Arcutis Biotherapeutics (ARQT) Moves 10.8% Higher: Will This Strength Last?

Core Viewpoint - Arcutis Biotherapeutics, Inc. (ARQT) shares experienced a significant increase of 10.8% to close at $16.60, driven by strong trading volume and positive developments in patent litigation [1][2]. Company Summary - The stock's recent rally was influenced by Padagis requesting a stay in the ongoing patent litigation concerning Arcutis' Zoryve (roflumilast) cream 0.3%, which is used for treating plaque psoriasis [2]. - Arcutis is projected to report a quarterly loss of $0.17 per share, reflecting a year-over-year increase of 46.9%, with expected revenues of $63.95 million, marking a 29% rise from the previous year [2]. - The consensus EPS estimate for Arcutis has remained stable over the last 30 days, indicating that the stock's price movement may not sustain without changes in earnings estimate revisions [4]. Industry Summary - Arcutis operates within the Zacks Medical - Biomedical and Genetics industry, where another company, Codexis (CDXS), saw a decline of 0.8% to $2.49 and has returned -6.3% over the past month [4]. - Codexis has experienced a 4.4% increase in its consensus EPS estimate for the upcoming report, now at -$0.20, which is a 25% decrease from the previous year's report [5].