Arcutis Biotherapeutics, a late-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, obtained a $225 million term loan facility from funds managed by SLR Capital Partners (“SLR”). This additional capital further strengthens Arcutis’ balance sheet in advance of a potential 2022 Food and Drug Administration (FDA) approval and launch of topical roflumilast cream in plaque psoriasis, and in advance of three 2022 pivotal clinical data readouts in atopic dermatitis, seborrheic dermatitis, and scalp psoriasis. This non-dilutive financing commitment extends the Company’s cash runway into 2024.

“We are delighted to have SLR Capital Partners with us ahead of a transformative year for Arcutis,” said Frank Watanabe, President and CEO of Arcutis. “This additional financing further strengthens our balance sheet at an attractive cost of capital and provides us with enhanced financial flexibility as we prepare for the potential launch of roflumilast cream in 2022, while simultaneously advancing our product candidates through multiple late-stage clinical trials, furthering our mission of bringing innovative treatments to dermatologists and millions of patients with serious skin diseases.”

“SLR is excited to be a long-term partner with Arcutis as they advance topical roflumilast in a number of pivotal Phase 3 development programs and prepare for a commercial launch,” said Anthony Storino, Head of Life Science Finance at SLR. “We believe topical roflumilast has the potential to transform the standard of care across numerous dermatological conditions, and this significant commitment of capital represents that belief and our commitment to financing life sciences companies across all stages of development.”

Under the terms of this loan facility, $75 million was drawn at closing, and an additional $125 million becomes available upon FDA approval of roflumilast cream for the treatment of plaque psoriasis. An additional $25 million is also available if certain revenue milestones are achieved. The loan facility maturity date is January 2027, with the interest-only period extending for the entire five years. The loan facility is secured by the Company’s assets.

J. Wood Capital Advisors LLC acted as financial advisor to Arcutis, and Latham & Watkins LLP acted as legal counsel to Arcutis.