Arcutis stock rises following litigation stay

Investing.com -- Shares of Arcutis Biotherapeutics (NASDAQ:ARQT), a biopharmaceutical company specializing in immuno-dermatology, surged 10.8% on the day after the announcement of a joint stipulation to stay the ongoing patent litigation with Padagis. This legal development, disclosed on April 2, 2025, has led to the postponement of all scheduled court dates and the trial itself, which was set to take place in the U.S. District Court for the District of Delaware.

The stipulation between Arcutis and Padagis, a pharmaceutical company, requires Padagis to inform Arcutis of any FDA communication regarding their Abbreviated New Drug Application for a generic version of Arcutis’ patented ZORYVE® (roflumilast) cream 0.3%. Furthermore, the agreement extends the 30-month Hatch-Waxman regulatory approval stay by one day for each day the litigation is on hold, starting from March 24, 2025. This ensures that Arcutis retains the full benefit of the stay, should litigation resume.

Arcutis’ President and CEO, Frank Watanabe, expressed confidence in the company’s patent portfolio and legal position against Padagis. He emphasized the company’s commitment to defending its intellectual property rights and continuing the growth of ZORYVE as a preferred treatment option for inflammatory dermatoses. ZORYVE cream 0.3% is currently approved for the treatment of plaque psoriasis in adults and children aged six years and older.

The patent protection for ZORYVE extends until at least 2037, which underscores the long-term commercial potential of the product for Arcutis. The company’s strategy to safeguard its intellectual property while focusing on the adoption of ZORYVE has resonated positively with investors, as reflected in the stock’s notable performance during the trading session.

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