Arcutis Biotherapeutics announced on January 26, 2026 that it and Kowa Pharmaceuticals America have mutually terminated their promotion agreement for ZORYVE, a roflumilast‑based topical treatment for inflammatory skin conditions. The termination, effective January 23, 2026, ends Kowa’s role in selling and promoting the drug in primary‑care and pediatric settings.
The company said it will take over all sales and promotion responsibilities in those channels, citing a strategic decision to strengthen its own commercial capabilities. Arcutis plans to invest incrementally in primary‑care outreach, though it has not yet disclosed the exact budget or timeline for these efforts. Management emphasized that the change will not negatively impact its 2026 net product sales guidance, which remains in the $455–$470 million range, and that the company expects to stay cash‑flow break‑even.
Frank Watanabe, president and CEO, noted that the partnership with Kowa “has laid important groundwork for the promotion of ZORYVE in the primary‑care and pediatric markets.” He added that Arcutis is “well‑positioned to drive adoption and growth of ZORYVE in the primary‑care market through incremental investments.” The company will provide further details during its Q4 earnings call on February 25, 2026.
Arcutis’s decision follows a period of modest financial performance: the company reported a Q3 2025 earnings per share of $0.06 after a $0.41 loss in the comparable quarter of 2024. The company’s guidance for 2026 net product sales remains unchanged, reflecting confidence that the transition will not erode revenue momentum. By bringing primary‑care promotion in‑house, Arcutis aims to streamline execution, reduce reliance on external partners, and potentially capture higher margins in a market that has shown growing demand for topical psoriasis and atopic dermatitis therapies.
The termination also signals a broader strategic pivot toward building a more integrated sales force. Arcutis has been expanding its dermatology sales team and now seeks to extend that reach into primary‑care practices, where many patients first encounter skin‑condition treatments. This move is expected to enhance the company’s ability to manage pricing, marketing, and distribution more tightly, potentially improving profitability over the long term.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.