Better Health for All

Arcutis Biotherapeutics' core business is developing and commercializing FDA-approved treatments for dermatological diseases, such as ZORYVE for plaque psoriasis and atopic dermatitis, which are prescribed for millions of patients.

The company's products are not associated with well-established negative health outcomes, and it reported no product recalls, fatalities, or FDA enforcement actions in 2022. Common adverse reactions for ZORYVE cream 0.3% for plaque psoriasis include diarrhea (3.1%), headache (2.4%), insomnia (1.4%), nausea (1.2%), application site pain (1.0%), upper respiratory tract infection (1.0%), and urinary tract infection (1.0%). For ZORYVE cream 0.05% in pediatric patients, common adverse reactions include upper respiratory tract infection (4.1%), diarrhea (2.5%), vomiting (2.1%), rhinitis (1.6%), conjunctivitis (1.4%), and headache (1.1%). Arcutis offers a patient assistance program, Arcutis Cares, providing medicine at no cost to eligible uninsured or underinsured patients with income at or below 300% of the Federal Poverty Level. The company states it priced ZORYVE nearly 40% lower than the average of the last five branded topical treatments. The program is limited to US residents. Arcutis also aims to expand access to vulnerable populations, including children as young as 2 years old for plaque psoriasis and infants aged 3 months to less than 24 months for atopic dermatitis. The company's Code of Conduct requires providing balanced benefit/risk information on products. Arcutis performs subgroup analyses of clinical trials by gender, race, ethnicity, skin type, and age, and measures participant demographics against U.S. Census data. Non-white representation in the U.S. workforce was 31% and 28% in leadership roles in 2022. The company provides a mental wellness benefit for employees, including five free mental health sessions. Arcutis also provides annual information security training to 100% of employees. The company supports healthcare education through its medical team and by participating in workshops. Clinical trials are governed by ICH and FDA Good Clinical Practice guidelines, with participants compensated for time and expenses. In 2022, Arcutis had no settlements of ANDA litigation involving payments to delay generic products.

Fair Money & Economic Opportunity

Arcutis Biotherapeutics, Inc. is a biopharmaceutical company, not a financial institution. Its core business does not involve offering lending, deposit, or other financial services to consumers. Therefore, most KPIs under 'Fair Money & Economic Opportunity' are not applicable. The company does not generate revenue from high-cost financial products or penalty fees, as confirmed by its patient assistance program which provides medication at no cost to eligible patients.

It is not regulated as a lender, nor does it provide debt products or operate financial service access points. The company also does not offer financial products requiring disclosure or explanation in the context of product simplicity. While Arcutis offers patient assistance programs and states it prices therapies responsibly, these initiatives relate to healthcare access and drug pricing, not financial products or services as defined by the value.

Fair Pay & Worker Respect

Arcutis Biotherapeutics, Inc. reported a CEO pay ratio of 14:1 in 2024, with the CEO's total compensation being $3,689,491 and the median employee pay at $267,635.

No regulatory actions, violations, fines, or compliance issues related to labor laws or human rights have been mentioned. No specific quantitative data is available regarding living wage coverage, collective bargaining share, safety incident rates, pay equity ratios, worker engagement scores, voluntary turnover rates, insecure contract share, or health insurance coverage for the workforce.

Fair Trade & Ethical Sourcing

The provided articles do not contain specific, quantitative data points for any of the KPIs under the 'Fair Trade & Ethical Sourcing' value. While some articles mention general commitments to ethical practices, internal policies, or the existence of a GMP auditing program and supplier risk models, they lack concrete metrics such as percentages of fair-trade certified spend, specific audit frequencies for tier-1 suppliers, number of forced or child labor incidents, traceability coverage for supplier tiers, median remediation speed for violations, ethical clause coverage in supplier contracts, share of spend on high-risk materials, or supplier diversity spend.

Therefore, no KPIs can be scored based on the provided evidence.

Honest & Fair Business

The company has a Whistleblower and Complaint Policy, which includes a confidential and anonymous financial concern hotline and secure web form options.

This facility is provided for complaints regarding accounting, internal controls, or auditing matters, as required by SEC compliance. However, there is no evidence provided regarding independent investigation processes for these complaints.

Kind to Animals

Arcutis Biotherapeutics, Inc. conducts pre-clinical studies on animals to assess drug safety.

Multiple sources confirm the company engages in animal testing.

Planet-Friendly Business

Arcutis Biotherapeutics published its first ESG report on November 21, 2022, aligned with SASB and UN SDGs, covering metrics as of December 31, 2021.

A second annual ESG report was published in 2023, covering January 1, 2022, through December 31, 2022. The company has initiated an assessment of its greenhouse gas emissions footprint to develop a methodology for collection and reporting, and is confident in its ability to quantify Scope 1 and 2 emissions. An ESG Committee was established in September 2023 to support environmentally conscious business practices. The company operates in a hybrid and virtual work environment, utilizes digital tools to minimize printing, uses reusable items in breakrooms, sorts office waste for recycling, and has implemented motion-sensitive lights, low-flow water fixtures, and LED lighting at its corporate office. It also offers incentives for sales force to adopt electric and hybrid vehicles. Arcutis ensures all product packaging is fully recyclable and participates in take-back programs for unwanted medicines and sharps.

Safe & Smart Tech

Arcutis Biotherapeutics ensures 100% of its employees and contingent workforce with system access receive annual information security training.

Quarterly phishing exercises are conducted, with corrective actions implemented for repeated failures. The company's information security program, as of 2022, includes vulnerability management, antivirus and malware protection, file integrity monitoring, encryption, and access control, with systems regularly updated to remediate potential vulnerabilities. An internal cloud security audit in 2022 led to the remediation of critical findings, and cloud security, endpoint data loss prevention, and privileged access management solutions were deployed. The Audit Committee has primary responsibility for overseeing risk management practices, programs, policies, and procedures related to data privacy, data protection, and network security, receiving regular updates from the Chief Digital and Information Officer. The company states it maintains adequate technical and organizational security measures to protect personal information from loss, unauthorized access, disclosure, alteration, or destruction. It explicitly complies with U.S. Privacy Laws, including those of California, Colorado, Connecticut, Delaware, Indiana, Iowa, Montana, Oregon, Tennessee, Texas, Utah, and Virginia, as well as the Children’s Online Privacy Protection Act (COPPA). The company's privacy policies, effective September 30, 2024, detail the collection and sharing of various categories of consumer health data, including individual health conditions, biometric data, and precise location information. Users have rights to opt-out of data disclosure, know what data is collected, request deletion, correction, and limit the use of sensitive personal information. The company also states that service providers are bound by contractual obligations to use personal information only as directed.

Zero Waste & Sustainable Products

Arcutis Biotherapeutics states that all of its packaging, including cartons and aluminum tubes, is fully recyclable.

The company has implemented several waste reduction initiatives, such as using digital tools to reduce printing, facilitating remote work, using reusable containers and utensils, and sorting office waste for recycling. They also have motion-sensitive lights, low-flow fixtures, LED lighting, electric vehicle charging stations, and offer incentives for carbon-friendly transportation to sales staff. Arcutis requires 100% of its suppliers to meet its sustainability criteria. The company plans to provide educational materials to customers on the proper recycling of packaging components. Arcutis reported no FDA enforcement actions or violations in 2021 and no product recalls or material monetary losses from legal proceedings in 2022.