Atopic Dermatitis Player Arcutis Scoops Up DucentisBioTherapeutics - Arcutis Biotherapeutics (NASDAQ:ARQT)

Arcutis Biotherapeutics Inc ARQT has agreed to acquire LifeArc's portfolio company DucentisBioTherapeutics, a preclinical-stage biotechnology company focused on developing novel therapies for inflammation and autoimmune diseases.
The agreement values Ducentis at up to $400 million, including an upfront cash payment of $16 million, Arcutis stock valued at approximately $14 million, and future contingent payments based on development and commercial success.
Ducentis' lead pre-clinical asset, DS-234, is being developed for atopic dermatitis.
DS-234 is a fusion protein that is a highly selective and potent agonist of CD200R, an immune-regulatory receptor thought to be an essential immunological checkpoint with a pivotal role in maintaining immune tolerance.
"Ducentis' DS-234 fits in well with our strategy of developing best-in-class molecules against biologically-validated targets and is highly complementary to roflumilast cream as another potential innovative treatment option," said Frank Watanabe, Arcutis' President & CEO.
Recently, Arcutis completed enrollment in its INTEGUMENT-2 and INTEGUMENT-1 Phase 3 trials of roﬂumilast for Atopic dermatitis. Topline data readout from both trials is expected by the end of this year.
Price Action: ARQT shares are up 2.37% at $22.05 on the last check Thursday.