Insider Trading February 4, 2026

Arcutis CFO Sells 1,320 Shares to Cover Tax Withholding; Company Reports Clinical, Commercial and Regulatory Milestones

Latha Vairavan’s February sale was linked to RSU tax obligations as Arcutis advances ZORYVE trials and regulatory filings ahead of February earnings

By Derek Hwang ARQT
Arcutis CFO Sells 1,320 Shares to Cover Tax Withholding; Company Reports Clinical, Commercial and Regulatory Milestones
ARQT

Arcutis Biotherapeutics CFO Latha Vairavan sold 1,320 shares on Feb. 2, 2026 to satisfy tax withholding tied to restricted stock units. The transaction, totaling $33,657, comes as the company reports positive Phase 2 results for ZORYVE in infants, changes to its promotion arrangement, a board appointment, and an FDA acceptance for a pediatric psoriasis label expansion with a June 2026 target action date.

Key Points

  • CFO Latha Vairavan sold 1,320 shares on Feb. 2, 2026 to satisfy tax withholding from RSU vesting; proceeds were $33,657 and she now directly holds 63,607 shares.
  • Arcutis reported positive Phase 2 INTEGUMENT-INFANT topline results for ZORYVE in infants, and has taken over promotion and sales activities following termination of the agreement with Kowa Pharmaceuticals America.
  • The FDA accepted Arcutis’s pediatric psoriasis application for ZORYVE with a target action date of June 2026; Mizuho raised its price target to $37 while keeping an Outperform rating.

Transaction overview

Arcutis Biotherapeutics (NASDAQ:ARQT) Senior Vice President and Chief Financial Officer Latha Vairavan reported the disposition of 1,320 shares of common stock on February 2, 2026, according to a Form 4 filed with the Securities and Exchange Commission. The shares were sold at prices between $24.745 and $25.68 for a combined proceeds amounting to $33,657.

The filing indicates the sale was completed to meet tax withholding obligations arising from the vesting of restricted stock units that were granted on January 12, 2024. After the sale, Vairavan’s direct ownership in Arcutis stands at 63,607 shares.


Market position and valuation

At the time of the transaction, Arcutis shares were trading at $26.08. According to the cited InvestingPro data in the filing, the stock has returned 97.88% over the past 12 months and 70.18% over the last six months. The company is described as having a market capitalization of $3.18 billion and gross profit margins of 89.96%, and is trading close to its InvestingPro Fair Value.


Near-term corporate calendar

Investors are reminded that Arcutis is scheduled to announce its next quarterly earnings on February 25, 2026.


Recent operational and clinical developments

Arcutis reported positive topline data from its Phase 2 INTEGUMENT-INFANT study of ZORYVE cream in infants with atopic dermatitis, with a 75% improvement on the Eczema Area and Severity Index observed in 58% of trial participants. This clinical readout was disclosed alongside several commercial and corporate updates.

The company and Kowa Pharmaceuticals America mutually agreed to terminate their promotion agreement for ZORYVE. As a result, Arcutis has assumed responsibility for sales activities for the product.

Board-level changes were also announced: Amit Munshi has joined Arcutis’s Board of Directors following the retirement of founder Bhaskar Chaudhuri.

On the commercial outlook, Mizuho raised its price target for Arcutis to $37.00 and maintained an Outperform rating, citing stronger-than-expected prescription trends for ZORYVE.


Regulatory milestone

The U.S. Food and Drug Administration has accepted Arcutis’s application seeking to expand the indication for ZORYVE to treat plaque psoriasis in younger children and has set a target action date for June 2026. If approved, ZORYVE cream would become the first topical PDE4 inhibitor for plaque psoriasis approved for children as young as two years old, according to the company’s disclosure.


Contextual note

The sale by the CFO was tied to the mechanics of RSU vesting and tax withholding rather than an open-market portfolio reallocation described in the filing. The company’s recent clinical, commercial, governance and regulatory items were disclosed contemporaneously and may be of interest to investors monitoring Arcutis’s near-term execution and approval pathway.

Risks

  • Regulatory uncertainty - The FDA has set a target action date for June 2026 for the pediatric psoriasis filing, and the ultimate approval outcome remains pending, affecting the biotech and pharmaceutical sectors.
  • Commercial execution risk - Arcutis’s decision to assume sales activities after ending the promotion agreement with Kowa Pharmaceuticals America places pressure on the company’s commercial organization and could impact sales performance in the healthcare and pharmaceutical markets.
  • Market sensitivity to financial results - With the company scheduled to report earnings on February 25, 2026, near-term stock performance could be influenced by that report and by prescription trends for ZORYVE, affecting investors and equity markets.

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