Arcutis Snaps Up Ducentis Bio to Bolster Atopic Dermatitis Pipeline

Dermatology drugmaker Arcutis is acquiring Ducentis Biotherapeutics for $14 million in cash, $16 million in stock and milestones, the companies announced Thursday.

Ducentis investor LifeArc stated the milestones could be worth as much as $400 million.

Ducentis is developing treatments for autoimmune diseases. Its lead drug candidate is DS-234, a fusion protein and agonist of the CD200 receptor. Frank Watanabe, president and CEO of Arcutis said the company will continue to develop this asset.

"We anticipate the first indication to be in atopic dermatitis, which remains a rapidly growing, significantly underserved market with large unmet needs," Watanabe told Biospace. 

Watanabe said DS-234 is expected to complement Arcutis’ dermatology pipeline, including its lead commercial product, Zoryve, a roflumilast cream in late-stage trials as a possible treatment for atopic dermatitis.

"Topical roflumilast is our top priority and is the engine by which we will continue to build out our company and our product pipeline," Watanabe shared.

The FDA approved the cream for sale in the United States in late July, and Arcutis launched Zoryve last month. The non-steroidal treatment competes with other creams on the market, including Amgen’s blockbuster pill Otezla, which had sales of $2.2. billion in 2021.

Ducentis stated that the larger Arcutis becomes, the better equipped it will be to get its drug candidate to market.

"Arcutis has the resources, experience and commitment to accelerate clinical development of DS-234 to treat patients with atopic dermatitis,” said Ducentis founder Philip Huxley in a statement. 

Arcutis will retain Ducentis’ chief scientific officer, Dr. Rebecca Ashfield, as a consultant after the deal closes.