Benzinga | Dec 23, 2021 10:18AM EST

Arcutis Secures $225M Debt Financing To Fund Potential Launch Of Roflumilast

Arcutis Biotherapeutics Inc (NASDAQ:ARQT) has obtained a $225 million term loan facility from SLR Capital Partners (SLR).

* This additional capital further strengthens Arcutis' balance sheet before a potential 2022 FDA approval & launch of topical roflumilast cream in plaque psoriasis and three 2022 pivotal data readouts in skin disorder trials.

* Related: Arcutis' Roflumilast Cream For Psoriasis Goes Under FDA Review.

* This non-dilutive financing commitment extends the Company's cash runway into 2024.

* 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 plaque psoriasis.

* An additional $25 million is also available if certain revenue milestones are achieved. The loan facility maturity date is January 2027.

* Price Action: ARQT shares traded 1.29% higher at $18.78 on the last check Thursday.