Arcutis Biotherapeutics Secures $94.5 Million Series C Financing to Advance Dermatology Therapies

VCBeat (WeChat ID: vcbeat) has learned that on October 21, 2019, biopharmaceutical company Arcutis Biotherapeutics announced the completion of a $94.5 million Series C financing round. The round was led by HBM Healthcare Investments, with participation from new investors including Vivo Capital, Omega Funds, Pivotal bioVenture Partners, and Goldman Sachs. Investments from new investors accounted for more than 50% of the total Series C funding.

In addition, existing investors Frazier Healthcare Partners, Bain Capital Life Sciences, OrbiMed, and RA Capital Management continued to provide support.

In this round of financing, Dr. Alexander Asam, an investment advisor at HBM, announced his appointment to the Board of Directors of Arcutis. Dr. Asam brings over 20 years of global life sciences investment experience.

Arcutis is a privately held, clinical-stage biopharmaceutical company based in California, USA. Since its establishment in 2016, Arcutis has raised over $160 million in financing. The company primarily explores innovative technologies in the fields of inflammation and immunology, develops potential best-in-class therapies targeting validated biological targets, and brings novel dermatological treatments to market while maximizing commercial profitability.

The company’s leadership team possesses deep expertise in the development and commercialization of dermatology products. Team members have previously held leadership roles at multiple leading dermatology companies, developing more than 20 products that received FDA approval.

Arcutis is currently developing two novel compounds, ARQ-151 and ARQ-252, which can be used for multiple indications such as psoriasis, atopic dermatitis, and eczema.

The funding from this round will be used for the Phase III clinical development of the company’s lead candidate, ARQ-151. ARQ-151 is a topical cream formulation containing roflumilast for the treatment of psoriasis. Additionally, the company plans to invest in the continued development of ARQ-151 as a therapy for atopic dermatitis.

Arcutis is expected to report primary data from its Phase 2a study on atopic dermatitis by the end of 2019, and primary data from its Phase 3 study on plaque psoriasis in the first half of 2021.

Frank Watanabe, President and Chief Executive Officer of Arcutis, stated, “We are deeply grateful for the continued strong support from our existing investors and are delighted to see the further expansion of our network of experienced and influential life sciences investors. We are excited about our shared commitment to developing dermatology products, as this has the potential to positively impact the lives of patients with various skin conditions.”

HBM Healthcare Investments, founded in Switzerland in 2001, actively invests in human medicine, biotechnology, medical technology, diagnostics, and related fields. The company closely monitors its portfolio companies and actively guides their strategic direction.

Vivo Capital, founded in 1996, is an investment firm focused on the life sciences and healthcare sectors, managing over $3 billion in assets. To date, Vivo Capital has invested in more than 80 private and public companies in the biopharmaceutical, specialty pharmaceutical, and medical device industries.

Omega Funds was established in 2004 and is headquartered in Boston, Massachusetts, USA. The firm is dedicated to investments in biotechnology, healthcare, medical devices, and life sciences-related sectors. To date, Omega Funds has raised over $1 billion in capital.

Pivotal bioVenture Partners is a life sciences venture capital fund established in 2017. The firm focuses on investing in innovative therapeutic products, providing financial support at various stages of company development.

Goldman Sachs is a U.S. multinational investment bank and financial services company headquartered in Manhattan, New York City. The firm provides services including investment management, securities, asset management, prime brokerage, and securities underwriting, and is one of the largest investment institutions globally.

(Compiled by Jiang Ying)