10 Best Small-Cap Healthcare Stocks To Buy Now

5. Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT)

Number of Hedge Fund Holders: 32 

Arcutis Biotherapeutics Inc (NASDAQ:ARQT) is a biopharmaceutical company focused on developing and commercializing treatments for dermatological diseases. At its core, Arcutis creates topical treatments for various skin conditions, including plaque psoriasis, atopic dermatitis, hand eczema, vitiligo, scalp psoriasis, alopecia areata, and seborrheic dermatitis.

A significant catalyst for Arcutis Biotherapeutics Inc (NASDAQ:ARQT) is its lead product candidate, ZORYVE (roflumilast cream), which has successfully completed pivotal Phase 3 clinical trials for plaque psoriasis. This product demonstrated symptomatic improvement and favorable tolerability, positioning it well for market success. The approval and commercialization of ZORYVE could significantly boost Arcutis’s revenue and market share, driving future earnings growth.

The President and CEO at Arcutis Biotherapeutics Inc (NASDAQ:ARQT) said in the Q2 earnings call transcript:

“Once again, we saw strong growth during the quarter in our expanding ZORYVE portfolio as healthcare providers and patients see how ZORYVE cream and ZORYVE foam address real needs in the treatment of psoriasis and seborrheic dermatitis, respectively. Solid growth in prescriptions for both the cream and the foam, coupled with additional gross-to-net improvements during the quarter, drove strong revenue growth in the second quarter both year-over-year and compared to Q1 2024, with net revenues of $30.9 million, 56% of which was cream and 44% was the foam. We’ve now generated more than 351,000 prescriptions for the cream and the foam combined from over 14,000 unique prescribers to date as our product delivers a positive clinical experience for healthcare professionals and their patients”.

As of Q2 2024, around 32 hedge fund holders held stakes in the stock with Suvretta Capital Management being the largest stakeholder with 10,004,492 shares worth $93,041,776. The stock has a Strong Buy rating based on 6 Wall Street Analysts. The average price target is $16.80, with forecasts ranging from $12.00 to $20.00, indicating a 54.41% increase from the current price of $10.88.