Westlake Village-based Arcutis Biotherapeutics reported its fourth-quarter and full-year financial results, which revealed higher R&D; costs and increased net loss as the company continues to prepare for its first potential product launch.
“We executed exceptionally well in 2021, delivering strong Phase 3 plaque psoriasis data, initiating three additional Phase 3 programs, and commencing our commercialization efforts,” Frank Watanabe, Arcutis’ chief executive, said in a statement.
The company exited last year with the securing of a $225 million non-dilutive loan facility to extend the company’s cash runway into 2024. $75 million was drawn at the closing of the deal.
An additional $125 million will become available upon FDA approval of roflumilast cream for plaque psoriasis, which had its new drug application filing accepted last year. An additional $25 million is also available once revenue milestones are achieved.
Arcutis took on increased net losses and expenses in prepping for commercialization of the roflumilast cream. The company reported net loss of $206 million, for the year ended Dec. 31, 2021, a 41.3 percent increase year-over-year.
Arcutis also experienced a year-over-year increase in research and development expenses for the fourth quarter, attributing the increase to clinical and manufacturing costs related to three additional Phase 3 topical roflumilast development programs.
General and administrative expenses also ramped up due to higher headcount and professional services expenses. The company’s employee base grew from 50 to 150 last year as the annual voluntary turnover rate has remained at or below 7 percent, according to an email from the company.
“We have strong momentum and expect that 2022 will be a transformational year for Arcutis, as we prepare for our first potential product launch in plaque psoriasis and progress our three additional Phase 3 topical roflumilast programs, as well as our early pipeline,” Watanabe said in a statement.