This Biotech Stock Could Cure Your Portfolio's Pain
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By Lee Samaha – Dec 14, 2025 at 9:15AM ESTKey PointsArcutis already has its key drug approved for various diseases and concentrations.Sales are expanding rapidly, and Arcutis is positioned for growth. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: ARQTArcutis BiotherapeuticsMarket Cap$3.6BToday's Changeangle-down(-1.53%) $0.45Current Price$29.02Price as of December 12, 2025 at 4:00 PM ETA combination of a relatively low-risk approval process, growing sales, and a very attractive valuation based on management's peak sales estimations makes this biotech stock attractive.Investors seeking a biotech stock with significant upside potential to add to their portfolio may want to consider Arcutis Biotherapeutics (ARQT 1.53%). The stock price is already up 112% in 2025, as I write, but there could be more to come in the next few years. Here's why. Arcutis has a bright future The company's primary product is Zoryve, a non-steroidal topical medication available in cream and foam formulations, which treats a variety of inflammatory skin diseases, including plaque psoriasis, atopic dermatitis (also known as eczema), and seborrheic dermatitis. It contains the active ingredient roflumilast, a PDE4 inhibitor that reduces the skin's inflammatory response. ExpandNASDAQ: ARQTArcutis BiotherapeuticsToday's Change(-1.53%) $-0.45Current Price$29.02Key Data PointsMarket Cap$3.6BDay's Range$28.30 - $29.5052wk Range$11.13 - $31.77Volume2.2MAvg Vol2.3MGross Margin89.96% Arcutis has already received approval across a range of applications and indications, with the next approval likely to be for Zoryve cream in children aged two to five years old. Arcutis also has Zoryve in phase 2 trials for three other indications/concentrations. Sales are growing strongly this year, with third-quarter net product revenue of $99.2 million, up 122% compared to the same period last year and 22% compared to the second quarter of 2025. Wall Street expects $358 million in sales for 2025 and then $467 million in 2026. Image source: Getty Images. Peak sales CEO Frank Watanabe believes peak roflumilast/Zoryve sales could be $2.6 billion to $3.5 billion, and considering the current market cap is $3.6 billion. Wall Street analysts believe Arcutis could have net income profit margins of 30%. The stock appears to be a great value if Watanabe is right, and Arcutis can come anywhere near his peak sales projection. Meanwhile, the company has another drug, ARQ-23, which is aimed at reducing inflammatory immune responses and is in early-stage development. Advertisement With a relatively low-risk approval process on track and good upside potential from maintaining its sales momentum, Arcutis is an attractive stock for growth-oriented investors.About the AuthorLee Samaha is a contributing Stock Market Analyst at The Motley Fool covering industrials, electricals, energy, materials, transportation, and infrastructure stocks. Prior to The Motley Fool, Lee was a Civil Engineer and Investment Manager. He holds a Bachelor of Civil and Structural Engineering from Southampton University and a Certificate in Investment Management from Chartered Institute for Securities & Investment. Lee first cut his investing teeth on The Motley Fool bulletin boards (commonly referred to as the “Fool Boards,”) and he’s infinitely grateful to all of the investors he learned from in this powerful investing community.TMFSaintGermainX@LeeSamahaRead NextNov 21, 2025 •By Lee SamahaWhy Shares in Arcutis Biotherapeutics Surged Again This WeekOct 28, 2025 •By Lee SamahaHere's Why This Biotherapeutics Company's Stock Surged Higher by 30% TodaySep 7, 2023 •By James HalleyWhy Shares of Arcutis Biotherapeutics Fell This WeekJun 9, 2023 •By James HalleyWhy Shares of Arcutis Biotherapeutics Jumped This WeekJun 22, 2022 •By Jeffrey LittleCould 2023 Be a Breakout Year for This Pharma Stock?Sep 18, 2021 •By Jeffrey LittleIs Now the Time to Bet on Arcutis Biotherapeutics?