Arcutis Biotherapeutics (ARQT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Vikram Purohit from Morgan Stanley maintained a Buy rating on the stock and has a $19.00 price target.
Vikram Purohit has given his Buy rating due to a combination of factors surrounding the recent developments in Arcutis Biotherapeutics’ patent litigation with Padagis. The agreement to stay the litigation over Zoryve potentially benefits Arcutis, as historical data indicates that such stays often lead to dismissals, possibly through settlements. This development could be a positive indicator for Arcutis, reducing the uncertainty around the litigation process.
Furthermore, the exclusivity periods for Zoryve, including new product and patient population exclusivities, provide Arcutis with a competitive edge until 2026 and patent protection until 2037. These exclusivities, combined with the strategic litigation stay, position Arcutis favorably in the market. The requirement for Padagis to share FDA correspondence with Arcutis ensures transparency and may facilitate a smoother resolution, which adds to the positive outlook for the company’s stock.
Purohit covers the Healthcare sector, focusing on stocks such as Genmab, Ascendis Pharma, and Axsome Therapeutics. According to TipRanks, Purohit has an average return of -9.5% and a 31.03% success rate on recommended stocks.
In another report released on April 3, H.C. Wainwright also reiterated a Buy rating on the stock with a $19.00 price target.