Ritch Law

Ritch Law asked how much of the new 2026 guidance factors in potential sales improvement from the in-house primary care and pediatric efforts, and if there's an opportunity for sales to go even higher. He also inquired about the out-of-pocket (OOP) expense for Medicare patients with ZORYVE as a non-preferred brand.

Answer

Frank Watanabe, President and CEO, stated it's too early to speculate on the magnitude of the primary care contribution to the guidance, as they are taking a methodical, stepwise approach to refine their go-to-market strategy. Todd Edwards, Chief Commercial Officer, explained that for Medicare beneficiaries, the out-of-pocket cap in 2026 is $2,100. Frank Watanabe clarified that this is a total OOP cap for all drugs, and patients can opt for smoothing, making monthly payments manageable, with the actual dollar amount varying by plan.

Ritch Law from Goldman Sachs asked how much of the new 2026 guidance factors in potential sales improvement from the in-house primary care and pediatric sales efforts, and if there's an opportunity for 2026 sales to exceed the guided range. He also inquired about the out-of-pocket expense for Medicare patients for ZORYVE as a non-preferred brand.

Answer

President and CEO Frank Watanabe stated it's too early to speculate on the magnitude of primary care contribution, as Arcutis is taking a methodical, stepwise approach with a small, targeted team to refine its go-to-market strategy. He noted that the impact on the top line is premature to speculate on. Chief Commercial Officer Todd Edwards explained that for Medicare beneficiaries, the out-of-pocket cap in 2026 is $2,100 for all drugs, after which products are covered. Frank Watanabe added that patients can opt for smoothing, capping monthly out-of-pocket at one-twelfth of $2,100, making it very manageable.