 Robust pipeline anticipated to deliver two Phase 3 and four Phase 2 data events in 2020 and 2021 Arcutis currently expects no impact to its previously disclosed clinical timelines due to COVID-19 Arcutis development programs address dermatological diseases impacting over 20 million patients in the U.S. Strong financial position with 224.0 million in cash, cash equivalents and marketable securitiesWESTLAKE VILLAGE, Calif., Aug. 11, 2020 GLOBE NEWSWIRE -- Arcutis Biotherapeutics, Inc. Nasdaq: ARQT, a late-stage biopharmaceutical company focused on developing and commercializing treatments for unmet needs in immune-mediated dermatological diseases and conditions, or immuno-dermatology, today reported financial results for the quarter ended June 30, 2020, and provided a business update.Arcutis is uniquely positioned to fill the innovation gap in the medical dermatology sector, and we anticipate six important clinical data readouts, including our pivotal Phase 3 clinical trials of topical roflumilast cream as a potential treatment for plaque psoriasis, between now and the end of 2021, said Frank Watanabe, Arcutis President and Chief Executive Officer. Dermatologists and patients are desperate for new topical options to treat serious diseases of the skin. We are focused on elevating the standard of care for dermatological diseases and conditions through novel therapies that simplify disease management for physicians and eliminate the need for patients to compromise between drug safety, efficacy, and tolerability. We appreciate the strong support from investigators across our development programs, which currently include four product candidates in development for seven indications, with an addressable U.S. market of over 20 million patients.Pipeline Update ARQ-151 Topical roflumilast cream - a highly potent and selective phosphodiesterase type 4 PDE4 inhibitor in a cream formulation, being developed as a potential treatment for plaque psoriasis, including intertriginous psoriasis, and atopic dermatitis. The New England Journal of Medicine published positive results from a Phase 2b trial, which demonstrated the compound significantly improves chronic plaque psoriasis. Topline data from two on-going Phase 3 clinical trials DERMIS-1 and-2 in patients with plaque psoriasis is anticipated in the first half of 2021. On-going Phase 2 long-term safety study in plaque psoriasis has completed enrollment, with topline data anticipated in the first quarter of 2021. The Company expects to begin a Phase 2b study in atopic dermatitis in the second half of 2020, with topline data anticipated in the second half of 2021.ARQ-154 Topical roflumilast foam - a highly potent and selective phosphodiesterase type 4 PDE4 inhibitor in a foam formulation, designed to overcome the challenges of delivering topical drugs in hair-bearing areas of the body, being developed as a potential treatment for seborrheic dermatitis and scalp psoriasis. In June, the Company completed enrollment in the on-going Phase 2 proof-of-concept study in seborrheic dermatitis, with topline data anticipated early in the fourth quarter of 2020. In July, the Company completed enrollment in the ongoing Phase 2b study in scalp psoriasis, with topline data anticipated in the fourth quarter of 2020.ARQ-252 - a potent and highly selective topical small molecule inhibitor of Janus kinase type 1 JAK1, being developed as a potential treatment for chronic hand eczema and other inflammatory dermatoses. In July, the Company initiated enrollment in the Phase 2b portion of the ongoing Phase 12b study in chronic hand eczema, with topline data anticipated in the second half of 2021. The Company anticipates initiating a Phase 2a study in vitiligo in the second half of 2020.ARQ-255 - an alternative topical formulation of ARQ-252 designed to reach deeper into the skin in order to potentially treat alopecia areata. Formulation and preclinical efforts are underway.Recent Corporate Highlights Over the course of the second quarter, the Company announced that two senior executives had joined the Company: Jay Ramsinghani, Vice President of Commercial Strategy and Operations. Ayisha Jeter, Vice President of Market Access.Second Quarter 2020 Summary Financial ResultsCash, cash equivalents and marketable securities were 224.0 million as of June 30, 2020, compared to 101.3 million as of December 31, 2019. Arcutis believes that its current cash, cash equivalents, and marketable securities will be sufficient to fund its operations through 2021.Research and development RD expenses for the quarter ended June 30, 2020 were 30.0 million compared to 7.2 million for the corresponding period in 2019. RD expenses for the six months ended June 30, 2020 were 55.2 million compared to 13.4 million for the corresponding period in 2019. These year-over-year increases were primarily due to the initiation of multiple clinical trials during the last year.General and administrative GA expenses for the quarter ended June 30, 2020 were 5.6 million compared to 1.3 million for the corresponding period in 2019. GA expenses for the six months ended June 30, 2020 were 9.1 million compared to 2.1 million for the corresponding period in 2019. These year-over-year increases were primarily due to higher headcount and professional services costs, including the costs associated with being a public company.Net loss was 35.4 million, or 0.94 per basic and diluted share, for the quarter ended June 30, 2020 compared to 8.3 million, or 4.69 per basic and diluted share, for the corresponding period in 2019. Net loss was 63.4 million, or 2.05 per basic and diluted share, for the six months ended June 30, 2020 compared to 14.9 million, or 8.79 per basic and diluted share, for the corresponding period in 2019.About Arcutis - Bioscience, applied to the skin.Arcutis Biotherapeutics, Inc. Nasdaq: ARQT is a late-stage biopharmaceutical company focused on developing and commercializing treatments for unmet needs in immune-mediated dermatological diseases and conditions, or immuno-dermatology. The Company is leveraging recent advances in immunology and inflammation to develop differentiated therapies against biologically validated targets to solve persistent treatment challenges in serious diseases of the skin. Arcutis robust pipeline includes four novel drug candidates currently in development for a range of inflammatory dermatological conditions. The Companys lead product candidate, topical roflumilast, has the potential to revitalize the standard of care for plaque psoriasis, atopic dermatitis, scalp psoriasis, and seborrheic dermatitis. For more information, visit or follow the Company on LinkedIn and Twitter.Forward Looking StatementsThis press release contains forward-looking statements, including, among others, statements regarding the potential for its topical drugs in development to address large markets with significant unmet need; expectations with regard to the timing of data events anticipated during 20202021; and the Companys belief that its current cash, cash equivalents and marketable securities will be sufficient to fund its operations through 2021. These statements involve substantial known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements and you should not place undue reliance on our forward-looking statements. Risks and uncertainties that may cause our actual results to differ include risks inherent in the clinical development process and regulatory approval process, the timing of regulatory filings, and our ability to defend our intellectual property. For a further description of the risks and uncertainties applicable to our business, see the Risk Factors section of our Form 10-Q filed with U.S. Securities and Exchange Commission SEC on August 11, 2020, as well as any subsequent filings with the SEC. We undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available.Contact: Heather Rowe Armstrong Vice President, Investor Relations Corporate Communications 805-418-5006, Ext. 740 ARCUTIS BIOTHERAPEUTICS, INC. Condensed Balance Sheets In thousands, except share and par value June 30, December 31, 2020 2019 Unaudited ASSETS Current assets: Cash and cash equivalents171,546 63,336 Marketable securities52,429 37,929 Prepaid expenses and other current assets4,060 5,209 Total current assets228,035 106,474 Property, plant, and equipment, net228 227 Operating lease right-of-use asset3,629 264 Other assets78 47 Total assets231,970 107,012 LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS EQUITY DEFICIT Current liabilities: Accounts payable8,253 1,405 Accrued liabilities10,948 3,654 Operating lease liability80 178 Total current liabilities19,281 5,237 Operating lease liability, noncurrent3,610 129 Other long-term liabilities156 184 Total liabilities23,047 5,550 Convertible preferred stock 166,491 Stockholders equity deficit: Preferred stock Common stock3 Additional paid-in capital338,617 1,244 Accumulated other comprehensive income loss 1 Accumulated deficit129,697 66,272 Total stockholders equity deficit208,923 65,029 Total liabilities, convertible preferred stock and stockholders equity deficit231,970 107,012 ARCUTIS BIOTHERAPEUTICS, INC. 