we are unaware and which may later result in issued patents that we may infringe by commercializing roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255. Moreover, we may face claims from non-practicing entities that have no relevant product revenue and against whom our own patent portfolio may thus have no deterrent effect. We may be unaware of one or more issued patents that would be infringed by the manufacture, sale or use of roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255.

We may be subject to third-party claims in the future against us or our collaborators that would cause us to incur substantial expenses and, if successful against us, could cause us to pay substantial damages, including treble damages and attorney’s fees if we are found to be willfully infringing a third party’s patents. We may be required to indemnify future collaborators against such claims. If a patent infringement suit were brought against us or our future collaborators, we or they could be forced to stop or delay research, development, manufacturing or sales of the product or product candidate that is the subject of the suit. As a result of patent infringement claims, or in order to avoid potential claims, we or our collaborators may choose to seek, or be required to seek, a license from the third-party and would most likely be required to pay license fees or royalties or both. These licenses may not be available on acceptable terms, or at all. Even if we or our future collaborators were able to obtain a license, the rights obtained may be nonexclusive, which would not confer a competitive advantage to us from an exclusivity perspective. Ultimately, we could be prevented from commercializing a product, or forced to redesign it, or to cease some aspect of our business operations if, as a result of actual or threatened patent infringement claims, we or our collaborators are unable to enter into licenses on acceptable terms to necessary third party patent rights. Even if we are successful in defending against such claims, such litigation can be expensive and time consuming to litigate and would divert management’s attention from our core business. Any of these events could harm our business significantly.

In addition to infringement claims against us, if third parties prepare and file patent applications in the United States that also claim technology similar or identical to ours, we may have to participate in interference or derivation proceedings in the United States Patent and Trademark Office, or the USPTO, to determine which party is entitled to a patent on the disputed invention. We may also become involved in similar opposition proceedings in the European Patent Office or similar offices in other jurisdictions regarding our intellectual property rights with respect to our products and technology. Since patent applications are confidential for a period of time after filing, we cannot be certain that we were the first to file any patent application related to our product candidates.

We may be subject to claims by third parties asserting that we, our employees or our licensors have misappropriated their intellectual property, including trade secrets, or claiming ownership of what we regard as our own intellectual property.

Many of our employees and our licensor’s employees were previously employed at other biotechnology or pharmaceutical companies. Although we and our licensors try to ensure that our employees and our licensor’s employees do not use the proprietary information or know-how of others in their work for us, including by contract, we or our licensors may be subject to claims that these employees, our licensors or we have used or disclosed intellectual property, including trade secrets or other proprietary information, of any such employee’s former employer. Litigation may be necessary to defend against these claims.


In addition, while it is our policy to require our employees and contractors who may be involved in the development of intellectual property to execute agreements assigning such intellectual property to us, we may in the future be unsuccessful in executing such an agreement with each party who in fact develops intellectual property that we regard as our own. Our and their assignment agreements may not be self-executing or may be breached, and we may be forced to bring claims against third parties, or defend claims they may bring against us, to determine the ownership of what we regard as our intellectual property.

If we or our licensor fail in prosecuting or defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel. Even if we and our licensor are successful in prosecuting or defending against such claims, litigation could result in substantial costs.

The validity, scope and enforceability of any patents listed in the Orange Book that cover roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255 can be challenged by competitors.

If roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255 is approved by the FDA, one or more third parties may challenge the patents covering roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255, which could result in the invalidation of, or render unenforceable, some or all of the relevant patent claims or a finding of non-infringement. For example, if a third party files an abbreviated new drug application, or ANDA, for a generic drug bioequivalent to roflumilast cream, roflumilast foam, ARQ-252 or ARQ-255, and relies in whole or in part on studies conducted by or for us, the third party will be required to certify to the FDA that either: (1) there is no patent information listed in the FDA’s Orange Book with respect to our NDA for the applicable approved drug candidate; (2) the patents listed in the Orange Book have expired; (3) the listed patents have not expired, but will expire on a particular date and approval is sought after patent expiration; or (4) the listed patents are invalid or will not be infringed by the manufacture, use or sale of the third party’s generic drug. A certification that the new drug will not infringe the Orange Book-listed patents for the applicable approved drug candidate, or that such patents are invalid, is called a paragraph IV certification. If the third party submits a paragraph IV certification to the FDA, a notice of the paragraph IV certification must also be sent to us once the third party’s ANDA is accepted for filing by the FDA. We may then initiate a lawsuit to defend the patents identified in the notice. The filing of a patent infringement lawsuit within 45 days of receipt of the notice automatically prevents the FDA from approving the third party’s ANDA until the earliest of 30 months or the date on which the patent expires, the lawsuit is settled, or the court reaches a decision in the infringement lawsuit in favor of the third party. If we do not file a patent infringement lawsuit within the required 45-day period, the third party’s ANDA will not be subject to the 30-month stay of FDA approval. Litigation or other proceedings to enforce or defend intellectual property rights are often very complex in nature, may be very expensive and time-consuming, may divert our management’s attention from our core business, and may result in unfavorable results that could limit our ability to prevent third parties from competing with our product candidates.

If we do not obtain protection under the Hatch-Waxman Amendments by extending the patent term for our product candidates, our business may be materially harmed.

Our commercial success will largely depend on our ability to obtain and maintain patent and other intellectual property in the United States and other countries with respect to our proprietary technology, product candidates and our target indications. Our issued U.S. patents, with claims directed to roflumilast formulations with reduced crystal growth, encompassing roflumilast cream, are currently projected to expire on June 7, 2037. Certain issued U.S. patents that we have licensed from Hengrui relating to, among other things, treatment of several diseases or disorders, including various cancers, allograft rejection, graft versus host disease, rheumatoid arthritis, atopic dermatitis, and psoriasis with SHR0302, or bisulfate and crystal forms thereof, are currently projected to expire beginning in 2033. Given the amount of time required for the development, testing and regulatory review of new product candidates, patents protecting our product candidates might expire before or shortly after such candidates begin to be commercialized. We expect to seek extensions of patent terms in the United States and, if available, in other countries where we are prosecuting patents.


Depending upon the timing, duration and specifics of FDA marketing approval of our product candidates, one or more of the U.S. patents covering our product candidates may be eligible for limited patent term restoration under the Drug Price Competition and Patent Term Restoration Act of 1984, referred to as the Hatch-Waxman Amendments. The Hatch-Waxman Amendments permit a patent restoration term of up to five years beyond the normal expiration of the patent as compensation for patent term lost during development and the FDA regulatory review process, which is limited to the approved indication (or any additional indications approved during the period of extension). This extension is limited to only one patent that covers the approved product. However, the applicable authorities, including the FDA and the USPTO in the United States, and any equivalent regulatory authority in other countries, may not agree with our assessment of whether such extensions are available, and may refuse to grant extensions to our patents, or may grant more limited extensions than we request. We may not be granted an extension because of, for example, failing to apply within applicable deadlines, failing to apply prior to expiration of relevant patents or otherwise failing to satisfy applicable requirements. Moreover, the applicable time period or the scope of patent protection afforded could be less than we request.

If we are unable to extend the expiration date of our existing patents or obtain new patents with longer expiry dates, our competitors may be able to take advantage of our investment in development and clinical trials by referencing our clinical and preclinical data to obtain approval of competing products following our patent expiration and launch their product earlier than might otherwise be the case.

Our intellectual property agreements with third parties may be subject to disagreements over contract interpretation, which could narrow the scope of our rights to the relevant intellectual property or technology or increase our financial or other obligations to our licensors.

Certain provisions in our intellectual property agreements may be susceptible to multiple interpretations. The resolution of any contract interpretation disagreement that may arise could affect the scope of our rights to the relevant intellectual property or technology, or affect financial or other obligations under the relevant agreement, either of which could have a material adverse effect on our business, financial condition, results of operations and prospects.

We may need to license additional intellectual property from third parties, and such licenses may not be available or may not be available on commercially reasonable terms.

Additional third parties, apart from our current licensors, may hold intellectual property, including patent rights, that are important or necessary to the development of our product candidates. It may be necessary for us to use the patented or proprietary technology of these third parties to commercialize our product candidates, in which case we would be required to obtain a license from these third parties on commercially reasonable terms. Such a license may not be available, or it may not be available on commercially reasonable terms, in which case our business would be harmed. The risks described elsewhere pertaining to our intellectual property rights also apply to the intellectual property rights that we in-license, and any failure by us or our licensors to obtain, maintain, defend and enforce these rights could harm our business. In some cases we may not have control over the prosecution, maintenance or enforcement of the patents that we license, and may not have sufficient ability to provide input into the patent prosecution, maintenance and defense process with respect to such patents, and our licensors may fail to take the steps that we believe are necessary or desirable in order to obtain, maintain, defend and enforce the licensed patents.

We may not be able to protect our intellectual property rights throughout the world.

Filing, prosecuting and defending patents on product candidates, including all of the licensed rights under our exclusive supply and license agreements with AstraZeneca and Hengrui, in all countries throughout the world would be prohibitively expensive, and our intellectual property rights in some countries outside the United States can be less extensive than those in the United States. In addition, the laws of some foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the United States. Consequently, we may not be able to prevent third parties from practicing


our inventions in all countries outside the United States, or from selling or importing products made using our inventions in and into the United States or other jurisdictions. Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop their own products and further, may export otherwise infringing products to territories where we have patent protection, but enforcement is not as strong as that in the United States. These products may compete with our products and our patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.

Many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents and other intellectual property protection, particularly those relating to biopharmaceuticals, which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of our proprietary rights generally. Proceedings to enforce our patent rights in foreign jurisdictions could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing and could provoke third parties to assert claims against us. We may not prevail in any lawsuits that we initiate and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our efforts to enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that we develop or license.

Changes in U.S. patent law or the patent law of other countries or jurisdictions could diminish the value of patents in general, thereby impairing our ability to protect our products.

The United States has enacted and implemented wide-ranging patent reform legislation, and that legislation could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of our issued patents. On September 16, 2011, the Leahy-Smith America Invents Act, or the Leahy-Smith Act, was signed into law. The Leahy-Smith Act includes a number of significant changes to United States patent law. These include provisions that affect the way patent applications are prosecuted and may also affect patent litigation. The United States Patent Office recently developed new regulations and procedures to govern administration of the Leahy-Smith Act, and many of the substantive changes to patent law associated with the Leahy-Smith Act, and in particular, the first to file provisions, only became effective on March 16, 2013. Accordingly, it is not clear what, if any, impact the Leahy-Smith Act will have on the operation of our business. However, the Leahy-Smith Act and its implementation could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of our issued patents, all of which could have a material adverse effect on our business and financial condition. In addition, patent reform legislation may pass in the future that could lead to additional uncertainties and increased costs surrounding the prosecution, enforcement and defense of our patents and pending patent applications.

The United States Supreme Court has ruled on several patent cases in recent years, either narrowing the scope of patent protection available in certain circumstances or weakening the rights of patent owners in certain situations. In addition to increasing uncertainty with regard to our ability to obtain patents in the future, this combination of events has created uncertainty with respect to the value of patents, once obtained. Depending on actions by the United States Congress, the federal courts and the USPTO, the laws and regulations governing patents could change in unpredictable ways that would weaken our ability to obtain new patents or to enforce patents that we have licensed or that we might obtain in the future. Similarly, changes in patent law and regulations in other countries or jurisdictions or changes in the governmental bodies that enforce them or changes in how the relevant governmental authority enforces patent laws or regulations may weaken our ability to obtain new patents or to enforce patents that we have licensed or that we may obtain in the future. We cannot predict future changes in the interpretation of patent laws or changes to patent laws that might be enacted into law by United States and foreign legislative bodies. Those changes may materially affect our patents or patent applications and our ability to obtain additional patent protection in the future.


The United States federal government retains certain rights in inventions produced with its financial assistance under the Bayh-Dole Act. The federal government retains a “nonexclusive, nontransferable, irrevocable, paid-up license” for its own benefit. The Bayh-Dole Act also provides federal agencies with “march-in rights.” March-in rights allow the government, in specified circumstances, to require the contractor or successors in title to the patent to grant a “nonexclusive, partially exclusive, or exclusive license” to a “responsible applicant or applicants.” If the patent owner refuses to do so, the government may grant the license itself. Having a mandatory non-exclusive license grant may diminish the value of our patents as well as making it more difficult to protect our products.

Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for noncompliance with these requirements.

Periodic maintenance fees on any issued patent are due to be paid to the USPTO and other foreign patent agencies in several stages over the lifetime of the patent. The USPTO and various foreign national or international patent agencies require compliance with a number of procedural, documentary, fee payment and other similar provisions during the patent application process. While an inadvertent lapse can in many cases be cured by payment of a late fee or by other means in accordance with the applicable rules, there are situations in which noncompliance can result in abandonment or lapse of the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. Noncompliance events that could result in abandonment or lapse of patent rights include, but are not limited to, failure to timely file national and regional stage patent applications based on our international patent application, failure to respond to official actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal documents. If we or our licensors fail to maintain the patents and patent applications covering any of our product candidates, our competitors might be able to enter the market earlier than anticipated, which would harm our business.

If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our markets of interest and our business may be adversely affected.

Our registered or unregistered trademarks or trade names may be challenged, infringed, circumvented, declared generic or conflict with third-party rights. We may not be able to protect our rights to these trademarks and trade names, which we need to build name recognition by potential partners or customers in our markets of interest. In addition, third parties may file first for our trademarks in certain countries. If they succeeded in registering such trademarks, and if we were not successful in challenging such third-party rights, we may not be able to use these trademarks to market our products in those countries. In such cases, over the long term, if we are unable to establish name recognition based on our trademarks and trade names, then our marketing abilities may be impacted.

We have not yet registered trademarks for a commercial trade name for our lead candidates in the United States or foreign jurisdictions and failure to secure such registrations could adversely affect our business.

We have not yet registered trademarks for a commercial trade name for our lead product candidates in the United States or any foreign jurisdiction. During trademark registration proceedings, we may receive rejections. Although we are given an opportunity to respond to those rejections, we may be unable to overcome such rejections. In addition, in the USPTO and in comparable agencies in many foreign jurisdictions, third parties are given an opportunity to oppose pending trademark applications and to seek to cancel registered trademarks. Opposition or cancellation proceedings may be filed against our trademarks, and our trademarks may not survive such proceedings. Moreover, any name we propose to use with our product candidates in the United States must be approved by the FDA, regardless of whether we have registered it, or applied to register it, as a trademark. The FDA typically conducts a review of proposed product names, including an evaluation of potential for confusion with other product names. If the FDA objects to any of our proposed proprietary product names, we may be required to


expend significant additional resources in an effort to identify a suitable substitute name that would qualify under applicable trademark laws, not infringe the existing rights of third parties and be acceptable to the FDA.

If we are unable to protect the confidentiality of our proprietary information and know-how, the value of our technology and products could be adversely affected.

We may not be able to protect our proprietary information and technology adequately. Although we use reasonable efforts to protect our proprietary information, technology, and know-how, our employees, consultants, contractors, outside scientific advisors, licensors or licensees may unintentionally or willfully disclose our information to competitors. Enforcing a claim that a third party illegally obtained and is using any of our proprietary information, technology or know-how is expensive and time consuming, and the outcome is unpredictable. In addition, courts outside the United States are sometimes less willing to protect proprietary information, technology, and know-how. We rely, in part, on non-disclosure and confidentiality agreements with our employees, consultants and other parties to protect our proprietary information, technology, and know-how. These agreements may be breached and we may not have adequate remedies for any breach. Moreover, others may independently develop similar or equivalent proprietary information, and third parties may otherwise gain access to our proprietary knowledge.

If we fail to comply with our obligations under any license, collaboration or other agreements, we may be required to pay damages and could lose intellectual property rights that are necessary for developing and protecting our product candidates.

We have licensed or acquired certain intellectual property rights covering our current product candidates from third parties, including AstraZeneca and Hengrui. We are heavily dependent on our agreements with such third parties for our current product candidates. If, for any reason, one or more of our agreements with such third parties is terminated or we otherwise lose those rights, it could harm our business. Our license and other agreements impose, and any future collaboration agreements or license agreements we enter into are likely to impose various development, commercialization, funding, milestone, royalty, diligence, sublicensing, insurance, patent prosecution and enforcement or other obligations on us. If we breach any such material obligations, or use the intellectual property licensed to us in an unauthorized manner, we may be required to pay damages and the licensor may have the right to terminate the license, which could result in us being unable to develop, manufacture and sell products that are covered by the licensed technology, or having to negotiate new or reinstated licenses on less favorable terms, or enable a competitor to gain access to the licensed technology.

We may become involved in lawsuits to protect or enforce our patents or other intellectual property or the patents of our licensors, which could be expensive and time-consuming.

Competitors may infringe our intellectual property, including our patents or the patents of our licensors. As a result, we may be required to file infringement claims or inform and cooperate with our licensors to stop third-party infringement or unauthorized use. This can be expensive, particularly for a company of our size, and time-consuming. In addition, in an infringement proceeding, a court may decide that a patent of ours is not valid or is unenforceable, or may refuse to stop the other party from using the technology at issue on the grounds that our patent claims do not cover its technology or that the factors necessary to grant an injunction against an infringer are not satisfied. An adverse determination of any litigation or other proceedings could put one or more of our patents at risk of being invalidated, interpreted narrowly or amended such that they do not cover our product candidates. Moreover, such adverse determinations could put our patent applications at risk of not issuing, or issuing with limited and potentially inadequate scope to cover our product candidates or to prevent others from marketing similar products.

Interference, derivation or other proceedings brought at the USPTO may be necessary to determine the priority or patentability of inventions with respect to our patent applications or those of our licensors or potential partners. Litigation or USPTO proceedings brought by us may fail or may be invoked against us


by third parties. Even if we are successful, domestic or foreign litigation or USPTO or foreign patent office proceedings may result in substantial costs. We may not be able, alone or with our licensors or potential partners, to prevent misappropriation of our proprietary rights, particularly in countries where the laws may not protect such rights as fully as in the United States.

Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation or other proceedings, there is a risk that some of our confidential information could be compromised by disclosure during this type of litigation or other proceedings. In addition, during the course of this kind of litigation or proceedings, there could be public announcements of the results of hearings, motions or other interim proceedings or developments or public access to related documents. If investors perceive these results to be negative, the market price for our common stock could be significantly harmed.

Third-party claims or litigation alleging infringement of patents or other proprietary rights, or seeking to invalidate patents or other proprietary rights, may delay or prevent the development and commercialization of any of our product candidates.

Our commercial success depends in part on our and our licensors avoiding infringement and other violations of the patents and proprietary rights of third parties. However, our research, development and commercialization activities may be subject to claims that we infringe or otherwise violate patents or other intellectual property rights owned or controlled by third parties. There is a substantial amount of litigation, both within and outside the United States, involving patent and other intellectual property rights in the biotechnology and pharmaceutical industries, including patent infringement lawsuits, interferences, derivation and administrative law proceedings, inter partes review and post-grant review before the USPTO, as well as oppositions and similar processes in foreign jurisdictions. Numerous United States and foreign issued patents and pending patent applications, which are owned by third parties, exist in the fields in which we and our collaborators are developing product candidates. As the biotechnology and pharmaceutical industries expand and more patents are issued, and as we gain greater visibility and market exposure as a public company, the risk increases that our product candidates or other business activities may be subject to claims of infringement of the patent and other proprietary rights of third parties. Third parties may assert that we are infringing their patents or employing their proprietary technology without authorization.

There may be third-party patents or patent applications with claims to materials, formulations, methods of manufacture or methods for treatment related to the use or manufacture of our product candidates. Because patent applications can take many years to issue, there may be currently pending patent applications that may later result in issued patents that our product candidates may infringe. In addition, third parties may obtain patents in the future and claim that use of our technologies infringes upon these patents. If any third-party patents were held by a court of competent jurisdiction to cover the manufacturing process of any of our product candidates, any molecules formed during the manufacturing process or any final product itself, the holders of any such patents may be able to block our ability to commercialize such product candidate unless we obtained a license under the applicable patents, or until such patents expire. Similarly, if any third-party patent was to be held by a court of competent jurisdiction to cover aspects of our formulations, processes for manufacture or methods of use, including combination therapy, the holders of any such patent may be able to block our ability to develop and commercialize the applicable product candidate unless we obtained a license or until such patent expires. In either case, such a license may not be available on commercially reasonable terms or at all. In addition, we may be subject to claims that we are infringing other intellectual property rights, such as trademarks or copyrights, or misappropriating the trade secrets of others, and to the extent that our employees, consultants or contractors use intellectual property or proprietary information owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions.

Parties making claims against us may obtain injunctive or other equitable relief, which could effectively block our ability to further develop and commercialize one or more of our product candidates. Defense of these claims, regardless of their merit, would involve substantial litigation expense and would


be a substantial diversion of employee resources from our business. In the event of a successful infringement or other intellectual property claim against us, we may have to pay substantial damages, including treble damages and attorneys’ fees for willful infringement, obtain one or more licenses from third parties, pay royalties or redesign our affected products, which may be impossible or require substantial time and monetary expenditure. We cannot predict whether any such license would be available at all or whether it would be available on commercially reasonable terms. Furthermore, even in the absence of litigation, we may need to obtain licenses from third parties to advance our research or allow commercialization of our product candidates, and we have done so from time to time. We may fail to obtain any of these licenses at a reasonable cost or on reasonable terms, if at all. In that event, we would be unable to further develop and commercialize one or more of our product candidates, which could harm our business significantly. Claims that we have misappropriated the confidential information or trade secrets of third parties could have a similar negative impact on our business.

Some of our competitors may be able to sustain the costs of complex intellectual property litigation more effectively than we can because they have substantially greater resources. In addition, intellectual property litigation, regardless of its outcome, may cause negative publicity, adversely impact prospective customers, cause product shipment delays, or prohibit us from manufacturing, marketing or otherwise commercializing our products, services and technology. Any uncertainties resulting from the initiation and continuation of any litigation could adversely impact our ability to raise additional funds or otherwise harm our business, results of operation, financial condition or cash flows.

Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure during this type of litigation. There could also be public announcements of the results of hearings, motions or other interim proceedings or developments, which could adversely impact the price of our common shares. If securities analysts or investors perceive these results to be negative, it could adversely impact the price of our common shares. The occurrence of any of these events may harm our business, results of operation, financial condition or cash flows.

We cannot provide any assurances that third-party patents do not exist which might be enforced against our drugs or product candidates, resulting in either an injunction prohibiting our sales, or, with respect to our sales, an obligation on our part to pay royalties or other forms of compensation to third parties.

Intellectual property litigation could cause us to spend substantial resources and distract our personnel from their normal responsibilities, and have a harmful effect on the success of our business.

Even if resolved in our favor, litigation or other legal proceedings relating to intellectual property claims may cause us to incur significant expenses, and could distract our technical and management personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions or other interim proceedings or developments, and if securities analysts or investors perceive these results to be negative, it could adversely impact the price of our common shares. Such litigation or proceedings could substantially increase our operating losses and reduce the resources available for development activities or any future sales, marketing or distribution activities. We may not have sufficient financial or other resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the costs of such litigation or proceedings more effectively than we can because of their greater financial resources. Accordingly, despite our efforts, we may not be able to prevent third parties from infringing upon or misappropriating our intellectual property. In addition, the uncertainties associated with litigation could compromise our ability to raise the funds necessary to continue our clinical trials and internal research programs, or in-license needed technology or other product candidates. Uncertainties resulting from the initiation and continuation of patent litigation or other proceedings could compromise our ability to compete in the marketplace, including compromising our ability to raise the funds necessary to continue our clinical trials, continue our research programs, license


necessary technology from third parties, or enter into development collaborations that would help us commercialize our product candidates, if approved.

Risks Related to Government Regulation

Even if we receive regulatory approval of our product candidates, we will be subject to extensive and ongoing regulatory obligations and continued regulatory review, which may result in significant additional expense, and we may be subject to penalties if we fail to comply with regulatory requirements or experience unanticipated problems with our product candidates.

Any regulatory approvals or other marketing authorizations we obtain for our product candidates may be subject to limitations on the indicated uses for which the product may be marketed or the conditions of approval or marketing authorization, or contain requirements for potentially costly post-market testing and surveillance to monitor the safety and efficacy of the product candidate. The FDA may also require a REMS as a condition of approval of our drug product candidates, such as roflumilast cream, roflumilast foam, ARQ-252 and ARQ-255, which could include requirements for a medication guide, physician communication plans or additional elements to assure safe use, such as restricted distribution methods, patient registries and other risk minimization tools. In addition, if the FDA or a comparable foreign regulatory authority authorizes our product candidates for marketing, the manufacturing processes, labeling, packaging, distribution, adverse event reporting, storage, advertising, promotion, import, export and recordkeeping for our product candidates will be subject to extensive and ongoing regulatory requirements. These requirements include submissions of safety and other post-marketing information and reports, registration, as well as continued compliance with cGMPs and GCP requirements for any clinical trials that we conduct post-approval. Later discovery of previously unknown problems with our product candidates, including adverse events of unanticipated severity or frequency, or with our third-party manufacturers or manufacturing processes, or failure to comply with regulatory requirements, may result in, among other things:

restrictions on the marketing or manufacturing of our product candidates, withdrawal of the product from the market, or voluntary or mandatory product recalls;

fines, warning or untitled letters or holds on clinical trials;

refusal by the FDA to accept new marketing applications or supplements, approve or otherwise authorize for marketing pending applications or supplements to applications filed by us or suspension or revocation of approvals or other marketing authorizations;

product seizure or detention, or refusal to permit the import or export of our product candidates; e

injunctions or the imposition of civil or criminal penalties.

The FDA’s and other regulatory authorities’ policies may change, and additional government regulations may be enacted that could prevent, limit or delay regulatory approval of our product candidates. If we are slow or unable to adapt to changes in existing requirements or the adoption of new requirements or policies, or if we are not able to maintain regulatory compliance, we may lose any marketing approval that we may have obtained and we may not achieve or sustain profitability, which would adversely affect our business, prospects, financial condition and results of operations.

In addition, we cannot predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative or executive action, either in the United States or abroad. For example, certain policies of the current presidential administration may impact our business and industry. Namely, the current presidential administration has taken several executive actions, including the issuance of a number of Executive Orders, that could impose significant burdens on, or otherwise materially delay, the FDA’s ability to engage in routine regulatory and oversight activities such as implementing statutes through rulemaking, issuance of guidance, and review and approval of marketing applications. It is difficult to predict how these requirements will be implemented, and the extent to which


they will impact the FDA’s ability to exercise its regulatory authority. If these executive actions impose constraints on the FDA’s ability to engage in oversight and implementation activities in the normal course, our business may be negatively impacted.

Changes in funding for the FDA and other government agencies could hinder their ability to hire and retain key leadership and other personnel, or otherwise prevent new products and services from being developed or commercialized in a timely manner, which could negatively impact our business.

The ability of the FDA to review and approve new products can be affected by a variety of factors, including government budget and funding levels, ability to hire and retain key personnel and accept the payment of user fees, and statutory, regulatory, and policy changes. In addition, government funding of other government agencies that fund research and development activities is subject to the political process, which is inherently fluid and unpredictable.

Disruptions at the FDA and other agencies may also slow the time necessary for new drugs to be reviewed and/or approved by necessary government agencies, which would harm our business. For example, over the last several years, including for 35 days beginning on December 22, 2018, the U.S. government has shut down several times and certain regulatory agencies, such as the FDA, have had to furlough critical FDA employees and stop critical activities. If a prolonged government shutdown occurs, it could significantly impact the ability of the FDA to timely review and process our regulatory submissions, which could harm our business.

Our product candidates, if authorized for marketing, may cause or contribute to adverse medical events that we are required to report to the FDA, and if we fail to do so, we would be subject to sanctions that could harm our reputation, business, financial condition and results of operations. The discovery of serious safety issues with our product candidates, or a recall of our products either voluntarily or at the direction of the FDA or another governmental authority, if such products are marketed, could have a negative impact on us.

With respect to any of our product candidates in clinical testing or approved by FDA, we will be subject to the FDA’s safety reporting requirements. The timing of our obligation to report is triggered by the date we become aware of the adverse event as well as the nature of the event. We may fail to report adverse events of which we become aware within the prescribed timeframe. We may also fail to recognize that we have become aware of a reportable adverse event, especially if it is not reported to us as an adverse event or if it is an adverse event that is unexpected or removed in time from the use of the product. If we fail to comply with our reporting obligations, the FDA could take action, including warning letters, untitled letters, administrative actions, criminal prosecution, imposition of civil monetary penalties, revocation of our approval or delay in approval of future products.

We may choose to voluntarily recall a product if any material deficiency is found. A recall could occur as a result of an unacceptable risk to health, component failures, malfunctions, manufacturing defects, labeling or design deficiencies, packaging defects or other deficiencies or failures to comply with applicable regulations. Product defects or other errors may occur in the future. Recalls involving our product candidates, if and when they are approved or otherwise authorized for marketing, could be particularly harmful to our business, financial condition and results of operations.

We may be subject to healthcare laws and regulations relating to our business, and could face substantial penalties if we are determined not to have fully complied with such laws, which would have an adverse impact on our business.

Our business operations and current and future arrangements with investigators, healthcare professionals, consultants, third-party payors, customers and patients, may expose us to broadly applicable fraud and abuse and other healthcare laws and regulations. These laws may constrain the business or financial arrangements and relationships through which we conduct our operations, including


how we research, market, sell and distribute any products for which we obtain marketing approval. Such laws include:

the U.S. federal Anti-Kickback Statute, which prohibits, among other things, persons and entities from knowingly and willfully soliciting, offering, receiving or providing remuneration, directly or indirectly, in cash or in kind, to induce or reward, or in return for, either the referral of an individual for, or the purchase, order or recommendation of, any good or service, for which payment may be made under a U.S. healthcare program such as Medicare and Medicaid. A person or entity does not need to have actual knowledge of the U.S. federal Anti-Kickback Statute or specific intent to violate it in order to have committed a violation. In addition, the government may assert that a claim including items or services resulting from a violation of the U.S. federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the civil False Claims Act;

U.S. federal civil and criminal false claims laws and civil monetary penalties laws, including the civil False Claims Act, which, among other things, impose criminal and civil penalties, including through civil whistleblower or qui tam actions, against individuals or entities for knowingly presenting, or causing to be presented, to the U.S. government, claims for payment or approval that are false or fraudulent, knowingly making, using or causing to be made or used, a false record or statement material to a false or fraudulent claim, or from knowingly making a false statement to avoid, decrease or conceal an obligation to pay money to the U.S. government;

the U.S. Health Insurance Portability and Accountability Act of 1996, or HIPAA, which imposes criminal and civil liability for, among other things, knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare benefit program, or knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false statement, in connection with the delivery of, or payment for, healthcare benefits, items or services. Similar to the U.S. federal Anti-Kickback Statute, a person or entity does not need to have actual knowledge of the statute or specific intent to violate it in order to have committed a violation;

HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act of 2009, or HITECH, and its implementing regulations, which also imposes obligations, including mandatory contractual terms, with respect to safeguarding the privacy, security and transmission of individually identifiable health information without appropriate authorization by covered entities subject to the rule, such as health plans, healthcare clearinghouses and healthcare providers as well as their business associates that perform certain services for or on their behalf involving the use or disclosure of individually identifiable health information;

the U.S. Physician Payments Sunshine Act, which requires certain manufacturers of drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid or the Children’s Health Insurance Program (with certain exceptions) to report annually to the government information related to payments or other “transfers of value” made to physicians (defined to include doctors, dentists, optometrists, podiatrists and chiropractors) and teaching hospitals, (as well as certain other healthcare professionals beginning in 2022) and requires applicable manufacturers and group purchasing organizations to report annually to the government ownership and investment interests held by the physicians described above and their immediate family members;

state privacy laws and regulations, such as those of California, that impose restrictive requirements regulating the use and disclosure of health information and other personally identifiable information (for example, in June 2018, California enacted the California Consumer Privacy Act (which went into effect on January 1, 2020) that gives California residents expanded rights to access and delete their personal information, opt out of certain personal information sharing and receive detailed information about how their personal information is used, and provides for civil penalties for violations, as well as a private right of action for data breaches that is expected to increase data breach litigation; resulting in increased compliance costs and potential liability);


the U.S. Foreign Corrupt Practices Act of 1977, as amended, which prohibits, among other things, U.S. companies and their employees and agents from authorizing, promising, offering, or providing, directly or indirectly, corrupt or improper payments or anything else of value to foreign government officials, employees of public international organizations and foreign government owned or affiliated entities, candidates for foreign political office, and foreign political parties or officials thereof;

federal consumer protection and unfair competition laws, which broadly regulate marketplace activities and activities that potentially harm consumers; e

analogous state and non-U.S. laws and regulations, such as state anti-kickback and false claims laws, which may apply to our business practices, including, but not limited to, research, distribution, sales and marketing arrangements and claims involving healthcare items or services reimbursed by non-governmental third-party payors, including private insurers; state laws that require pharmaceutical and device companies to comply with the industry’s voluntary compliance guidelines and the relevant compliance guidance promulgated by the U.S. government, or otherwise restrict payments that may be made to healthcare providers and other potential referral sources; state laws and regulations that require manufacturers to report information related to payments and other transfers of value to physicians and other healthcare providers or marketing expenditures and pricing information; and state and non-U.S. laws governing the privacy and security of health information in some circumstances, many of which differ from each other in significant ways and often are not preempted by HIPAA, thus complicating compliance efforts.

Efforts to ensure that our current and future business arrangements with third parties will comply with applicable healthcare laws and regulations will involve substantial costs. It is possible that governmental authorities may conclude that our business practices, including our consulting arrangements with and/or ownership interests by physicians and other healthcare providers, do not comply with current or future statutes, regulations, agency guidance or case law involving applicable healthcare laws. If our operations are found to be in violation of any of these or any other health regulatory laws that may apply to us, we may be subject to significant penalties, including the imposition of significant civil, criminal and administrative penalties, damages, monetary fines, disgorgement, individual imprisonment, possible exclusion from participation in Medicare, Medicaid and other U.S. healthcare programs, contractual damages, reputational harm, diminished profits and future earnings, and curtailment or restructuring of our operations, any of which could adversely affect our ability to operate our business and our results of operations. Defending against any such actions can be costly, time-consuming and may require significant financial and personnel resources. Therefore, even if we are successful in defending against any such actions that may be brought against us, our business may be impaired. If any of the above occur, it could adversely affect our ability to operate our business and our results of operations.

We have conducted and may in the future conduct clinical trials for our product candidates outside the United States and the FDA and applicable foreign regulatory authorities may not accept data from such trials.

We have conducted and may in the future choose to conduct one or more of our clinical trials outside the United States, including in Canada and Europe. Although the FDA or applicable foreign regulatory authority may accept data from clinical trials conducted outside the United States or the applicable jurisdiction, acceptance of such study data by the FDA or applicable foreign regulatory authority may be subject to certain conditions. Where data from foreign clinical trials are intended to serve as the basis for marketing approval in the United States, the FDA will not approve the application on the basis of foreign data alone unless those data are applicable to the U.S. population and U.S. medical practice; the studies were performed by clinical investigators of recognized competence; and the data are considered valid without the need for an on-site inspection by the FDA or, if the FDA considers such an inspection to be necessary, the FDA is able to validate the data through an on-site inspection or other appropriate means. Many foreign regulatory authorities have similar requirements. In addition, such foreign studies would be subject to the applicable local laws of the foreign jurisdictions where the studies are conducted. There can


be no assurance the FDA or applicable foreign regulatory authority will accept data from trials conducted outside of the United States or the applicable jurisdiction. If the FDA or applicable foreign regulatory authority does not accept such data, it would likely result in the need for additional trials, which would be costly and time-consuming and delay aspects of our business plan.

Recently enacted and future legislation may increase the difficulty and cost for us to obtain marketing approval of and commercialize our product candidates and affect the prices we may obtain.

In the United States and some non-U.S. jurisdictions, there have been, and we expect there will continue to be, a number of legislative and regulatory changes and proposed changes regarding the healthcare system that could, among other things, prevent or delay marketing approval of our product candidates, restrict or regulate post-approval activities and affect our ability to profitably sell any product candidates for which we obtain marketing approval.

For example, in March 2010, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act, collectively the Affordable Care Act, was enacted in the United States to broaden access to health insurance, reduce or constrain the growth of healthcare spending, enhance remedies against fraud and abuse, add new transparency requirements for healthcare and health insurance industries, impose new taxes and fees on the health industry and impose additional health policy reforms. The law has continued the downward pressure on the pricing of medical items and services, especially under the Medicare program, and increased the industry’s regulatory burdens and operating costs. Among the provisions of the Affordable Care Act of importance to our potential product candidates are the following:

an annual, nondeductible fee payable by any entity that manufactures or imports specified branded prescription drugs and biologic agents;

an increase in the statutory minimum rebates a manufacturer must pay under the Medicaid Drug Rebate Program;

a new methodology by which rebates owed by manufacturers under the Medicaid Drug Rebate Program are calculated for drugs that are inhaled, infused, instilled, implanted or injected;

a new Medicare Part D coverage gap discount program, in which manufacturers must agree to offer 70% point-of-sale discounts off negotiated prices of applicable brand drugs to eligible beneficiaries during their coverage gap period, as a condition for the manufacturer’s outpatient drugs to be covered under Medicare Part D;

extension of manufacturers’ Medicaid rebate liability to individuals enrolled in Medicaid managed care organizations;

expansion of eligibility criteria for Medicaid programs in certain states;

expansion of the entities eligible for discounts under the Public Health Service pharmaceutical pricing program;

a new requirement to annually report drug samples that manufacturers and distributors provide to physicians;

a new Patient-Centered Outcomes Research Institute to oversee, identify priorities in, and conduct comparative clinical effectiveness research, along with funding for such research; e

an independent payment advisory board that will submit recommendations to Congress to reduce Medicare spending if projected Medicare spending exceeds a specified growth rate.

Since its enactment, there have been judicial and Congressional challenges to certain aspects of the Affordable Care Act, and we expect there will be additional challenges and amendments to the Affordable


Care Act in the future. The current presidential administration and U.S. Congress have sought and will likely continue to seek to modify, repeal, or otherwise invalidate all, or certain provisions of, the Affordable Care Act. For example, the Tax Cuts and Jobs Act of 2017, or TCJA, was enacted, which includes a provision that repealed, effective January 1, 2019, the tax-based shared responsibility payment imposed by the Affordable Care Act on certain individuals who fail to maintain qualifying health coverage for all or part of a year that is commonly referred to as the “individual mandate.” On December 14, 2018, a U.S. District Court Judge in the Northern District of Texas ruled that the individual mandate is a critical and inseverable feature of the Affordable Care Act, and therefore, because it was repealed as part of the TCJA, the remaining provisions of the Affordable Care Act are invalid as well. While the Trump administration and CMS have both stated that the ruling will have no immediate effect, it is unclear how this decision, subsequent appeals, if any, and other efforts to repeal and replace the Affordable Care Act will impact the Affordable Care Act and our business. It is uncertain the extent to which any such changes may impact our business or financial condition.

In addition, other legislative changes have been proposed and adopted in the United States since the Affordable Care Act was enacted. These changes include the Budget Control Act of 2011, which, among other things, resulted in reductions to Medicare payments to providers of 2% per fiscal year and will remain in effect through 2029; the American Taxpayer Relief Act of 2012, which, among other things, further reduced Medicare payments to several types of providers and increased the statute of limitations period for the government to recover overpayments to providers from three to five years; and the Medicare Access and CHIP Reauthorization Act of 2015, which, among other things, ended the use of the sustainable growth rate formula and provides for a 0.5% update to physician payment rates for each calendar year through 2019, after which there will be a 0% annual update each year through 2025. More recently, there has been heightened governmental scrutiny over the manner in which manufacturers set prices for their marketed products, which has resulted in several Congressional inquiries and proposed bills designed to, among other things, bring more transparency to product pricing, review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies for pharmaceutical products.

Individual states in the United States have also become increasingly aggressive in passing legislation and implementing regulations designed to control pharmaceutical product pricing, including price or patient reimbursement constraints, discounts, restrictions on certain product access and marketing cost disclosure and transparency measures, and, in some cases, designed to encourage importation from other countries and bulk purchasing. In addition, regional healthcare authorities and individual hospitals are increasingly using bidding procedures to determine what pharmaceutical products to purchase and which suppliers will be included in their prescription drug and other healthcare programs.

We expect that the Affordable Care Act, as well as other healthcare reform measures that may be adopted in the future, may result in more rigorous coverage criteria, new payment methodologies and in additional downward pressure on the price that we receive for any approved product. Any reduction in reimbursement from Medicare or other government programs may result in a similar reduction in payments from private payors. We cannot predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative action, either in the United States or abroad. If we are slow or unable to adapt to new requirements or policies, or if we are not able to maintain regulatory compliance, our product candidates may lose any regulatory approval that may have been obtained and we may not achieve or sustain profitability, which would adversely affect our business.

If any of our product candidates are approved for marketing and we are found to have improperly promoted off-label uses, or if physicians misuse our products or use our products off-label, we may become subject to prohibitions on the sale or marketing of our products, product liability claims and significant fines, penalties and sanctions, and our brand and reputation could be harmed.

The FDA and other foreign regulatory authorities strictly regulate the marketing of and promotional claims that are made about drug products. In particular, a product may not be promoted for uses or


indications that are not approved by the FDA or such other foreign regulatory authorities as reflected in the product’s approved labeling. In addition, although we believe our product candidates may exhibit a lower risk of side effects or more favorable tolerability profile or better symptomatic improvement than other products for the indications we are studying, without head-to-head data, we will be unable to make comparative claims for our product candidates, if approved. If we receive regulatory approval for any of our products and are found to have promoted any of our products for off-label uses, we may become subject to significant liability, which would materially harm our business. Both federal and state governments have levied large civil and criminal fines against companies for alleged improper promotion and have enjoined several companies from engaging in off-label promotion. If we become the target of such an investigation or prosecution based on our marketing and promotional practices, we could face similar sanctions, which would materially harm our business. In addition, management’s attention could be diverted from our business operations, significant legal expenses could be incurred, and our brand and reputation could be damaged. The FDA has also previously requested that companies enter into consent decrees or permanent injunctions under which specified promotional conduct is changed or curtailed. If we are deemed by the FDA to have engaged in the promotion of our products for off-label use, we could be subject to FDA regulatory or enforcement actions, including the issuance of an untitled letter, a warning letter, injunction, seizure, civil fine or criminal penalties. It is also possible that other federal, state or foreign enforcement authorities might take action if they determine our business activities constitute promotion of an off-label use, which could result in significant penalties, including criminal, civil or administrative penalties, damages, fines, disgorgement, exclusion from participation in government healthcare programs and the curtailment or restructuring of our operations.

We cannot, however, prevent a physician from using our product candidates in ways that fall outside the scope of the approved indications, as he or she may deem appropriate in his or her medical judgment. Physicians may also misuse our product candidates or use improper techniques, which may lead to adverse results, side effects or injury and, potentially, subsequent product liability claims. Furthermore, the use of our product candidates for indications other than those approved by the FDA and/or other regulatory authorities may not effectively treat such conditions, which could harm our brand and reputation among both physicians and patients.

Risks Related to Our Common Stock

The stock price of our common stock may be volatile or may decline.

The market price of our common stock may fluctuate significantly in response to numerous factors, many of which are beyond our control, including:

limited daily trading volume resulting in the lack of a liquid market;

the development status of our product candidates, including whether any of our product candidates receive regulatory approval;

the performance of third parties on whom we rely for clinical trials, manufacturing, marketing, sales and distribution, including their ability to comply with regulatory requirements;

regulatory, legal or political developments in the United States and foreign countries;

the results of our clinical trials and preclinical studies;

the clinical results of our competitors or potential competitors;

the execution of our partnering and manufacturing arrangements;

our execution of collaboration, co-promotion, licensing or other arrangements, and the timing of payments we may make or receive under these arrangements;


variations in the level of expenses related to our preclinical and clinical development programs, including relating to the timing of invoices from, and other billing practices of, our CROs and clinical trial sites;

variations in the level of expenses related to our commercialization activities, if any product candidates are approved;

the success of, and fluctuations in, the commercial sales any product candidates approved for commercialization in the future;

overall performance of the equity markets;

changes in operating performance and stock market valuations of other pharmaceutical companies;

market conditions or trends in our industry or the economy as a whole, including as a result of market volatility related to global health concerns and, in particular, the extreme volatility experienced during the ongoing COVID-19 pandemic;

the public’s response to press releases or other public announcements by us or third parties, including our filings with the SEC, and announcements relating to acquisitions, strategic transactions, licenses, joint ventures, capital commitments, intellectual property, litigation or other disputes impacting us or our business;

developments with respect to intellectual property rights;

our commencement of, or involvement in, litigation;

FDA or foreign regulatory actions affecting us or our industry;

changes in the structure of healthcare payment systems;

the financial projections we may provide to the public, any changes in these projections or our failure to meet these projections;

changes in financial estimates by any securities analysts who follow our common stock, our failure to meet these estimates or failure of those analysts to initiate or maintain coverage of our common stock;

ratings downgrades by any securities analysts who follow our common stock;

the development and sustainability of an active trading market for our common stock;

the size of our market float;

the expiration of market standoff or contractual lock-up agreements and future sales of our common stock by our officers, directors and significant stockholders;

recruitment or departure of key personnel;

changes in accounting principles;

other events or factors, including those resulting from war, incidents of terrorism, natural disasters or responses to these events; e

any other factors discussed in this prospectus.

In addition, the stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many pharmaceutical companies. Due to the COVID-19 outbreak, there has been significant stock market exchange volatility, including temporary trading halts. Stock prices of many pharmaceutical companies have fluctuated in a manner


unrelated or disproportionate to the operating performance of those companies. In the past, stockholders have instituted securities class action litigation following periods of market volatility. If we were involved in securities litigation, we could incur substantial costs and our resources and the attention of management could be diverted from our business.

An active, liquid and orderly market for our common stock may not develop.

Prior to our IPO, there had been no public market for shares of our common stock, and an active public market for our shares may not develop or be sustained. The lack of an active market may impair the ability to sell our shares at the time you wish to sell them or at a price that you consider reasonable. An inactive market may also impair our ability to raise capital by selling shares and may impair our ability to acquire other businesses, applications, or technologies using our shares as consideration.

If securities or industry analysts do not publish research or reports about our business, or if they issue an adverse or misleading opinion regarding our stock, our stock price and trading volume could decline.

The trading market for our common stock will be influenced by the research and reports that industry or securities analysts publish about us or our business. We only recently completed our IPO and just recently obtained research coverage by securities and industry analysts. If only a limited number of securities or industry analysts commence coverage of us or the few analysts that have initiated coverage, drop coverage, the trading price for our stock would be negatively impacted. If any of the analysts who cover us issue an adverse or misleading opinion regarding us, our business model, our intellectual property or our stock performance, or if our clinical trials and operating results fail to meet the expectations of analysts, our stock price would likely decline. If one or more of these analysts cease coverage of us or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline.

We qualify as an “emerging growth company” as defined in the JOBS Act and we have decided to avail ourselves of reduced disclosure requirements applicable to emerging growth companies, including delaying adopting new or revised accounting standards, which could make our common stock less attractive to investors.

We qualify as an “emerging growth company” as defined in the JOBS Act, and we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including certain reduced financial statement reporting obligations, reduced disclosure obligations about our executive compensation arrangements, exemptions from the requirement that we solicit non-binding advisory votes on executive compensation or golden parachute arrangements and exemption from the auditor’s attestation requirements of Section 404(b) of the Sarbanes-Oxley Act. We may take advantage of these reporting exemptions until we are no longer an “emerging growth company.” We will remain an emerging growth company until the last day of our fiscal year following the fifth anniversary of the completion of the IPO. However, if certain events occur prior to the end of such five-year period, including if we become a “large accelerated filer,” our annual gross revenues exceed $1.07 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period.

Under the JOBS Act, emerging growth companies can also delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards. Until the date that we are no longer an “emerging growth company” or affirmatively and irrevocably opt out of the exemption provided by Section 7(a)(2)(B) of the Securities Act, upon issuance of a new or revised accounting standard that applies to our financial statements and that has a different effective date for


public and private companies, we will disclose the date on which adoption is required for non-emerging growth companies and the date on which we will adopt the recently issued accounting standard.

Raising additional funds by issuing securities may cause dilution to existing shareholders, raising additional funds through debt financings may involve restrictive covenants, and raising funds through lending and licensing arrangements may restrict our operations or require us to relinquish proprietary rights.

We expect that significant additional capital will be needed in the future to continue our planned operations. Until such time, if ever, that we can generate substantial product revenue, we expect to finance our cash needs through a combination of equity offerings, debt financings, strategic alliances and license and development agreements or other collaborations. To the extent that we raise additional capital by issuing equity securities, our existing shareholders’ ownership may experience substantial dilution, and the terms of these securities may include liquidation or other preferences that could harm the rights of a common shareholder. Additionally, any agreements for future debt or preferred equity financings, if available, may involve covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends.

If we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates, or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds when needed, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts, or grant rights to develop and market product candidates that we would otherwise develop and market ourselves.

Our principal stockholders and management own a significant percentage of our stock and will be able to exert significant control over matters subject to stockholder approval.

As of June 30, 2020, our executive officers, directors, holders of 5% or more of our capital stock and their respective affiliates beneficially owned approximately 48% of our voting stock. Therefore, these stockholders will have the ability to influence us through this ownership position, including the ability to determine all matters requiring stockholder approval. For example, these stockholders may be able to control elections of directors, amendments of our organizational documents, or approval of any merger, sale of assets, or other major corporate transaction. This may prevent or discourage unsolicited acquisition proposals or offers for our common stock that you may feel are in your best interest as one of our stockholders.

Sales of a substantial number of shares of our common stock in the public market could cause our stock price to fall.

Sales of a substantial number of shares of our common stock in the public market could occur at any time. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could reduce the market price of our common stock. Moreover, holders of approximately 24.4 million shares of our common stock have rights, subject to certain conditions, to require us to file registration statements covering their shares or to include their shares in registration statements that we may file for ourselves or other stockholders. We have registered and intend to continue to register all shares of common stock that we may issue under our equity compensation plans. Once we register these shares, they can be freely sold in the public market upon issuance, subject to volume limitations applicable to affiliates.

We cannot predict what effect, if any, sales of our shares in the public market or the availability of shares for sale will have on the market price of our common stock. However, future sales of substantial amounts of our common stock in the public market, including shares issued upon exercise of our outstanding warrant or options, or the perception that such sales may occur, could adversely affect the market price of our common stock.


We also expect that significant additional capital may be needed in the future to continue our planned operations. To raise capital, we may sell common stock, convertible securities or other equity securities in one or more transactions at prices and in a manner we determine from time to time. To the extent that additional capital is raised through the sale and issuance of shares or other securities convertible into shares, our stockholders will be diluted. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could reduce the market price of our common stock.

Provisions in our corporate charter documents and under Delaware law may prevent or frustrate attempts by our stockholders to change our management and hinder efforts to acquire a controlling interest in us, and the market price of our common stock may be lower as a result.

Our restated certificate of incorporation and restated bylaws contain provisions that could delay or prevent changes in control or changes in our management without the consent of our board of directors. These provisions include the following:

a classified board of directors with three year staggered terms, which may delay the ability of stockholders to change the membership of a majority of our board of directors;

no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;

the exclusive right of our board of directors to elect a director to fill a vacancy created by the expansion of the board of directors or the resignation, death or removal of a director, which prevents stockholders from being able to fill vacancies on our board of directors;

the ability of our board of directors to authorize the issuance of shares of preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquiror;

the ability of our board of directors to alter our bylaws without obtaining stockholder approval;

the required approval of a super-majority of the shares entitled to vote at an election of directors to adopt, amend or repeal our bylaws or repeal the provisions of our restated certificate of incorporation regarding the election and removal of directors;

a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of our stockholders;

the requirement that a special meeting of stockholders may be called only by the chief executive officer or the president or the board of directors, which may delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal of directors; e

advance notice procedures that stockholders must comply with in order to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders’ meeting, which may discourage or deter a potential acquiror from conducting a solicitation of proxies to elect the acquiror’s own slate of directors or otherwise attempting to obtain control of us.

In addition, these provisions would apply even if we were to receive an offer that some stockholders may consider beneficial.

We are also subject to the anti-takeover provisions contained in Section 203 of the Delaware General Corporation Law. Under Section 203, a corporation may not, in general, engage in a business combination with any holder of 15% or more of its capital stock unless the holder has held the stock for three years or, among other exceptions, the board of directors has approved the transaction.


Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.

Our restated certificate of incorporation and restated bylaws provide that we will indemnify our directors and officers, in each case to the fullest extent permitted by Delaware law.

In addition, as permitted by Section 145 of the Delaware General Corporation Law, our restated bylaws to be effective immediately prior to the completion of our IPO and our indemnification agreements that we have entered into with our directors and officers provide that:

We will indemnify our directors and officers for serving us in those capacities or for serving other business enterprises at our request, to the fullest extent permitted by Delaware law. Delaware law provides that a corporation may indemnify such person if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the registrant and, with respect to any criminal proceeding, had no reasonable cause to believe such person’s conduct was unlawful.

We may, in our discretion, indemnify employees and agents in those circumstances where indemnification is permitted by applicable law.

We are required to advance expenses, as incurred, to our directors and officers in connection with defending a proceeding, except that such directors or officers shall undertake to repay such advances if it is ultimately determined that such person is not entitled to indemnification.

We will not be obligated pursuant to our restated bylaws to indemnify a person with respect to proceedings initiated by that person against us or our other indemnitees, except with respect to proceedings authorized by our board of directors or brought to enforce a right to indemnification.

The rights conferred in our restated bylaws are not exclusive, and we are authorized to enter into indemnification agreements with our directors, officers, employees and agents and to obtain insurance to indemnify such persons.

We may not retroactively amend our restated bylaw provisions to reduce our indemnification obligations to directors, officers, employees and agents.

Our restated certificate of incorporation provides that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.

Our restated certificate of incorporation, to the fullest extent permitted by law, provides that the Court of Chancery of the State of Delaware will be the exclusive forum for: any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty; any action asserting a claim against us arising pursuant to the Delaware General Corporation Law, or the DGCL, our restated certificate of incorporation, or our restated bylaws; or any action asserting a claim against us that is governed by the internal affairs doctrine. This exclusive forum provision does not apply to suits brought to enforce a duty or liability created by the Exchange Act. It could apply, however, to a suit that falls within one or more of the categories enumerated in the exclusive forum provision and asserts claims under the Securities Act, inasmuch as Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rule and regulations thereunder. There is uncertainty as to whether a court would enforce such provision with respect to claims under the Securities Act, and our stockholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations thereunder.

This choice of forum provision may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers, or other employees, which may discourage lawsuits with respect to such claims. Alternatively, if a court were to find the choice of forum


provisions contained in our restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, results of operations and financial condition.

We do not currently intend to pay dividends on our common stock, and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.

We do not currently intend to pay any cash dividends on our common stock for the foreseeable future. We currently intend to invest our future earnings, if any, to fund our growth. Therefore, you are not likely to receive any dividends on your common stock for the foreseeable future. Since we do not intend to pay dividends, your ability to receive a return on your investment will depend on any future appreciation in the market value of our common stock. There is no guarantee that our common stock will appreciate or even maintain the price at which our holders have purchased it.

Risks Related to this Offering

We expect that the stock price of our common stock may be volatile or may decline and you may not be able to resell your shares at or above the offering price.

The market price of our common stock may fluctuate significantly in response to numerous factors, many of which are beyond our control, including:

limited daily trading volume resulting in the lack of a liquid market;

the development status of our product candidates, including whether any of our product candidates receive regulatory approval;

the performance of third parties on whom we rely for clinical trials, manufacturing, marketing, sales and distribution, including their ability to comply with regulatory requirements;

regulatory or legal developments in the United States and foreign countries;

the results of our clinical trials and preclinical studies;

the clinical results of our competitors or potential competitors;

the execution of our partnering and manufacturing arrangements;

our execution of collaboration, co-promotion, licensing or other arrangements, and the timing of payments we may make or receive under these arrangements;

variations in the level of expenses related to our preclinical and clinical development programs, including relating to the timing of invoices from, and other billing practices of, our CROs and clinical trial sites;

variations in the level of expenses related to our commercialization activities, if any product candidates are approved;

the success of, and fluctuations in, the commercial sales any product candidates approved for commercialization in the future;

overall performance of the equity markets;

changes in operating performance and stock market valuations of other pharmaceutical companies;

market conditions or trends in our industry or the economy as a whole;


the public’s response to press releases or other public announcements by us or third parties, including our filings with the SEC, and announcements relating to acquisitions, strategic transactions, licenses, joint ventures, capital commitments, intellectual property, litigation or other disputes impacting us or our business;

developments with respect to intellectual property rights;

our commencement of, or involvement in, litigation;

FDA or foreign regulatory actions affecting us or our industry;

changes in the structure of healthcare payment systems;

the financial projections we may provide to the public, any changes in these projections, or our failure to meet these projections;

changes in financial estimates by any securities analysts who follow our common stock, our failure to meet these estimates, or failure of those analysts to initiate or maintain coverage of our common stock;

ratings downgrades by any securities analysts who follow our common stock;

the development and sustainability of an active trading market for our common stock;

the size of our market float;

the expiration of market standoff or contractual lock-up agreements and future sales of our common stock by our officers, directors and significant stockholders;

recruitment or departure of key personnel;

changes in accounting principles;

other events or factors, including those resulting from war, incidents of terrorism, natural disasters or responses to these events; e

any other factors discussed in this prospectus.

In addition, the stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many pharmaceutical companies. Stock prices of many pharmaceutical companies have fluctuated in a manner unrelated or disproportionate to the operating performance of those companies. In the past, stockholders have instituted securities class action litigation following periods of market volatility. If we were involved in securities litigation, we could incur substantial costs and our resources and the attention of management could be diverted from our business.

If you purchase our common stock in this offering, you will incur immediate and substantial dilution in the book value of your shares.

Investors purchasing common stock in this offering will pay a price per share that substantially exceeds the as adjusted net tangible book value per share. As a result, investors purchasing common stock in this offering will incur immediate dilution of $18.76 per share, based on an assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, and our as adjusted net tangible book value per share as of June 30, 2020. For more information on the dilution you may suffer as a result of investing in this offering and the concurrent private placement, see the section of this prospectus entitled “Dilution.”


This dilution is due to the substantially lower price paid by our investors who purchased shares prior to this offering as compared to the price offered to the public in this offering and the exercise of stock options granted to our employees. The exercise of any of these options would result in additional dilution.

We will have broad discretion in the use of proceeds from this offering and the concurrent private placement and may invest or spend the proceeds in ways with which you do not agree and in ways that may not increase the value of your investment.

We will have broad discretion over the use of proceeds from this offering and the concurrent private placement. You may not agree with our decisions, and our use of the proceeds may not yield any return on your investment. We currently intend to use the net proceeds from this offering and the concurrent private placement, together with our existing cash, cash equivalents and marketable securities, to fund the continued development of our multiple programs, including our ARQ-151, ARQ-154, ARQ-252 and ARQ-255 programs, commercial launch planning and preparation for ARQ-151 in psoriasis, and the remainder for working capital and other general corporate purposes, which may include hiring of additional personnel, capital expenditures and the costs of operating as a public company. Our failure to apply the net proceeds from this offering and the concurrent private placement effectively could compromise our ability to pursue our growth strategy and we might not be able to yield a significant return, if any, on our investment of these net proceeds. You will not have the opportunity to influence our decisions on how to use these net proceeds.

Our ability to utilize our net operating loss, or NOL, carryforwards and research and development income tax credit carryforwards may be limited.

As of December 31, 2019, we had NOL carryforwards available to reduce future taxable income, if any, for federal and California income tax purposes of $54.6 million and $55.1 million, respectively. If not utilized, California NOL carryforwards will expire beginning in 2036. Of the federal net operating losses, $3.5 million originated before the 2019 tax year and will expire beginning in 2036. Under the Tax Cuts and Jobs Act (as modified by the Coronavirus Aid, Relief, and Economic Security Act), the remaining $51.0 million of federal NOL carryforwards generated after December 31, 2017 will carry forward indefinitely with utilization limited to 80% of taxable income in taxable years starting on or after January 1, 2021. As of December 31, 2019, we had federal and California research and development tax credit carryforwards of $2.0 million and $0.7 million, respectively. If not utilized, the federal research and development tax credit carryforwards will begin to expire in 2037.

Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an “ownership change,” generally defined as a greater than 50 percentage point change (by value) in its equity ownership by certain stockholders over a three-year period, the corporation’s ability to use its pre-change NOL carryforwards and other pre-change tax attributes (such as research and development tax credits) to offset its post-change income or taxes may be limited (in addition to those limitations described in the preceding paragraph). A formal study has not been completed to determine if a change in ownership, as defined by Section 382, has occurred. We may have experienced ownership changes in the past (including as a result of our IPO), and we may experience ownership changes in the future and/or subsequent shifts in our stock ownership (some of which may be outside our control), including as a result of this offering and the concurrent private placement. As a result, if we earn net taxable income, our ability to use our pre-change NOL carryforwards to offset U.S. federal taxable income may be subject to limitations under Section 382, which could potentially result in increased future tax liability to us. In addition, at the state level, there may be periods during which the use of NOL carryforwards is suspended or otherwise limited, which could accelerate or permanently increase state taxes owed.


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus and the documents incorporated by reference in this prospectus contain forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business operations and financial performance and condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.

These forward-looking statements include, but are not limited to, statements about:

the success, cost and timing of our plans to develop and commercialize immune-dermatology drugs, including our current products, ARQ-151, ARQ-154, ARQ-252 and ARQ-255 for indications including psoriasis, atopic dermatitis, scalp psoriasis, seborrheic dermatitis, hand eczema, vitiligo and alopecia areata;

our ability to obtain funding for our operations, including funding necessary to complete further development and commercialization of our product candidates;

the timing of and our ability to obtain and maintain regulatory approvals for ARQ-151, ARQ-154, ARQ-252 and ARQ-255;

future agreements, if any, with third parties in connection with the commercialization of our product candidates;

the success, cost and timing of our product candidate development activities and planned clinical trials;

the rate and degree of market acceptance and clinical utility of our product candidates;

the potential market size and the size of the patient populations for our product candidates, if approved for commercial uses;

our commercialization, marketing and manufacturing capabilities and strategy;

the success of competing therapies that are or may become available;

our ability to attract and retain key management and technical personnel;

our expectations regarding our ability to obtain, maintain and enforce intellectual property protection for our product candidates;

the impact of COVID-19 on our business and operations, including clinical trials, third parties and employees;

our use of the net proceeds from this offering and the concurrent private placement; e

our estimates regarding expenses, future revenue, capital requirements and needs for additional financing.

Forward-looking statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate, and management’s beliefs and assumptions are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this prospectus or incorporated by reference in this prospectus may


turn out to be inaccurate. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. Factors that may cause actual results to differ materially from current expectations include, among other things, those described in the section entitled “Risk Factors” and elsewhere in or incorporated by reference in this prospectus. Potential investors are urged to consider these factors carefully in evaluating these forward-looking statements. These forward-looking statements speak only as of the date of this prospectus. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. You should, however, review the factors and risks and other information we describe in the reports we will file from time to time with the SEC after the date of this prospectus.


USE OF PROCEEDS

We estimate the net proceeds from this offering and the concurrent private placement will be approximately $135.1 million, or $150.2 million if the underwriters exercise in full their option to purchase additional shares, assuming a public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

Each $1.00 increase (decrease) in the assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, would increase (decrease) the net proceeds to us by approximately $3.8 million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares we are offering. Each increase (decrease) of 1,000,000 shares in the number of shares offered by us would increase (decrease) the net proceeds to us by approximately $25.2 million, assuming that the assumed public offering price remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

We currently intend to use the net proceeds from this offering and the concurrent private placement, together with our existing cash, cash equivalents and marketable securities, to fund the continued development of our multiple programs, including our ARQ-151, ARQ-154, ARQ-252 and ARQ-255 programs, commercial launch planning and preparation for ARQ-151 in psoriasis, and the remainder for working capital and other general corporate purposes, which may include hiring of additional personnel, capital expenditures and the costs of operating as a public company.

Based on our planned use of the net proceeds, we estimate such funds, together with our existing cash, cash equivalents and marketable securities, will be sufficient for us to fund our operations into 2022. The expected net proceeds of this offering and the concurrent private placement may not be sufficient for us to fund any of our product candidates through regulatory approval, and we will need to raise substantial additional capital to complete the development and commercialization of our product candidates.

The expected use of the net proceeds from the offering and the concurrent private placement represents our intentions based upon our current plans and business conditions. The amounts we actually expend in these areas, and the timing thereof, may vary significantly from our current intentions and will depend on a number of factors, including the success of research and product development efforts, cash generated from future operations and actual expenses to operate our business. We may use a portion of the net proceeds for the acquisition of, or investment in, businesses that complement our business, although we have no present commitments or agreements.

The amounts and timing of our preclinical and clinical expenditures and the extent of preclinical and clinical development may vary significantly depending on numerous factors, including the status, results and timing of our current clinical trials and clinical trials which we may commence in the future, the product approval process with the FDA and foreign regulatory authorities, any new collaborations we may enter into with third parties and any unforeseen cash needs. As a result, we cannot predict with any certainty all of the particular uses for the net proceeds or the amounts that we will actually spend on the uses set forth above. Accordingly, our management will have broad discretion in the application of the net proceeds, and investors will be relying on the judgment of our management regarding the application of the net proceeds of this offering and the concurrent private placement.

Pending the uses described above, we intend to invest the net proceeds from this offering and the concurrent private placement in short term, investment-grade interest-bearing securities such as money market accounts, certificates of deposit, commercial paper and guaranteed obligations of the U.S. government.


DIVIDEND POLICY

We have never declared or paid cash dividends on our common stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any cash dividends on our common stock in the foreseeable future. Any future determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, general business conditions and other factors that our board of directors may deem relevant.


CAPITALIZATION

The following table sets forth our cash, cash equivalents and marketable securities, and capitalization as of June 30, 2020:

on an actual basis; e

on an as-adjusted basis to give further effect to the issuance and sale of 5,307,922 shares of common stock in this offering and the concurrent private placement based on an assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The as adjusted information below is illustrative only, and our capitalization following the completion of this offering and the concurrent private placement will be adjusted based on the actual public offering price and other terms determined at pricing. You should read this information together with our financial statements and related notes incorporated by reference in this prospectus and the information set forth under the headings “Use of Proceeds” in this prospectus and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report for the year ended December 31, 2019 and our Quarterly Reports on Form 10-Q for the fiscal periods ended March 31, 2020 and June 30, 2020 incorporated by reference in this prospectus.

(in thousands, except for share and per share amounts) As of June 30, 2020
Actual

As Adjusted(1)

(unaudited)

Cash, cash equivalents and marketable securities

$ 223,975 $ 359,043
Stockholders’ equity:

Preferred stock, $0.0001 par value per share; 10,000,000 shares authorized, actual and as adjusted, no shares issued and outstanding, actual or as adjusted

Common stock, $0.0001 par value per share; 300,000,000 shares authorized, actual and as adjusted; 38,189,287 shares issued, actual; 37,690,058 shares outstanding, actual; 43,497,209 shares issued and 42,997,980 shares outstanding, as adjusted

3 4

Additional paid-in capital

338,617 473,684

Accumulated other comprehensive income

Accumulated deficit

(129,697) (129,697)

Total stockholders’ equity

208,923 343,991

Total capitalization

$ 208,923 $ 343,991

________________

(1)Each $1.00 increase (decrease) in the assumed public offering of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, would increase (decrease) the as adjusted amount of additional paid-in capital, total stockholders’ equity and total capitalization by approximately $3.8 million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares we are offering. Each increase (decrease) of 1,000,000 shares in the number of shares offered by us would increase (decrease) the as adjusted amount of each of additional paid-in capital, total stockholders’ equity and total capitalization by approximately $25.2 million, assuming that the assumed price to the public remains the same, and after deducting the estimated underwriting discounts and commissions and estimated expenses payable by us.

The number of shares of common stock issued and outstanding, actual and as adjusted, in the table above is based on 37,690,058 shares of common stock outstanding as of June 30, 2020, and excludes:

3,244, 771shares of common stock issuable upon the exercise of options outstanding as of June 30, 2020, with a weighted-average exercise price of $9.87 per share;


130,060 shares of common stock issuable upon the vesting and settlement of RSUs outstanding as of June 30, 2020;

412,500 shares of common stock issuable upon the exercise of options outstanding that were granted after June 30, 2020, with a weighted-average exercise price of $26.04 per share;

33,500 shares of common stock issuable upon the vesting and settlement of RSUs that were granted after June 30, 2020;

499,235 shares of unvested common stock subject to repurchase by us as of June 30, 2020;

2,702,765 shares of common stock that were reserved for future issuance as of June 30, 2020 under our 2020 Plan, as well as any automatic increases in the number of shares of our common stock reserved for future issuance under the 2020 Plan; e

331,138 shares of common stock that were reserved for future issuance as of June 30, 2020 under our ESPP, as well as any automatic increases in the number of shares of our common stock reserved for future issuance under the ESPP.


DILUTION

If you invest in our common stock in this offering, your ownership interest will be immediately diluted to the extent of the difference between the assumed public offering price per share and the as adjusted net tangible book value per share of our common stock immediately after this offering and the concurrent private placement.

Historical net tangible book value (deficit) per share is determined by dividing our total tangible assets (which excludes deferred offering costs) less our total liabilities by the total number of shares of common stock outstanding. Our historical net tangible book value (deficit) as of June 30, 2020 was approximately $208.9 million, or $5.54 per share, based on 37,690,058 shares of common stock outstanding as of that date.

After giving effect to receipt of the net proceeds from our sale of 5,307,922 shares of common stock in this offering and the concurrent private placement at an assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, our as adjusted net tangible book value as of June 30, 2020 would have been approximately $344.0 million, or $8.00 per share. This represents an immediate increase in as adjusted net tangible book value of $2.46 per share to our existing stockholders and an immediate dilution of $18.76 per share to new investors participating in this offering.

The following table illustrates this dilution to new investors on a per share basis:

Assumed public offering price per share

$ 26.76
Historical net tangible book value per share as of June 30, 2020 $ 5.54

Increase in net tangible book value per share attributable to new investors participating in this offering and the concurrent private placement

$ 2.46

As adjusted net tangible book value per share after this offering and the concurrent private placement

8.00

Dilution per share to new investors participating in this offering and the concurrent private placement

$ 18.76

Each $1.00 increase (decrease) in the assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, would increase (decrease) the as adjusted net tangible book value by $0.09 per share and the dilution per share to new investors by $0.91 per share, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

We may also increase or decrease the number of shares we are offering. Each increase (decrease) of 1,000,000 shares in the number of shares we are offering would increase (decrease) our as adjusted net tangible book value by approximately $25.2 million, or $0.39 ($0.41) per share, and decrease (increase) the dilution per share to new investors participating in this offering by $0.39 ($0.41) per share, assuming that the assumed public offering price remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. The as adjusted information discussed above is illustrative only and will change based on the actual public offering price, number of shares and other terms determined at pricing.

Each $1.00 increase (decrease) in the assumed public offering price of $26.76 per share would increase (decrease) total consideration paid by new investors by $3.8 million, assuming the number of shares we are offering, as set forth on the cover page of this prospectus, remains the same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares we are offering. Each increase (decrease) of 1,000,000 in the number of shares offered by us would increase (decrease) total


consideration paid by new investors by $25.2 million, assuming that the assumed public offering price remains the same, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The foregoing tables and calculations (other than the historical net tangible book value calculation) are based on 37,690,058 shares of common stock outstanding as of June 30, 2020, and excludes:

3,244,771 shares of common stock issuable upon the exercise of options outstanding as of June 30, with a weighted-average exercise price of $9.87 per share;

130,060 shares of common stock issuable upon the vesting and settlement of RSUs outstanding as of June 30, 2020;

412,500 shares of common stock issuable upon the exercise of options outstanding that were granted after June 30, 2020, with a weighted-average exercise price of $26.04 per share;

33,500 shares of common stock issuable upon the vesting and settlement of RSUs that were granted after June 30, 2020;

499,235 shares of unvested common stock subject to repurchase by us as of June 30, 2020;

2,702,765 shares of common stock that were reserved for future issuance as of June 30, 2020 under our 2020 Plan, as well as any automatic increases in the number of shares of our common stock reserved for future issuance under the 2020 Plan; e

331,138 shares of common stock that were reserved for future issuance as of June 30, 2020 under our ESPP, as well as any automatic increases in the number of shares of our common stock reserved for future issuance under the ESPP.

In addition, to the extent that any outstanding options or RSUs described above are exercised, new options are issued, or we issue additional shares of common stock or other equity or convertible debt securities in the future, there will be further dilution to investors participating in this offering.


CONCURRENT PRIVATE PLACEMENT

One or more entities managed by OrbiMed, an affiliate of one of our directors, are expected to purchase $35.0 million of our common stock in a concurrent private placement exempt from the registration requirements of the Securities Act at a price per share equal to the public offering price in this offering. Based on an assumed public offering price of $26.76 per share, the last reported sale price of our common stock on the Nasdaq Global Select Market on September 28, 2020, this would be 1,307,922 shares. We will receive the full proceeds and will not pay any underwriting discounts or commissions with respect to the shares that are sold in the concurrent private placement. The concurrent private placement is contingent on the closing of this offering and the satisfaction of certain other customary conditions. However, this offering is not contingent on the consummation of the concurrent private placement. In connection with the concurrent private placement, we will enter into a securities purchase agreement and grant certain customary registration rights pursuant to a registration rights agreement.


DESCRIPTION OF CAPITAL STOCK

The following description of our capital stock and certain provisions of our restated certificate of incorporation and restated bylaws are summaries and are qualified in their entirety by reference to the full text of our restated certificate of incorporation and restated bylaws, which are included as exhibits to the registration statement of which this prospectus forms a part. We urge you to read these documents before making any decision to purchase shares of our common stock in this offering.

General

Our authorized capital stock consists of 300,000,000 shares of common stock, $0.0001 par value per share, and 10,000,000 shares of undesignated preferred stock, $0.0001 par value per share.

Common Stock

As of June 30, 2020, we had outstanding 37,690,058 shares of common stock held of record by approximately 33 stockholders. The actual number of stockholders is greater than this number of record holders, and includes stockholders who are beneficial owners, but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include stockholders whose shares may be held in trust by other entities.

Dividend Rights

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine.

Voting Rights

Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders. We have not provided for cumulative voting for the election of directors in our restated certificate of incorporation, which means that holders of a majority of the shares of our common stock will be able to elect all of our directors. Our restated certificate of incorporation establishes a classified board of directors, to be divided into three classes with staggered three-year terms. Only one class of directors will be elected at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective three-year terms

No Preemptive or Similar Rights

Our common stock is not entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions.

Right to Receive Liquidation Distributions

Upon our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock.

Fully Paid and Nonassessable

All outstanding shares of common stock are, and the shares of common stock to be issued in this offering will be, fully paid and nonassessable.


Preferred Stock

As of June 30, 2020, there were no shares of our preferred stock outstanding.

Under the terms of our restated certificate of incorporation, our board of directors is authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series and to fix the designation, powers, preferences and rights of the shares of each series and any of their qualifications, limitations or restrictions, in each case without further vote or action by our stockholders. Our board of directors is also authorized to increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding, without any further vote or action by our stockholders. Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of our company and might adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock. We have no current plan to issue any shares of preferred stock.

Opzioni

As of June 30, 2020, options to purchase 3,244,771 shares of common stock, with a weighted-average exercise price of $9.87 per share, were outstanding under our equity compensation plans.

Restricted Stock Units

As of June 30, 2020, we had 130,060 shares of common stock issuable upon the vesting and settlement of outstanding RSUs.

Registration rights

Pursuant to the terms of our amended and restated investors’ rights agreement, or the Investor Rights Agreement, the holders of up to 24,385,388 shares of our common stock or their transferees have rights with respect to the registration of their shares under the Securities Act, as described below. We refer to these shares collectively as registrable securities. In addition, in connection with the concurrent private placement, the Company will enter into a securities purchase agreement and grant certain customary registration rights pursuant to a registration rights agreement.

Form S-1 Registration Rights

Beginning 180 days after the completion of our initial public offering, the holders of at least 10% of the then-outstanding registrable securities may make a request to us for the registration under the Securities Act of registrable securities if the aggregate price to the public of the shares offered is at least $10.0 million. We are only required to file two registration statements that are declared effective upon exercise of these demand registration rights. These registration rights are subject to specified conditions and limitations, including the right of the underwriters to limit the number of shares included in any such registration under certain circumstances. If we determine that it would materially interfere with a corporate transaction, require premature disclosure of confidential information or render us unable to comply with the Securities Act or Exchange Act, we have the right to postpone such registration, not more than once in any 12-month period, for a period of up to 90 days.

Form S-3 Registration Rights

Any holder or group of holders of at least 10% of then-outstanding registrable securities can request that we register all or part of their shares on Form S-3 if we are eligible to file a registration statement on Form S-3 and if the aggregate price to the public of the shares offered is at least $1.0 million. The stockholders may only require us to effect two registration statements on Form S-3 in any 12-month


period. These registration rights are subject to specified conditions and limitations, including the right of the underwriters to limit the number of shares included in any such registration under certain circumstances. Additionally, if we determine that it would materially interfere with a corporate transaction, require premature disclosure of confidential information or render us unable to comply with the Securities Act or Exchange Act, we have the right to postpone such registration, not more than once in any 12-month period, for a period of up to 90 days.

Piggyback Registration Rights

In connection with this offering, certain holders of then-outstanding registrable securities were entitled to, and the necessary percentage of holders waived, their rights to notice of this offering and to include their shares of registrable securities in this offering. If we register any of our securities for public sale, holders of then-outstanding registrable securities are entitled to certain “piggyback” registration rights allowing the holders to include their registrable securities in such registration, subject to certain marketing and other limitations. As a result, whenever we propose to file a registration statement under the Securities Act, other than with respect to certain registrations, including related to any of our employee benefit plans, the offer and sale of debt securities, or an SEC Rule 145 transaction, the holders of these shares are entitled to notice of the registration and have the right, subject to limitations that the underwriters may impose on the number of shares included in the registration, to include their shares in the registration. In an underwritten offering, we and the underwriters have the right, subject to specified conditions, to limit the number of shares such holders may include.

Expenses of Registration Rights

We generally will pay all expenses, other than underwriting discounts, selling commissions and stock transfer taxes incurred in connection with each of the registrations described above, including the fees and disbursements, not to exceed $50,000, of one counsel for the selling holders.

Expiration of Registration Rights

The registration rights described above will expire, with respect to any particular holder of these rights, on the earliest to occur of (a) the closing of a deemed liquidation event, as defined in our restated certificate of incorporation, (b) at such time that all of the holder’s registrable securities can be sold without limitation in any three-month period without registration in compliance with Rule 144 or a similar exemption under the Securities Act and (c) seven years following the completion of our initial public offering.

Anti-takeover provisions

The provisions of Delaware General Corporation Law, or DGCL, our restated certificate of incorporation and our restated bylaws could have the effect of delaying, deferring or discouraging another person from acquiring control of our company. These provisions, which are summarized below, may have the effect of discouraging takeover bids. They are also designed, in part, to encourage persons seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

Delaware Law

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business


combination” with an “interested stockholder” for a period of three years following the date on which the person became an interested stockholder unless:

prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested stockholder, (i) shares owned by persons who are directors and also officers and (ii) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; o

at or subsequent to the date of the transaction, the business combination is approved by the board of directors of the corporation and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66.67% of the outstanding voting stock that is not owned by the interested stockholder.

Generally, a business combination includes a merger, asset or stock sale, or other transaction or series of transactions together resulting in a financial benefit to the interested stockholder. An interested stockholder is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a corporation’s outstanding voting stock. We expect the existence of this provision to have an anti-takeover effect with respect to transactions our board of directors does not approve in advance. We also anticipate that Section 203 may also discourage attempts that might result in a premium over the market price for the shares of common stock held by stockholders.

Restated Certificate of Incorporation and Restated Bylaw Provisions

Our restated certificate of incorporation and our restated bylaws include a number of provisions that could deter hostile takeovers or delay or prevent changes in control of our company, including the following:

Board of Directors Vacancies. Our restated certificate of incorporation and restated bylaws authorize only our board of directors to fill vacant directorships, including newly created seats. In addition, the number of directors constituting our board of directors is permitted to be set only by a resolution adopted by a majority vote of our entire board of directors. These provisions would prevent a stockholder from increasing the size of our board of directors and then gaining control of our board of directors by filling the resulting vacancies with its own nominees. This makes it more difficult to change the composition of our board of directors but promotes continuity of management.

Classified Board. Our restated certificate of incorporation and restated bylaws provide that our board of directors is classified into three classes of directors, each with staggered three-year terms. A third party may be discouraged from making a tender offer or otherwise attempting to obtain control of us as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified board of directors.

Stockholder Action; Special Meetings of Stockholders. Our restated certificate of incorporation provides that our stockholders may not take action by written consent, but may only take action at annual or special meetings of our stockholders. As a result, a holder controlling a majority of our capital stock would not be able to amend our restated bylaws or remove directors without holding a meeting of our stockholders called in accordance with our restated bylaws. Further, our restated bylaws provide that special meetings of our stockholders may be called only by a majority of our board of directors, the chairman of our board of directors, our Chief Executive Officer or our


President, thus prohibiting a stockholder from calling a special meeting. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders controlling a majority of our capital stock to take any action, including the removal of directors.

Advance Notice Requirements for Stockholder Proposals and Director Nominations. Our restated bylaws provide advance notice procedures for stockholders seeking to bring business before our annual meeting of stockholders or to nominate candidates for election as directors at our annual meeting of stockholders. Our restated bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions might preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders if the proper procedures are not followed. We expect that these provisions might also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our company.

No Cumulative Voting. The DGCL provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless a corporation’s certificate of incorporation provides otherwise. Our restated certificate of incorporation and restated bylaws do not provide for cumulative voting.

Directors Removed Only for Cause. Our restated certificate of incorporation provides that stockholders may remove directors only for cause and only by the affirmative vote of the holders of at least two-thirds of our outstanding common stock.

Amendment of Charter Provisions. Any amendment of the above provisions in our restated certificate of incorporation require approval by holders of at least two-thirds of our outstanding common stock.

Issuance of Undesignated Preferred Stock. Our board of directors has the authority, without further action by the stockholders, to issue up to 10,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by our board of directors. The existence of authorized but unissued shares of preferred stock would enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by merger, tender offer, proxy contest or other means.

Choice of Forum. Our restated certificate of incorporation provides that, to the fullest extent permitted by law, the Court of Chancery of the State of Delaware will be the exclusive forum for any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty; any action asserting a claim against us arising pursuant to the DGCL, our restated certificate of incorporation or our restated bylaws; or any action asserting a claim against us that is governed by the internal affairs doctrine. The enforceability of similar choice of forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible that a court could find these types of provisions to be inapplicable or unenforceable. This exclusive forum provision does not apply to suits brought to enforce a duty or liability created by the Exchange Act. It could apply, however, to a suit that falls within one or more of the categories enumerated in the exclusive forum provision and asserts claims under the Securities Act, inasmuch as Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. There is uncertainty as to whether a court would enforce such provision with respect to claims under the Securities Act, and our stockholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations thereunder.


Transfer Agent and Registrar

The transfer agent and registrar for our common stock is Equiniti Trust Company. The transfer agent’s address is 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120-4101.

The Nasdaq Global Select Market Listing

Our common stock is listed on the Nasdaq Global Select Market under the symbol “ARQT.”


SHARES ELIGIBLE FOR FUTURE SALE

Future sales of our common stock, including shares issued upon exercise of outstanding options or warrants, in the public market following this offering, or the perception that those sales may occur, could cause the prevailing market price for our common stock to fall or impair our ability to raise equity capital in the future. As described below, only a limited number of shares of our common stock will be available for sale in the public market after consummation of this offering due to contractual and legal restrictions on resale described below.

Future sales of our common stock in the public market either before (to the extent permitted) or after restrictions lapse, or the perception that those sales may occur, could adversely affect the prevailing market price of our common stock at such time and our ability to raise equity capital at a time and price we deem appropriate.

Based on the number of shares of our common stock outstanding as of June 30, 2020, upon the completion of this offering and the concurrent private placement and assuming (1) no exercise of the underwriters’ option to purchase additional shares of common stock and (2) no exercise of any of our other outstanding options, we will have outstanding an aggregate of 42,997,980 shares of common stock.

All of the shares of common stock sold in this offering, and any shares sold upon exercise of the underwriters’ option to purchase additional shares, will be freely tradable in the public market without restriction or further registration under the Securities Act, unless the shares are held by any of our “affiliates” as such term is defined in Rule 144 of the Securities Act. Certain of the remaining shares of common stock held by existing stockholders immediately prior to the completion of this offering are or will be “restricted securities” as such term is defined in Rule 144. These restricted securities were issued and sold by us, or will be issued and sold by us, in private transactions and are eligible for public sale only if registered under the Securities Act or if they qualify for an exemption from registration under the Securities Act, including the exemptions provided by Rule 144 or Rule 701, which rules are summarized below.

Lock-up Agreements and Market Stand-off Provisions

In connection with this offering, we, and our directors, executive officers and certain of our stockholders have agreed, subject to certain exceptions, with the underwriters not to dispose of or hedge any shares of our common stock or securities convertible into or exchangeable for shares of common stock during the period from the date of the lock-up agreement continuing through the date 90 days following the date of this prospectus, except with the prior written consent of Goldman Sachs & Co. LLC and Cowen and Company, LLC.

Subject to certain limitations, certain of our employees, including our executive officers, and/or directors have entered into, and may enter into, written trading plans that are intended to comply with Rule 10b5-1 under the Exchange Act.

Following the lock-up periods set forth in the market stand-off and lock-up agreements described above, and assuming that Goldman Sachs & Co. LLC and Cowen and Company, LLC do not release any parties from the lock-up agreements, all of the shares of our common stock that are restricted securities or are held by our affiliates as of the date of this prospectus will be eligible for sale in the public market in compliance with Rule 144 under the Securities Act.

Rule 144

In general, under Rule 144, as currently in effect, once we have been subject to the public company reporting requirements of the Exchange Act, for at least 90 days, a person (or persons whose shares are required to be aggregated) who is not deemed to have been one of our “affiliates” for purposes of Rule 144 at any time during the three months preceding a sale, and who has beneficially owned restricted securities within the meaning of Rule 144 for at least six months, including the holding period of any prior


owner other than one of our “affiliates,” is entitled to sell those shares in the public market (subject to the lock-up agreements referred to above, if applicable) without complying with the manner of sale, volume limitations or notice provisions of Rule 144, but subject to compliance with the public information requirements of Rule 144. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than “affiliates,” then such person is entitled to sell such shares in the public market without complying with any of the requirements of Rule 144 (subject to the lock-up agreement referred to above, if applicable). In general, under Rule 144, as currently in effect, once we have been subject to the public company reporting requirements of the Exchange Act for at least 90 days, our “affiliates,” as defined in Rule 144, who have beneficially owned the shares proposed to be sold for at least six months are entitled to sell in the public market, upon expiration of any applicable lock-up agreements and within any three-month period, a number of those shares of our common stock that does not exceed the greater of:

1% of the number of shares of common stock then outstanding, which will equal approximately 429,979 shares of common stock immediately after this offering and the concurrent private placement; o

the average weekly trading volume of our common stock on the Nasdaq Global Select Market during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Such sales under Rule 144 by our “affiliates” or persons selling shares on behalf of our “affiliates” are also subject to certain manner of sale provisions, notice requirements and to the availability of current public information about us.

Rule 701

Rule 701 generally provides that a stockholder who purchased shares of our common stock pursuant to a written compensatory benefit plan or contract and who is not deemed to have been one of our affiliates at any time during the preceding 90 days may sell such shares (to the extent such shares are not subject to a lock-up agreement) in reliance upon Rule 144 without complying with the current public information or holding period conditions of Rule 144. Rule 701 also provides that a stockholder who purchased shares of our common stock pursuant to a written compensatory benefit plan or contract and who is deemed to have been one of our affiliates during the preceding 90 days may sell such shares under Rule 144 without complying with the holding period condition of Rule 144 (subject to any applicable lock-up agreement).

Registration Rights

The holders of approximately 24,385,388 shares of our common stock, or their transferees, will, subject to the lock-up agreements referred to above, be entitled to certain rights with respect to the registration of the offer and sale of those shares under the Securities Act. For a description of these registration rights, see “Description of Capital Stock—Registration Rights.” If the offer and sale of these shares are registered, they will be freely tradable without restriction under the Securities Act. In addition, in connection with the concurrent private placement, the Company will enter into a securities purchase agreement and grant certain customary registration rights pursuant to a registration rights agreement.

Stock Plans

We have filed with the SEC a registration statement under the Securities Act covering the shares of common stock reserved for issuance under our equity compensation plans. Accordingly, shares registered under such registration statement are available for sale in the open market, subject to Rule 144 volume limitations and the lock-up agreements described above, if applicable.


MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS

The following discussion is a summary of the material U.S. federal income tax consequences to Non-U.S. Holders (as defined below) of the purchase, ownership and disposition of our common stock issued pursuant to this offering, but does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local or non-U.S. tax laws are not discussed. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended, or the Code, Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the U.S. Internal Revenue Service, or the IRS, in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a Non-U.S. Holder. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the purchase, ownership and disposition of our common stock.

This discussion is limited to Non-U.S. Holders that hold our common stock as a “capital asset” within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a Non-U.S. Holder’s particular circumstances, including the impact of the Medicare contribution tax on net investment income. In addition, it does not address consequences relevant to Non-U.S. Holders subject to special rules, including, without limitation:

U.S. expatriates and former citizens or long-term residents of the United States;

persons subject to the alternative minimum tax;

persons holding our common stock as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment;

banks, insurance companies, and other financial institutions;

brokers, dealers or traders in securities;

“controlled foreign corporations,” “passive foreign investment companies,” and corporations that accumulate earnings to avoid U.S. federal income tax;

partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein);

tax-exempt organizations or governmental organizations;

persons deemed to sell our common stock under the constructive sale provisions of the Code;

persons who hold or receive our common stock pursuant to the exercise of any employee stock option or otherwise as compensation;

tax-qualified retirement plans; e

“qualified foreign pension funds” as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified foreign pension funds.

If an entity treated as a partnership for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding our common stock and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them.


THIS DISCUSSION IS NOT TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.

Definition of Non-U.S. Holder

For purposes of this discussion, a “Non-U.S. Holder” is any beneficial owner of our common stock that is neither a “U.S. person” nor an entity treated as a partnership for U.S. federal income tax purposes. A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

(a)an individual who is a citizen or resident of the United States;

(b)a corporation created or organized under the laws of the United States, any state thereof, or the District of Columbia;

(c)an estate, the income of which is subject to U.S. federal income tax regardless of its source; o

(d)a trust that (1) is subject to the primary supervision of a U.S. court and all substantial decisions of which are subject to the control of one or more “United States persons” (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes.

Distributions

As described in the section titled “Dividend Policy,” we do not anticipate paying any cash dividends on our common stock in the foreseeable future. However, if we do make distributions of cash or property on our common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute a return of capital and first be applied against and reduce a Non-U.S. Holder’s adjusted tax basis in its common stock, but not below zero. Any excess will be treated as capital gain and will be treated as described below under “—Sale or Other Taxable Disposition.”

Subject to the discussion below regarding effectively connected income, dividends paid to a Non-U.S. Holder will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable tax treaties.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such dividends are attributable), the Non-U.S. Holder will be exempt from the U.S. federal withholding tax described above. To claim the exemption, the Non-U.S. Holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States.

Any such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the regular rates. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively


connected dividends, as adjusted for certain items. Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

Sale or Other Taxable Disposition

Subject to the discussion below regarding backup withholding, a Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our common stock unless:

(a)the gain is effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain is attributable);

(b)the Non-U.S. Holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; o

(c)our common stock constitutes a U.S. real property interest, or USRPI, by reason of our status as a U.S. real property holding corporation, or USRPHC, for U.S. federal income tax purposes.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular rates. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

Gain described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty), which may be offset by certain U.S. source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, we believe we currently are not, and do not anticipate becoming, a USRPHC. Because the determination of whether we are a USRPHC depends, however, on the fair market value of our USRPIs relative to the fair market value of our non-U.S. real property interests and our other business assets, there can be no assurance we currently are not a USRPHC or will not become one in the future. Even if we are or were to become a USRPHC, gain arising from the sale or other taxable disposition by a Non-U.S. Holder will not be subject to U.S. federal income tax if our common stock is “regularly traded,” as defined by applicable Treasury Regulations, on an established securities market, and such Non-U.S. Holder owned, actually and constructively, 5% or less of our common stock throughout the shorter of the five-year period ending on the date of the sale or other taxable disposition or the Non-U.S. Holder’s holding period.

Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

Information Reporting and Backup Withholding

Payments of dividends on our common stock will not be subject to backup withholding, provided the Non-U.S. Holder certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or otherwise establishes an exemption. However, information returns are required to be filed with the IRS in connection with any distributions on our common stock paid to the Non-U.S. Holder, regardless of whether such distributions constitute dividends or whether any tax was actually withheld. In addition, proceeds of the sale or other taxable disposition of our common stock within the United States or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting if the applicable withholding agent receives the certification described above or the Non-U.S. Holder otherwise establishes an exemption. Proceeds of a disposition of our common stock conducted through a non-U.S. office of a non-U.S. broker that does not have certain enumerated


relationships with the United States generally will not be subject to backup withholding or information reporting.

Copies of information returns that are filed with the IRS may also be made available under the provisions of an applicable treaty or agreement to the tax authorities of the country in which the Non-U.S. Holder resides or is established.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holder’s U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

Additional Withholding Tax on Payments Made to Foreign Accounts

Withholding taxes may be imposed under Sections 1471 to 1474 of the Code (such Sections commonly referred to as the Foreign Account Tax Compliance Act, or FATCA) on certain types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on dividends on, or, subject to the proposed Treasury Regulations discussed below, gross proceeds from the sale or other disposition of, our common stock paid to a “foreign financial institution” or a “non-financial foreign entity” (each as defined in the Code), unless (1) the foreign financial institution undertakes certain diligence and reporting obligations, (2) the non-financial foreign entity either certifies it does not have any “substantial United States owners” (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in (1) above, it must enter into an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain “specified United States persons” or “United States owned foreign entities” (each as defined in the Code), annually report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules.

Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our common stock. While withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition of our common stock beginning on January 1, 2019, Treasury Regulations eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury Regulations are issued.

Prospective investors should consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our common stock.


UNDERWRITING

We and the underwriters named below will enter into an underwriting agreement with respect to the shares being offered. Subject to certain conditions, each underwriter will severally agree to purchase the number of shares indicated in the following table. Goldman Sachs & Co. LLC, Cowen and Company, LLC and Guggenheim Securities, LLC are the representatives of the underwriters.

Underwriters Number of Shares
Goldman Sachs & Co. LLC
Cowen and Company, LLC
Guggenheim Securities, LLC

Truist Securities, Inc.

Cantor Fitzgerald & Co.
Totale 4,000,000

The underwriters will be committed to take and pay for all of the shares being offered, if any are taken, other than the shares covered by the option described below unless and until this option is exercised.

The underwriters have an option to buy up to an additional 600,000 shares from us to cover sales by the underwriters of a greater number of shares than the total number set forth in the table above. They may exercise that option for 30 days from the date of this prospectus. If any shares are purchased pursuant to this option, the underwriters will severally purchase shares in approximately the same proportion as set forth in the table above.

The following table shows the per share and total underwriting discounts and commissions to be paid to the underwriters by us. Such amounts are shown assuming both no exercise and full exercise of the underwriters’ option to purchase additional shares from us.

No Exercise Full Exercise
Per Share $ $
Totale $ $

We estimate that our total out of pocket expenses for this offering, excluding the underwriting discounts and commissions, and the concurrent private placement will be approximately $550,000. We have also agreed to reimburse the underwriters for certain of their expenses in an amount up to $35,000.

We have agreed to indemnify the several underwriters against certain liabilities, including liabilities under the Securities Act.

Shares sold by the underwriters to the public will initially be offered at the public offering price set forth on the cover of this prospectus. Any shares sold by the underwriters to securities dealers may be sold at a discount of up to $            per share from the public offering price. After the initial offering of the shares, the representatives may change the offering price and the other selling terms. The offering of the shares by the underwriters is subject to receipt and acceptance and subject to the underwriters’ right to reject any order in whole or in part.

We have agreed that, subject to certain limited exceptions, we will not (i) offer, sell, contract to sell, pledge, lend, grant any option to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, or file with or confidentially submit to the SEC a registration statement under the Securities Act relating to, any of our securities that are substantially similar to our shares of common stock, including but not limited to any options or warrants to purchase shares of common stock or any securities that are convertible into or exchangeable for, or that represent the right to receive, shares of common stock or any such substantially similar securities, or publicly disclose the intention to make any


offer, sale, pledge, loan, disposition, confidential submission or filing or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of our shares of common stock or any such other securities (in either case, regardless of whether any of these transactions are to be settled by the delivery of shares of common stock or such other securities, in cash or otherwise), in each case without the prior written consent of Goldman Sachs & Co. LLC and Cowen and Company, LLC for a period through and including the date that is 90 days after the date of this prospectus.

Our directors, executive officers and certain of our stockholders have entered into lock-up agreements with the underwriters, pursuant to which each of these persons or entities, subject to certain limited exceptions, for a period through and including the date that is 90 days after the date of this prospectus, agree that they will not, and shall not, without the prior written consent of Goldman Sachs & Co. LLC and Cowen and Company, LLC, cause or direct any of their respective affiliates to, (i) offer, sell, contract to sell, pledge, grant any option to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of common stock, or any options or warrants to purchase any shares of common stock, or any securities convertible into, exchangeable for or that represent the right to receive shares of common stock, whether now owned or hereafter acquired, owned directly by each such person or entity (including holding as a custodian) or with respect to which such person or entity has beneficial ownership within the rules and regulations of the SEC, (ii) engage in any hedging or other transaction or arrangement (including, without limitation, any short sale or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument, however described or defined) which is designed to or which reasonably could be expected to lead to or result in a sale, loan, pledge or other disposition (whether by such person or entity or someone other than such person or entity), or transfer of any of the economic consequences of ownership, in whole or in part, directly or indirectly, of the securities owned by such person or entity, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of common stock or other securities, in cash or otherwise, or (iii) otherwise publicly announce any intention to engage in or cause any action or activity described in clause (i) above or transaction or arrangement described in clause (ii) above.

Our common stock is listed on The Nasdaq Global Select Market under the symbol “ARQT.”

In connection with the offering, the underwriters may purchase and sell shares of our common stock in the open market. These transactions may include short sales, stabilizing transactions and purchases to cover positions created by short sales. Short sales involve the sale by the underwriters of a greater number of shares than they are required to purchase in the offering, and a short position represents the amount of such sales that have not been covered by subsequent purchases. A “covered short position” is a short position that is not greater than the amount of additional shares for which the underwriters’ option described above may be exercised. The underwriters may cover any covered short position by either exercising their option to purchase additional shares or purchasing shares in the open market. In determining the source of shares to cover the covered short position, the underwriters will consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase additional shares pursuant to the option described above. “Naked” short sales are any short sales that create a short position greater than the amount of additional shares for which the option described above may be exercised. The underwriters must cover any such naked short position by purchasing shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the common stock in the open market after pricing that could adversely affect investors who purchase in the offering. Stabilizing transactions consist of various bids for or purchases of common stock made by the underwriters in the open market prior to the completion of the offering.

The underwriters may also impose a penalty bid. This occurs when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the representatives have repurchased shares sold by or for the account of such underwriter in stabilizing or short covering transactions.


Purchases to cover a short position and stabilizing transactions, as well as other purchases by the underwriters for their own accounts, may have the effect of preventing or retarding a decline in the market price of our stock, and together with the imposition of the penalty bid, may stabilize, maintain or otherwise affect the market price of the common stock. As a result, the price of the common stock may be higher than the price that otherwise might exist in the open market. The underwriters are not required to engage in these activities and may end any of these activities at any time. These transactions may be effected on Nasdaq, in the over-the-counter market or otherwise.

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and non-financial activities and services. Certain of the underwriters and their respective affiliates have provided, and may in the future provide, a variety of these services to us and to persons and entities with relationships with us, for which they received or will receive customary fees and expenses. Certain of the underwriters also served as underwriters in our initial public offering in February 2020.

In the ordinary course of their various business activities, the underwriters and their respective affiliates, officers, directors and employees may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to our assets, securities and/or instruments (directly, as collateral securing other obligations or otherwise) and/or persons and entities with relationships with us. The underwriters and their respective affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities and instruments.

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

Notice to Prospective Investors in European Economic Area and United Kingdom

In relation to each Member State of the European Economic Area and the United Kingdom (each, a “Relevant State”), no securities have been offered or will be offered pursuant to the offering to the public in that Relevant State prior to the publication of a prospectus in relation to the securities which has been approved by the competent authority in that Relevant State or, where appropriate, approved in another Member State and notified to the competent authority in that Relevant State, all in accordance with the Prospectus Regulation), except that offers of securities may be made to the public in that Relevant State at any time under the following exemptions under the Prospectus Regulation:

(a)to any legal entity which is a qualified investor as defined under the Prospectus Regulation;

(b)to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; o

(c)in any other circumstances falling within Article 1(4) of the Prospectus Regulation;


provided that no such offer of securities shall require us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

For the purposes of this provision, the expression an “offer to the public” in relation to any securities in any Relevant State means the communication in any form and by any means of sufficient information on the terms of the offer and any securities to be offered so as to enable an investor to decide to purchase or subscribe for any securities, and the expression “Prospectus Regulation” means Regulation (EU) 2017/1129.

Notice to Prospective Investors in United Kingdom

Each underwriter has represented and agreed that:

(a)it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000 (as amended, the “FSMA”)) received by it in connection with the issue or sale of the shares in circumstances in which Section 21(1) of the FSMA does not apply to the company; e

(b)it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the shares in, from or otherwise involving the United Kingdom.

Notice to Prospective Investors in Switzerland

We have not and will not register with the Swiss Financial Market Supervisory Authority (“FINMA”) as a foreign collective investment scheme pursuant to Article 119 of the Federal Act on Collective Investment Scheme of 23 June 2006, as amended (“CISA”), and accordingly the securities being offered pursuant to this prospectus have not and will not be approved, and may not be licenseable, with FINMA. Therefore, the securities have not been authorized for distribution by FINMA as a foreign collective investment scheme pursuant to Article 119 CISA and the securities offered hereby may not be offered to the public (as this term is defined in Article 3 CISA) in or from Switzerland. The securities may solely be offered to “qualified investors,” as this term is defined in Article 10 CISA, and in the circumstances set out in Article 3 of the Ordinance on Collective Investment Scheme of 22 November 2006, as amended (“CISO”), such that there is no public offer. Investors, however, do not benefit from protection under CISA or CISO or supervision by FINMA. This prospectus and any other materials relating to the securities are strictly personal and confidential to each offeree and do not constitute an offer to any other person. This prospectus may only be used by those qualified investors to whom it has been handed out in connection with the offer described in this prospectus and may neither directly or indirectly be distributed or made available to any person or entity other than its recipients. It may not be used in connection with any other offer and shall in particular not be copied and/or distributed to the public in Switzerland or from Switzerland. This prospectus does not constitute an issue prospectus as that term is understood pursuant to Article 652a and/or 1156 of the Swiss Federal Code of Obligations. We have not applied for a listing of the securities on the SIX Swiss Exchange or any other regulated securities market in Switzerland, and consequently, the information presented in this prospectus does not necessarily comply with the information standards set out in the listing rules of the SIX Swiss Exchange and corresponding prospectus schemes annexed to the listing rules of the SIX Swiss Exchange.

Notice to Prospective Investors in Canada

The securities may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions, and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with an exemption form, or in a transaction not subject to, the prospectus requirements of applicable securities laws.


Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser’s province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser’s province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

Notice to Prospective Investors in Hong Kong

The securities may not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) (“Companies (Winding Up and Miscellaneous Provisions) Ordinance”) or which do not constitute an invitation to the public within the meaning of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) (“Securities and Futures Ordinance”), or (ii) to “professional investors” as defined in the Securities and Futures Ordinance and any rules made thereunder, or (iii) in other circumstances which do not result in the document being a “prospectus” as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance, and no advertisement, invitation or document relating to the securities may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to shares which are or are intended to be disposed of only to persons outside Hong Kong or only to “professional investors” in Hong Kong as defined in the Securities and Futures Ordinance and any rules made thereunder.

Notice to Prospective Investors in Singapore

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the shares may not be circulated or distributed, nor may the shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”)) under Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth in the SFA.

Where the shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor, the securities (as defined in Section 239(1) of the SFA) of that corporation shall not be transferable for 6 months after that corporation has acquired the shares under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer in that corporation’s securities pursuant to Section 275(1A) of the SFA, (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in

Section 276(7) of the SFA, or (6) as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore (“Regulation 32”).


Where the shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is a trust (where the trustee is not an accredited investor (as defined in Section 4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited investor, the beneficiaries’ rights and interest (howsoever described) in that trust shall not be transferable for 6 months after that trust has acquired the shares under Section 275 of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than S$200,000 (or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of securities or other assets), (3) where no consideration is or will be given for the transfer, (4) where the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA, or (6) as specified in Regulation 32.

Solely for the purposes of its obligations pursuant to Section 309B of the SFA, we have determined, and hereby notify all relevant persons (as defined in the CMP Regulations 2018), that the shares are “prescribed capital markets products” (as defined in the CMP Regulations 2018) and Excluded Investment Products (as defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on Recommendations on Investment Products).

Notice to Prospective Investors in Japan

The securities have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended), or the FIEA. The securities may not be offered or sold, directly or indirectly, in Japan or to or for the benefit of any resident of Japan (including any person resident in Japan or any corporation or other entity organized under the laws of Japan) or to others for reoffering or resale, directly or indirectly, in Japan or to or for the benefit of any resident of Japan, except pursuant to an exemption from the registration requirements of the FIEA and otherwise in compliance with any relevant laws and regulations of Japan.

Notice to Prospective Investors in Israel

In the State of Israel this prospectus shall not be regarded as an offer to the public to purchase shares of common stock under the Israeli Securities Law, 5728—1968, which requires a prospectus to be published and authorized by the Israel Securities Authority, if it complies with certain provisions of Section 15 of the Israeli Securities Law, 5728—1968, including, inter alia, if: (i) the offer is made, distributed or directed to not more than 35 investors, subject to certain conditions (the “Addressed Investors”); or (ii) the offer is made, distributed or directed to certain qualified investors defined in the First Addendum of the Israeli Securities Law, 5728—1968, subject to certain conditions (the “Qualified Investors”). The Qualified Investors shall not be taken into account in the count of the Addressed Investors and may be offered to purchase securities in addition to the 35 Addressed Investors. The company has not and will not take any action that would require it to publish a prospectus in accordance with and subject to the Israeli Securities Law, 5728—1968. We have not and will not distribute this prospectus or make, distribute or direct an offer to subscribe for our common stock to any person within the State of Israel, other than to Qualified Investors and up to 35 Addressed Investors.

Qualified Investors may have to submit written evidence that they meet the definitions set out in of the First Addendum to the Israeli Securities Law, 5728—1968. In particular, we may request, as a condition to be offered common stock, that Qualified Investors will each represent, warrant and certify to us and/or to anyone acting on our behalf: (i) that it is an investor falling within one of the categories listed in the First Addendum to the Israeli Securities Law, 5728—1968; (ii) which of the categories listed in the First Addendum to the Israeli Securities Law, 5728—1968 regarding Qualified Investors is applicable to it; (iii) that it will abide by all provisions set forth in the Israeli Securities Law, 5728—1968 and the regulations promulgated thereunder in connection with the offer to be issued common stock; (iv) that the shares of common stock that it will be issued are, subject to exemptions available under the Israeli Securities Law, 5728—1968: (a) for its own account; (b) for investment purposes only; and (c) not issued with a view to resale within the State of Israel, other than in accordance with the provisions of the Israeli Securities Law,


5728—1968; and (v) that it is willing to provide further evidence of its Qualified Investor status. Addressed Investors may have to submit written evidence in respect of their identity and may have to sign and submit a declaration containing, inter alia, the Addressed Investor’s name, address and passport number or Israeli identification number.


LEGAL MATTERS

The validity of the shares of common stock offered by this prospectus will be passed upon for us by Latham & Watkins LLP, Menlo Park, California. Certain legal matters relating to the offering will be passed upon for the underwriters by Cooley LLP, San Francisco, California.

EXPERTS

Ernst & Young LLP, independent registered public accounting firm, has audited our financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019, as set forth in their report, which is incorporated by reference in this prospectus and elsewhere in the registration statement. Our financial statements are incorporated by reference in reliance on Ernst & Young LLP’s report, given on their authority as experts in accounting and auditing.

WHERE YOU CAN FIND MORE INFORMATION

We have filed with the Securities and Exchange Commission, or SEC, a registration statement on Form S-1 under the Securities Act of 1933, as amended, with respect to the shares of common stock offered hereby. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits filed therewith. For further information about us and the common stock offered hereby, reference is made to the registration statement and the exhibits filed therewith. Statements contained in this prospectus concerning the contents of any contract or any other document are not necessarily complete, please see the copy of the contract or document that has been filed for the complete contents of that contract or document. Each statement in this prospectus relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The exhibits to the registration statement should be reviewed for the complete contents of these contracts and documents.

The SEC maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address is www.sec.gov.

We also maintain a website at www.arcutis.com. The reference to our website address does not constitute incorporation by reference of the information contained on our website, and you should not consider information on our website to be part of this prospectus.

You may also request a copy of these filings, at no cost to you, by writing or telephoning us at the following address:

Arcutis Biotherapeutics, Inc.

Attn: VP Investor Relations & Corporate Communications

2495 Townsgate Road, Suite 110

Westlake Village, California 91361

Telephone: (805) 418-5006


INCORPORATION OF CERTAIN INFORMATION BY REFERENCE

The SEC allows us to “incorporate by reference” information from other documents that we file with it, which means that we can disclose important information to you by referring you to those documents. The information incorporated by reference is considered to be part of this prospectus. Information in this prospectus supersedes information incorporated by reference that we filed with the SEC prior to the date of this prospectus. We incorporate by reference into this prospectus and the registration statement of which this prospectus is a part the information or documents listed below that we have filed with the SEC:

our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 19, 2020;
our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, filed with the SEC on May 12, 2020 e August 11, 2020, respectively;
our Current Reports on Form 8-K, filed with the SEC, on April 27, 2020, April 29, 2020, July 29, 2020, July 31, 2020, September 9, 2020, September 18, 2020 e 29 settembre 2020; e
the description of our securities registered pursuant to Section 12 of the Exchange Act contained in Exhibit 4.3 to our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 19, 2020, including any amendment or report filed for the purpose of updating such description.

We will furnish without charge to you, on written or oral request, a copy of any or all of the documents incorporated by reference in this prospectus, including exhibits to these documents. You should direct any requests for documents to Arcutis Biotherapeutics, Inc., Attn: VP Investor Relations & Corporate Communications, 2495 Townsgate Road, Suite 110, Westlake Village, CA 91361; Telephone: (805) 418-5006; E-mail: information@arcutis.com.

You also may access these filings on our website at www.arcutis.com. We do not incorporate the information on our website into this prospectus or any supplement to this prospectus and you should not consider any information on, or that can be accessed through, our website as part of this prospectus or any supplement to this prospectus (other than those filings with the SEC that we specifically incorporate by reference into this prospectus or any supplement to this prospectus).

Any statement contained in a document incorporated or deemed to be incorporated by reference in this prospectus will be deemed modified, superseded or replaced for purposes of this prospectus to the extent that a statement contained in this prospectus modifies, supersedes or replaces such statement.


4,000,000 Shares

Arcutis Biotherapeutics, Inc.

image011.jpg

Common Stock

____________________________________

PROSPECTUS

____________________________________

Goldman Sachs & Co. LLC Cowen Guggenheim Securities
Truist Securities Cantor

____________________________________

Prospectus dated            , 2020


PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.

The following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable by the registrant in connection with the sale of common stock being registered. All amounts are estimates except for the U.S. Securities and Exchange Commission, or the SEC, registration fee, and the Financial Institution Regulatory Association, or FINRA, filing fee.

Item Amount paid or to be paid
SEC registration fee $ 15,978
FINRA listing fee 18,965

Printing and engraving expenses

75,000
Legal fee and expenses 300,000
Accounting fees and expenses 130,000
Transfer agent and registrar fees and expenses 2,500
Miscellaneous expenses 7,557

Totale

$ 550,000

ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS.

Section 145 of the Delaware General Corporation Law, or DGCL, authorizes a court to award, or a corporation’s board of directors to grant, indemnity to directors and officers under certain circumstances and subject to certain limitations. The terms of Section 145 of the DGCL are sufficiently broad to permit indemnification under certain circumstances for liabilities, including reimbursement of expenses incurred, arising under the Securities Act of 1933, as amended, or the Securities Act.

As permitted by the DGCL, the Registrant’s restated certificate of incorporation contains provisions that eliminate the personal liability of its directors for monetary damages for any breach of fiduciary duties as a director, except liability for the following:

any breach of the director’s duty of loyalty to the Registrant or its stockholders;

acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;

under Section 174 of the DGCL (regarding unlawful dividends and stock purchases); o

any transaction from which the director derived an improper personal benefit.

As permitted by the DGCL, the Registrant’s restated bylaws provide that:

the Registrant is required to indemnify its directors and executive officers to the fullest extent permitted by the DGCL, subject to limited exceptions;

the Registrant may indemnify its other employees and agents as set forth in the DGCL;

the Registrant is required to advance expenses, as incurred, to its directors and executive officers in connection with a legal proceeding to the fullest extent permitted by the DGCL, subject to limited exceptions; e

the rights conferred in the restated bylaws are not exclusive.


As permitted by the DGCL, the Registrant has entered into separate indemnification agreements with each of the registrant’s directors and certain of the registrant’s officers which require the Registrant, among other things, to indemnify them against certain liabilities which may arise by reason of their status as directors, officers or certain other employees.

The Registrant maintains standard policies of directors’ and officers’ liability insurance under which coverage is provided to its directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act.

The indemnification provisions in the Registrant’s restated certificate of incorporation, restated bylaws and the indemnification agreements entered into or to be entered into between the Registrant and each of its directors and executive officers may be sufficiently broad to permit indemnification of the Registrant’s directors and executive officers for liabilities arising under the Securities Act.

The underwriting agreement between the registrant and the underwriters to be filed as Exhibit 1.1 to this registration statement provides for the indemnification by the underwriters of the Registrant’s directors and officers and certain controlling persons against specified liabilities, including liabilities under the Securities Act with respect to information provided by the underwriters specifically for inclusion in the registration statement.

ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES.

The following lists set forth information regarding all securities sold or granted by the Registrant since January 1, 2017 that were not registered under the Securities Act:

(1)The Registrant has granted stock options to its employees, directors, consultants and other service providers covering an aggregate of 5,008,274 shares of common stock, at a weighted-average exercise price of $8.75 per share.

(2)The Registrant issued restricted stock units, or RSUs, representing an aggregate of 163,560 shares of common stock.

(3)The Registrant sold an aggregate of 1,331,427 shares of common stock to employees, directors, consultants and other service providers for cash consideration in the aggregate amount of $1.0 million pursuant to stock options and restricted stock unit awards.

(4)In October 2019, the Registrant issued and sold to eleven accredited investors an aggregate of 8,122,963 shares of Series C convertible preferred stock at a purchase price of $11.63 per share, for aggregate consideration of approximately $94.5 million.

(5)In September 2018, the Registrant issued and sold to eight accredited investors an aggregate of 9,364,850 shares of Series B convertible preferred stock at a purchase price of $6.19 per share, for aggregate consideration of approximately $58.0 million.

(6)In April 2017 and March 2018, the Registrant issued and sold to ten accredited investors an aggregate of 6,897,575 shares of Series A convertible preferred stock at a purchase price of $2.00 per share, for aggregate consideration of approximately $13.5 million.

Unless otherwise stated, the issuances of above securities were deemed to be exempt from registration under the Securities Act in reliance upon Section 4(a)(2) of the Securities Act or Regulation D promulgated thereunder, or Rule 701 promulgated under Section 3(b) of the Securities Act as transactions by an issuer not involving any public offering or pursuant to benefit plans and contracts relating to compensation as provided under Rule 701.

None of the foregoing transactions involved any underwriters, underwriting discounts or commissions or any public offering, and the Registrant believes each transaction was exempt from the registration requirements of the Securities Act as stated above. All recipients of the foregoing transactions either


received adequate information about the Registrant or had access, through their relationships with the Registrant, to such information. Furthermore, the Registrant affixed appropriate legends to the share certificates and instruments issued in each foregoing transaction setting forth that the securities had not been registered and the applicable restrictions on transfer.

ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

(a) Exhibits. The following documents are filed as exhibits to this registration statement.

Incorporated by Reference
Exhibit Number Exhibit Description Form Date Number Filed Herewith
1.1 X
3.1 10-Q 5/12/2020 3.1
3.2 10-Q 5/12/2020 3.2
4.1 S-1/A 1/21/2020 4.1
4.2† S-1/A 1/21/2020 4.2
5.1 X
10.1# S-1 1/6/2020 10.1
10.2# S-1 1/6/2020 10.2
10.3# S-1/A 1/21/2020 10.3
10.4# S-1/A 1/21/2020 10.4
10.5# S-1/A 1/21/2020 10.5
10.6# S-1/A 1/21/2020 10.6
10.7# S-1/A 1/21/2020 10.7
10.8# S-1/A 1/21/2020 10.8
10.9# S-1/A 1/21/2020 10.9
10.10# S-1/A 1/21/2020 10.10
10.11# 8-K 1/21/2020 10.1
10.12# S-1 1/6/2020 10.11
10.13† S-1 1/6/2020 10.12
10.14† S-1 1/6/2020 10.13
10.15† S-1 1/6/2020 10.14

10.16# S-1 1/6/2020 10.15
10.17 S-1 1/6/2020 10.16
10.18# S-1/A 1/21/2020 10.17
10.19# S-1/A 1/21/2020 10.18
10.20# S-1/A 1/21/2020 10.19
10.21# S-1/A 1/21/2020 10.2
10.22# S-1/A 1/21/2020 10.21
10.23# S-1/A 1/21/2020 10.22
10.24# 8-K 7/29/2020 10.2
10.25 10-Q 8/11/2020 10.25
10.26 10-Q 8/11/2020 10.26
23.1 X
23.2 X
24.1 X

________________

†    Portions of the exhibit, marked by brackets, have been omitted because the omitted information (i) is not material and (ii) would likely cause competitive harm if publicly disclosed.

#    Indicates management contract or compensatory plan.

(b) Financial statement schedules. Schedules not listed above have been omitted because the information required to be set forth therein is not applicable or is shown in the Financial Statements or notes thereto.

ITEM 17. UNDERTAKINGS.

The undersigned Registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification by the Registrant for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registration has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit, or proceeding) is asserted by such director, officer or


controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The Registrant hereby undertakes that:

(1)For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

(2)For purposes of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

The undersigned Registrant hereby undertakes that, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

The undersigned Registrant hereby undertakes that, for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

(1)Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424;

(2)Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant;

(3)The portion of any other free writing prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; e

(4)Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.


SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this Registration Statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in Westlake Village, California, on September 29, 2020.

Arcutis Biotherapeutics, Inc.
By: /s/ Todd Franklin Watanabe

Name:

Todd Franklin Watanabe

Title:

President and Chief Executive Officer

SIGNATURES AND POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose individual signature appears below hereby authorizes and appoints Todd Franklin Watanabe and John W. Smither, and each of them, with full power of substitution and resubstitution and full power to act without the other, as his or her true and lawful attorney-in-fact and agent to act in his or her name, place and stead and to execute in the name and on behalf of each person, individually and in each capacity stated below, and to file any and all amendments to this Registration Statement on Form S-1, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing, ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his substitute or substitutes may lawfully do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Name Title Date
/s/ Todd Franklin Watanabe President, Chief Executive Officer and Director (Principal Executive Officer) 29 settembre 2020
Todd Franklin Watanabe
/s/ John W. Smither Chief Financial Officer
(Principal Accounting and Financial Officer)
29 settembre 2020
John W. Smither
/s/ Patrick J. Heron Director, Chair 29 settembre 2020
Patrick J. Heron
/s/ Alexander G. Asam Director 29 settembre 2020
Alexander G. Asam, Ph.D.
/s/ Bhaskar Chaudhuri Director 29 settembre 2020
Bhaskar Chaudhuri, Ph.D.
/s/ Halley E. Gilbert Director 29 settembre 2020
Halley E. Gilbert
/s/ Jonathan T. Silverstein Director 29 settembre 2020
Jonathan T. Silverstein, J.D.
/s/ Ricky Sun Director 29 settembre 2020
Ricky Sun, Ph.D.
/s/ Joseph Turner Director 29 settembre 2020
Joseph Turner
/s/ Howard G. Welgus Director 29 settembre 2020
Howard G. Welgus, M.D.

Arcutis Biotherapeutics, Inc.

Common Stock, Par Value $0.0001 per Share

Underwriting Agreement

(l), 2020

Goldman Sachs & Co. LLC, and

Cowen and Company, LLC

Guggenheim Securities, LLC

As representatives (the “Representatives”) of the several Underwriters

named in Schedule I hereto,

c/o Goldman Sachs & Co. LLC

200 West Street

New York, New York 10282

c/o Cowen and Company, LLC

599 Lexington Avenue

New York, New York 10022

Guggenheim Securities, LLC

330 Madison Avenue

New York, New York 10017

Ladies and Gentlemen:

Arcutis Biotherapeutics, Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and conditions stated in this agreement (this “Agreement”), to issue and sell to the underwriters named in Schedule I hereto (the “Underwriters”) an aggregate of (l) shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”, and such shares the “Firm Shares”) and, at the election of the Underwriters, up to (l) additional shares (the “Optional Shares”) of Common Stock (the Firm Shares and the Optional Shares that the Underwriters elect to purchase pursuant to Section 2 hereof being collectively called the “Shares”).

1.    The Company represents and warrants to, and agrees with, each of the Underwriters that:

(a)    A registration statement on Form S-1 (File No. 333-(l)) (the “Initial Registration Statement”) in respect of the Shares has been filed with the Securities and Exchange Commission (the “Commission”); the Initial Registration Statement and any post-effective amendment thereto, each in the form heretofore delivered to you, have been declared effective by the Commission in such form; other than a registration statement, if any, increasing the size of the offering (a “Rule 462(b) Registration Statement”), filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended (the “Act”), which became effective upon filing, no other document with respect to the Initial Registration Statement or documents incorporated by reference therein has been filed with the Commission; and no stop order suspending the effectiveness of the Initial Registration Statement, any post-effective amendment thereto or the Rule 462(b) Registration Statement, if any, has been issued and no proceeding for that purpose or pursuant to Section 8A of the Act has been initiated or, to the Company’s knowledge, threatened by the Commission (any preliminary prospectus included in the Initial Registration Statement or filed with the


Commission pursuant to Rule 424(a) of the rules and regulations of the Commission under the Act is hereinafter called a “Preliminary Prospectus”; the various parts of the Initial Registration Statement and the Rule 462(b) Registration Statement, if any, including all exhibits thereto and including the information contained in the form of final prospectus filed with the Commission pursuant to Rule 424(b) under the Act in accordance with Section 5(a) hereof and deemed by virtue of Rule 430A under the Act to be part of the Initial Registration Statement at the time it was declared effective, each as amended at the time such part of the Initial Registration Statement became effective or such part of the Rule 462(b) Registration Statement, if any, became or hereafter becomes effective, are hereinafter collectively called the “Registration Statement”; the Preliminary Prospectus relating to the Shares that was included in the Registration Statement immediately prior to the Applicable Time (as defined in Section 1(c) hereof) is hereinafter called the “Pricing Prospectus”; such final prospectus, in the form first filed pursuant to Rule 424(b) under the Act, is hereinafter called the “Prospectus”; any reference herein to any Preliminary Prospectus, the Pricing Prospectus or the Prospectus shall be deemed to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-1 under the Act, as of the date of such prospectus; any oral or written communication with potential investors undertaken in reliance on Section 5(d) of the Act or Rule 163B under the Act is hereinafter called a “Testing-the-Waters Communication”; any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Act is hereinafter called a “Written Testing-the-Waters Communication”; and any “issuer free writing prospectus” as defined in Rule 433 under the Act relating to the Shares is hereinafter called an “Issuer Free Writing Prospectus”);

(b)    (A) No order preventing or suspending the use of any Preliminary Prospectus or any Issuer Free Writing Prospectus has been issued by the Commission, and (B) each Preliminary Prospectus, at the time of filing thereof, conformed in all material respects to the requirements of the Act and the rules and regulations of the Commission thereunder, and did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with the Underwriter Information (as defined in Section 9(b) of this Agreement);

(c)    For the purposes of this Agreement, the “Applicable Time” is (l) p.m. (Eastern time) on the date of this Agreement. The Pricing Prospectus, as supplemented by the information listed on Schedule II(c) hereto, taken together (collectively, the “Pricing Disclosure Package”), as of the Applicable Time, did not, and as of each Time of Delivery (as defined in Section 4(a) of this Agreement) will not, include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and each Issuer Free Writing Prospectus and each Written Testing-the-Waters Communication does not conflict with the information contained in the Registration Statement, the Pricing Prospectus or the Prospectus, each Issuer Free Writing Prospectus and each Written Testing-the-Waters Communication, as supplemented by and taken together with the Pricing Disclosure Package, as of the Applicable Time, did not , and as of each Time of Delivery will not, include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to statements or omissions made in reliance upon and in conformity with the Underwriter Information;

(d)    The documents incorporated by reference in the Pricing Prospectus and the Prospectus, when they became effective or were filed with the Commission, as the case may be,


conformed in all material respects to the requirements of the Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as applicable, and the rules and regulations of the Commission thereunder, and none of such documents contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and no such or any other documents were filed with the Commission since the Commission’s close of business on the business day immediately prior to the date of this Agreement and prior to the execution of this Agreement, except as set forth on Schedule II(b) hereto;

(e)    The Registration Statement conforms, and the Prospectus and any further amendments or supplements to the Registration Statement and the Prospectus will conform, in all material respects to the requirements of the Act and the rules and regulations of the Commission thereunder and do not and will not, as of the applicable effective date as to each part of the Registration Statement, as of the applicable filing date as to the Prospectus and any amendment or supplement thereto, and as of each Time of Delivery, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with the Underwriter Information;

(f)    The Company has not, since the date of the latest audited financial statements included or incorporated by reference in the Pricing Prospectus, (i) sustained any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree or (ii) entered into any transaction or agreement (whether or not in the ordinary course of business) that is material to the Company or incurred any liability or obligation, direct or contingent, that is material to the Company, other than as set forth or contemplated in the Pricing Prospectus; and, since the respective dates as of which information is given in the Registration Statement and the Pricing Prospectus, there has not been (x) any change in the capital stock of the Company (other than as a result of (i) the exercise, if any, of stock options or the award, if any, of stock options, restricted stock or other awards in the ordinary course of business pursuant to the Company’s equity plans that are described in the Pricing Prospectus and the Prospectus or (ii) the issuance, if any, of shares of Common Stock upon conversion of Company securities as described in the Pricing Prospectus and the Prospectus), short-term or long-term debt of the Company, or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock or (y) any Material Adverse Effect (as defined below); as used in this Agreement, “Material Adverse Effect” shall mean any material adverse change or effect, or any development involving a prospective material adverse change or effect, in or affecting (i) the business, properties, general affairs, management, financial position, stockholders’ equity, results of operations or prospects of the Company, except as set forth or contemplated in the Pricing Prospectus, or (ii) the ability of the Company to perform its obligations under this Agreement, including the issuance and sale of the Shares, or to consummate the transactions contemplated in the Pricing Prospectus and the Prospectus;

(g)    The Company does not own any real property and the Company has good and marketable title to all personal property owned by it (other than with respect to Intellectual Property (as defined below), which is addressed exclusively in subsection (ll)) which is material to the business of the Company, free and clear of all liens, encumbrances and defects except such as are described in the Pricing Prospectus or such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company; and any real property and buildings held under lease by the Company are held by the Company, to its knowledge, under valid, subsisting and enforceable leases with such exceptions as are not material and do not materially interfere with the use made and currently proposed to be made of such property and buildings by the Company;


(h)    The Company has been (i) duly organized and is validly existing and in good standing under the laws of its jurisdiction of organization, with power and authority (corporate and other) to own and/or lease its properties and conduct its business as described in the Pricing Prospectus, and (ii) duly qualified as a foreign corporation for the transaction of business and is in good standing (where such concept exists) under the laws of each other jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, except, in the case of this clause (ii), where the failure to be so qualified or in good standing would not, individually or in the aggregate, have a Material Adverse Effect;

(i)    The Company has no subsidiaries;

(j)    The Company has an authorized capitalization as set forth in the Pricing Prospectus and all of the issued shares of capital stock of the Company have been duly and validly authorized and issued and are fully paid and non-assessable and conform in all material respects to the description of the capital stock contained in the Pricing Disclosure Package and Prospectus;

(k)    The Shares to be issued and sold by the Company to the Underwriters hereunder have been duly and validly authorized and, when issued and delivered against payment therefor as provided herein, will be duly and validly issued and fully paid and non-assessable and will conform in all material respects to the description of the Common Stock contained in the Pricing Disclosure Package and the Prospectus; and the issuance of the Shares is not subject to any preemptive or similar rights except as have been validly waived or complied with;

(l)    The issue and sale of the Shares and the compliance by the Company with this Agreement and the consummation of the transactions contemplated in this Agreement and the Pricing Prospectus will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, (A) any indenture, mortgage, deed of trust, loan agreement, license, lease or other agreement or instrument to which the Company is a party or by which the Company is bound or to which any of the property or assets of the Company is subject, (B) the certificate of incorporation or by-laws (or other applicable organizational document) of the Company, or (C) any statute or any judgment, order, rule or regulation of any court or governmental agency or body having jurisdiction over the Company or any of its properties, except, in the case of clauses (A) and (C), for such defaults, breaches, or violations that would not, individually or in the aggregate, have a Material Adverse Effect; and no consent, approval, authorization, order, registration or qualification of or with any such court or governmental agency or body is required for the issue and sale of the Shares or the consummation by the Company of the transactions contemplated by this Agreement, except such as have been obtained under the Act, the approval by the Financial Industry Regulatory Authority (“FINRA”) of the underwriting terms and arrangements and such consents, approvals, authorizations, registrations or qualifications as may be required under state securities or Blue Sky laws in connection with the purchase and distribution of the Shares by the Underwriters;

(m)    The Company is not (i) in violation of its certificate of incorporation or by-laws (or other applicable organizational document), (ii) in violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body having jurisdiction over the Company or any of its properties or assets, or (iii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the performance or observance of any obligation, agreement, term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement, license, lease or other agreement or instrument to which it is a party or by which it or any of its properties or


assets may be bound, except, in the case of the foregoing clauses (ii) and (iii), for such violations or defaults as would not, individually or in the aggregate, have a Material Adverse Effect;

(n)    The statements set forth in the Pricing Prospectus and the Prospectus under the caption “Description of Capital Stock”, insofar as they purport to constitute a summary of the terms of the Stock, under the caption “Material U.S. Federal Income Tax Consequences to Non-U.S. Holders” and under the caption “Underwriting”, insofar as they purport to describe the provisions of the laws and documents referred to therein, are accurate, complete and fair in all material respects;

(o)    Other than as set forth in the Pricing Prospectus, there are no legal or governmental proceedings pending to which the Company, to the Company’s knowledge, any officer or director of the Company, is a party or of which any property or assets of the Company is the subject which, if determined adversely to the Company (or such officer or director), would individually or in the aggregate have a Material Adverse Effect; and, to the Company’s knowledge, no such proceedings are threatened or contemplated by governmental authorities or others;

(p)    The Company is not and, after giving effect to the offering and sale of the Shares and the application of the proceeds as described in the Pricing Prospectus, will not be, required to register as an “investment company”, as such term is defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”);

(q)    At the time of filing the Initial Registration Statement and any post-effective amendment thereto, at the earliest time thereafter that the Company or any offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the Act) of the Shares, and at the date hereof, the Company was not and is not an “ineligible issuer,” as defined under Rule 405 under the Act;

(r)    Ernst & Young LLP, who has certified certain financial statements of the Company, is an independent public accounting firm as required by the Act and the rules and regulations of the Commission thereunder;

(s)    There are no off-balance sheet arrangements (as defined in Regulation S-K Item 303(a)(4)(ii) of the Act) that have or are reasonably likely to have a material current or future effect on the Company’s financial condition, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources;

(t)    The Company maintains a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act that (i) complies with the requirements of the Exchange Act applicable to the Company, (ii) has been designed by the Company’s principal executive officer and principal financial officer, or under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and (iii) is designed to provide reasonable assurance that (A) transactions are executed in accordance with management’s general or specific authorization, (B) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets, (C) access to assets is permitted only in accordance with management’s general or specific authorization and (D) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences ; and the Company’s internal control over financial reporting is effective and the Company is not aware of any material weaknesses in its internal control over financial reporting (it being understood that this subsection shall


not require the Company to comply with Section 404 of the Sarbanes Oxley Act of 2002 as of an earlier date than it would otherwise be required to so comply under applicable law);

(u)    Since the date of the latest audited financial statements included or incorporated by reference in the Pricing Prospectus, there has been no change in the Company’s internal control over financial reporting that has materially and adversely affected, or is reasonably likely to materially and adversely affect, the Company’s internal control over financial reporting;

(v)    The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that comply with the requirements of the Exchange Act applicable to the Company; such disclosure controls and procedures have been designed to ensure that material information relating to the Company is made known to the Company’s principal executive officer and principal financial officer by others within the Company; and such disclosure controls and procedures are effective in all material respects;

(w)    The Company has all requisite corporate power and authority to execute and deliver, and to perform its obligations under, this Agreement. This Agreement has been duly authorized, executed and delivered by the Company;

(x)    None of the Company or any of its directors or officers, nor, to the knowledge of the Company, any agent, employee, affiliate or other person associated with or acting on behalf of the Company has (i) made, offered, promised or authorized any unlawful contribution, gift, entertainment or other unlawful expense (or taken any act in furtherance thereof); (ii) made, offered, promised or authorized any direct or indirect unlawful payment; or (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or anti-corruption law. The Company has instituted, maintains and enforces, and will continue to maintain and enforce, policies and procedures designed to promote and achieve compliance with all applicable anti-bribery and anti-corruption laws;

(y)    The operations of the Company are and have been conducted at all times in compliance with the requirements of applicable anti-money laundering laws, including, but not limited to, the Bank Secrecy Act of 1970, as amended by the USA PATRIOT ACT of 2001, and the rules and regulations promulgated thereunder, and the anti-money laundering laws of the various jurisdictions in which the Company conducts business (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened;

(z)    The Company is and at all times has been in compliance in all material respects with all applicable foreign, federal, state and local healthcare laws, rules and regulations, including, without limitation, (i) the Federal Food, Drug, and Cosmetic Act (21 U.S.C. §§ 301 et seq.); (ii) all healthcare related fraud and abuse laws, including, without limitation, the federal Anti-kickback Statute (42 U.S.C. § 1320a-7b(b)), the civil False Claims Act (31 U.S.C. §§ 3729 et seq.), the criminal False Claims Law (42 U.S.C. § 1320a-7b(a)), the civil monetary penalties law (42 U.S.C. § 1320a-7a), the exclusion law (42 U.S.C. § 1320a-7), the Physician Payments Sunshine Act (42 U.S.C. § 1320a-7h), all criminal laws relating to healthcare fraud and abuse, including but not limited to 18 U.S.C. Sections 286, 287, 1035, 1347 and 1349, the healthcare fraud criminal provisions under the U.S. Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) (42 U.S.C. §§1320d et seq.), the Medicare statute (Title XVIII of the Social Security Act), and the Medicaid statute (Title XIX of the Social Security Act);


and (iii) the patient privacy, data security and breach notification provisions under HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act of 2009 (42 U.S.C. §§17921 et seq.); each as amended and the regulations promulgated pursuant to such laws (collectively, “Healthcare Laws”). The Company has not received written notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any arbitrator, court, governmental body, regulatory body, administrative agency, or other authority, body, or agency having jurisdiction over the Company (each, a “Governmental Entity”) or third party alleging that any product operation or activity is in violation of any Healthcare Laws, and, to the Company’s Knowledge, no such claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action is threatened, except in each case as would not, individually or in the aggregate, have a Material Adverse Effect. The Company is not party to and does not have any ongoing reporting obligations pursuant to any corporate integrity agreement, deferred prosecution agreement, monitoring agreement, consent decree, settlement order, plan of correction or similar agreement with or imposed by any governmental or regulatory authority. Additionally, neither the Company, nor any of its employees, officers or directors, or to the Company’s knowledge, agents, is or has been excluded, suspended, debarred or is otherwise ineligible from participation in any U.S. state or federal healthcare program or human clinical research or, to the knowledge of the Company, is subject to a governmental inquiry, investigation, proceeding, or other similar action that could reasonably be expected to result in debarment, suspension, or exclusion;

(aa)    The Company possesses such material permits, licenses, approvals, consents, exemptions, registrations, and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate Governmental Entities necessary to conduct the business now operated by them. The Company is in material compliance with the terms and conditions of all Governmental Licenses, and all Governmental Licenses are valid and in full force and effect. The Company has not received any notice of proceedings relating to the revocation or material modification of any Governmental Licenses;

(bb)    The Company: (i) has not received any Form 483, notice of adverse finding, warning letter, untitled letter or other written correspondence, or to the Company’s knowledge any oral or other notice from any governmental authority alleging or asserting material noncompliance with any Healthcare Laws or the terms of any Governmental Licenses; (ii) has not received written notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any governmental authority or third party alleging that any product operation or activity is in violation of any Healthcare Laws or Governmental Licenses and have no knowledge that any such governmental authority or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding, except in each case as would not, individually or in the aggregate, have a Material Adverse Effect; (iii) (a) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required by any Healthcare Laws or Governmental Licenses, (b) all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were complete and correct and not misleading in all material respects on the date filed (or were corrected or supplemented by a subsequent submission), and (c) the Company is not aware of any reasonable basis for any material liability with respect to such filings; and (iv) has not, and to the knowledge of the Company, the Company’s officers, employees and agents have not, made any untrue statement of a material fact or fraudulent statement to any Governmental Entity or failed to disclose a material fact required to be disclosed to any Governmental Entity;

(cc)    The preclinical tests and clinical trials that are described in the Registration Statement or Pricing Prospectus were and, if still pending, are being conducted in all material respects in accordance with all applicable Healthcare Laws, including the Federal Food, Drug, and Cosmetic Act and


the regulations set forth at 21 C.F.R. Parts 50, 54, 56, 58 and 312; the Company has no knowledge of any studies or tests the results of which are inconsistent with, or otherwise call into question, the results described in the Pricing Prospectus; and the Company has not received any written notices or other correspondence from any Governmental Entity requiring the termination, suspension or material modification of any preclinical tests or clinical trials;

(dd)    None of the Company nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company is currently the subject or the target of any sanctions administered or enforced by the U.S. Government, including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”), or the U.S. Department of State and including, without limitation, the designation as a “specially designated national” or “blocked person,” the European Union, Her Majesty’s Treasury, the United Nations Security Council, or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company located, organized or resident in a country or territory that is the subject or target of Sanctions, and the Company will not directly or indirectly use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person, or in any country or territory, that, at the time of such funding, is the subject or the target of Sanctions or (ii) in any other manner that will result in a violation by any person (including any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions;

(ee)    The financial statements included or incorporated by reference in the Registration Statement, the Pricing Prospectus and the Prospectus, together with the related schedules and notes, present fairly, in all material respects, the financial position of the Company at the dates indicated and the statement of operations, stockholders’ equity and cash flows of the Company for the periods specified; said financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods involved. The supporting schedules, if any, present fairly in accordance with GAAP the information required to be stated therein. The selected financial data and the summary financial information included in the Registration Statement, the Pricing Prospectus and the Prospectus present fairly in all material respects the information shown therein and have been compiled on a basis consistent with that of the audited financial statements included therein. Except as included therein, no historical or pro forma financial statements or supporting schedules are required to be included in the Registration Statement, the Pricing Prospectus or the Prospectus under the Act or the rules and regulations promulgated thereunder;

(ff)    There are (and prior to each Time of Delivery, will be) no debt securities, convertible securities or preferred stock issued or guaranteed by the Company that are rated by a “nationally recognized statistical rating organization”, as such term is defined in Section 3(a)(62) under the Exchange Act;

(gg)    From the time of initial confidential submission of the registration statement relating to the Company’s initial public offering with the Commission through the date hereof, the Company has been and is an “emerging growth company” as defined in Section 2(a)(19) of the Act (an “Emerging Growth Company”);

(hh)    There are no persons with registration rights or other similar rights to have any securities registered pursuant to the Registration Statement or otherwise registered by the Company under the Act except as have been validly waived or complied with;


(ii)    The Company’s information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the Company as currently conducted, and, to the knowledge of the Company, are free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company has implemented and maintained commercially reasonable controls, policies, procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and data (including all personal, personally identifiable, sensitive, confidential or regulated data (“Personal Data”)) used in connection with its businesses, and there have been no breaches, violations, outages or unauthorized uses of or accesses to the same, except for those that have been remedied without material cost or liability or the duty to notify any other person, nor any incidents under internal review or investigations relating to the same. The Company is presently, and at all times has been, in material compliance with all applicable data privacy and security laws and regulations, including the European Union General Data Protection Regulation) (EU 2016/679), and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data , and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification, except as would not, individually or in the aggregate, have a Material Adverse Effect. The Company has taken or is currently taking all necessary actions to comply with all other applicable laws and regulations with respect to Personal Data that have been announced as of the date hereof as becoming effective within 12 months after the date hereof, and for which any non-compliance with the same would be reasonably likely to create a material liability, as soon as reasonably practicable as they take effect. ;

(jj)    The Company has filed all tax returns required to be filed by it through the date hereof, or has duly requested extensions thereof (except where the failure to file would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect), and has paid all taxes shown as due thereon (except for cases in which the failure to file or pay would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or, except as currently being contested in good faith and for which reserves required by U.S. GAAP have been created in the financial statements of the Company), and all such tax returns are true and correct in all material respects. No deficiencies for taxes of the Company has been assessed by a tax authority, and no deficiencies for taxes of the Company has, to the Company’s knowledge, been proposed by a tax authority, except for such deficiencies as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;

(kk)    The Company owns, or has obtained valid and enforceable licenses for, the inventions, patent applications, patents, trademarks, trade names, service names, copyrights, know-how, trade secrets and other intellectual property described in the Registration Statement and the Prospectus as being owned or licensed by the Company or which are necessary for the conduct of the Company’s business as currently conducted or as currently proposed to be conducted in the Registration Statement and the Prospectus (collectively, “Intellectual Property”), and there are no unreleased liens or security interests which have been filed against any of the patents owned by the Company. To the Company’s knowledge: (i) there are no third parties who have rights to any Intellectual Property, except for customary reversionary rights of third-party licensors with respect to Intellectual Property that is disclosed in the Registration Statement and the Prospectus as licensed to the Company, and the Company has taken all reasonable steps necessary to secure their respective interests in the Intellectual Property from its employees and contractors; (ii) there is no infringement, misappropriation or violation by third parties of any Intellectual Property; (iii) the Company is not infringing, misappropriating or violating the


intellectual property rights of third parties; (iv) the Company is the sole owner of the Intellectual Property owned by it and has the valid right to use such Intellectual Property; and (v) no employee of the Company is in or has been in violation of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee’s employment with the Company. There is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others: (A) challenging the Company’s rights in or to any Intellectual Property, and the Company is unaware of any facts which would form a reasonable basis for any such action, suit, proceeding or claim; (B) challenging the validity, enforceability or scope of any Intellectual Property, and the Company is unaware of any facts which would form a reasonable basis for any such action, suit, proceeding or claim; or (C) asserting that either the Company infringes or otherwise violates, or would, upon the commercialization of any product or service described in the Registration Statement and the Prospectus as under development, infringe, misappropriate or violate, any patent, trademark, trade name, service name, copyright, trade secret or other proprietary rights of others, and the Company is unaware of any facts which would form a reasonable basis for any such action, suit, proceeding or claim. The Company has complied with the terms of each agreement pursuant to which Intellectual Property has been licensed to the Company, and all such agreements are in full force and effect. The product candidates described in the Registration Statement and the Prospectus as under development by the Company fall within the scope of the claims of one or more patents or patent applications owned by, or exclusively licensed to, the Company;

(ll)    All patents and patent applications owned by or exclusively licensed to the Company or under which the Company has rights have, to the knowledge of the Company, been duly and properly filed and each issued patent is being diligently maintained; to the knowledge of the Company, the parties prosecuting such applications have complied with their duty of candor and disclosure to the U.S. Patent and Trademark Office (the “USPTO”) in connection with such applications; to the Company’s knowledge, there is no prior art material to any patent or patent application of the Intellectual Property of the Company that may render any U.S. patent held by the Company invalid or any U.S. patent application held by the Company unpatentable; and the Company is not aware of any facts required to be disclosed to the USPTO that were not disclosed to the USPTO and which would preclude the grant of a patent in connection with any such application or would reasonably be expected to form the basis of a finding of invalidity with respect to any patents that have been issued with respect to such applications;

(mm)    (i) the Company (x) is in compliance with all, and has not violated any, applicable federal, state, local and foreign laws, rules, regulations, requirements, decisions, judgments, decrees, orders and other legally enforceable requirements relating to pollution or the protection of human health or safety, the environment, natural resources, hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (y) has received and is in compliance with all, and have not violated any, permits, licenses, certificates or other authorizations or approvals required of it under any Environmental Laws to conduct its businesses; and (z) has not received written notice of any actual or potential liability by the Company or obligation of the Company under or relating to, or any actual or potential violation of, any Environmental Laws by the Company, including for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, and have no knowledge of any event or condition that would reasonably be expected to result in any such notice, and (ii) there are no costs or liabilities associated with Environmental Laws of or relating to the Company, except in the case of each of (i) and (ii) above, for any such matter as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and (iii) except as described in each of the Registration Statement, the Pricing Disclosure Package and the Prospectus, (x) there is no proceeding that is pending, or that is known by the Company to be


contemplated, against the Company under any Environmental Laws in which a governmental entity is also a party, other than such proceeding regarding which the Company reasonably believes no monetary sanctions of $100,000 or more will be imposed, (y) the Company is not aware of any facts or issues regarding compliance with Environmental Laws, or liabilities or other obligations under Environmental Laws or concerning hazardous or toxic substances or wastes, pollutants or contaminants, that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, and (z) the Company does not anticipate material capital expenditures relating to any Environmental Laws;

(nn)    No labor disturbance by or dispute with the employees of the Company exists or, to the knowledge of the Company, is contemplated or threatened, and the Company is not aware of any existing or imminent labor disturbance by, or dispute with, the employees of any of its principal suppliers, manufacturers, customers or contractors, which, in either case, would, individually or in the aggregate, result in a Material Adverse Effect;

(oo)    (i) Except as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), for which the Company or any member of its “Controlled Group” (defined as any entity, whether or not incorporated, that is under common control with the Company within the meaning of Section 4001(a)(14) of ERISA or any entity that would be regarded as a single employer with the Company under Section 414(b),(c),(m) or (o) of the Internal Revenue Code of 1986, as amended (the “Code”)) would have any liability (each, a “Plan”) has been maintained in material compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan, excluding transactions effected pursuant to a statutory or administrative exemption; (ii) none of the Plans are subject to Section 412 of the Code or Section 302 or Title IV of ERISA; (iv) neither the Company nor any member of the Controlled Group has incurred, nor reasonably expects to incur, any material liability under Title IV of ERISA in respect of a Plan (including a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA); and (v) each Plan that is intended to be qualified under Section 401(a) of the Code is so qualified, and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification;

(pp)    There are no business relationships or related-party transactions involving the Company or any other person required to be described in the Preliminary Prospectus or the Prospectus that have not been described as required;

(qq)    The Company has insurance against such losses and risks and in such amounts as are, in the Company’s reasonable judgment, prudent and customary for the size of the business and the industry in which it is engaged and the Company has not received notice from any insurer or agent of such insurer that capital improvements or other expenditures are required or necessary to be made in order to continue such insurance nor does the Company have any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage at reasonable cost from similar insurers as may be necessary to continue its business;

(rr)    The Company is not party to any contract, agreement or understanding with any person (other than this Agreement) that would give rise to a valid claim against any of them or any Underwriter for a brokerage commission, finder’s fee or like payment in connection with the offering and sale of the Shares;


(ss)    The Company has not, and, to its knowledge, no one acting on its behalf (other than any Underwriter) has taken, directly or indirectly, any action designed to or that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Shares;

(tt)    The statistical and market-related data included in the Pricing Prospectus or the Prospectus are based on or derived from sources that the Company believes to be reliable and accurate in all material respects; e

(uu)    The interactive data in XBRL, if any, included or incorporated by reference in the Registration Statement fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto to the extent required

2.    Subject to the terms and conditions herein set forth, (a) the Company agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at a purchase price per share of $(•), the number of Firm Shares set forth opposite the name of such Underwriter in Schedule I hereto and (b) in the event and to the extent that the Underwriters shall exercise the election to purchase Optional Shares as provided below, the Company agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from the Company, at the purchase price per share set forth in clause (a) of this Section 2 (provided that the purchase price per Optional Share shall be reduced by an amount per share equal to any dividends or distributions declared by the Company and payable on the Firm Shares but not payable on the Optional Shares), that portion of the number of Optional Shares as to which such election shall have been exercised (to be adjusted by the Representatives so as to eliminate fractional shares) determined by multiplying such number of Optional Shares by a fraction, the numerator of which is the maximum number of Optional Shares which such Underwriter is entitled to purchase as set forth opposite the name of such Underwriter in Schedule I hereto and the denominator of which is the maximum number of Optional Shares that all of the Underwriters are entitled to purchase hereunder.

The Company hereby grants to the Underwriters the right to purchase at their election up to 450,000 Optional Shares, at the purchase price per share set forth in the paragraph above, for the sole purpose of covering sales of shares in excess of the number of Firm Shares, provided that the purchase price per Optional Share shall be reduced by an amount per share equal to any dividends or distributions declared by the Company and payable on the Firm Shares but not payable on the Optional Shares. Any such election to purchase Optional Shares may be exercised only by written notice from the Representatives to the Company, given within a period of 30 calendar days after the date of this Agreement, setting forth the aggregate number of Optional Shares to be purchased and the date on which such Optional Shares are to be delivered, as determined by the Representatives but in no event earlier than the First Time of Delivery (as defined in Section 4 hereof) or, unless the Representatives and the Company otherwise agree in writing, earlier than two or later than ten business days after the date of such notice.

3.    Upon the authorization by you of the release of the Firm Shares, the several Underwriters propose to offer the Firm Shares for sale upon the terms and conditions set forth in the Pricing Prospectus and the Prospectus.

4.    (a)    The Shares to be purchased by each Underwriter hereunder, in definitive or book-entry form, and in such authorized denominations and registered in such names as the Representatives may request upon at least forty-eight hours’ prior notice to the Company shall be delivered by or on


behalf of the Company to the Representatives, through the facilities of The Depository Trust Company (“DTC”), for the account of such Underwriter, against payment by or on behalf of such Underwriter of the purchase price therefor by wire transfer of Federal (same-day) funds to the account specified by the Company to the Representatives at least forty-eight hours in advance. The time and date of such delivery and payment shall be, with respect to the Firm Shares, 9:30 a.m., New York City time, on (l), 2020 or such other time and date as the Representatives and the Company may agree upon in writing, and, with respect to the Optional Shares, 9:30 a.m., New York time, on the date specified by the Representatives in the written notice given by the Representatives of the Underwriters’ election to purchase such Optional Shares, or such other time and date as the Representatives and the Company may agree upon in writing. Such time and date for delivery of the Firm Shares is herein called the “First Time of Delivery”, such time and date for delivery of the Optional Shares, if not the First Time of Delivery, is herein called the “Second Time of Delivery”, and each such time and date for delivery is herein called a “Time of Delivery”.

(b)    The documents to be delivered at each Time of Delivery by or on behalf of the parties hereto pursuant to Section 8 hereof, including the cross receipt for the Shares and any additional documents requested by the Underwriters pursuant to Section 8(l) hereof, will be delivered at the offices of Cooley LLP at 101 California Street, San Francisco, CA 941111 (the “Closing Location”), and the Shares will be delivered at the office of DTC or its designated custodian, all at such Time of Delivery. A meeting will be held at the Closing Location at (•) p.m., New York City time, on the New York Business Day next preceding such Time of Delivery, at which meeting the final drafts of the documents to be delivered pursuant to the preceding sentence will be available for review by the parties hereto. For the purposes of this Section 4, “New York Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in New York City are generally authorized or obligated by law or executive order to close.

5.    The Company agrees with each of the Underwriters:

(a)    To prepare the Prospectus in a form approved by you and to file such Prospectus pursuant to Rule 424(b) under the Act not later than the Commission’s close of business on the second business day following the execution and delivery of this Agreement, or, if applicable, such earlier time as may be required by Rule 430A(a)(3) under the Act; to make no further amendment or any supplement to the Registration Statement or the Prospectus prior to the last Time of Delivery which shall be disapproved by you promptly after reasonable notice thereof; to advise you, promptly after it receives notice thereof, of the time when any amendment to the Registration Statement has been filed or becomes effective or any amendment or supplement to the Prospectus has been filed and to furnish you with copies thereof; to file promptly all material required to be filed by the Company with the Commission pursuant to Rule 433(d) under the Act; to advise you, promptly after it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of the Registration Statement, any Preliminary Prospectus or other prospectus in respect of the Shares, of the suspension of the qualification of the Shares for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose, including pursuant to Section 8A under the Act, or of any request by the Commission for the amending or supplementing of the Registration Statement or the Prospectus or for additional information; and, in the event of the issuance of any stop order or of any order preventing or suspending the use of the Registration Statement, any Preliminary Prospectus or other prospectus or suspending any such qualification, to promptly use its best efforts to obtain the withdrawal of such order;

(b)    Promptly from time to time to take such action as you may reasonably request to qualify the Shares for offering and sale under the securities laws of such jurisdictions as you may request


and to comply with such laws so as to permit the continuance of sales and dealings therein in such jurisdictions for as long as may be necessary to complete the distribution of the Shares, provided that in connection therewith the Company shall not be required to qualify as a foreign corporation (where not otherwise required) or to file a general consent to service of process in any jurisdiction (where not otherwise required);

(c)    Prior to 10:00 a.m., New York City time, on the New York Business Day next succeeding the date of this Agreement (or such later time as may be agreed to by the Company and the Representatives) and from time to time, to furnish the Underwriters with written and electronic copies of the Prospectus in New York City in such quantities as you may reasonably request, and, if the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is required at any time prior to the expiration of nine months after the time of issue of the Prospectus in connection with the offering or sale of the Shares and if at such time any event shall have occurred as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is delivered, not misleading, or, if for any other reason it shall be necessary during such same period to amend or supplement the Prospectus in order to comply with the Act, to notify you and upon your request to prepare and furnish without charge to each Underwriter and to any dealer in securities as many written and electronic copies as you may from time to time reasonably request of an amended Prospectus or a supplement to the Prospectus which will correct such statement or omission or effect such compliance; and in case any Underwriter is required to deliver a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) in connection with sales of any of the Shares at any time nine months or more after the time of issue of the Prospectus, upon your request but at the expense of such Underwriter, to prepare and deliver to such Underwriter as many written and electronic copies as you may request of an amended or supplemented Prospectus complying with Section 10(a)(3) of the Act;

(d)    To make generally available to its securityholders as soon as practicable (which may be satisfied by filing with the Commission’s Electronic Data Gathering Analysis and Retrieval System (“EDGAR”)), but in any event not later than sixteen months after the effective date of the Registration Statement (as defined in Rule 158(c) under the Act), an earnings statement of the Company (which need not be audited) complying with Section 11(a) of the Act and the rules and regulations of the Commission thereunder (including, at the option of the Company, Rule 158);

(e)    (1) During the period beginning from the date hereof and continuing to and including the date 90 days after the date of the Prospectus (the “Lock-Up Period”), not to (i) offer, sell, contract to sell, pledge, lend, grant any option to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, or file with or confidentially submit to the Commission a registration statement under the Act relating to, any securities of the Company that are substantially similar to the Shares, including but not limited to any options or warrants to purchase shares of Common Stock or any securities that are convertible into or exchangeable for, or that represent the right to receive, Common Stock or any such substantially similar securities, or publicly disclose the intention to make any offer, sale, pledge, loan, disposition, confidential submission or filing or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Common Stock or any such other securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise, without the prior written consent of Goldman Sachs & Co. LLC and Cowen and Company, LLC; provided, however, that the foregoing restrictions shall not apply to (A) the Shares to be sold hereunder or the


issuance of shares of Common Stock by the Company pursuant to the potential concurrent private placement described in each of the Registration Statement, the Pricing Prospectus and the Prospectus, (B) the issuance by the Company of shares of Common Stock upon the exercise (including net exercise) of an option or warrant, vesting or settlement of a restricted stock unit, or the exercise, conversion or exchange of a security outstanding on the date hereof, provided that such option or security is disclosed in or contemplated by the Pricing Prospectus, (C) the grant of options to purchase or the issuance by the Company of Common Stock or any securities convertible into, exchangeable for or that represent the right to receive shares of Common Stock, in each case pursuant to the Company’s equity-based compensation plans disclosed in the Pricing Prospectus, (D) the entry into an agreement providing for the issuance by the Company of shares of Common Stock or any security convertible into or exercisable for shares of Common Stock in connection with the acquisition by the Company of the securities, business, technology, property or other assets of another person or entity or pursuant to an employee benefit plan assumed by the Company in connection with such acquisition, and the issuance of any such securities pursuant to any such agreement, (E) the entry into any agreement providing for the issuance of shares of Common Stock or any security convertible into or exercisable for shares of Common Stock in connection with joint ventures, commercial relationships or other strategic transactions, and the issuance of any such securities pursuant to any such agreement, and (F) the filing of any registration statement on Form S-8 relating to securities granted or to be granted pursuant to the Company’s equity incentive plants that are described in the Pricing Prospectus or any assumed employee benefit plan contemplated by clause (D); provided that in the case of clauses (D) and (E), the aggregate number of shares of Stock that the Company may sell or issue or agree to sell or issue pursuant to clauses (D) and (E) shall not exceed 10% of the total number of shares of Common Stock issued and outstanding, immediately following the completion of the transactions contemplated by this Agreement, and provided, further, that if the recipient is a director or an officer of the Company, in the case of clauses (D) and (E), the Company shall (x) cause such recipient of such securities to execute and deliver to the Representatives, on or prior to the issuance of such securities, a lock-up agreement substantially in the form of Annex I hereto for the remainder of the Lock-Up Period and (y) enter stop transfer instructions with the Company’s transfer agent and registrar on such securities, which the Company agrees it will not waive or amend without the prior written consent of Goldman Sachs & Co. LLC and Cowen and Company, LLC;

(f)    For as long as the Company is subject to the reporting requirements of either Section 13 or Section 15(d) of the Exchange Act, to furnish to its stockholders after the end of each fiscal year within the time period required under the Exchange Act, an annual report (including a balance sheet and statements of operations, stockholders’ equity and cash flows of the Company and its consolidated subsidiaries, if any, certified by independent public accountants) and, within the time period required under the Exchange Act after the end of each of the first three quarters of each fiscal year (beginning with the fiscal quarter ending after the effective date of the Registration Statement), to make available to its stockholders consolidated summary financial information of the Company and its subsidiaries, if any, for such quarter in reasonable detail, provided that no reports, documents or other information needs to be furnished pursuant to this Section 5(f) to the extent they are available on EDGAR;

(g)    During a period of three years from the effective date of the Registration Statement, to furnish to you copies of all reports or other communications (financial or other) furnished to stockholders, and to deliver to you (i) as soon as they are available, copies of any reports and financial statements furnished to or filed with the Commission or any national securities exchange on which any class of securities of the Company is listed; and (ii) such additional information concerning the business and financial condition of the Company as you may from time to time reasonably request (such financial statements to be on a consolidated basis to the extent the accounts of the Company and its subsidiaries, if any, are consolidated in reports furnished to its stockholders generally or to the Commission) provided


that no reports, documents or other information needs to be furnished pursuant to this Section 5(g) to the extent they are available on EDGAR;

(h)    To use the net proceeds received by it from the sale of the Shares pursuant to this Agreement in the manner specified in the Pricing Prospectus under the caption “Use of Proceeds”;

(i)    To use its best efforts to list, subject to notice of issuance, the Shares on The Nasdaq Stock Market LLC (“Nasdaq”);

(j)    To file with the Commission such information on Form 10-Q or Form 10-K as may be required by Rule 463 under the Act;

(k)    If the Company elects to rely upon Rule 462(b), the Company shall file a Rule 462(b) Registration Statement with the Commission in compliance with Rule 462(b) by 10:00 p.m., Washington, D.C. time, on the date of this Agreement, and the Company shall at the time of filing either pay to the Commission the filing fee for the Rule 462(b) Registration Statement or give irrevocable instructions for the payment of such fee pursuant to Rule 111(b) under the Act;

(l)    Upon request of any Underwriter, to furnish, or cause to be furnished, to such Underwriter an electronic version of the Company’s trademarks, servicemarks and corporate logo for use on the website, if any, operated by such Underwriter for the purpose of facilitating the on-line offering of the Shares (the “License”); provided, however, that the License shall be used solely for the purpose described above, is granted without any fee and may not be assigned or transferred;

(m)    To promptly notify you if the Company ceases to be an Emerging Growth Company at any time prior to the later of (i) completion of the distribution of the Shares within the meaning of the Act and (ii) the last Time of Delivery;

(n)    To indemnify and hold harmless the Underwriters against any documentary, stamp, registration or similar issuance tax, including any interest and penalties, on the sale, issuance or delivery of the Shares by the Company to the Underwriters and on the execution and delivery of this Agreement; e

(o)    The Company will not take, directly or. indirectly, any action designed to or that would reasonably be expected to cause or result in any stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Shares.

6.    (a)    The Company represents and agrees that, without the prior consent of the Representatives, it has not made and will not make any offer relating to the Shares that would constitute a “free writing prospectus” as defined in Rule 405 under the Act; each Underwriter represents and agrees that, without the prior consent of the Company and the Representatives, it has not made and will not make any offer relating to the Shares that would constitute a free writing prospectus required to be filed with the Commission; any such free writing prospectus the use of which has been consented to by the Company and the Representatives is listed on Schedule II(a) or Schedule II(c) hereto;

(b)    The Company has complied and will comply with the requirements of Rule 433 under the Act applicable to any Issuer Free Writing Prospectus, including timely filing with the Commission or retention where required and legending; and the Company represents that it has satisfied and agrees that it will satisfy the conditions under Rule 433 under the Act to avoid a requirement to file with the Commission any electronic road show;


(c)    The Company agrees that if at any time following issuance of an Issuer Free Writing Prospectus or Written Testing-the-Waters Communication any event occurred or occurs as a result of which such Issuer Free Writing Prospectus or Written Testing-the-Waters Communication would conflict with the information in the Registration Statement, the Pricing Prospectus or the Prospectus or would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances then prevailing, not misleading, the Company will give prompt notice thereof to the Representatives and, if requested by the Representatives, will prepare and furnish without charge to each Underwriter an Issuer Free Writing Prospectus, Written Testing-the-Waters Communication or other document which will correct such conflict, statement or omission;

(d)    The Company represents and agrees that (i) it has not engaged in, or authorized any other person to engage in, any Testing-the-Waters Communications, other than Testing-the-Waters Communications with the prior consent of the Representatives with entities that are qualified institutional buyers as defined in Rule 144A under the Act or institutions that are accredited investors as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Act; and (ii) it has not distributed, or authorized any other person to distribute, any Written Testing-the-Waters Communications, other than those distributed with the prior consent of the Representatives that are listed on Schedule II(d) hereto; and the Company reconfirms that the Representatives have been authorized to act on its behalf in engaging in Testing-the-Waters Communications;

(e)    Each Underwriter represents and agrees that any Testing-the-Waters Communications undertaken by it were with entities that such Underwriter reasonably believes are qualified institutional buyers as defined in Rule 144A under the Act or institutions that are accredited investors as defined in 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Act; e

(f)    The Company publicly filed the Registration Statement on EDGAR at least 48-hours prior to the time at which the Registration Statement was declared effective by the Commission.

7.    The Company covenants and agrees with the several Underwriters that the Company will pay or cause to be paid the following: (i) the fees, disbursements and expenses of the Company’s counsel and accountants in connection with the registration of the Shares under the Act and all other expenses in connection with the preparation, printing, reproduction and filing of the Registration Statement, any Preliminary Prospectus, any Written Testing-the-Waters Communication, any Issuer Free Writing Prospectus and the Prospectus and amendments and supplements thereto and the mailing and delivering of copies thereof to the Underwriters and dealers; (ii) the cost of printing or producing any Agreement among Underwriters, this Agreement, the Blue Sky Memorandum, closing documents (including any compilations thereof) and any other documents in connection with the offering, purchase, sale and delivery of the Shares; (iii) all expenses in connection with the qualification of the Shares for offering and sale under state securities laws as provided in Section 5(b) hereof, including the fees and disbursements of counsel for the Underwriters in connection with such qualification and in connection with the Blue Sky survey (iv) all fees and expenses in connection with listing the Shares on Nasdaq; (v) the filing fees incident to, and the reasonable fees and disbursements of counsel for the Underwriters in connection with, any required review by FINRA of the terms of the sale of the Shares, provided that the aggregate amount payable by the Company pursuant to clauses (iii) and (v) (excluding filing fees and disbursements) shall not, together, exceed an aggregate of $35,000; (vii) the cost of preparing stock certificates, if applicable; (viii) the cost and charges of any transfer agent or registrar; (ix) the costs and expenses relating to investor presentations on any “road show” undertaken in connection with the marketing of the Shares, including without limitation, expenses associated with the preparation or dissemination of any broadly available


road show, expenses associated with the production of road show slides, graphics and videos, fees and expenses of any consultants engaged in connection with the road show presentations, travel and lodging expenses of the representatives and officers of the Company and any such consultants, and 50% of the cost of any airfare chartered in connection with the road show (the remaining 50% of the cost of such airfare to be paid by the Underwriters); and (x) all other costs and expenses incident to the performance of its obligations hereunder which are not otherwise specifically provided for in this Section, including any stock or other transfer taxes and any stamp or other duties payable upon the sale, issuance or delivery of the Shares to the Underwriters pursuant to this Agreement. It is understood, however, that, except as provided in this Section, and Sections 9, 10 and 13 hereof, the Underwriters will pay all of their own costs and expenses, including the fees of their counsel, stock transfer taxes on resale of any of the Shares by them, and any advertising expenses connected with any offers they may make.

8.    The obligations of the Underwriters hereunder, as to the Shares to be delivered at each Time of Delivery, shall be subject, in their discretion, to the condition that all representations and warranties and other statements of the Company herein are, at and as of the Applicable Time and such Time of Delivery, true and correct, the condition that the Company shall have performed all of its obligations hereunder theretofore to be performed, and the following additional conditions:

(a)    The Prospectus shall have been filed with the Commission pursuant to Rule 424(b) under the Act within the applicable time period prescribed for such filing by the rules and regulations under the Act and in accordance with Section 5(a) hereof; all material required to be filed by the Company pursuant to Rule 433(d) under the Act shall have been filed with the Commission within the applicable time period prescribed for such filing by Rule 433; if the Company has elected to rely upon Rule 462(b) under the Act, the Rule 462(b) Registration Statement shall have become effective by 10:00 p.m., Washington, D.C. time, on the date of this Agreement; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no proceeding for that purpose or pursuant to Section 8A of the Act shall have been initiated or threatened by the Commission; no stop order suspending or preventing the use of the Pricing Prospectus, Prospectus or any Issuer Free Writing Prospectus shall have been initiated or threatened by the Commission; and all requests for additional information on the part of the Commission shall have been complied with to your reasonable satisfaction;

(b)    Cooley LLP, counsel for the Underwriters, shall have furnished to you such written opinion and negative assurance letter, each dated for such Time of Delivery, in form and substance satisfactory to the Representatives, and such counsel shall have received such papers and information as they may reasonably request to enable them to pass upon such matters;

(c)    Latham & Watkins LLP, corporate counsel for the Company, shall have furnished to you their written opinion, including negative assurances, dated for such Time of Delivery, in form and substance satisfactory to the Representatives;

(d)    Rothwell, Figg, Ernst & Manbeck, P.C., intellectual property counsel for the Company, shall have furnished to you their written opinion and negative assurance letter, each dated for such Time of Delivery, in form and substance satisfactory to the Representatives;

(e)    On the date of the Prospectus at a time prior to the execution of this Agreement, at 9:30 a.m., New York City time, on the effective date of any post-effective amendment to the Registration Statement filed subsequent to the date of this Agreement and also at each Time of Delivery, Ernst & Young LLP shall have furnished to you a letter or letters, dated the respective dates of delivery thereof, in form and substance satisfactory to the Representatives;


(f)    (i) The Company shall not have sustained since the date of the latest audited financial statements included or incorporated by reference in the Pricing Prospectus any loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth or contemplated in the Pricing Prospectus, and (ii) since the respective dates as of which information is given in the Pricing Prospectus there shall not have been any change in the capital stock or short-term or long-term debt of the Company or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock or any change or effect, or any development involving a prospective change or effect, in or affecting (x) the business, properties, general affairs, management, financial position, stockholders’ equity, results of operations or prospects of the Company, taken as a whole, except as set forth or contemplated in the Pricing Prospectus and the Prospectus, or (y) the ability of the Company to perform its obligations under this Agreement, including the issuance and sale of the Shares, or to consummate the transactions contemplated in the Pricing Prospectus and the Prospectus, the effect of which, in any such case described in clause (i) or (ii), is in your judgment so material and adverse as to make it impracticable or inadvisable to proceed with the public offering or the delivery of the Shares being delivered at such Time of Delivery on the terms and in the manner contemplated in the Pricing Prospectus and the Prospectus;

(g)    On or after the Applicable Time there shall not have occurred any of the following: (i) a suspension or material limitation in trading in securities generally on the New York Stock Exchange or on Nasdaq; (ii) a suspension or material limitation in trading in the Company’s securities on Nasdaq; (iii) a general moratorium on commercial banking activities declared by either Federal or New York or California State authorities or a material disruption in commercial banking or securities settlement or clearance services in the United States; (iv) the outbreak or escalation of hostilities involving the United States or the declaration by the United States of a national emergency or war or (v) the occurrence of any other calamity or crisis or any change in financial, political or economic conditions in the United States or elsewhere, if the effect of any such event specified in clause (iv) or (v) in your judgment makes it impracticable or inadvisable to proceed with the public offering or the delivery of the Shares being delivered at such Time of Delivery on the terms and in the manner contemplated in the Pricing Prospectus and the Prospectus;

(h)    The Shares to be sold at such Time of Delivery shall have been duly listed for quotation on Nasdaq;

(i)    FINRA shall have raised no objection to the fairness and reasonableness of the underwriting terms and arrangements;

(j)    The Company shall have obtained and delivered to the Underwriters executed copies of an agreement from all officers and directors of the Company and certain securityholders of the Company, substantially to the effect set forth in Annex I hereof in form and substance satisfactory to you;

(k)    The Company shall have complied with the provisions of Section 5(c) hereof with respect to the furnishing of prospectuses on the New York Business Day next succeeding the date of this Agreement;

(l)    The Company shall have furnished or caused to be furnished to you at such Time of Delivery certificates of officers of the Company satisfactory to you as to the accuracy of the representations and warranties of the Company herein at and as of such Time of Delivery, as to the performance by the Company of all of its obligations hereunder to be performed at or prior to such Time


of Delivery, as to the matters set forth in subsections (a) and (g) of this Section and as to such other matters as you may reasonably request; e

(m)    On the date of this Agreement, and at each Time of Delivery, the Company shall have furnished to the Representatives a certificate, dated the respective dates of delivery thereof and addressed to the Underwriters, of its chief financial officer with respect to certain financial data contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, as applicable, providing “management comfort” with respect to such information, in form and substance reasonably satisfactory to the Representatives; e

(n)    At each Time of Delivery, the Representatives shall have received a certificate of the Secretary of the Company, as to such matters as the Representatives may reasonably request.

(9)    (a)    The Company will indemnify and hold harmless each Underwriter against any losses, claims, damages or liabilities, joint or several, to which such Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, any Issuer Free Writing Prospectus, any “roadshow” as defined in Rule 433(h) under the Act (a “roadshow”), any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Act or any Testing-the-Waters Communication, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each Underwriter for any legal or other expenses reasonably incurred by such Underwriter in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus or any Testing-the-Waters Communication, in reliance upon and in conformity with the Underwriter Information.

(b)    Each Underwriter, severally and not jointly, will indemnify and hold harmless the Company against any losses, claims, damages or liabilities to which the Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, or any roadshow or any Testing-the-Waters Communication, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, or any roadshow or any Testing-the-Waters Communication, in reliance upon and in conformity with the Underwriter Information; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such action or claim as such expenses are incurred. As used in this Agreement with respect to an Underwriter and an applicable document, “Underwriter Information” shall mean the written information furnished to the Company by such Underwriter through the Representatives


expressly for use therein; it being understood and agreed upon that the only such information furnished by any Underwriter consists of the following information in the Prospectus furnished on behalf of each Underwriter: the concession and reallowance figures appearing in the (l) paragraph under the caption “Underwriting”, and the information contained in the (l) paragraphs under the caption “Underwriting”.

(c)    Promptly after receipt by an indemnified party under subsection (a) or (b) of this Section 9 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; provided that the failure to notify the indemnifying party shall not relieve it from any liability that it may have under the preceding paragraphs of this Section 9 except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party otherwise than under the preceding paragraphs of this Section 9. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the contrary; (ii) the indemnifying party has failed within a reasonable time to retain counsel reasonably satisfactory to the indemnified party; (iii) the indemnified party shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the indemnifying party; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.

(d)    If the indemnification provided for in this Section 9 is unavailable to or insufficient to hold harmless an indemnified party under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Shares. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable


considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (after deducting any underwriting discounts and commissions but before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the Underwriters on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint.

(e)    The obligations of the Company under this Section 9 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each employee, officer and director of each Underwriter and each person, if any, who controls any Underwriter within the meaning of the Act and each broker-dealer or other affiliate of any Underwriter; and the obligations of the Underwriters under this Section 9 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company (including any person who, with his or her consent, is named in the Registration Statement as about to become a director of the Company) and to each person, if any, who controls the Company within the meaning of the Act.

10.    (a)    If any Underwriter shall default in its obligation to purchase the Shares which it has agreed to purchase hereunder at a Time of Delivery, the Representatives may in the Representatives’ discretion arrange for the Representatives or another party or other parties to purchase such Shares on the terms contained herein. If within thirty-six hours after such default by any Underwriter the Representatives do not arrange for the purchase of such Shares, then the Company shall be entitled to a further period of thirty-six hours within which to procure another party or other parties satisfactory to the Representatives to purchase such Shares on such terms. In the event that, within the respective prescribed periods, the Representatives notify the Company that the Representatives have so arranged for the purchase of such Shares, or the Company notifies the Representatives that it has so arranged for the purchase of such Shares, the Representatives or the Company shall have the right to postpone such Time of Delivery for a period of not more than seven days, in order to effect whatever changes may thereby be made necessary in the Registration Statement or the Prospectus, or in any other documents or arrangements, and the Company agrees to file promptly any amendments or supplements to the Registration Statement or the Prospectus which in your opinion may thereby be made necessary. The term


“Underwriter” as used in this Agreement shall include any person substituted under this Section with like effect as if such person had originally been a party to this Agreement with respect to such Shares.

(b)    If, after giving effect to any arrangements for the purchase of the Shares of a defaulting Underwriter or Underwriters by the Representatives and the Company as provided in subsection (a) above, the aggregate number of such Shares which remains unpurchased does not exceed one-eleventh of the aggregate number of all the Shares to be purchased at such Time of Delivery, then the Company shall have the right to require each non-defaulting Underwriter to purchase the number of shares which such Underwriter agreed to purchase hereunder at such Time of Delivery and, in addition, to require each non-defaulting Underwriter to purchase its pro rata share (based on the number of Shares which such Underwriter agreed to purchase hereunder) of the Shares of such defaulting Underwriter or Underwriters for which such arrangements have not been made; but nothing herein shall relieve a defaulting Underwriter from liability for its default.

(c)    If, after giving effect to any arrangements for the purchase of the Shares of a defaulting Underwriter or Underwriters by you and the Company as provided in subsection (a) above, the aggregate number of such Shares which remains unpurchased exceeds one-eleventh of the aggregate number of all of the Shares to be purchased at such Time of Delivery, or if the Company shall not exercise the right described in subsection (b) above to require non-defaulting Underwriters to purchase Shares of a defaulting Underwriter or Underwriters, then this Agreement (or, with respect to the Second Time of Delivery, the obligations of the Underwriters to purchase and of the Company to sell the Optional Shares) shall thereupon terminate, without liability on the part of any non-defaulting Underwriter or the Company, except for the expenses to be borne by the Company and the Underwriters as provided in Section 7 hereof and the indemnity and contribution agreements in Sections 9 and 10 hereof; but nothing herein shall relieve a defaulting Underwriter from liability for its default.

11.    The respective indemnities, agreements, representations, warranties and other statements of the Company and the several Underwriters, as set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of any Underwriter or any controlling person of any Underwriter, or the directors and officers of the Underwriters, or the Company, or any officer or director or controlling person of the Company, and shall survive delivery of and payment for the Shares.

12.    If this Agreement shall be terminated pursuant to Section 11 hereof, the Company shall not then be under any liability to any Underwriter except as provided in Sections 7 and 9 hereof; but, if for any other reason, any Shares are not delivered by or on behalf of the Company as provided herein, the Company will reimburse the Underwriters through the Representatives for all out-of-pocket expenses approved in writing by the Representatives, including fees and disbursements of counsel, reasonably incurred by the Underwriters in making preparations for the purchase, sale and delivery of the Shares not so delivered, but the Company shall then be under no further liability to any Underwriter except as provided in Sections 7, 9 and 10 hereof.

13.    In all dealings hereunder, you shall act on behalf of each of the Underwriters, and the parties hereto shall be entitled to act and rely upon any statement, request, notice or agreement on behalf of any Underwriter made or given by you jointly or by the Representatives on behalf of you as the Representatives. All statements, requests, notices and agreements hereunder shall be in writing, and if to the Underwriters shall be delivered or sent by mail, telex or facsimile transmission to you as the Representatives in care of Goldman Sachs & Co. LLC, 200 West Street, New York, New York


10282-2198, Attention: Registration Department; in care of Cowen and Company, LLC, 599 Lexington Avenue, New York, New York 10022, Attention: Legal Department; and in care of Guggenheim Securities, LLC, 330 Madison Avenue, New York, New York 10017, Attention: James Lee, Senior Managing Director, with a copy to the General Counsel; and if to the Company shall be delivered or sent by mail, telex or facsimile transmission to the address of the Company set forth in the Registration Statement, Attention: Secretary; provided, however, that any notice to an Underwriter pursuant to Section 9(c) hereof shall be delivered or sent by mail, telex or facsimile transmission to such Underwriter at its address set forth in its Underwriters’ Questionnaire, or telex constituting such Questionnaire, which address will be supplied to the Company by you upon request; provided, however, that notices under subsection 5(e) shall be in writing, and if to the Underwriters shall be delivered or sent by mail, telex or facsimile transmission to you as the Representatives at Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282-2198, Attention: Control Room; Cowen and Company, LLC, 599 Lexington Avenue, New York, New York 10022, Attention: Legal Department; and Guggenheim Securities, LLC, 330 Madison Avenue, New York, New York 10017, Attention: James Lee, Senior Managing Director, with a copy to the General Counsel. Any such statements, requests, notices or agreements shall take effect upon receipt thereof.

In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Underwriters are required to obtain, verify and record information that identifies their respective clients, including the Company, which information may include the name and address of their respective clients, as well as other information that will allow the Underwriters to properly identify their respective clients.

14.    This Agreement shall be binding upon, and inure solely to the benefit of, the Underwriters, the Company and, to the extent provided in Sections 9 and 11 hereof, the officers and directors of the Company and each person who controls the Company or any Underwriter, and their respective heirs, executors, administrators, successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement. No purchaser of any of the Shares from any Underwriter shall be deemed a successor or assign by reason merely of such purchase.

15.    Time shall be of the essence of this Agreement. As used herein, the term “business day” shall mean any day when the Commission’s office in Washington, D.C. is open for business.

16.    The Company acknowledges and agrees that (i) the purchase and sale of the Shares pursuant to this Agreement is an arm’s-length commercial transaction between the Company, on the one hand, and the several Underwriters, on the other, (ii) in connection therewith and with the process leading to such transaction each Underwriter is acting solely as a principal and not the agent or fiduciary of the Company, (iii) no Underwriter has assumed an advisory or fiduciary responsibility in favor of the Company with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising the Company on other matters) or any other obligation to the Company except the obligations expressly set forth in this Agreement and (iv) the Company has consulted its own legal and financial advisors to the extent it deemed appropriate. The Company agrees that it will not claim that the Underwriters, or any of them, has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Company, in connection with such transaction or the process leading thereto.

17.    This Agreement supersedes all prior agreements and understandings (whether written or oral) among the Company and the Underwriters, or any of them, with respect to the subject matter hereof.


18.    This Agreement and any transaction contemplated by this Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflict of laws that would results in the application of any other law than the laws of the State of New York. The Company agrees that any suit or proceeding arising in respect of this Agreement or any transaction contemplated by this Agreement will be tried exclusively in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in The City and County of New York and the Company agrees to submit to the jurisdiction of, and to venue in, such courts.

19.    The Company and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

20.    This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

21.    Notwithstanding anything herein to the contrary, the Company is authorized to disclose to any persons the U.S. federal and state income tax treatment and tax structure of the potential transaction and all materials of any kind (including tax opinions and other tax analyses) provided to the Company relating to that treatment and structure, without the Underwriters imposing any limitation of any kind. However, any information relating to the tax treatment and tax structure shall remain confidential (and the foregoing sentence shall not apply) to the extent necessary to enable any person to comply with securities laws. For this purpose, “tax structure” is limited to any facts that may be relevant to that treatment.

22.    Recognition of the U.S. Special Resolution Regimes.

(a)    In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

(b)    In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.


(c)    As used in this section:

“BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

“Covered Entity” means any of the following:

(i)    a“covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

(ii)    a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); o

(iii)    a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

“U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.


If the foregoing is in accordance with your understanding, please sign and return to us a counterpart hereof, and upon the acceptance hereof by you, on behalf of each of the Underwriters, this letter and such acceptance hereof shall constitute a binding agreement between each of the Underwriters and the Company. It is understood that your acceptance of this letter on behalf of each of the Underwriters is pursuant to the authority set forth in a form of Agreement among Underwriters, the form of which shall be submitted to the Company for examination upon request, but without warranty on your part as to the authority of the signers thereof.

Very truly yours,

Arcutis Biotherapeutics, Inc.

By:
Name:
Title:
Accepted as of the date hereof:

Goldman Sachs & Co. LLC

By:
Name:
Title:

Cowen and Company, LLC

By:
Name:
Title:

Guggenheim Securities, LLC

By:
Name:
Title:
On behalf of each of the Underwriters

(Signature Page to Underwriting Agreement)


SCHEDULE I

Underwriter Totale
Number of
Firm
Shares
to be
Purchased
Number of
Optional
Shares to
be
Purchased
Se
Maximum
Option
Exercised
Goldman Sachs & Co. LLC
Cowen and Company, LLC
Guggenheim Securities, LLC
Truist Securities, Inc.
Cantor Fitzgerald & Co.
Totale

SCHEDULE II

(a)    Issuer Free Writing Prospectuses not included in the Pricing Disclosure Package:

Electronic roadshow dated (l), 2020

(b)    Additional Documents Incorporated by Reference:

(None)

(c)    Information other than the Pricing Prospectus that comprise the Pricing Disclosure Package:

The public offering price per share for the Shares is $(l)

The number of Firm Shares purchased by the Underwriters is (l)

The number of Optional Shares to be sold by the Company is up to (l)

(Add any other pricing disclosure.)

(d)    Written Testing-the-Waters Communications:

(l)


ANNEX I

Form of Lock-Up Agreement

_____________, 2020

Goldman Sachs & Co. LLC, and

Cowen and Company, LLC

Guggenheim Securities, LLC

c/o Goldman Sachs & Co. LLC

200 West Street

New York, NY 10282-2198

c/o Cowen and Company, LLC

599 Lexington Avenue

New York, NY 10022

c/o Guggenheim Securities, LLC

330 Madison Avenue

New York, NY 10017

Re: Arcutis Biotherapeutics, Inc. – Lock-Up Agreement

Ladies and Gentlemen:

The undersigned understands that Goldman Sachs & Co. LLC, Cowen and Company, LLC and Guggenheim Securities, LLC, as representatives (the “Representatives”), propose to enter into an Underwriting Agreement on behalf of the several Underwriters named in Schedule I to such agreement (collectively, the “Underwriters”), with Arcutis Biotherapeutics, Inc., a Delaware corporation (the “Company”), providing for a public offering (the “Public Offering”) of the shares (the “Shares”) of common stock of the Company, par value $0.0001 (the “Common Stock”) pursuant to a Registration Statement on Form S-1 to be filed with the Securities and Exchange Commission (the “SEC”).

In consideration of the agreement by the Underwriters to offer and sell the Shares, and of other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the undersigned agrees that, during the period beginning from the date of this Lock-Up Agreement and continuing to and including the date that is 90 days after the date set forth on the final prospectus used to sell the Shares (the “Lock-Up Period”), the undersigned shall not, and shall not cause or direct any of its affiliates to, (i) offer, sell, contract to sell, pledge, grant any option to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock, or any options or warrants to purchase any shares of Common Stock, or any securities convertible into, exchangeable for or that represent the right to receive shares of Common Stock, whether now owned or hereafter acquired, owned directly by the undersigned (including holding as a custodian) or with respect to which the undersigned has beneficial ownership within the rules and regulations of the SEC (collectively, the “Undersigned’s Shares”), (ii) engage in any hedging or other transaction or arrangement (including, without limitation, any short sale or the purchase or sale of, or entry into, any put or call option, or combination thereof, forward, swap or any other derivative transaction or instrument, however described or defined) which is designed to or which reasonably could be expected to lead to or result in a sale, loan, pledge or other disposition (whether by the undersigned or someone other than the undersigned), or transfer of any of the economic consequences


of ownership, in whole or in part, directly or indirectly, of the Undersigned’s Shares, whether any such transaction or arrangement (or instrument provided for thereunder) would be settled by delivery of Common Stock or other securities, in cash or otherwise (any such sale, loan, pledge or other disposition, or transfer of economic consequences, a “Transfer”) or (iii) otherwise publicly announce any intention to engage in or cause any action or activity described in clause (i) above or transaction or arrangement described in clause (ii) above. The undersigned represents and warrants that the undersigned is not, and has not caused or directed any of its affiliates to be or become, currently a party to any agreement or arrangement that provides for, is designed to or which reasonably could be expected to lead to or result in any Transfer during the Lock-Up Period. In addition, the undersigned hereby waives any and all notice requirements and rights with respect to registration of the Shares and agrees that, without prior written consent of Goldman Sachs & Co. LLC and Cowen and Company, LLC on behalf of the Underwriters, it will not make any demand for or exercise any right with respect to the registration of the Undersigned’s Shares or publicly disclose the intention to make any such demand or exercise any such right.

If the undersigned is not a natural person, the undersigned represents and warrants that no single natural person, entity or “group” (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”)), other than a natural person, entity or “group” (as described above) that has executed a Lock-Up Agreement in substantially the same form as this Lock-Up Agreement, beneficially owns, directly or indirectly, 50% or more of the common equity interests, or 50% or more of the voting power, in the undersigned.

Notwithstanding the foregoing, the restrictions in this Lock-Up Agreement shall not apply to:

(a) the sale of Shares in the Public Offering pursuant to the terms of the Underwriting Agreement;

(b) transfers of the Undersigned’s Shares: (i) as a bona fide gift or gifts; (ii) to any trust for the direct or indirect benefit of the undersigned or the immediate family (as defined below) of the undersigned; (iii) to any corporation, partnership, limited liability company or other entity all of the beneficial ownership interests of which are held by the undersigned or the immediate family (as defined below) of the undersigned; (iv) by will, other testamentary document or intestate succession to the legal representative, heir, beneficiary or a member of the immediate family (as defined below) of the undersigned upon the death of the undersigned; (v) by operation of law, including pursuant to a qualified domestic order or a negotiated divorce settlement; and (vi) with the prior written consent of Goldman Sachs & Co. LLC and Cowen and Company, LLC on behalf of the Underwriters; provided that (x) in the case of any transfer pursuant to clauses (i) through (v), each donee, trustee or transferee thereof agrees to be bound in writing by the restrictions set forth herein and such transfer shall not involve a disposition for value; (y) in the case of any transfer pursuant to clauses (i) through (iii), no filing under the Exchange Act or other public announcement shall be required or shall be voluntarily made during the Lock-Up Period; and (z) in the case of any transfer pursuant to clauses (iv) and (v), no filing under the Exchange Act or other public announcement shall be made voluntarily during the Lock-Up Period in connection with such transfer and, if the filing of a report is required under Section 16 of the Exchange Act during the Lock-Up Period, such filing shall clearly indicate in the footnotes thereto that the filing relates to the circumstances described above, as applicable;

(c) the establishment of a trading plan pursuant to Rule 10b5-1 under the Exchange Act for the transfer of the Undersigned’s Shares (each, a “10b5-1 Trading Plan”), provided that (i) no direct or indirect offers, pledges, sales, contracts to sell, sales of any option or contract to purchase, purchases of any option or contract to sell, grants of any option, right or warrant to purchase,


loans, or other transfers or disposals of any of the Undersigned’s Shares may be effected pursuant to such 10b5-1 Trading Plan during the Lock-Up Period and (ii) no public disclosure of the entry into such a 10b5-1 Trading Plan shall be required or shall be voluntarily made by any person until after the expiration of the Lock-Up Period;

(d) transfers pursuant to a 10b5-1 Trading Plan that has been entered into by the undersigned prior to the date of this letter, provided that no filing under the Exchange Act or other public announcement shall be made voluntarily during the Lock-Up Period in connection with such transfer and, if the filing of a report is required under Section 16 of the Exchange Act during the Lock-Up Period, such filing shall clearly indicate in the footnotes thereto that the filing relates to the circumstances described above; e

(e) the transfer or surrender of the Undersigned’s Shares to the Company upon a vesting event of restricted stock awards or other securities convertible into shares of Common Stock or upon the exercise of options or warrants to purchase shares of Common Stock in accordance with their terms pursuant to an employee benefit plan, option or warrant disclosed in the final prospectus for the Public Offering, in each case on a “cashless” or “net exercise” basis or to cover tax withholding obligations of the undersigned in connection with such vesting or exercise; provided that (i) any such shares of Common Stock issued upon such vesting or exercise shall be subject to the restrictions set forth herein and (ii) no filing under the Exchange Act or other public announcement shall be made voluntarily during the Lock-Up Period in connection with such transfer and, if the filing of a report is required under Section 16 of the Exchange Act during the Lock-Up Period, such filing shall clearly indicate in the footnotes thereto that the filing relates to the circumstances described above, as applicable.

Further, this Lock-Up Agreement shall not restrict any sale, disposal or transfer of the Undersigned’s Shares to a bona fide third party pursuant to a tender offer for securities of the Company or any merger, consolidation or other business combination involving a Change of Control (as defined below) of the Company occurring after the settlement of the Public Offering, that, in each case, has been approved by the board of directors of the Company; provided that all of the Undersigned’s Shares subject to this Lock-Up Agreement that are not so transferred, sold, tendered or otherwise disposed of remain subject to this Lock-Up Agreement; and provided, further, that it shall be a condition of transfer, sale, tender or other disposition that if such tender offer or other transaction is not completed, any of the Undersigned’s Shares subject to this Lock-Up Agreement shall remain subject to the restrictions set forth herein. For the purposes of this paragraph, “Change of Control” means the consummation of any bona fide third party tender offer, merger, consolidation or other similar transaction, the result of which is that any “person” (as defined in Section 13(d)(3) of the Exchange Act), or group of persons, other than the Company or its subsidiaries, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 of the Exchange Act) of 100% of the total voting power of the voting share capital of the Company.

For purposes of this Lock-Up Agreement, “immediate family” shall mean any relationship by blood, marriage, domestic partnership or adoption, not more remote than first cousin.

The undersigned now has, and, except as contemplated by clauses (a), (b) and (d) above, for the duration of this Lock-Up Agreement will have, good and marketable title to the Undersigned’s Shares, free and clear of all liens, encumbrances, and claims whatsoever. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company’s transfer agent and registrar against the transfer of the Undersigned’s Shares except in compliance with the foregoing restrictions.


The undersigned understands that the Company and the Underwriters are relying upon this Lock-Up Agreement in proceeding toward consummation of the Public Offering. The undersigned further understands that this Lock-Up Agreement is irrevocable and shall be binding upon the undersigned’s heirs, legal representatives, successors, and assigns.

This Lock-Up Agreement shall automatically terminate and be of no further force and effect upon the earlier to occur, if any, of: (i) the Company advising the Underwriters in writing prior to the execution of the Underwriting Agreement that it does not intend to proceed with the Public Offering; (ii) the termination of the Underwriting Agreement before the closing of the Public Offering; (iii) the registration statement for the Public Offering is withdrawn; or (iv) October 31, 2020, if the Underwriting Agreement has not been executed by such date.

(Signature page follows)


Very truly yours,

IF AN INDIVIDUAL: IF AN ENTITY:
By:
(duly authorized signature) (please print complete name of entity)
Name: By:
(please print full name) (duly authorized signature)
Name:
(please print full name)
Title:
(please print full name)
Address: Address:
Email: Email:

(Signature page to Lockup Agreement)

140 Scott Drive
Menlo Park, California 94025
Tel: +1.650.328.4600 Fax: +1.650.463.2600
www.lw.com
FIRM / AFFILIATE OFFICES
lathamlogo1a21.jpg
Beijing Moscow
Boston Munich
Brussels New York
Century City Orange County
Chicago Paris
Dubai Riyadh
29 settembre 2020 Düsseldorf San Diego
Frankfurt San Francisco
Hamburg Seoul
Hong Kong Shanghai
Houston Silicon Valley

Arcutis Biotherapeutics, Inc.

2945 Townsgate Road, Suite 110

Westlake Village, California 91361

London Singapore
Los Angeles Tokyo
Madrid Washington DC.
Milan

Re: Arcutis Biotherapeutics, Inc.

Ladies and Gentlemen:

We have acted as special counsel to Arcutis Biotherapeutics, Inc., a Delaware corporation (the “Company”), in connection with the proposed issuance of up to 4,600,000 shares of common stock, $0.0001 par value per share (the “Shares”). The Shares are included in a registration statement on Form S-1 under the Securities Act of 1933, as amended (the “Act”), filed with the Securities and Exchange Commission (the “Commission”) on September 29, 2020 (the “Registration Statement”). The term “Shares” shall include any additional shares of common stock registered by the Company pursuant to Rule 462(b) under the Act in connection with the offering contemplated by the Registration Statement. This opinion is being furnished in connection with the requirements of Item 601(b)(5) of Regulation S-K under the Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or related prospectus (the “Prospectus”), other than as expressly stated herein with respect to the issue of the Shares.

As such counsel, we have examined such matters of fact and questions of law as we have considered appropriate for purposes of this letter. With your consent, we have relied upon certificates and other assurances of officers of the Company and others as to factual matters without having independently verified such factual matters. We are opining herein as to the General Corporation Law of the State of Delaware (the “DGCL”), and we express no opinion with respect to any other laws.

Subject to the foregoing and the other matters set forth herein, it is our opinion that, as of the date hereof, when the Shares shall have been duly registered on the books of the transfer agent and registrar therefor in the name or on behalf of the purchasers and have been issued by the Company against payment therefor in the circumstances contemplated by the form of


29 settembre 2020

Page 2

lathamlogo1a21.jpg

underwriting agreement most recently filed as an exhibit to the Registration Statement, the issue and sale of the Shares will have been duly authorized by all necessary corporate action of the Company, and the Shares will be validly issued, fully paid and nonassessable. In rendering the foregoing opinion, we have assumed that the Company will comply with all applicable notice requirements regarding uncertificated shares provided in the DGCL.

This opinion is for your benefit in connection with the Registration Statement and may be relied upon by you and by persons entitled to rely upon it pursuant to the applicable provisions of the Act. We consent to your filing this opinion as an exhibit to the Registration Statement and to the reference to our firm in the Prospectus under the heading “Legal Matters.” In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission thereunder.

Very truly yours,
/s/ Latham & Watkins LLP

Consent of Independent Registered Public Accounting Firm

We consent to the reference to our firm under the captions “Experts” in the Registration Statement (Form S-1) and related Prospectus of Arcutis Biotherapeutics, Inc. for the registration of shares of its common stock and to the incorporation by reference therein of our report dated March 19, 2020, with respect to the financial statements of Arcutis Biotherapeutics, Inc. included in its Annual Report (Form 10-K) for the years ended December 31, 2019, filed with the Securities and Exchange Commission.

/s/ Ernst & Young LLP

Los Angeles, CA

29 settembre 2020

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4. Shampoo terapeutico Neutrogena T / Gel per psoriasi del cuoio capelluto, prurito e forfora



Con oltre 5.000 recensioni, questo shampoo antiforfora per ridurre il rossore e combattere i fiocchi è un bestseller di Amazon.

È formulato con catrame di carbone ad alta potenza per ringiovanire il cuoio capelluto e combatte tutto, dalla forfora ostinata a condizioni più gravi come la dermatite seborroica (una condizione della pelle che causa chiazze squamose) e la psoriasi del cuoio capelluto.

Un cliente ha detto: “Entro un paio d'ore la mia testa si sentiva sicuramente più calma e nel giro di un giorno non vedevo più squame di pelle e non sentivo prurito. Lo uso ora ogni tre o quattro giorni e sono davvero impressionato”.

Prezzo: £ 6, Amazon – acquista qui ora

Suggerimenti e trattamenti per la cura dei capelli

5. Shampoo idratante antiforfora Head & Shoulders Supreme con olio di argan



L'OG degli shampoo antiforfora, non puoi sbagliare con una formula Head & Shoulders economica ma efficace.

Ottieni ciocche super setose e lenisci il cuoio capelluto con questo shampoo nutriente, ricco di olio di argan per un'idratazione extra. Riequilibrerà gli oli naturali del cuoio capelluto grazie a laboriosi antiossidanti. Capelli perfettamente lavabili ad un ottimo prezzo.

Prezzo: £ 3, Amazon – acquista qui ora

6. Shampoo antiforfora Alpecin



Uno dei migliori su Amazon, questo shampoo ha quattro ingredienti attivi per combattere funghi, lieviti e batteri.

Aiuterà a creare un cuoio capelluto liscio e sano e ad eliminare prurito e secchezza.

Un cliente molto sollevato (e privo di fiocchi) ha detto: “Onestamente non posso parlare abbastanza bene di questo shampoo. Soffrivo di una terribile forfora che si squamava ovunque. Avevo provato più shampoo, comprese le prescrizioni del mio medico, e niente ha funzionato – poi ho provato Alpecin ed è stato fantastico! “

Prezzo: £ 6,40, Amazon – acquista qui ora

7. Shampoo antiforfora Dr Organic Coffee



Sposta la tazza del mattino, questo shampoo antiforfora biologico al caffè stimolante, purificante ed energizzante.

Combinato con zenzero, menta piperita, ortica e pepe nero, è come un super frullato lenitivo per i tuoi capelli. Combatti i fiocchi e allevia l'irritazione e la secchezza allo stesso tempo per rivelare capelli sani e chiari.

Prezzo: £ 7,99, Olanda e Barrett – acquista qui ora

8. Shampoo antiforfora Eclat



Cuoio capelluto infiammato, pruriginoso e secco? Dagli una pulizia profonda con questo shampoo antiforfora che non contiene sostanze nocive e non contiene crudeltà.

Leggero e lussuoso ma efficace, è ricco di olio di jojoba per nutrire il cuoio capelluto e riduce la produzione di sebo per prevenire secchezza e desquamazione.

Le vitamine E e B, l'olio di argan e l'olio di ricino e lo zinco e il rame si combinano per creare una lucentezza brillante priva di sostanze bianche.

Prezzo: £ 4,98, Amazon – acquista qui ora

Psorilax:Confronta |crema alla candelundela bio psoriasi

0

Psorilax: prezzo, funziona, recensioni, opinioni, dove si compra


Entra a Wall Street con StreetInsider Premium. Richiedi qui la tua prova gratuita di 1 settimana.


  • La schiuma Roflumilast ha dimostrato un miglioramento statisticamente significativo rispetto alla schiuma del veicolo sugli endpoint primari e multipli secondari dello studio
  • La schiuma roflumilast una volta al giorno ha dimostrato un profilo di sicurezza e tollerabilità favorevole
  • Roflumilast Schiuma potenziale “Best in Class” inibitore topico della PDE4
  • La dermatite seborroica colpisce 10 milioni di pazienti statunitensi
  • La società terrà una teleconferenza oggi alle 8:30 EST

WESTLAKE VILLAGE, California, 29 settembre 2020 (GLOBE NEWSWIRE) – Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), una società biofarmaceutica in fase avanzata focalizzata sullo sviluppo e la commercializzazione di trattamenti per bisogni insoddisfatti nelle malattie dermatologiche immuno-mediate e condizioni, o immuno-dermatologia, ha annunciato oggi dati positivi sul topline dal suo studio clinico di fase 2 che valuta l'ARQ-154 (schiuma topica roflumilast) come potenziale trattamento per la dermatite seborroica.

La schiuma Roflumilast 0,3% somministrata una volta al giorno per 8 settimane ha dimostrato un miglioramento statisticamente significativo rispetto a una schiuma veicolo corrispondente sugli endpoint chiave di efficacia in soggetti con dermatite seborroica da moderata a grave. Sull'endpoint primario dello studio valutato alla settimana 8, roflumilast foam 0,3% ha raggiunto una percentuale di successo di Investigator Global Assessment (IGA) del 73,8% rispetto a una percentuale di veicoli del 40,9% (p

“La dermatite seborroica è una delle condizioni della pelle più comuni che i dermatologi affrontano negli adulti, come l'acne, la rosacea, la psoriasi e l'eczema. Ha un effetto enorme sulla vita dei pazienti perché è così visibile e spesso imbarazzante, con aree rosse, unte e screpolate sul viso e sul cuoio capelluto che sono quasi impossibili da nascondere. A peggiorare le cose, molti degli oltre 10 milioni di malati negli Stati Uniti potrebbero non sapere cosa sia, contribuendo così al problema del sotto-trattamento e del trattamento inadeguato della malattia “, ha affermato Matthew Zirwas, MD, fondatore del Bexley Dermatology Research Clinic e un ricercatore nello studio. “Gli attuali trattamenti topici per la dermatite seborroica hanno grandi limitazioni, o hanno una bassa efficacia, come con antimicotici topici, immunomodulatori topici, steroidi a bassa potenza e shampoo da prescrizione, o profili di effetti collaterali ad alta efficacia ma inaccettabili, come con steroidi topici ad alta potenza. Tra le principali malattie dermatologiche, ha il maggior bisogno di nuove opzioni di trattamento. Credo che questi dati dimostrino che la schiuma roflumilast una volta al giorno è ben tollerata ed efficace. Secondo me, se approvato, ha il potenziale per diventare il nuovo standard di cura nella dermatite seborroica “.

“Siamo lieti del segnale forte dell'efficacia della schiuma roflumilast in questo studio relativamente piccolo. In questo studio, la schiuma topica roflumilast ha dimostrato un miglioramento sintomatico significativo, inclusa una riduzione del prurito, insieme a un profilo di sicurezza e tollerabilità favorevole che supporta l'uso cronico “, ha affermato Patrick Burnett, MD, Ph.D., FAAD e Chief Medical Officer di Arcutis . “Con il dosaggio una volta al giorno, la schiuma roflumilast offre potenzialmente la comodità di un unico prodotto facile da usare per trattare la dermatite seborroica in tutte le parti del corpo in cui un paziente potrebbe essere colpito. A differenza di creme e unguenti, la schiuma roflumilast è adatta per l'uso nelle zone portanti; a differenza degli steroidi, dovrebbe essere adatto per l'uso a lungo termine sul viso; ea differenza degli shampoo, è una schiuma elegante, ad asciugatura rapida e senza risciacquo che non ha bisogno di essere risciacquata. In caso di successo negli studi clinici di Fase 3 e approvata per la commercializzazione, la schiuma roflumilast sarà il primo trattamento farmacologico topico in decenni a offrire un nuovo meccanismo d'azione per il trattamento della dermatite seborroica e ha il potenziale per influenzare positivamente i sintomi e la qualità della vita dei pazienti che soffrono di questa angosciante condizione cronica della pelle. “

Tra dicembre 2019 e giugno 2020, lo studio di fase 2 ha arruolato 226 soggetti adulti con dermatite seborroica da moderata a grave. Questo studio di 8 settimane, multicentrico, multinazionale, in doppio cieco, controllato dal veicolo ha valutato la sicurezza e l'efficacia della schiuma roflumilast allo 0,3% somministrata una volta al giorno alle aree colpite del cuoio capelluto, del viso e del corpo. I dati di efficacia topline, compreso l'endpoint primario, il successo dell'IGA alla settimana 8, sono stati analizzati utilizzando la popolazione di tutti i soggetti randomizzati ad eccezione dei soggetti che hanno mancato la valutazione dell'IGA alla settimana 8 specificamente a causa dell'interruzione del COVID-19. È importante sottolineare che solo due soggetti hanno mancato la valutazione IGA della settimana 8 a causa di preoccupazioni derivanti da COVID-19, e quindi le popolazioni Intent-to-Treat (ITT) e ITT modificato differivano solo per due soggetti. Arcutis prevede di presentare i risultati completi dello studio in una futura conferenza medica.

La direzione organizzerà una teleconferenza oggi alle 8:30 EST per discutere questi risultati. Per accedere alla chiamata, comporre il numero (833) 614-1393 (nazionale) o (914) 987-7114 (internazionale) prima dell'orario previsto per la teleconferenza e fornire l'ID conferenza 7378204. Un webcast in diretta della chiamata sarà disponibile su la sezione “Investitori” del sito web della società, www.arcutis.com. Una versione archiviata del webcast sarà disponibile sul sito Web di Arcutis dopo la chiamata.

La schiuma Roflumilast è una formulazione in schiuma topica una volta al giorno di un inibitore della fosfodiesterasi di tipo 4 (inibitore della PDE4) altamente potente e selettivo che Arcutis sta sviluppando in particolare per il trattamento delle dermatosi infiammatorie nelle aree del corpo portatrici di capelli come il cuoio capelluto.

Roflumilast è stato approvato dalla FDA per il trattamento sistemico per ridurre il rischio di esacerbazioni della broncopneumopatia cronica ostruttiva (BPCO) dal 2011. Roflumilast ha mostrato una potenza maggiore (da 25 a 300 volte) rispetto agli altri due inibitori della PDE4 approvati dalla FDA. La PDE4 è un enzima intracellulare che aumenta la produzione di mediatori pro-infiammatori e diminuisce la produzione di mediatori antinfiammatori ed è stato implicato in un'ampia gamma di malattie infiammatorie tra cui psoriasi, eczema e BPCO. La PDE4 è un obiettivo consolidato in dermatologia e altri inibitori della PDE4 sono stati approvati dalla FDA per il trattamento topico della dermatite atopica o per il trattamento sistemico della psoriasi a placche.

Arcutis ritiene che la schiuma roflumilast abbia un potenziale significativo come trattamento per la dermatite seborroica. La schiuma Roflumilast è quasi identica all'ARQ-151 (crema roflumilast topica), l'inibitore PDE4 della crema topica sperimentale di Arcutis che ha dimostrato un miglioramento sintomatico e un profilo di tollerabilità favorevole negli studi clinici di Arcutis sulla psoriasi a placche, nonché risultati incoraggianti nella dermatite atopica. Arcutis ha completato l'arruolamento in DERMIS-1 e DERMIS-2, i principali studi clinici di fase 3 della Società che valutano la crema topica roflumilast come potenziale trattamento topico per la psoriasi a placche, e la Società prevede di annunciare i dati di punta nel primo trimestre del 2021 e di presentare un Presentazione di una nuova domanda di farmaco (NDA) entro la fine del 2021. Inoltre, in seguito all'incontro di fine fase 2 con la Food and Drug Administration (FDA) statunitense, Arcutis prevede di portare avanti il ​​suo programma per lo sviluppo di crema topica roflumilast per il trattamento di dermatite atopica negli studi clinici di fase 3 a partire dalla fine del 2020 o all'inizio del 2021.

Oltre a questo studio di fase 2, Arcutis sta anche conducendo uno studio di sicurezza a lungo termine di fase 2 nella dermatite seborroica. Questo è uno studio multicentrico, in aperto, sulla schiuma roflumilast allo 0,3% applicata una volta al giorno in pazienti con dermatite seborroica e includerà pazienti che sono stati trattati in precedenza nello studio di fase 2, nonché pazienti naïve al trattamento con schiuma roflumilast topica. Le visite cliniche periodiche includeranno valutazioni della sicurezza clinica, reazioni al sito di applicazione e miglioramento o progressione della malattia.

Informazioni sulla dermatite seborroicaLa dermatite seborroica colpisce più di 10 milioni di persone negli Stati Uniti ed è una malattia infiammatoria della pelle comune, cronica o ricorrente che causa chiazze rosse ricoperte da squame giallo-grigie grandi e grasse e prurito persistente. La dermatite seborroica si verifica più spesso sul cuoio capelluto, sul viso (soprattutto su naso, sopracciglia, orecchie e palpebre), sulla parte superiore del torace e sulla schiena.

Informazioni su Arcutis – Bioscience, applicata alla pelle Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) è una società biofarmaceutica in fase avanzata focalizzata sullo sviluppo e sulla commercializzazione di trattamenti per bisogni insoddisfatti in malattie e condizioni dermatologiche immuno-mediate o immuno-dermatologia. L'azienda sta sfruttando i recenti progressi nell'immunologia e nell'infiammazione per sviluppare terapie differenziate contro bersagli biologicamente convalidati per risolvere le sfide persistenti del trattamento nelle gravi malattie della pelle. La solida pipeline di Arcutis include quattro nuovi farmaci candidati attualmente in fase di sviluppo per una serie di condizioni dermatologiche infiammatorie. Il principale prodotto candidato dell'azienda, roflumilast topico, ha il potenziale per rivitalizzare lo standard di cura per la psoriasi a placche, la dermatite atopica, la psoriasi del cuoio capelluto e la dermatite seborroica. Per ulteriori informazioni, visitare www.arcutis.com o seguire l'azienda su LinkedIn e Twitter.

Guardando avanti DichiarazioniQuesto comunicato stampa contiene dichiarazioni “previsionali”, comprese, tra le altre, dichiarazioni riguardanti il ​​potenziale di ARQ-154 come trattamento della dermatite seborroica; l'aspettativa della Società di presentare i risultati completi dello studio sulla dermatite seborroica in una futura conferenza medica; il piano della Società di annunciare i dati topline ARQ-151 per la psoriasi a placche nel primo trimestre del 2021 e di presentare una domanda per un nuovo farmaco (NDA) entro la fine del 2021; il piano della Società di avviare studi clinici cardine di Fase 3 per ARQ-151 nella dermatite atopica alla fine del 2020 o all'inizio del 2021. Queste affermazioni comportano rischi, incertezze e altri fattori noti e sconosciuti sostanziali che possono causare i nostri risultati, livelli di attività, prestazioni o risultati devono essere materialmente diversi dalle informazioni espresse o implicite in queste dichiarazioni previsionali e non si dovrebbe fare indebito affidamento sulle nostre dichiarazioni previsionali. I rischi e le incertezze che possono far sì che i nostri risultati effettivi differiscano includono i rischi inerenti al processo di sviluppo clinico e al processo di approvazione normativa, i tempi delle dichiarazioni normative e la nostra capacità di difendere la nostra proprietà intellettuale. Per un'ulteriore descrizione dei rischi e delle incertezze applicabili alla nostra attività, vedere la sezione “Fattori di rischio” del nostro modulo 10-Q depositato presso la Securities and Exchange Commission (SEC) degli Stati Uniti l'11 agosto 2020, nonché qualsiasi successivo deposito presso la SEC. Non ci assumiamo alcun obbligo di rivedere o aggiornare le informazioni qui contenute per riflettere eventi o circostanze in futuro, anche se nuove informazioni diventano disponibili.

Investitore Contatto:Heather Rowe ArmstrongVice President, Investor Relations & Corporate Communicationsharmstrong@arcutis.com805-418-5006, Ext. 740

Contatto per i media:Mike BeyerSam Brown Inc. Healthcare Communicationsmikebeyer@sambrown.com312-961-2502

Un PDF che accompagna questo annuncio è disponibile su http://ml.globenewswire.com/Resource/Download/630458c3-2f79-40cc-8260-2ef350559bbd

Arcutis logo.png

Fonte: Arcutis Biotherapeutics, Inc.

Psorilax:Trova |crema mutuabile per psoriasi

0

Psorilax: prezzo, funziona, recensioni, opinioni, composizione

  • La schiuma Roflumilast ha dimostrato un miglioramento statisticamente significativo rispetto alla schiuma del veicolo sugli endpoint primari e multipli secondari dello studio
  • La schiuma roflumilast una volta al giorno ha dimostrato un profilo di sicurezza e tollerabilità favorevole
  • Roflumilast Schiuma potenziale “Best in Class” inibitore topico della PDE4
  • La dermatite seborroica colpisce 10 milioni di pazienti statunitensi
  • La società terrà una teleconferenza oggi alle 8:30 EST

WESTLAKE VILLAGE, California, 29 settembre 2020 (GLOBE NEWSWIRE) – Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), una società biofarmaceutica in fase avanzata focalizzata sullo sviluppo e la commercializzazione di trattamenti per bisogni insoddisfatti nelle malattie dermatologiche immuno-mediate e condizioni, o immuno-dermatologia, ha annunciato oggi dati positivi sul topline dal suo studio clinico di fase 2 che valuta l'ARQ-154 (schiuma topica roflumilast) come potenziale trattamento per la dermatite seborroica.

La schiuma Roflumilast 0,3% somministrata una volta al giorno per 8 settimane ha dimostrato un miglioramento statisticamente significativo rispetto a una schiuma veicolo corrispondente sugli endpoint chiave di efficacia in soggetti con dermatite seborroica da moderata a grave. Sull'endpoint primario dello studio valutato alla settimana 8, la schiuma roflumilast 0,3% ha raggiunto una percentuale di successo dello Investigator Global Assessment (IGA) del 73,8% rispetto a una percentuale di veicoli del 40,9% (p <0,0001). Il successo dell'IGA è definito come il raggiungimento di un punteggio IGA di "chiaro" o "quasi chiaro" su una scala a 5 gradi PIÙ di una variazione di almeno due punti rispetto al basale. L'inizio dell'effetto è stato rapido, con ARQ-154 che si separava statisticamente dal veicolo già alla settimana 2, la prima visita dopo il basale, sul successo dell'IGA e su più endpoint secondari. Ad esempio, alla settimana 8, il 64,6% dei soggetti trattati con schiuma roflumilast che avevano un punteggio basale Worst Itch Numeric Rating Scale (WI-NRS) di 4 ha ottenuto una riduzione del prurito di almeno 4 punti rispetto al 34,0% dei soggetti trattati con veicolo ( p = 0,0007). Altri endpoint secondari includevano la valutazione complessiva dell'eritema e la valutazione complessiva del ridimensionamento, che ha avuto anche esiti positivi. È importante sottolineare che la schiuma roflumilast è stata ben tollerata, con tassi di eventi avversi al sito di applicazione, eventi avversi correlati al trattamento e interruzioni a causa di eventi avversi bassi e simili al veicolo. Solo 2 soggetti su 154 (1,3%) trattati con schiuma di roflumilast hanno interrotto lo studio a causa di un evento avverso, rispetto a 1 su 72 soggetti (1,4%) trattati con il veicolo.

“La dermatite seborroica è una delle condizioni della pelle più comuni che i dermatologi affrontano negli adulti, come l'acne, la rosacea, la psoriasi e l'eczema. Ha un effetto enorme sulla vita dei pazienti perché è così visibile e spesso imbarazzante, con aree rosse, unte e screpolate sul viso e sul cuoio capelluto che sono quasi impossibili da nascondere. A peggiorare le cose, molti degli oltre 10 milioni di malati negli Stati Uniti potrebbero non sapere cosa sia, contribuendo così al problema del sotto-trattamento e del trattamento inadeguato della malattia “, ha affermato Matthew Zirwas, MD, fondatore del Bexley Dermatology Research Clinic e un ricercatore nello studio. “Gli attuali trattamenti topici per la dermatite seborroica hanno grandi limitazioni, o hanno una bassa efficacia, come con antimicotici topici, immunomodulatori topici, steroidi a bassa potenza e shampoo da prescrizione, o profili di effetti collaterali ad alta efficacia ma inaccettabili, come con steroidi topici ad alta potenza. Tra le principali malattie dermatologiche, ha il maggior bisogno di nuove opzioni di trattamento. Credo che questi dati dimostrino che la schiuma roflumilast una volta al giorno è ben tollerata ed efficace. Secondo me, se approvato, ha il potenziale per diventare il nuovo standard di cura nella dermatite seborroica “.

“Siamo lieti del segnale forte dell'efficacia della schiuma roflumilast in questo studio relativamente piccolo. In questo studio, la schiuma topica roflumilast ha dimostrato un miglioramento sintomatico significativo, inclusa una riduzione del prurito, insieme a un profilo di sicurezza e tollerabilità favorevole che supporta l'uso cronico “, ha affermato Patrick Burnett, MD, Ph.D., FAAD e Chief Medical Officer di Arcutis . “Con il dosaggio una volta al giorno, la schiuma roflumilast offre potenzialmente la comodità di un unico prodotto facile da usare per trattare la dermatite seborroica in tutte le parti del corpo in cui un paziente potrebbe essere colpito. A differenza di creme e unguenti, la schiuma roflumilast è adatta per l'uso nelle zone portanti; a differenza degli steroidi, dovrebbe essere adatto per l'uso a lungo termine sul viso; ea differenza degli shampoo, è una schiuma elegante, ad asciugatura rapida e senza risciacquo che non ha bisogno di essere risciacquata. In caso di successo negli studi clinici di Fase 3 e approvata per la commercializzazione, la schiuma roflumilast sarà il primo trattamento farmacologico topico in decenni a offrire un nuovo meccanismo d'azione per il trattamento della dermatite seborroica e ha il potenziale per influenzare positivamente i sintomi e la qualità della vita dei pazienti che soffrono di questa angosciante condizione cronica della pelle. “

Tra dicembre 2019 e giugno 2020, lo studio di fase 2 ha arruolato 226 soggetti adulti con dermatite seborroica da moderata a grave. Questo studio di 8 settimane, multicentrico, multinazionale, in doppio cieco, controllato dal veicolo ha valutato la sicurezza e l'efficacia della schiuma roflumilast allo 0,3% somministrata una volta al giorno alle aree colpite del cuoio capelluto, del viso e del corpo. I dati di efficacia topline, compreso l'endpoint primario, il successo dell'IGA alla settimana 8, sono stati analizzati utilizzando la popolazione di tutti i soggetti randomizzati ad eccezione dei soggetti che hanno mancato la valutazione dell'IGA alla settimana 8 specificamente a causa dell'interruzione del COVID-19. È importante sottolineare che solo due soggetti hanno mancato la valutazione IGA della settimana 8 a causa di preoccupazioni derivanti da COVID-19, e quindi le popolazioni Intent-to-Treat (ITT) e ITT modificato differivano solo per due soggetti. Arcutis prevede di presentare i risultati completi dello studio in una futura conferenza medica.

La direzione organizzerà una teleconferenza oggi alle 8:30 EST per discutere questi risultati. Per accedere alla chiamata, comporre il numero (833) 614-1393 (nazionale) o (914) 987-7114 (internazionale) prima dell'orario previsto per la teleconferenza e fornire l'ID conferenza 7378204. Un webcast in diretta della chiamata sarà disponibile su la sezione “Investitori” del sito web della società, www.arcutis.com. Una versione archiviata del webcast sarà disponibile sul sito Web di Arcutis dopo la chiamata.

La schiuma Roflumilast è una formulazione in schiuma topica una volta al giorno di un inibitore della fosfodiesterasi di tipo 4 (inibitore della PDE4) altamente potente e selettivo che Arcutis sta sviluppando in particolare per il trattamento delle dermatosi infiammatorie nelle aree del corpo portatrici di capelli come il cuoio capelluto.

Roflumilast è stato approvato dalla FDA per il trattamento sistemico per ridurre il rischio di esacerbazioni della broncopneumopatia cronica ostruttiva (BPCO) dal 2011. Roflumilast ha mostrato una potenza maggiore (da 25 a 300 volte) rispetto agli altri due inibitori della PDE4 approvati dalla FDA. La PDE4 è un enzima intracellulare che aumenta la produzione di mediatori pro-infiammatori e diminuisce la produzione di mediatori antinfiammatori ed è stato implicato in un'ampia gamma di malattie infiammatorie tra cui psoriasi, eczema e BPCO. La PDE4 è un obiettivo consolidato in dermatologia e altri inibitori della PDE4 sono stati approvati dalla FDA per il trattamento topico della dermatite atopica o per il trattamento sistemico della psoriasi a placche.

Arcutis ritiene che la schiuma roflumilast abbia un potenziale significativo come trattamento per la dermatite seborroica. La schiuma Roflumilast è quasi identica all'ARQ-151 (crema roflumilast topica), l'inibitore PDE4 della crema topica sperimentale di Arcutis che ha dimostrato un miglioramento sintomatico e un profilo di tollerabilità favorevole negli studi clinici di Arcutis sulla psoriasi a placche, nonché risultati incoraggianti nella dermatite atopica. Arcutis ha completato l'arruolamento in DERMIS-1 e DERMIS-2, i principali studi clinici di fase 3 della Società che valutano la crema topica roflumilast come potenziale trattamento topico per la psoriasi a placche, e la Società prevede di annunciare i dati di punta nel primo trimestre del 2021 e di presentare un Presentazione di una nuova domanda di farmaco (NDA) entro la fine del 2021. Inoltre, in seguito all'incontro di fine fase 2 con la Food and Drug Administration (FDA) statunitense, Arcutis prevede di portare avanti il ​​suo programma per lo sviluppo di crema topica roflumilast per il trattamento di dermatite atopica negli studi clinici di fase 3 a partire dalla fine del 2020 o all'inizio del 2021.

Oltre a questo studio di fase 2, Arcutis sta anche conducendo uno studio sulla sicurezza a lungo termine di fase 2
nella dermatite seborroica. Questo è uno studio multicentrico, in aperto, sulla schiuma roflumilast allo 0,3% applicata una volta al giorno in pazienti con dermatite seborroica e includerà pazienti che sono stati trattati in precedenza nello studio di fase 2, nonché pazienti naïve al trattamento con schiuma roflumilast topica. Le visite cliniche periodiche includeranno valutazioni della sicurezza clinica, reazioni al sito di applicazione e miglioramento o progressione della malattia.

Informazioni sulla dermatite seborroica
La dermatite seborroica colpisce più di 10 milioni di persone negli Stati Uniti ed è una malattia infiammatoria della pelle comune, cronica o ricorrente che causa chiazze rosse ricoperte da squame giallo-grigie grandi e grasse e prurito persistente. La dermatite seborroica si verifica più spesso sul cuoio capelluto, sul viso (soprattutto su naso, sopracciglia, orecchie e palpebre), sulla parte superiore del torace e sulla schiena.

Informazioni su Arcutis – Bioscience, applicata sulla pelle.
Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) è una società biofarmaceutica in fase avanzata focalizzata sullo sviluppo e sulla commercializzazione di trattamenti per esigenze non soddisfatte in malattie e condizioni dermatologiche immuno-mediate o immuno-dermatologia. L'azienda sta sfruttando i recenti progressi nell'immunologia e nell'infiammazione per sviluppare terapie differenziate contro bersagli biologicamente convalidati per risolvere le sfide persistenti del trattamento nelle gravi malattie della pelle. La solida pipeline di Arcutis include quattro nuovi farmaci candidati attualmente in fase di sviluppo per una serie di condizioni dermatologiche infiammatorie. Il principale prodotto candidato dell'azienda, roflumilast topico, ha il potenziale per rivitalizzare lo standard di cura per la psoriasi a placche, la dermatite atopica, la psoriasi del cuoio capelluto e la dermatite seborroica. Per ulteriori informazioni, visitare www.arcutis.com o seguire l'azienda su LinkedIn e Twitter.

Guardando avanti Dichiarazioni
Questo comunicato stampa contiene dichiarazioni “previsionali”, comprese, tra le altre, dichiarazioni riguardanti il ​​potenziale di ARQ-154 come trattamento della dermatite seborroica; l'aspettativa della Società di presentare i risultati completi dello studio sulla dermatite seborroica in una futura conferenza medica; il piano della Società di annunciare i dati topline ARQ-151 per la psoriasi a placche nel primo trimestre del 2021 e di presentare una domanda per un nuovo farmaco (NDA) entro la fine del 2021; il piano della Società di avviare studi clinici cardine di Fase 3 per ARQ-151 nella dermatite atopica alla fine del 2020 o all'inizio del 2021. Queste affermazioni comportano rischi, incertezze e altri fattori noti e sconosciuti sostanziali che possono causare i nostri risultati, livelli di attività, prestazioni o risultati devono essere materialmente diversi dalle informazioni espresse o implicite in queste dichiarazioni previsionali e non si dovrebbe fare indebito affidamento sulle nostre dichiarazioni previsionali. I rischi e le incertezze che possono far sì che i nostri risultati effettivi differiscano includono i rischi inerenti al processo di sviluppo clinico e al processo di approvazione normativa, i tempi delle dichiarazioni normative e la nostra capacità di difendere la nostra proprietà intellettuale. Per un'ulteriore descrizione dei rischi e delle incertezze applicabili alla nostra attività, vedere la sezione “Fattori di rischio” del nostro modulo 10-Q depositato presso la Securities and Exchange Commission (SEC) degli Stati Uniti l'11 agosto 2020, nonché qualsiasi successivo deposito presso la SEC. Non ci assumiamo alcun obbligo di rivedere o aggiornare le informazioni qui contenute per riflettere eventi o circostanze in futuro, anche se nuove informazioni diventano disponibili.

Investitore Contatto:
Heather Rowe Armstrong
Vicepresidente, Relazioni con gli investitori e comunicazioni aziendali
harmstrong@arcutis.com
805-418-5006, int. 740

Contatto per i media:
Mike Beyer
Sam Brown Inc. Healthcare Communications
mikebeyer@sambrown.com
312-961-2502

Un PDF che accompagna questo annuncio è disponibile su http://ml.globenewswire.com/Resource/Download/630458c3-2f79-40cc-8260-2ef350559bbd

Psorilax:opinioni |crema psoriasi al glande

0

Psorilax: prezzo, funziona, recensioni, opinioni, dove si compra

  • La schiuma Roflumilast ha dimostrato un miglioramento statisticamente significativo rispetto alla schiuma del veicolo negli endpoint primari e multipli di CloseCurlyQuote di prova
  • La schiuma roflumilast una volta al giorno ha dimostrato un profilo di sicurezza e tollerabilità favorevole
  • Potenziale schiuma Roflumilast “Best in Class & CloseCurlyDoubleQuote; inibitore topico della PDE4
  • La dermatite seborroica colpisce 10 milioni di pazienti statunitensi
  • La società terrà una teleconferenza oggi alle 8:30 EST

WESTLAKE VILLAGE, California, 29 settembre 2020 (GLOBE NEWSWIRE) – Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), una società biofarmaceutica in fase avanzata focalizzata sullo sviluppo e sulla commercializzazione di trattamenti per esigenze non soddisfatte in malattie e condizioni dermatologiche immuno-mediate, o immuno-dermatologia, ha annunciato oggi dati positivi sul topline dal suo studio clinico di fase 2 che valuta ARQ-154 (schiuma topica roflumilast) come potenziale trattamento per la dermatite seborroica.

La schiuma Roflumilast 0,3% somministrata una volta al giorno per 8 settimane ha dimostrato un miglioramento statisticamente significativo rispetto a una schiuma veicolo corrispondente sugli endpoint chiave di efficacia in soggetti con dermatite seborroica da moderata a grave. Nell'endpoint primario dello studio e CloseCurlyQuote valutato alla settimana 8, la schiuma di roflumilast allo 0,3% ha raggiunto una percentuale di successo dello Investigator Global Assessment (IGA) del 73,8% rispetto a una percentuale di veicoli del 40,9% (p <0,0001). Il successo dell'IGA è definito come il raggiungimento di un punteggio IGA di "chiaro" o "quasi chiaro" su una scala a 5 gradi PIÙ di una variazione di almeno due punti rispetto al basale. L'inizio dell'effetto è stato rapido, con ARQ-154 che si separava statisticamente dal veicolo già alla settimana 2, la prima visita dopo il basale, sul successo dell'IGA e su più endpoint secondari. Ad esempio, alla settimana 8, il 64,6% dei soggetti trattati con schiuma roflumilast che avevano un punteggio basale Worst Itch Numeric Rating Scale (WI-NRS) di 4 ha ottenuto una riduzione del prurito di almeno 4 punti rispetto al 34,0% dei soggetti trattati con veicolo ( p = 0,0007). Altri endpoint secondari includevano la valutazione complessiva dell'eritema e la valutazione complessiva del ridimensionamento, che ha avuto anche esiti positivi. È importante sottolineare che la schiuma roflumilast è stata ben tollerata, con tassi di eventi avversi al sito di applicazione, eventi avversi correlati al trattamento e interruzioni a causa di eventi avversi bassi e simili al veicolo. Solo 2 soggetti su 154 (1,3%) trattati con schiuma di roflumilast hanno interrotto lo studio a causa di un evento avverso, rispetto a 1 su 72 soggetti (1,4%) trattati con il veicolo.

“La dermatite seborroica è una delle condizioni della pelle più comuni che i dermatologi affrontano negli adulti, come l'acne, la rosacea, la psoriasi e l'eczema. Ha un effetto enorme sulla vita dei pazienti e di CloseCurlyQuote perché è così visibile e spesso imbarazzante, con aree rosse, unte e screpolate sul viso e sul cuoio capelluto che sono quasi impossibili da nascondere. A peggiorare le cose, molti degli oltre 10 milioni di malati negli Stati Uniti potrebbero non sapere cosa sia, contribuendo così al problema del sotto-trattamento e del trattamento inadeguato della malattia, & CloseCurlyDoubleQuote; ha affermato Matthew Zirwas, M.D., fondatore della Bexley Dermatology Research Clinic e ricercatore nello studio. “Gli attuali trattamenti topici per la dermatite seborroica hanno grandi limitazioni, o hanno una bassa efficacia, come con antimicotici topici, immunomodulatori topici, steroidi a bassa potenza e shampoo da prescrizione, o profili di effetti collaterali ad alta efficacia ma inaccettabili, come con steroidi topici ad alta potenza. Tra le principali malattie dermatologiche, ha il maggior bisogno di nuove opzioni di trattamento. Credo che questi dati dimostrino che la schiuma roflumilast una volta al giorno è ben tollerata ed efficace. A mio parere, se approvato, ha il potenziale per diventare il nuovo standard di cura nella dermatite seborroica. & CloseCurlyDoubleQuote;

“Siamo lieti del segnale forte dell'efficacia della schiuma roflumilast in questo studio relativamente piccolo. In questo studio, la schiuma topica roflumilast ha dimostrato un miglioramento sintomatico significativo, inclusa una riduzione del prurito, insieme a un profilo di sicurezza e tollerabilità favorevole che supporta l'uso cronico, & CloseCurlyDoubleQuote; ha detto Patrick Burnett, M.D., Ph.D., FAAD e Chief Medical Officer di Arcutis. “Con il dosaggio una volta al giorno, la schiuma roflumilast offre potenzialmente la comodità di un unico prodotto facile da usare per trattare la dermatite seborroica in tutte le parti del corpo in cui un paziente potrebbe essere colpito. A differenza di creme e unguenti, la schiuma roflumilast è adatta per l'uso nelle zone portanti; a differenza degli steroidi, dovrebbe essere adatto per l'uso a lungo termine sul viso; e, a differenza degli shampoo, è una schiuma elegante, ad asciugatura rapida e senza risciacquo che non richiede il risciacquo. In caso di successo negli studi clinici di Fase 3 e approvata per la commercializzazione, la schiuma roflumilast sarà il primo trattamento farmacologico topico in decenni a offrire un nuovo meccanismo d'azione per il trattamento della dermatite seborroica e ha il potenziale per influenzare positivamente i sintomi e la qualità della vita dei pazienti che soffrono di questa angosciante condizione cronica della pelle. & CloseCurlyDoubleQuote;

Tra dicembre 2019 e giugno 2020, lo studio di fase 2 ha arruolato 226 soggetti adulti con dermatite seborroica da moderata a grave. Questo studio di 8 settimane, multicentrico, multinazionale, in doppio cieco, controllato dal veicolo ha valutato la sicurezza e l'efficacia della schiuma roflumilast allo 0,3% somministrata una volta al giorno alle aree colpite del cuoio capelluto, del viso e del corpo. I dati di efficacia topline, compreso l'endpoint primario, il successo dell'IGA alla settimana 8, sono stati analizzati utilizzando la popolazione di tutti i soggetti randomizzati ad eccezione dei soggetti che hanno mancato la valutazione dell'IGA alla settimana 8 specificamente a causa dell'interruzione del COVID-19. È importante sottolineare che solo due soggetti hanno mancato la valutazione IGA della settimana 8 a causa di preoccupazioni derivanti da COVID-19, e quindi le popolazioni Intent-to-Treat (ITT) e ITT modificato differivano solo per due soggetti. Arcutis prevede di presentare i risultati completi dello studio in una futura conferenza medica.

La direzione organizzerà una teleconferenza oggi alle 8:30 EST per discutere questi risultati. Per accedere alla chiamata, comporre il numero (833) 614-1393 (nazionale) o (914) 987-7114 (internazionale) prima dell'orario previsto per la teleconferenza e fornire l'ID conferenza 7378204. Un webcast in diretta della chiamata sarà disponibile su la sezione “Investitori” del sito web della società, www.arcutis.com. Una versione archiviata del webcast sarà disponibile sul sito Web di Arcutis dopo la chiamata.

La schiuma Roflumilast è una formulazione in schiuma topica una volta al giorno di un inibitore della fosfodiesterasi di tipo 4 (inibitore della PDE4) altamente potente e selettivo che Arcutis sta sviluppando in particolare per il trattamento delle dermatosi infiammatorie nelle aree del corpo portatrici di capelli come il cuoio capelluto.

Roflumilast è stato approvato dalla FDA per il trattamento sistemico per ridurre il rischio di esacerbazioni della broncopneumopatia cronica ostruttiva (BPCO) dal 2011. Roflumilast ha mostrato una potenza maggiore (da 25 a 300 volte) rispetto agli altri due inibitori della PDE4 approvati dalla FDA. La PDE4 è un enzima intracellulare che aumenta la produzione di mediatori pro-infiammatori e diminuisce la produzione di mediatori antinfiammatori ed è stato implicato in un'ampia gamma di malattie infiammatorie tra cui psoriasi, eczema e BPCO. La PDE4 è un obiettivo consolidato in dermatologia e altri inibitori della PDE4 sono stati approvati dalla FDA per il trattamento topico della dermatite atopica o per il trattamento sistemico della psoriasi a placche.

Arcutis ritiene che la schiuma roflumilast abbia un potenziale significativo come trattamento per la dermatite seborroica. La schiuma Roflumilast è quasi identica a ARQ-151 (crema topica roflumilast), Arcutis e CloseCurlyQuote; crema topica sperimentale PDE4 inibitore che ha dimostrato un miglioramento sintomatico e un profilo di tollerabilità favorevole in Arcutis & CloseCurlyQuote; studi clinici nella psoriasi a placche, nonché risultati incoraggianti nella dermatite atopica. Arcutis ha completato l'arruolamento in DERMIS-1 e DERMIS-2, i principali studi clinici di Fase 3 della Società e di CloseCurlyQuote che valutano la crema topica roflumilast come potenziale trattamento topico per la psoriasi a placche, e la Società prevede di annunciare i dati di punta nel primo trimestre del 2021 e di presentare una richiesta per un nuovo farmaco (NDA) entro la fine del 2021. Inoltre, a seguito della riunione di fine fase 2 con la Food and Drug Administration (FDA) statunitense, Arcutis prevede di portare avanti il ​​suo programma per lo sviluppo di crema topica roflumilast per il trattamento della dermatite atopica negli studi clinici di fase 3 che iniziano alla fine del 2020 o all'inizio del 2021.

Oltre a questo studio di fase 2, Arcutis sta anche conducendo uno studio sulla sicurezza a lungo termine di fase 2

nella dermatite seborroica. Questo è uno studio multicentrico, in aperto, sulla schiuma roflumilast allo 0,3% applicata una volta al giorno in pazienti con dermatite seborroica e includerà pazienti che sono stati trattati in precedenza nello studio di fase 2, nonché pazienti naïve al trattamento con schiuma roflumilast topica. Le visite cliniche periodiche includeranno valutazioni della sicurezza clinica, reazioni al sito di applicazione e miglioramento o progressione della malattia.

Informazioni sulla dermatite seborroica

La dermatite seborroica colpisce più di 10 milioni di persone negli Stati Uniti ed è una malattia infiammatoria della pelle comune, cronica o ricorrente che causa chiazze rosse ricoperte da squame giallo-grigie grandi e grasse e prurito persistente. La dermatite seborroica si verifica più spesso sul cuoio capelluto, sul viso (soprattutto su naso, sopracciglia, orecchie e palpebre), sulla parte superiore del torace e sulla schiena.

Informazioni su Arcutis – Bioscience, applicata sulla pelle.

Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT) è una società biofarmaceutica in fase avanzata focalizzata sullo sviluppo e sulla commercializzazione di trattamenti per esigenze non soddisfatte in malattie e condizioni dermatologiche immuno-mediate o immuno-dermatologia. L'azienda sta sfruttando i recenti progressi nell'immunologia e nell'infiammazione per sviluppare terapie differenziate contro bersagli biologicamente convalidati per risolvere le sfide persistenti del trattamento nelle gravi malattie della pelle. Arcutis & CloseCurlyQuote; La solida pipeline include quattro nuovi farmaci candidati attualmente in fase di sviluppo per una serie di condizioni dermatologiche infiammatorie. Il prodotto principale candidato dell'azienda & CloseCurlyQuote, roflumilast topico, ha il potenziale per rivitalizzare lo standard di cura per la psoriasi a placche, la dermatite atopica, la psoriasi del cuoio capelluto e la dermatite seborroica. Per ulteriori informazioni, visitare www.arcutis.com o seguire l'azienda su LinkedIn e Twitter.

Guardando avanti Dichiarazioni

Questo comunicato stampa contiene dichiarazioni “previsionali”, comprese, tra le altre, dichiarazioni riguardanti il ​​potenziale di ARQ-154 e CloseCurlyQuote come trattamento della dermatite seborroica; le aspettative della Società e di CloseCurlyQuote di presentare i risultati completi dello studio sulla dermatite seborroica in una futura conferenza medica; il piano di Company & CloseCurlyQuote di annunciare i dati ARQ-151 topline per la psoriasi a placche nel primo trimestre del 2021 e di presentare una richiesta per un nuovo farmaco (NDA) entro la fine del 2021; la Società e il piano di CloseCurlyQuote di avviare studi clinici cardine di Fase 3 per ARQ-151 nella dermatite atopica alla fine del 2020 o all'inizio del 2021. Queste affermazioni comportano rischi noti e sconosciuti, incertezze e altri fattori che possono causare i nostri risultati effettivi, i livelli di attività, prestazioni o risultati devono essere sostanzialmente diversi dalle informazioni espresse o implicite in queste dichiarazioni previsionali e non si deve fare indebito affidamento sulle nostre dichiarazioni previsionali. I rischi e le incertezze che possono far sì che i nostri risultati effettivi differiscano includono i rischi inerenti al processo di sviluppo clinico e al processo di approvazione normativa, i tempi delle dichiarazioni normative e la nostra capacità di difendere la nostra proprietà intellettuale. Per un'ulteriore descrizione dei rischi e delle incertezze applicabili alla nostra attività, vedere la sezione “Fattori di rischio” del nostro modulo 10-Q depositato presso la Securities and Exchange Commission (SEC) degli Stati Uniti l'11 agosto 2020, nonché qualsiasi successivo deposito presso la SEC. Non ci assumiamo alcun obbligo di rivedere o aggiornare le informazioni qui contenute per riflettere eventi o circostanze in futuro, anche se nuove informazioni diventano disponibili.

Investitore Contatto :

Heather Rowe Armstrong

Vicepresidente, Relazioni con gli investitori e comunicazioni aziendali

harmstrong@arcutis.com

805-418-5006, int. 740

Contatto per i media:

Mike Beyer

Sam Brown Inc. Healthcare Communications

mikebeyer@sambrown.com

312-961-2502

Un PDF che accompagna questo annuncio è disponibile su http://ml.globenewswire.com/Resource/Download/630458c3-2f79-40cc-8260-2ef350559bbd

Logo principale

Psorilax:Guarisci |crema aloe vera per psoriasi marrone

0

Psorilax: prezzo, funziona, recensioni, opinioni, dove si compra

Includiamo prodotti che riteniamo utili per i nostri lettori. Se acquisti tramite link in questa pagina, potremmo guadagnare una piccola commissione. Ecco il nostro processo.

Il gioco della bellezza è in continua evoluzione, trasformazione e sempre più hi-tech di giorno in giorno.

Stiamo vedendo strumenti per tonificare, stringere, scavare in profondità nei pori e ottenere una pelle luminosa e dall'aspetto più giovane. Questi prodotti ora includono lunghezze d'onda della luce, frequenze sonore e tecnologia a microcorrente.

Con una quantità crescente di gadget disponibili per l'acquisto e l'uso a casa, come fai a sapere quali funzionano e quali sono a castello?

Questi strumenti hi-tech hanno spesso cartellini dei prezzi elevati, quindi vale la pena capire se valgono l'investimento.

È qui che entrano in gioco la ricerca e le opinioni degli esperti.

Il dermarolling è una forma di microneedling in cui un dispositivo portatile fa rotolare più piccoli aghi sul viso, penetrandolo delicatamente.

Forando la pelle, il trattamento induce la risposta di guarigione della ferita del corpo e la rigenerazione del derma. Questo stimola la produzione di fibre di collagene ed elastina.

Si dice che tratti le cicatrici da acne, riduca le linee sottili, uniformi il tono della pelle e dia un bagliore generale.

Gli aghi vanno da 0,2 millimetri (mm) a 1,5 mm e hanno risultati diversi, a seconda della loro lunghezza. Gli aghi più piccoli prendono di mira le rughe, i pori dilatati e lo scolorimento della pelle, mentre gli aghi più grandi si concentrano su problemi come l'acne profonda e le cicatrici chirurgiche.

Cosa dicono gli esperti

Il dottor Joseph Zahn, assistente professore di dermatologia presso la George Washington School of Medicine and Health Sciences afferma che potrebbero semplicemente fare il lavoro.

“Per le cicatrici da acne, i dermarollers sembrano essere abbastanza efficaci, con la stragrande maggioranza dei pazienti che nota un miglioramento clinicamente significativo nell'aspetto e nella consistenza delle cicatrici con relativamente pochi trattamenti”, afferma Zahn.

Nota anche che si ritiene che i dermarollers aumentino la produzione di collagene nella pelle, il che significa che possono funzionare bene per linee sottili e rughe.

“Per quanto riguarda il tono della pelle, diversi casi di studio hanno notato che i dermarollers possono aumentare gli effetti di altri trattamenti, portando a risultati migliori nell'iperpigmentazione o nel melasma”, afferma Zahn.

Vari studi sono stati eseguiti su aghi cutanei, con ricerca dimostrando che 2 o 3 sedute con un ago da 1,5 mm potrebbero migliorare notevolmente le cicatrici da acne.

Uno studia che ha coinvolto i partecipanti che hanno ricevuto 3 sessioni di agugliatura a intervalli di 2 settimane, ha riscontrato un miglioramento permanente nell'aspetto generale della cicatrice della pelle dopo 6 mesi.

Un altro studia ha scoperto che il microneedling è stato un trattamento efficace dell'iperpigmentazione periorbitale o delle occhiaie.

Ha anche osservato che il microneedling è un trattamento economico e minimamente invasivo per molteplici condizioni cosmetiche e dermatologiche.

Tuttavia, sono necessari ulteriori studi per determinare la frequenza, l'intervallo e le impostazioni specifiche del dispositivo per promuovere risultati ottimali. È anche importante attenersi alle istruzioni del dispositivo per evitare rischi.

“La maggior parte degli utenti di un dermaroller noterà un lieve dolore, arrossamento e gonfiore della pelle, che in genere si risolve entro 24 ore. In caso contrario, questi dispositivi sono generalmente ben tollerati con rischi minimi “, afferma Zahn. “Come sempre, consulta il tuo dermatologo certificato prima di aggiungere un nuovo dispositivo alla tua routine.”

Il verdetto

I dermarollers possono essere efficaci nel ridurre le cicatrici da acne, oltre a ridurre le linee sottili e le rughe e dare alla pelle un aspetto generale migliorato.

La procedura comporta un rischio minimo. Tuttavia, gli utenti devono seguire attentamente le istruzioni, inclusa l'assistenza post-vendita.

Acquista i dermarollers online

Healthline

Le maschere per il viso a LED sono maschere a pieno facciale che omettono le lunghezze d'onda della luce variabili – da circa 400-700 nanometri sullo spettro elettromagnetico – sulla pelle.

All'estremità inferiore dello spettro, a circa 400 nanometri, la luce blu prende di mira e uccide i batteri, aiutando a curare l'acne.

All'altra estremità, i raggi rossi – circa 700 nanometri – aumentano la circolazione sanguigna e stimolano il collagene penetrando più in profondità nella pelle. Si dice che aiuti a ridurre la comparsa di linee sottili e rughe e aiuti con l'infiammazione.

Cosa dicono gli esperti

Le maschere LED blu sono efficaci nell'uccidere i batteri sulla pelle.

“Il batterio che causa l'acne è molto suscettibile allo spettro della luce blu”, afferma la dottoressa Mara Weinstein Velez, assistente professore di dermatologia presso l'Università di Rochester Medical Center, direttrice di cosmetici e laser.

“La luce blu ha effetti antibatterici ed effetti antinfiammatori che possono aiutare a ridurre il rossore e prevenire futuri sfoghi”, dice.

La luce blu può anche aiutare a trattare le condizioni infiammatorie.

“La terapia della luce (sia la luce rossa che quella blu) è un trattamento utilizzato per trattare condizioni infiammatorie come l'eczema e la psoriasi ma più comunemente, la cheratosi attinica, che sono escrescenze precancerose. Questo processo per il trattamento delle cheratosi attiniche è chiamato terapia fotodinamica “, afferma Weinstein Velez.

Le maschere a LED rossi possono aiutare a illuminare la pelle raggiungendo il derma, lo strato più profondo della pelle e stimolando le fibre di collagene ed elastina.

“Aiuta anche a promuovere la guarigione delle ferite e la riparazione dei tessuti aumentando il tasso di rigenerazione cellulare e può essere utilizzato dopo le procedure in ufficio”, afferma Weinstein Velez.

Spiega anche che le maschere a LED rossi possono stimolare la produzione di serotonina a seguito dell'esposizione alla luce, con conseguente aumento dell'umore.

C'è stato anche ricerca nell'efficacia del trattamento leggero per l'acne. Nel complesso, danno prova del trattamento delle terapie a base di luce per l'acne quando viene utilizzata una luce blu e blu-rossa.

Nel uno studio, i pazienti hanno mostrato una riduzione dell'acne dopo 8 trattamenti per un periodo di 4 settimane con un dispositivo per il trattamento della luce a casa. Ha inoltre concluso che non ci sono stati effetti negativi per il trattamento.

Un vecchio studia ha concluso che una sorgente di luce LED blu è un metodo efficace per ridurre le lesioni infiammate e trattare l'acne facciale da lieve a moderata.

Weinstein Velez afferma che è importante consultare il dermatologo certificato della propria commissione prima di utilizzare una maschera LED, poiché ogni persona è diversa.

“Quando si esaminano le specifiche, cercare caratteristiche di sicurezza come spegnimenti automatici, regolatori di calore e timer”, afferma.

Il verdetto

Le maschere per il viso a LED possono essere un trattamento efficace per l'acne e per ridurre le linee sottili e le rughe.

Acquista online maschere per il viso a LED

Healthline

I piroscafi per il viso sono dispositivi domestici che spingono il vapore per un determinato periodo di tempo sulla pelle e sulla testa.

La vaporizzazione del viso aiuta ad aprire i pori. In questo modo è più facile rimuovere sporco, olio e sebo. I pori sciolti aiutano anche a rilasciare cellule morte della pelle e batteri che contribuiscono all'acne e ai punti neri.

Questo dà ai pori una pulizia profonda e prepara la pelle per i prodotti per la cura della pelle come sieri e creme idratanti.

Si dice anche che il vapore promuova la circolazione sanguigna, fornendo maggiore ossigeno alla pelle e aumentando i livelli di collagene ed elastina. Questo aiuta a ridurre le linee sottili e le rughe, donando un bagliore radioso a tutto tondo.

Inoltre, il trattamento aiuta a idratare la pelle aumentando la produzione di olio naturale.

Se ti senti un po 'annusato, anche il vapore del viso può aiutare con la congestione, specialmente con l'aiuto di oli essenziali come l'olio dell'albero del tè. Assicurati di seguire le precauzioni di sicurezza appropriate.

Cosa dicono gli esperti

“I vaporizzatori per il viso possono essere utili per ammorbidire il sebo accumulato e le cellule morte della pelle che possono rimanere intrappolate nei pori, facilitando la rimozione manuale”, afferma la dott.ssa Amanda Doyle della Russak Dermatology Clinic.

“Può anche dare alla pelle un bagliore sano poiché aiuta a migliorare il flusso sanguigno nell'area e ammorbidire la pelle”, dice.

Doyle consiglia di mantenere la temperatura del vapore a un livello sicuro e di mantenere breve il tempo di cottura a vapore.

“Il calore può anche esacerbare alcune condizioni, come la rosacea. È meglio evitarlo per questi pazienti a meno che non venga utilizzato su pazienti che hanno una rosacea ben controllata in uno studio medico “, dice.

Zahn è d'accordo.

“Fumare il viso può aiutare a idratare la pelle, se usato con moderazione. Troppo può portare alla perdita di umidità o secchezza della pelle. In generale, dopo l'uso, segui immediatamente una crema idratante per aiutare a sigillare l'idratazione “, dice Zahn.

Se non sei sicuro se un piroscafo sarà una buona aggiunta alla tua routine di cura della pelle, chiedi al tuo dermatologo.

Il verdetto

I vaporizzatori per il viso possono essere efficaci per sciogliere i pori per dare alla pelle una pulizia più profonda. Tuttavia, dovrebbero essere usati con attenzione e con moderazione per evitare di bruciare o disidratare la pelle.

Acquista vaporizzatori facciali online

Healthline

Le spazzole per la pulizia del viso soniche sono realizzate con setole in nylon o silicone che utilizzano la frequenza sonora per dare una pulizia più profonda. Sono usati insieme a soluzioni per la pulizia del viso, come oli, creme o schiume.

L'idea è che i piccoli impulsi entrino nella pelle dove le mani o le salviette cadono. Allentano ed espellono più efficacemente lo sporco, il sebo e le cellule morte della pelle.

Gli utenti hanno anche commentato online i benefici del massaggio di benessere offerti dalle spazzole per il viso.

Cosa dicono gli esperti

“(I detergenti sonici) sono efficaci (perché) … le onde sonore ad alta frequenza vengono trasmesse attraverso il liquido per una pulizia profonda”, afferma Weinstein Velez. “Aiutano a sciogliere lo sporco e l'olio dalla superficie e, infine, a rimuovere le impurità profonde per una pulizia profonda dei pori.”

Ricerca mostra anche che le spazzole soniche possono offrire un trattamento efficace per rimuovere l'accumulo di sostanze inquinanti e l'eccesso di sebo nei pori, oltre a prevenire gli effetti dell'invecchiamento.

I detergenti sonici inoltre esfoliano, accelerando il normale ciclo di rinnovamento della pelle di 28 giorni.

“L'esfoliazione che si verifica rassoda anche la pelle e riduce la dimensione dei pori. Questo tipo di detergente stimola i rifiuti cellulari e alla fine aiuta la disintossicazione della pelle “, afferma Weinstein Velez.

Questo migliora anche l'assorbimento dei prodotti per la cura della pelle.

Inoltre, a studio di coorte sui partecipanti con acne da lieve a moderata e pelle a tendenza acneica ha scoperto che coloro che hanno utilizzato spazzole per la pulizia del viso soniche con detergenti in gel hanno avuto una significativa riduzione degli sfoghi.

Tuttavia, sono necessarie ulteriori ricerche cliniche sulle varie applicazioni della tecnologia sonic per la cura della pelle.

Assicurati di iniziare lentamente e testare le aree della pelle.

“In generale, l'uso di un detergente per il viso sonico troppo a lungo, troppo spesso o in modo troppo aggressivo può causare irritazione”, afferma Weinstein Velez.

Quando scegli il tuo dispositivo, chiedi al tuo derma.

“È importante consultare il dermatologo certificato dal consiglio di amministrazione prima di utilizzare un detergente per il viso sonico, poiché ci sono molte opzioni disponibili”, afferma.

Il verdetto

Se utilizzati con soluzioni detergenti per il viso, i dispositivi per la pulizia del viso sonici possono aiutare a dare alla pelle una pulizia più profonda e rimuovere sporco, sebo e altre impurità accumulate nei pori.

Seguire attentamente le istruzioni per evitare di danneggiare la pelle a causa di un'esfoliazione eccessiva.

Acquista online detergenti per il viso sonici

Healthline

I dispositivi per la tonificazione del viso sono piccoli gadget portatili che utilizzano la tecnologia a microcorrente (stimolazione neuromuscolare elettrica a microcorrente, per essere più specifici) per aiutare a tonificare e rassodare il viso e ridurre la comparsa di linee sottili e rughe.

Cosa dicono gli esperti

“Questi dispositivi utilizzano la tecnologia software a microcorrente a microonde e la stimolazione elettrica che aiutano a riparare e ricostruire il collagene”, afferma Weinstein Velez. “Questi dispositivi stimolano i muscoli facciali che a loro volta possono contribuire a un aspetto più giovane, migliorare i contorni del viso e illuminare, levigare e ammorbidire la pelle”.

Altri vantaggi del dispositivo includono una pelle più luminosa, levigata e morbida, una riduzione delle rughe e contorni del viso migliorati, secondo Weinstein Velez.

Uno studio sui dispositivi di stimolazione elettrica neuromuscolare (NMES) ha rilevato che gli utenti hanno riportato un miglioramento significativo della fermezza, del tono e del sollevamento.

“Assicurati di utilizzarlo correttamente e segui le indicazioni del produttore”, afferma Doyle.

Weinstein Velez consiglia di utilizzare un dispositivo di tonificazione circa 3 volte a settimana, 5 minuti ogni volta per vedere i miglioramenti, ma controlla con il tuo derma prima di acquistare.

“È importante consultare il dermatologo certificato dalla propria commissione prima di utilizzare dispositivi per la tonificazione del viso, poiché non sono consigliati per tutti i tipi di pelle”, afferma.

Il verdetto

I dispositivi per la tonificazione del viso possono essere efficaci per rassodare e tonificare la pelle. Gli utenti dovrebbero seguire attentamente le istruzioni per ottenere i migliori risultati.

Acquista online dispositivi per tonificare il viso

Healthline

Ci sono molti dispositivi di bellezza hi-tech che puoi usare a casa.

Possono essere efficaci per tonificare e rassodare, ridurre linee sottili e rughe, migliorare le cicatrici e donare luminosità alla pelle.

La maggior parte ha un rischio minimo, ma dovrebbe essere utilizzata secondo le istruzioni del dermatologo per ottenere i migliori risultati e per evitare danni alla pelle.


Marnie Vinall è una scrittrice freelance che vive a Melbourne, in Australia. Ha scritto ampiamente per una serie di pubblicazioni che coprono di tutto, dalla politica e la salute mentale ai panini nostalgici e allo stato della sua stessa vagina. Puoi raggiungere Marnie tramite Twitter, Instagram, o lei sito web.

Psorilax:Metodo |crema con acido salicilico per psoriasi

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Psorilax: prezzo, funziona, recensioni, opinioni, dove si compra

Un nuovo rapporto di business intelligence pubblicato da Data Bridge Market Research con il titolo Global Rx Dermatology Topical Drug Delivery Market è tratto da fonti affidabili come siti Web, rapporti annuali delle società, riviste e altri e sono stati controllati e convalidati dagli esperti di mercato. Il rapporto di ricerca di mercato è sempre utile per le aziende o le organizzazioni in ogni argomento del commercio per prendere decisioni migliori, risolvere le domande aziendali più difficili e ridurre al minimo il rischio di fallimento. Questo rapporto sulle ricerche di mercato sulla somministrazione di farmaci topici per dermatologia globale Rx è una soluzione sicura per ottenere approfondimenti di mercato con cui puoi visualizzare chiaramente il mercato e quindi prendere decisioni importanti per la crescita della tua attività. Traendo ispirazione dalle strategie di marketing dei concorrenti, le aziende possono creare idee creative e obiettivi di vendita sorprendenti che a loro volta consentono loro di ottenere un vantaggio competitivo sui concorrenti. Il rapporto ispeziona il mercato rispetto alle condizioni generali del mercato, al miglioramento del mercato, agli scenari di mercato, allo sviluppo, ai costi e ai profitti delle regioni di mercato specificate, alla posizione e ai prezzi comparativi tra i principali attori.

Il rapporto sul mercato globale della somministrazione di farmaci topici per dermatologia Rx conduce uno studio dei driver di mercato, delle restrizioni del mercato, delle opportunità e delle sfide sottostanti la panoramica del mercato che fornisce informazioni preziose alle aziende per prendere le mosse giuste. Questo rapporto di mercato è una fonte di informazioni sul settore che fornisce dettagli tecnici e finanziari attuali e futuri del settore fino al 2027. Il rapporto di mercato è una finestra sul settore che definisce correttamente quale definizione di mercato, classificazioni, applicazioni, impegni e tendenze di mercato siamo. Inoltre, vengono studiati anche i vincoli di mercato, il posizionamento del marchio e il comportamento dei clienti con i quali viene semplificato il raggiungimento del successo nel mercato competitivo.

Si prevede che il mercato globale della consegna di farmaci topici per dermatologia Rx raggiungerà i 40.646,26 milioni di dollari entro il 2026 da 29.475,18 milioni di dollari nel 2018, crescendo a un CAGR del 4,2% nel periodo di previsione dal 2019 al 2026.

Scarica la copia di esempio PDF del rapporto @ https://databridgemarketresearch.com/request-a-sample/?dbmr=global-rx-dermatology-topical-drug-delivery-market

Analisi competitiva:

Alcuni dei principali partecipanti che operano in questo mercato sono Galderma Laboratories, LP, Hisamitsu Pharmaceutical Co., Inc., Pfizer Inc., LEO Pharma A / S, GlaxoSmithKline plc., ALLERGAN, Bayer AG, 3M, Bausch Health Companies Inc., La Lubrizol Corporation, Cipla Inc., Kaken Pharmaceutical Co., Ltd. tra gli altri.

Il rapporto sulla ricerca di mercato di somministrazione di farmaci topici per dermatologia globale contiene numerosi verticali del settore come profilo aziendale, dettagli di contatto del produttore, specifiche del prodotto, ambito geografico, valore della produzione, strutture di mercato, sviluppi recenti, analisi dei ricavi, quote di mercato e possibile volume di l'azienda. Un team di analisti entusiasti, ricercatori qualificati e previsori esperti lavora meticolosamente per generare questo tipo di report di mercato. Descrive i valori CAGR (tasso di crescita annuale composto) e le sue fluttuazioni per lo specifico periodo di previsione. Per ottenere informazioni di mercato utilizzabili per costruire facilmente strategie aziendali sostenibili e redditizie, questo rapporto di ricerca di mercato globale Rx Dermatology Topical Drug Delivery di ricerca è un'ottima opzione.

Mercato globale della distribuzione di farmaci topici per dermatologia Rx per tipo di prodotto (semisolido, liquido, solido), applicazione (infezioni della pelle, dermatite, antietà, acne, iperpigmentazione, rosacea, cancro della pelle, psoriasi, onicomicosi, altri), categoria (di marca, generico ), Geografia (Nord America, Europa, Asia-Pacifico, Sud America, Medio Oriente e Africa) – Tendenze e previsioni del settore fino al 2026

I farmaci topici svolgono un ruolo importante nella terapia delle malattie dermatologiche. I farmaci per dermatologia topica inquadrano una grande percentuale di prodotti nel mercato dei farmaci. Questi prodotti sono fabbricati attraverso processi di produzione specializzati come riempimento preciso del volume, miscelazione e riscaldamento su larga scala e confezionamento.

La somministrazione topica di farmaci può essere effettuata nel corpo attraverso vie oftalmiche, rettali, vaginali e cutanee come vie topiche. Nel settore dermatologico, la pelle gioca un ruolo importante per la somministrazione di farmaci topici per il trattamento delle malattie della pelle nei pazienti. I preparati topici vengono applicati sulla pelle per effetti superficiali, locali o sistemici. Le formulazioni topiche includono ingredienti terapeuticamente attivi che aiutano nel trattamento delle malattie della pelle nei pazienti.

La somministrazione topica del farmaco è uno dei modi più efficaci di somministrazione del farmaco poiché fornisce risultati terapeutici ottimali. A poco a poco, il sistema di somministrazione topica dei farmaci è diventato sempre più importante nell'industria farmaceutica. La risposta farmacologica, sia l'effetto terapeutico desiderato che l'effetto sfavorevole indesiderato di un farmaco, dipende dalla concentrazione del farmaco nel luogo di azione, che a sua volta dipende dalla forma di dosaggio e dall'entità dell'assorbimento del farmaco nel sito di azione. Nel settore dermatologico, molecola di farmaco applicata sulla pelle che penetra nella pelle principalmente attraverso il percorso intercellulare tortuoso e continuo. Questi prodotti sono disponibili in diverse forme come unguenti, creme, lozioni, gel e altri che hanno la capacità di essere assorbiti dal corpo e mostrano rispettivamente la risposta positiva nella guarigione della ferita.

Segmentazione: Mercato globale della consegna di farmaci topici per dermatologia Rx

Il mercato globale della somministrazione di farmaci topici per dermatologia Rx è segmentato in base al tipo di prodotto, all'applicazione e alla categoria di base.

  • In base alla tipologia di prodotto, il mercato è segmentato in solido, liquido e semisolido. Il solido è suddiviso in polvere e altri. Il liquido è suddiviso in soluzione, emulsione, sospensione, lozione e altri. Il semisolido è suddiviso in creme, gel, unguenti, pasta, altri.
    • Nel dicembre 2016, Pfizer Inc. ha ricevuto l'approvazione dalla Food and Drug Administration (FDA) statunitense per il prodotto chiamato EUCRISATM (crisaborole) unguento al 2%. È un nuovo inibitore topico non steroideo della fosfodieterasi-4 (PDE-4). È usato per il trattamento della dermatite atopica (AD) da lieve a moderata. Con questo lancio del prodotto l'azienda ha costruito un patrimonio nel settore dell'infiammazione e dell'immunologia.
  • In base all'applicazione, il mercato è segmentato in acne, dermatiti, psoriasi, infezioni della pelle, antiaging, cancro della pelle, iperpigmentazione, onicomicosi, rosacea, altri.
    • Nel marzo 2017, Galderma Laboratories, L.P., creatori del marchio Cetaphil, hanno lanciato sette nuovi prodotti per la cura della pelle del viso. Con questo lancio dei prodotti il ​​portafoglio Cetaphil dell'azienda è aumentato. L'azienda dispone ora di un'ampia gamma di soluzioni specializzate per i pazienti con problemi di pelle, inclusa l'idratazione e altri.
  • In base alla categoria, il mercato è segmentato in generico e di marca.
    • Nel febbraio 2016, Allergan plc ha ricevuto l'approvazione per il suo prodotto ACZONE (dapsone) Gel, 7,5% dalla Food and Drug Administration (FDA) statunitense. Questo prodotto è un nuovo trattamento topico su prescrizione utile per il trattamento dell'acne in pazienti di età pari o superiore a 12 anni. Il prodotto ha aiutato il paziente a trattare facilmente l'acne, il che alla fine ha contribuito ad aumentare le entrate.

Richiedi informazioni su questo rapporto dal nostro esperto @ https://databridgemarketresearch.com/inquire-before-buying/?dbmr=global-rx-dermatology-topical-drug-delivery-market

Recenti sviluppi:

  • Nell'aprile 2016, Allergan plc ha acquisito Topokine Therapeutics, Inc. con un pagamento anticipato di 85,8 milioni di USD ed era idonea a ricevere pietre miliari di sviluppo e commercializzazione contingenti fino a 260,0 milioni di USD.
  • Nel febbraio 2019, Kaken Pharmaceutical Co., Ltd. ha concluso un accordo di licenza e distribuzione esclusiva per la formulazione topica per l'onicomicosi nella Repubblica popolare cinese. Secondo l'accordo, Kaken Pharmaceutical Co., Ltd., ha fornito il diritto esclusivo per lo sviluppo e la commercializzazione del prodotto in RPC e questo ha portato a una generazione di profitti elevati.
  • Nell'aprile 2019, The Lubrizol Corporation ha lanciato il suo nuovissimo modificatore di reologia multifunzionale 2 in 1, il polimero Carbopol Style 2.0. Il prodotto ha i vantaggi per la cura della pelle come aspetto liscio e lucido, trame di formulazione uniche e altri. Con questo lancio il portafoglio prodotti dell'azienda è aumentato, il che ha portato a una maggiore generazione di entrate.
  • Nell'agosto 2018, Cipla INC. Ha ricevuto l'approvazione finale per Abbreviated New Drug Application (ANDA) per Diclofenac Sodium Topical Gel, 1% dalla Food and Drug Administration (FDA statunitense) degli Stati Uniti. A causa di ciò l'azienda ha aumentato il proprio portafoglio di prodotti e una forte posizione nel mercato soprattutto nel campo della dermatologia.
  • Nel novembre 2010, 3M ha rilanciato la linea Cavilon Professional Skin Care. Questo prodotto ha contribuito a prevenire danni alla pelle causati da umidità, attrito e traumi adesivi. Il portafoglio di prodotti dell'azienda è aumentato nel campo della dermatologia e quindi ha aumentato le entrate sanitarie.

Opportunità:

BASSA PENETRAZIONE BIOLOGICA:

I biologici sono i farmaci a base di proteine ​​animali o umane che hanno la capacità di trattare rispettivamente le malattie. Hanno la capacità di trattare diverse malattie come la psoriasi, l'artrite psoriasica, altri tipi di artrite e malattie infiammatorie intestinali. A causa della bassa attività dei biologici per il trattamento di eventuali malattie cutanee, i farmaci topici stanno superando il mercato per scopi di trattamento e quindi la sua domanda è in aumento nel mercato.

AUMENTO DELLA CONCORRENZA CHE PORTA A ELEVATI INVESTIMENTI IN R&S PER INNOVARE NUOVI PRODOTTI:

La malattia della pelle negli ultimi tempi è una delle principali malattie tra le persone per le quali sono disponibili trattamenti. Uno dei trattamenti avanzati è il sistema di somministrazione topica di farmaci in cui la pelle gioca un ruolo importante poiché il farmaco viene applicato sulla pelle che ha la capacità di trattare le aree colpite. Numero di aziende ha preso l'iniziativa di fornire prodotti o farmaci di alta qualità per il trattamento delle malattie della pelle. Ciò implica il processo di innovazione nella ricerca farmaceutica. L'aumento del numero di malattie richiede un trattamento adeguato per il quale i farmaci topici svolgono ora un ruolo importante. Quindi molte aziende hanno aumentato le loro strutture di ricerca e sviluppo al fine di fornire i farmaci che si sono rivelati un fattore importante nel guidare il mercato in futuro.

AUMENTARE FUSIONI E ACQUISIZIONI:

Le industrie farmaceutiche probabilmente subiscono la maggior parte delle attività di fusione e acquisizione (M&A) rispetto a qualsiasi altra industria che coinvolge il numero di accordi e la spesa in denaro. Questa attività è necessaria a causa dell'aumento dello sviluppo di un nuovo farmaco nell'industria farmaceutica. Ad esempio, nel luglio 2018, Leo Pharma ha acquisito l'unità globale di dermatologia su prescrizione di Bayer AG (Germania) a un prezzo non divulgato. Lo scopo di questa acquisizione era espandere il loro prodotto nei farmaci per la pelle. Leo Pharma sviluppa ulteriormente l'attività di dermatologia su prescrizione con questa acquisizione. L'aumento delle acquisizioni e delle fusioni aiuta le aziende a rafforzare i loro ricavi insieme alla ricerca e allo sviluppo e all'impianto di produzione e questo ultimo aiuta nella crescita del mercato particolare.

MERCATO EMERGENTE:

L'elevata accessibilità per i pazienti sta portando a maggiori investimenti da parte del settore privato. Molte aziende si stanno concentrando sull'intraprendere sviluppi strategici per aumentare la loro presenza nelle economie emergenti. Insieme a questo, l'aumento della popolazione che invecchia e l'aumento del reddito disponibile contribuiranno alla crescita del mercato. Il mercato della somministrazione di farmaci topici ha una grande opportunità in quanto questa piattaforma ha nuovi elementi che sono stati incorporati per il trattamento delle malattie della pelle e delle mucose. Le condizioni della pelle stanno aumentando in tutto il mondo e alla fine richiede un trattamento. Aumentare la consapevolezza sulle malattie della pelle è anche un fattore che sta aiutando il mercato a crescere in futuro.

Nota: se hai esigenze particolari, faccelo sapere e ti offriremo il rapporto come desideri.

Informazioni sulla ricerca di mercato Data Bridge:

Data Bridge Market Research si propone come una società di ricerca e consulenza di mercato non convenzionale e neoterica con un livello di resilienza e approcci integrati senza precedenti. Siamo determinati a scoprire le migliori opportunità di mercato e promuovere informazioni efficienti affinché la tua azienda possa prosperare nel mercato. Data Bridge si impegna a fornire soluzioni adeguate alle complesse sfide aziendali e avvia un processo decisionale semplice.

Contatto:

Ricerca di mercato Data Bridge

Tel: + 1-888-387-2818

E-mail: (protetto da email)

Psorilax:in vendita |resolve psoriasi crema 100 ml

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Psorilax: prezzo, funziona, recensioni, opinioni, originale

La giovinezza potrebbe essere sprecata con i giovani, ma spesso è sprecata di i meno giovani. È probabile che tu invecchi prematuramente e irriti inutilmente la tua pelle in molti modi ogni giorno senza nemmeno rendertene conto. E dozzine di queste abitudini sono facili, anche senza sforzo, da cambiare. Ad esempio, sapevi che potresti prevenire le rughe semplicemente cambiando la federa o saltando una cannuccia da Starbucks?

Mangia questo, non quello! Salute ha chiesto ad alcuni dei massimi esperti del paese di rivelare quelli che considerano percorsi semplici, veloci ed economici per la fontana della giovinezza (che alla fine dovresti bere usando un bicchiere; continua a leggere per scoprire perché). Continua a leggere e per garantire la tua salute e quella degli altri, non perderteli Segni sicuri che hai già avuto il coronavirus.

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Stai strizzando gli occhi

Donna con taglio di capelli afro che indossa bandana nera, prendendo selfie, tenendo il telefono cellulare o un altro dispositivo nella mano destra, sorridendo e strizzando gli occhi in pieno sole

“Strizzare gli occhi per lunghi periodi di tempo può portare a rughe intorno agli occhi”, afferma Anthony Kouri, MD, chirurgo ortopedico presso il Centro medico dell'Università di Toledo. “Non usare occhiali da sole, o usare occhiali o lenti a contatto obsoleti, ci fa strizzare di più gli occhi e crea rughe”.

Il Rx: “È meglio usare occhiali da sole con protezione UV quando si è all'aperto e assicurarsi che gli occhiali da vista siano aggiornati”, afferma Kouri.

2

Stai usando cannucce

ragazza che beve un cocktail dalla paglia
ragazza che beve un cocktail dalla paglia

“Quando usiamo ripetutamente le cannucce, possiamo creare rughe intorno alle labbra”, dice Kouri. “Più spesso i muscoli intorno alla bocca vengono pizzicati insieme, più è probabile che sviluppiamo rughe in quest'area.”

Il Rx: “Sebbene l'uso occasionale di cannucce non causi rughe, è meglio bere direttamente dal bicchiere quando possibile”, afferma Kouri.

3

Ti stai strofinando il viso

stanca-donna-sfregamento-occhi
stanca-donna-sfregamento-occhi

“Sfregare il viso interrompe le connessioni di collagene ed elastina negli strati dermici portando a una pelle meno tesa, più flaccida e rugosa, in particolare la pelle delicata intorno agli occhi”, afferma David Barbour, co-fondatore dell'azienda di benessere Vivio Life Sciences. Altrettanto disgustoso: “Il sebo e la sporcizia delle tue mani vengono massaggiati nei tuoi pori”.

Il Rx: Tieni le mani dove puoi vederle, ma non sul viso. Toccandolo si diffonde anche il coronavirus.

4

Stai facendo lo shampoo troppo

Donna in doccia, lavare i capelli con shampoo
Donna in doccia, lavare i capelli con shampoo

“Lo shampoo e il condizionamento dei capelli con frequenza regolare possono portare a rimuovere gli oli naturali che mantengono la lucentezza sui nostri capelli e forniscono l'aspetto del volume”, afferma Richard Torbeck, MD, un dermatologo certificato da bordo con Advanced Dermatology PC a New York Città.

Il Rx: “Consiglio di lavarti i capelli solo poche volte a settimana, o se sono fisicamente sporchi”, dice.

5

Fai la doccia più volte al giorno con un sapone profumato

donna avvolta in un asciugamano e con sapone in bagno
donna avvolta in un asciugamano e con sapone in bagno

C'è un punto in cui la pulizia diventa controproducente. Quando fai il bagno o la doccia più volte al giorno, “Questo rimuove i fattori idratanti naturali sulla pelle che aiutano a fornire una barriera per la pelle contro una miriade di agenti, come batteri e allergeni”, dice Torbeck. “Raccomando inoltre ai pazienti di stare alla larga da saponi e detergenti profumati.”

Il Rx: “Se hai l'abitudine di fare la doccia o il bagno più volte al giorno, cerca detergenti e saponi per la pelle sensibili, marchi come Cetaphil, Vanicream o Dove, per citarne alcuni”, consiglia.

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6

Stai bevendo latte

donna che beve latte in giardino
donna che beve latte in giardino

“L'acne può peggiorare bevendo grandi quantità di latte intero, in particolare nei maschi, o latte scremato nelle femmine più giovani”, afferma Torbeck. “I dati di recenti pubblicazioni dermatologiche mostrano un aumento dell'acne con queste due scelte dietetiche”.

Il Rx: Prova latte di noci come mandorle o anacardi. Scegli le versioni non zuccherate: la roba dolce contiene una sostanza chimica che può causare gonfiore (oltre alle calorie che non ti servono).

7

Ti stai stressando

In ritardo al lavoro il traffico si precipitò stressato
In ritardo al lavoro il traffico si precipitò stressato

“Lo stress può fare un numero sulla tua pelle. L'acne, la dermatite e la psoriasi sono tutti responsabili dello stress “, afferma Jeanette Kimszal, RDN, NLC, una nutrizionista dietista registrata con sede nel New Jersey. “Quando il tuo corpo pompa gli ormoni dello stress, le tue cellule della pelle saranno colpite, portando a malattie della pelle.” Concorda Torbeck: “Lo stress e l'ansia peggiorano notevolmente l'acne, l'eczema e il prurito. C'è stata un'ampia letteratura che esamina questo collegamento e la patologia dietro di esso. “

Il Rx: “Nei pazienti che vedo con queste condizioni, consiglio di cercare modi per ridurre lo stress e l'ansia attraverso strade come la meditazione, la consapevolezza e lo yoga”, afferma Torbeck.

8

Stai fumando

Un'immagine ravvicinata di un pacchetto di sigarette aperto.
Un'immagine ravvicinata di un pacchetto di sigarette aperto.

Probabilmente sapevi che fumare sigarette può invecchiare la pelle, ma sbuffare può causare danni ancora più gravi al tuo derma. “Il fumo di sigaretta è stato collegato alla scarsa guarigione delle ferite, all'accelerazione dell'invecchiamento della pelle come le rughe e (una perdita di) elasticità della pelle e al cancro della pelle, in particolare il carcinoma a cellule squamose della pelle”, afferma Torbeck.

Il Rx: Calcia l'abitudine ora! Le centinaia di tossine che si annidano nel fumo di sigaretta non hanno posto vicino al tuo viso.

9

Stai usando i rasoi più a lungo di quanto dovresti

Donna che rade le gambe in bagno
Donna che rade le gambe in bagno

“Questi possono ospitare batteri e portare a follicoli piliferi infiammati”, afferma Raman Madan, MD, direttore di dermatologia cosmetica presso Northwell Health e assistente professore clinico presso la Zucker School of Medicine di Hofstra / Northwell.

Il Rx: “Uso un servizio di rasoio in abbonamento per evitarlo”, afferma Madan. Cambia il tuo rasoio ogni diversi utilizzi o ogni volta che inizia a diventare opaco.

10

Stai usando amamelide e aceto di sidro di mele sulla pelle

polpa di mela mescolata al miele per normalizzare la pelle che si secca in inverno sulla superficie del legno
polpa di mela mescolata al miele per normalizzare la pelle che si secca in inverno sulla superficie del legno

Questi astringenti possono farti sembrare disidratato, perché ti seccano. “Mettono a nudo la pelle di oli naturali, portando a pelle secca e irritazione”, dice Madan.

Il Rx: Madan consiglia invece prodotti idratanti delicati come Aquaphor o vaselina.

11

Stai usando lo scrub per curare la tua acne

donna che pulisce la pelle del viso si diverte con la schiuma detergente a bolle
donna che pulisce la pelle del viso si diverte con la schiuma detergente a bolle

Ricorda che l'acne è una malattia della pelle, non una malattia dello sporco, e devi trattarla delicatamente; non puoi strofinarlo via. L'uso di prodotti abrasivi e detergenti “provoca effettivamente più infiammazione”, afferma Madan.

Il Rx: “Utilizzare un detergente viso delicato come Cetaphil o CeraVe”, dice Madan. Se sei infastidito da acne ricorrente, fissa un appuntamento con un dermatologo, che può consigliarti prodotti adatti alla tua pelle o prescriverti farmaci se necessario.

RELAZIONATO: Sono un medico di malattie infettive e non lo toccherei mai

12

Non dormi abbastanza

uomo che dorme bene
uomo che dorme bene

“Stare alzati fino a tardi, svegliarsi nel cuore della notte e non avere un sonno ristoratore può avere un serio impatto sulla salute generale della pelle”, afferma Sherwin Parikh, MD, dermatologo certificato dal Tribeca Skin Center di New York City. “La sintesi del collagene avviene durante il riposo. I livelli di cortisolo diminuiscono durante l'ultima parte del ciclo del sonno, riducendo i duri effetti dell'overdrive surrenale sulla pelle e sui capelli. I livelli di umidità si ripristinano durante la notte. Gli occhi gonfi e stanchi diventano evidenti per alcune persone in poche notti brutte. “

Il Rx: La National Sleep Foundation afferma che gli adulti dovrebbero dormire dalle sette alle nove ore ogni notte per una salute ottimale, né di più né di meno. “Un sonno calmo e ininterrotto è la chiave per riprendersi dalle devastazioni della giornata, sia ambientali che stressanti”, afferma Parikh. “La salute della pelle prospera grazie a un sonno sano”.

13

Stai facendo docce bollenti

Uomo in fase di riscaldamento sotto la doccia
Uomo in fase di riscaldamento sotto la doccia

“Una doccia calda e fumante potrebbe essere l'unico modo per sentirti veramente pulito, ma potrebbe fare più male che bene alla tua pelle”, afferma Caleb Backe, personal trainer certificato ed esperto di benessere con sede nel New Jersey con Maple Holistics. “L'acqua calda elimina lo strato esterno dell'epidermide, che può lasciare la pelle irritata e suscettibile agli elementi esterni.”

Il Rx: “L'acqua tiepida potrebbe non essere la tua prima opzione, ma assicura che la tua carnagione sia pulita e protetta”, afferma Backe.

14

Hai l'eczema ma non sei stato sottoposto a test allergologici

Allergia alla puntura della pelle per scoprire il tipo di allergia
Allergia alla puntura della pelle per scoprire il tipo di allergia

L'eczema è un'eruzione cutanea pruriginosa e squamosa che è famigerata ostinata, ma in alcuni casi, un semplice test può chiarirlo. “Per molte persone, l'eczema è l'unica indicazione che potrebbero essere allergici a determinati alimenti, e anche allora, la reazione non è immediata”, afferma Larissa Cosgrove, autrice di The Eczema Diaries. “A seconda del tuo metabolismo, una riacutizzazione potrebbe non verificarsi per un paio di giorni, rendendo estremamente difficile rintracciare la causa. I colpevoli più comuni sono grano, latticini, zucchero, uova e alcol “.

Il Rx: Se hai un'eruzione cutanea simile a un eczema, consulta un allergologo. “Sottoporre a test allergologici può essere importante per escludere la sensibilità”, afferma Cosgrove. E mangiare cibi lenitivi fa bene dentro e fuori. “Poiché l'eczema è una condizione infiammatoria, incorporare cibi che naturalmente riducono l'infiammazione sono utili per tenere a bada i razzi, come la curcuma, i frutti di bosco, gli avocado e il tè verde”.

15

Stai bevendo troppo

Rilassarsi con un bicchiere di vino
Rilassarsi con un bicchiere di vino

Mi dispiace, non è un mito; troppe bevande possono punteggiarti il ​​viso. “L'eccessivo consumo di alcol è molto disidratante, un'altra fonte di invecchiamento della pelle”, afferma Dean C. Mitchell, MD, assistente professore clinico al Touro College of Osteopathic Medicine di New York City.

Il Rx: Per la salute della pelle e cardiovascolare e per ridurre il rischio di cancro, gli esperti dicono che gli uomini dovrebbero limitarsi a due bevande alcoliche al giorno e le donne dovrebbero dire “quando” a una.

16

Non ti lavi il viso di notte

Donna che spruzza la faccia con acqua sopra il lavandino del bagno
Donna che spruzza la faccia con acqua sopra il lavandino del bagno

“Durante il giorno, diversi inquinanti atmosferici si accumulano sulla pelle provocando danni alla pelle. Questi inquinanti devono essere lavati via “, dice Viseslav Tonkovic-Capin, MD, un dermatologo certificato a bordo di Kansas City. Dice che è particolarmente importante lavare via il trucco ogni sera: “Il trucco non è regolamentato dalla FDA ed è un mistero chimico e farmacologico. Pertanto è meglio lavarlo via non appena è socialmente accettabile farlo. “

Il Rx: Lavati il ​​viso mattina e sera con un detergente delicato. Se indossi il trucco, Tonkovic-Capin nota che i cosmetici liquidi, pastosi o pressati possono tappare i pori e causare l'acne. Raccomanda invece un trucco minerale sciolto.

17

Stai mangiando troppi carboidrati

ragazza in maglione giallo che mangia pizza al ristorante
ragazza in maglione giallo che mangia pizza al ristorante

“Gli alimenti ad alto indice glicemico, ovvero i carboidrati, causano la degradazione del collagene e dell'elastina tramite il processo di glicazione, quando i carboidrati si attaccano al collagene e all'elastina”, afferma Tonkovic-Capin.

Il Rx: Per mantenere sani tutti i sistemi del tuo corpo, concentra la tua dieta su proteine ​​magre, grassi buoni e una varietà di frutta e verdura colorata. Scegli carboidrati complessi come i cereali integrali e limita gli alimenti trasformati e i carboidrati semplici come pane bianco, riso bianco, patatine e prodotti da forno.

18

Non stai ascoltando il tuo istinto

n soffre di mal di stomaco
n soffre di mal di stomaco

“Una cattiva salute della pelle può essere un sottoprodotto di una cattiva salute dell'intestino”, afferma Kimszal. “Se qualcuno ha acne, eruzioni cutanee o eczema, potrebbe essere legato a come funziona il loro intestino. La sensibilità a determinati alimenti può manifestarsi sul viso o su altre parti del corpo “. Indica la ricerca su persone con diagnosi di sensibilità al glutine non celiaca (NCGS); avevano la pelle pruriginosa che assomigliava a eczema, psoriasi o dermatite che migliorava dopo aver iniziato a seguire una dieta priva di glutine.

Il Rx: Se la tua pelle non sembra stellare, chiedi al tuo medico se dovresti consultare un allergologo o un nutrizionista insieme a un dermatologo.

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19

Stai dormendo sullo stomaco o sul fianco

donna assonnata sdraiata a pancia in giù indossando pantaloni
donna assonnata sdraiata a pancia in giù indossando pantaloni

“Il tuo cuscino potrebbe farti sembrare più vecchio”, afferma Anthony Youn, MD, chirurgo plastico di Detroit e autore di Giocare a Dio: l'evoluzione di un chirurgo moderno. “Dormire sul viso crea pieghe sulle guance che possono progredire fino a diventare rughe permanenti del” sonno “. Questo vale anche per dormire su un fianco, e soprattutto peggio con federe più ruvide, come il poliestere. “

Il Rx: “Dormi sulla schiena o, se non puoi, cambia la federa del cuscino con una federa di seta o di raso”, dice Youn.

20

Stai bevendo dalle bottiglie d'acqua

Acqua potabile della donna
Acqua potabile della donna

“Abbiamo tutti sentito il termine 'rughe del fumatore', che si riferisce alle linee sottili intorno alla bocca che i fumatori ottengono dal contrarre così tanto le labbra”, dice Youn. “Oggigiorno sono sempre meno le persone che fumano, ma qualcos'altro ci spinge a fare sempre più affari: bere dalle bottiglie d'acqua. Questo ci fa increspare ripetutamente le labbra. Anche se l'acqua idrata la nostra pelle, alcuni medici ritengono che il ripetuto increspamento delle labbra faccia arricciare maggiormente le nostre labbra “.

Il Rx: “Bevi da bottiglie a bocca larga, o se hai bisogno di usare una bottiglia a bocca piccola, allora spruzza l'acqua nella bocca aperta”, raccomanda. (Basta non smettere di idratare.)

21

Non stai pulendo il telefono

Pulizia del cellulare per eliminare i germi
Pulizia del cellulare per eliminare i germi

Circa il 40% delle donne e il 10% degli uomini di età superiore ai 20 anni soffrono di acne negli adulti. “Spesso l'acne è concentrata sul mento, che è dove spesso poggiamo i nostri telefoni e cellulari”, dice Youn. “Una delle principali cause di acne sono i batteri, e questi batteri possono facilmente diffondersi da una persona all'altra appoggiando il mento sul telefono.”

Il Rx: “Usa un tampone imbevuto di alcol per pulire il tuo cellulare e tutti i telefoni al lavoro”, dice Youn. “Questo può uccidere tutti i batteri che causano l'acne e migliorare la tua carnagione.”

22

Non stai mangiando abbastanza Omega-3

salmone crudo sul tagliere
salmone crudo sul tagliere

“Uno dei migliori macronutrienti per una pelle sana ed elastica sono gli acidi grassi di qualità, preferibilmente di pesce omega 3 o olio di alghe”, afferma Stella Metsovas, autrice di Mediterraneo selvaggio: il piano secolare e nuovo di scienza per un intestino sano, con cibo di cui ti puoi fidare. “Prova l'olio extravergine di oliva spremuto a freddo poiché contiene una potente fonte di fitonutrienti idrossitirosolo oleato, che è noto per fornire alla pelle una forte linea di difesa dai radicali liberi.”

Il Rx: Gli Omega-3 hanno una serie di benefici: aumentano la salute del cuore e riducono il rischio di malattie dal diabete alla depressione. Mangia fonti alimentari integrali di omega-3 come pesce magro (mirare due volte a settimana), olio d'oliva, manzo nutrito con erba, noci e uova omega-3. Il National Institutes of Health raccomanda che le donne assumano 1.100 mg e gli uomini 1.600 mg di omega-3 al giorno.

RELAZIONATO: Sono un medico e questa vitamina può ridurre il rischio di COVID

23

Stai usando cronicamente corticosteroidi

Prescrizione pillola bottiglia medicina
Prescrizione pillola bottiglia medicina

“Un altro comportamento molto brutto è l'ingestione di corticosteroidi in forma di pillola o l'uso cronico di inalatori contenenti corticosteroidi”, afferma Janet H. Prystowsky, MD, Ph.D., un dermatologo certificato a New York City. “Dopo anni di utilizzo di questi prodotti da prescrizione per disturbi come asma, enfisema o malattie del tessuto connettivo come il lupus o la sindrome da stanchezza cronica, il danno si accumula e non l'ho visto reversibile. Gli steroidi topici utilizzati per condizioni croniche come l'eczema o la psoriasi possono anche assottigliare la pelle, ma può essere invertita più prontamente a meno che tu non sia andato davvero troppo lontano e abbia ottenuto smagliature che sono permanenti “.

Il Rx: Chiedi al tuo medico se la tua prescrizione di corticosteroidi è ancora necessaria o se ci sono farmaci alternativi che potrebbero essere più facili sulla tua pelle.

24

Non stai usando antiossidanti

Alimento salutare per il concetto di fitness con frutta, verdura, legumi, erbe aromatiche, spezie, noci, cereali e legumi. Ad alto contenuto di antociani, antiossidanti, carboidrati intelligenti, omega 3, minerali e vitamine
Alimento salutare per il concetto di fitness con frutta, verdura, legumi, erbe aromatiche, spezie, noci, cereali e legumi. Ad alto contenuto di antociani, antiossidanti, carboidrati intelligenti, omega 3, minerali e vitamine

“La maggior parte delle persone comprende l'impatto dello stress sulla propria salute mentale, ma esiste un altro tipo di stress che può influire sulla pelle: lo stress ossidativo”, afferma Fred Pescatore, MD, internista di New York e autore di La dieta degli Hamptons. È allora che i radicali liberi e gli antiossidanti causano danni alle cellule. “Questo può accelerare il naturale processo di invecchiamento della pelle, che è quando possiamo vedere linee sottili e rughe premature. L'aggiunta di antiossidanti al tuo regime quotidiano di cura della pelle può fare una grande differenza nell'aspetto della tua pelle “.

Il Rx: Pescatore consiglia di aggiungere alla vostra routine il picnogenolo “super antiossidante”, o corteccia di pino marittimo francese. “La ricerca mostra che è 50 volte più potente della vitamina E, rendendolo molto efficace per ridurre i livelli di stress ossidativo”, dice. E per superare questa pandemia nel modo più sano, non perdere questi 35 luoghi in cui è più probabile che catturi COVID.