Item 1.01 Entry into a Material Definitive Agreement.
On November 24, 2020, Arcutis Biotherapeutics, Inc. ("Arcutis" or the "Company")
entered into a Supply Agreement (the "Supply Agreement") with Interquim, S.A.
("Interquim") for the manufacture and supply of Roflumilast, the active
pharmaceutical ingredient (API) in ARQ-151 and ARQ-152. Pursuant to the terms of
the Supply Agreement, Interquim has agreed to manufacture and supply the API in
accordance with specifications and quality standards established by the parties
and the Company has agreed to purchase from Interquim no less than ninety
percent (90%) of its annual API requirements. The initial term of the Supply
Agreement is five (5) years commencing on the effective date of the Agreement,
subject to extension based on certain regulatory determinations, and will
automatically renew for successive one (1) year terms unless earlier terminated.
The Supply Agreement may be terminated by either party upon sixty (60) days
written notice of an uncured material breach. The Company may also terminate the
Supply Agreement with six (6) months' written notice in the event it decides to
discontinue use of the formulation using the API.
The Supply Agreement contains, among other provisions, representation and
warranties, indemnification obligations, confidentiality, audit and inspection,
and intellectual property sharing provisions in favor of each party that are
customary for an agreement of this nature.
The foregoing summary of the material terms of the Supply Agreement is qualified
in its entirety by the terms of the Supply Agreement, which will be filed as an
exhibit to the Company's Annual Report of the year ended December 31, 2020.
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ARCUTIS BIOTHERAPEUTICS, INC. 
