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14-05-2025
- Business
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Q1 2025 Verrica Pharmaceuticals Inc Earnings Call
Kevin Gardner; Managing Director; LifeSci Advisors LLC Jayson Rieger; President, Chief Executive Officer; Verrica Pharmaceuticals Inc John Kirby; Interim Chief Financial Officer; Verrica Pharmaceuticals Inc Stacy Ku; Analyst; TD Securities (USA) LLC Anish Nikhanj; Analyst; RBC Capital Markets (Canada) Serge Belanger; Senior Analyst; Needham & Company LLC Kemp Dolliver; Analyst; Brookline Capital Markets Operator Good evening, ladies and gentlemen, and welcome to the Verrica Pharmaceuticals' First Quarter 2025 Corporate Update Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Kevin Gardner of LifeSci Advisors. You may begin your conference. Kevin Gardner Thank you, operator. Hello, everyone, and welcome to Verrica Pharmaceuticals' First Quarter 2025 Corporate Update Conference Call. With me on the line this evening are Jayson Rieger, President and Chief Executive Officer of Verrica Pharmaceuticals; Dr. Noah Rosenberg, Chief Medical Officer; John Kirby, Interim Chief Financial Officer; and David Zawitz, Chief Operating Officer. As a reminder, during today's call, management will make forward-looking statements. These statements may include expectations related to the commercialization of YCANTH for the treatment of molluscum contagiosum in the United States, continued revenue growth, regulatory developments, the development of Verrica's product candidates, company's expected cash runway and its ability to obtain funding for future operations, and Verrica's overall business strategy and planned operations. These forward-looking statements are based on the company's current expectations and involve inherent risks and uncertainties. And based on those risks and uncertainties, Verrica's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements. Please see Verrica's SEC filings for important risk factors. Verrica cautions you not to place undue reliance on forward-looking statements and undertakes no duty or obligation to update any forward-looking statements as a result of new information, future events or changes in expectations. In addition, during today's call, management will discuss certain non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their closest GAAP equivalents. The earnings release that the company issued today includes GAAP to non-GAAP reconciliations for these measures and is also available on the Investor Relations section of Verrica's website. I'll now turn the call over to Verrica's President and CEO, Jayson Rieger. Jayson Rieger Thank you, Kevin, and good evening, everyone, and thank you for joining us for our first quarter 2025 corporate update call. I'm pleased to report that our focused commercialization strategy is helping to drive increased demand for YCANTH. On April 7, we pre-announced strong sequential growth in the first quarter with YCANTH dispensed applicator units increasing 16.7% over the fourth quarter of 2024 and rising above 10,000 units per quarter for the first time since the launch of the product. As announced today, this also resulted in $3.4 million in revenue for the quarter. I'm further excited to say that we have seen momentum build throughout Q1 and are working to continue to capture that momentum. As demand for YCANTH by pediatricians, dermatologists and other healthcare professionals and their patients continues to grow, we believe YCANTH distributor inventory levels have normalized and we expect that dispensed applicator units will now more closely track to our revenues. Importantly, we are executing on our commercial strategy as a much leaner and more capital efficient company, which I believe will place us on a strong and sustainable growth trajectory. In parallel with our commercial progress, Verrica's clinical stage pipeline also continues to advance. We continue to work with our development and commercialization partner, Torii Pharmaceutical, to initiate our Phase 3 program of YCANTH in the treatment of common warts. Meanwhile, we continue to advance our novel oncolytic peptide VP-315, which has shown promising safety and efficacy data in Phase 2 trial for the treatment of basal cell carcinoma, having recently held an end of Phase 2 meeting with the FDA to discuss the design of our Phase 3 program. Given the significant unmet need for both of these indications, we believe developing these programs has the potential to significantly grow the value of our company. I will now provide a more detailed update on our commercial activities for YCANTH. During the first quarter of 2025, the full effects from our revised commercialization strategy, which we began to implement in Q4 of last year, helped drive demand for YCANTH. As we have previously noted, we initially focused on territories with high prevalence of molluscum and established strong insurance coverage. The productivity of our sales force also improved substantially during the first quarter. Our average dispense applicator unit per selling day continues to trend favorably, giving us additional confidence that our new commercial strategy is working. To that end, we have recruited new sales representatives to work in new territories, splitting certain large markets and entering other new markets to capitalize on improving demand. Throughout the first quarter, we also continued adding local independent regional pharmacies to our strong relationships with our National Specialty Pharmacy Partners. Our approach to distribution of YCANTH has been to focus where physicians and other healthcare professionals prefer to write prescriptions and we've seen strong adoption to this approach since the relaunch. As previously noted, YCANTH inventory levels appear to have normalized, as we are seeing multiple orders each month from our distribution partners rather than larger infrequent stocking orders. Going forward, we believe shipments of YCANTH Applicator units will more closely reflect the underlying demand from physicians and patients and the disclosure relationship will translate into steadier revenue growth as we continue the relaunch. Finally, our cost cutting measures have taken hold and our quarterly expenses are reflective of that. We would expect that going forward we will selectively add to sales personnel in geographic areas where we have good coverage but no representative and add additional sales representatives in markets where there are enough potential customers to warrant multiple representatives in that market. I'd like to now also provide a brief update on our clinical stage pipeline. As previously reported with respect to YCANTH, our Japanese development and commercialization partner, Torii Pharmaceutical, filed in late 2024 a new drug application in Japan, seeking approval of YCANTH, designated in Japan as TO- 208 for treatment of molluscum. With an estimated over 1.6 million patients in Japan alone, molluscum represents a significant market opportunity for YCANTH. And we look forward to Torii sharing updates on the regulatory approval process later this year. We are also working with Torii to relaunch to launch a global Phase 3 study evaluating YCANTH in the United States for TO-208 in Japan for the treatment of common warts. Verrica remains eligible to receive a milestone payment of $8 million upon the initiation of this study, which could begin as early as mid-2025. As we previously stated, the cost of this study will be split 50-50 with Torii, but Verrica's portion will be paid by Torii and reimbursed by Verrica at a future milestones and transfer price payments. Regarding our Phase 3 ready clinical oncology asset, VP-315, which we are developing for the treatment of basal cell carcinoma, as previously disclosed in January, a post hoc analysis of data from our Phase 2 -- or Part 2 of our Phase 2 study demonstrated treatment with VP-315 led to a calculated objective response rate or OOR of 97%. OOR was defined as the percentage of study subjects who did not demonstrate disease progression and who experienced at least 30% reduction in tumor size along with a partial or complete response following treatment. We believe positive preliminary top-line results from our Phase 2 study suggest that VP-315 has the potential to change the treatment paradigm for patients with basal cell carcinoma, the most common form of skin cancer. As noted on our fourth quarter call, we expect to announce additional genomic and immune response data for VP-315 in mid-2025. We are also encouraged by our recent end of Phase 2 meeting with the FDA. After reviewing the final meeting minutes and this additional data, we plan on providing a global development program update later this quarter. Finally, I would like to mention recent appointments to our senior management and Board of Directors. In March, we announced that Dr. Noah Rosenberg joined Verrica team as our new Chief Medical Officer. Noah is a highly accomplished pharmaceutical executive and physician who brings deep expertise in both drug development and commercialization. As CMO, he will play an instrumental role in advancing of our goal for YCANTH to become the standard of care for the treatment of molluscum contagiosum and in advancing our clinical stage programs. Following Noah's appointment in early April, we welcome Dr. Gavin Corcoran to our Board of Directors. Over his career, Gavin has built an outstanding track record of developing and launching innovative medicines as well as creating significant value through strategic transactions. As we execute our strategic objectives, his expertise will help guide us in our decision making and look forward to working with him as we enter our next phase of growth. I will now turn the call over to our Interim Chief Financial Officer, John Kirby, to review our first quarter 2025 financials. John Kirby Thanks, Jayson. In the first quarter of 2025, we reported total revenues of $3.4 million which was substantially all YCANTH revenue. Net YCANTH revenue reflects shipments to our distribution partners offset by standard gross to net adjustments including actual or anticipated product returns, off invoice discounts, distribution fees, co-pay programs and other rebates. Collaboration revenues totaling $17,000 in the first quarter of 2025, which related to our supply of applicators to Torii in connection with their development and commercialization activities. Gross product margins for the first quarter of 2025 were approximately 88%. Cost of product revenue of $0.4 million included $47,000 of obsolete inventory cost. Research and development expenses of $2.3 million in the first quarter of 2025 decreased versus the first quarter of 2024 by $2.6 million driven primarily by $2.1 million decrease in clinical trial expenses related to VP-315 as well as costs related to a decrease in regulatory and medical affairs expenses of $0.4 million. Selling, general and administrative expenses of $8.8 million in the first quarter of 2025 decreased versus the first quarter of 2024 by $7.5 million driven primarily by the implementation of our more focused commercial strategy for YCANTH. GAAP net loss was $9.7 million or $0.1 per share for the first quarter of 2025 compared to a GAAP net loss of $20.3 million or $0.44 per share for the first quarter of 2024. On a non-GAAP basis, which excludes stock-based compensation, non-cash interest expense and change in fair value of embedded derivatives, the first quarter of 2025 net loss was $7.8 million or $0.08 per share compared to a net loss of $17.8 million or $0.38 per share for the first quarter of 2024. And finally, as of March 31, 2025, Verrica had aggregate cash and cash equivalents of $29.6 million. Under GAAP, the cash and cash equivalents as of March 31, 2025, would not be sufficient to fund operations for the one-year period following the release of our financial statements. However, should Verrica receive $8 million milestone payment from Torii triggered by the initiation of the Phase 3 clinical trial in Japan for common warts, or should we receive a portion of the $25 million in proceeds from the exercise of Series A warrants issued as part of our November 2024 equity financing, which expire in November of 2025, we could have sufficient cash to fund operations for such periods. Nonetheless, we will continue to apply discretion in our use of cash and explore opportunities to further bolster the strength of our balance sheet, while still advancing our commercial and clinical development efforts. I'll now turn the call back over to Jayson for closing remarks. Jayson Rieger Thanks, John. Based on our focused commercialization strategy and more capital efficient operating structure, I believe Verrica remains on a pathway for strong and sustainable growth. The positive feedback we are receiving from the field also tells us that brand recognition for YCANTH continues to grow amongst both dermatologists and pediatricians. In addition, we see patient access continuing to improve along with strong and predictable reimbursement from Medicaid and commercial payers, all of which we believe point towards YCANTH becoming the new standard of care for the treatment of molluscum contagion. As YCANTH continues to grow, our late-stage pipeline provides another exciting source of value for our company and shareholders. We believe our program in common warts and basal cell carcinoma each hold significant potential value, and we look forward to providing updates on these programs in the near future. With that, we would now be happy to take any questions. Operator? Operator (Operator Instructions) Stacy Ku, TD Cowen. Stacy Ku Thanks so much for taking our questions and congratulations on your Q1 performance. So first, maybe could you further discuss your success in targeting pediatricians, maybe talk about the current split of pediatric derms versus pediatrics, writing YCANTH? So that's the first question. And then the second question, maybe as we think about the summertime, potential increase in molluscum patients, what kind of preparation is ongoing to really capture these patients? And do you expect YCANTH show some seasonality as it relates to patient demand as we kind of enter the summer months? And then last question is on 2025 full year. Consensus is around $15 million. So would love to hear your thoughts around the Q1 performance and how it relates to the rest of the year. Maybe talk about the dynamic between patient demand and maybe some additional pull through of inventory. It sounds like it's stable. So just want to make sure we have that correct. Jayson Rieger Thanks, Stacy. This is Jayson. I appreciate the questions. And if I don't answer all your questions, please track me down for anything I left off. In terms of split between derms and peds, we're seeing an ever-growing number of pediatricians writing the product, but still large percentage of our customers are the derms and they still remain strong advocates of our product and users of the product. So I would say rather than the dynamic splitting, we're seeing growth in both, which is very exciting for the penetration of the product, but also the availability of it for the patients. In terms of the summer months, it's kind of interesting that you asked that. There tends to be modest speculation on seasonality for molluscum, although as the weather does get better and kids are outside more, commonly go into pools where molluscum can be transmitted with sharing of towels, etc. There may be some seasonality uptick. We are doing a fair amount of sort of marketing to clinicians and some via social media activities to sort of continue to build awareness for molluscum as a disease, but also that YCANTH is available for treatment for the patients. So I think that's going to continue to contribute to the growth of YCANTH penetration in the units that we're dispensing. And in terms of 2025, for full year consensus and guidance, I appreciate you asking that. The company at this point is not going to give guidance for the year. We will continue though, however, to share the number of dispensed applicator units. We'll try to update that on a quarterly basis when that information becomes available and share the revenue during our quarterly filings. As you can see, this quarter, we did see meaningful revenue and dispensed applicator units. And as our distributors are ordering more frequently and in smaller quantities, those numbers should mirror each other much closer going forward, and we hope to continue to see the momentum that we saw the end of last quarter continue to rise in this quarter as well. Operator Gregory Renza, RBC Capital Markets. Anish Nikhanj It's Anish, on for Greg. Congrats on the progress this quarter and thanks for taking our questions. Just a couple from us. First, how are you thinking about the conversion time between accounts receivable and top line revenue for YCANTH? How has that been trending and likely to trend through the rest of the year? And second, as we think of accessibility, you previously mentioned expansion into pharmacy benefit. Can you just help us think about how this will improve access for YCANTH versus previous periods? Jayson Rieger So yes, so in terms of the accounts receivable, it's interesting you noticed that. So we do offer 60-day payment terms to our distributors. As the product is pulling through and then they're passing it through, as we've normalized the inventory levels, we expect that to semi-stabilize and sort of be continue to generate cash going forward. And because we're getting smaller orders and more frequent orders, that should stabilize in terms of conversion to cash from a receivable. In terms of the pharmacy benefit, I would say the mix of our business continues to grow both on the pharmacy distribution side as well as the medical benefit, which is the buy and bill approach. We see growth in both sides of that business. And particularly on the pharmacy side, we've added a number of independent pharmacies, which has proven to be a convenient mechanism for some clinicians to order the product, have it right bagged back right to their office and treat their patients, in addition to those who prefer to do the buy and bill model and have it on hand that same day. So we've seen it both, and our commercial team has done an excellent job of expanding our benefit coverage. So I would say that we have robust now coverage growing in both Medicaid and commercial across both of the pharmacy and the medical benefit. Operator Serge Belanger, Needham & Company. Serge Belanger A couple of questions. First on patient access, just a follow- up on the prior question. When you're looking at the overall TAM for molluscum, how should we look at the split between commercial and Medicaid coverage for the indication? Jayson Rieger So we would say that in the pediatrician world, there's a large percentage of pediatric patients that are covered under the Medicaid. There's going to be a lot of dependency on state as well. And then on the Derm side, there's a higher percentage of commercial pay, but there are obviously commercial and Medicaid on both sides. But we're seeing growth on both sides of that across states where we have good robust coverage. Serge Belanger Got it. And then maybe a quick one for John. Just where currently are gross-to- net and where do you think they'll get to once we get to kind of a more steady state level? John Kirby So Serge, I don't think we've spoken directly to the gross-to-net split. But if you look at the number of applicator units and that as it's tracking to aligning with the sales demand that we've reported, you could do the back of the envelope math to get to the rough percentage. Serge Belanger Got it. Thanks. Operator Kemp Dolliver, Brookline Capital Markets. Kemp Dolliver Couple of questions. What are you seeing in terms of reordering and then also number of applicators per patient? Jayson Rieger So the reordering actually is a very interesting aspect of the business that we're tracking very closely. And historically, I would say a larger percentage of the reorder -- there was the growth in the business or stabilization of the business was a mix of loss of old -- loss of accounts that were not reordering and sort of bringing up new customers. In this last quarter, we're starting to see a solid growth and retention of customers that have been here and ordered previously and continuing to reorder. And that's a fundamental part of our business model, which means likely that the clinicians are having a positive experience, both in acquisition of the product and treatment of their patients and using it as a going forward part of their practice for the treatment of patients with molluscum. Kemp Dolliver And any comments on the applicators per patient? Jayson Rieger So we're not giving you a specific guidance on that. In our clinical study, we allowed for up to 4 applicators -- 4 treatment cycles to be used. I would say clinically as we saw originally, we're probably closer to the 2 to 3 treatment cycles, where clinicians are feeling their patients are achieving the medical benefit that they are desiring. Kemp Dolliver Great. Thank you. And what are trends you're seeing in sales force turnover? I mean, you are starting to rebuild the sales force, but have you seen turnover level off? Are you seeing less involuntary turnover, et cetera? Jayson Rieger I would say we're seeing in this industry there tends to be some turnover. We're seeing some very solid retention of our core performers and quite a bit of interest as we post some openings for both expanding in existing territories where we have demand or territories where new demand is growing. So we're excited about our team and maintain we're trying to maintain a relatively stable number to where we were after our reduction in force last year and may incrementally grow as the areas we're trying to target grow and or there's additional demand. So that's been a very, very positive impact on that front. Operator And this does conclude the question-and-answer portion of the call. I would now like to turn it back to Jayson Rieger for any additional or closing remarks. Jayson Rieger Thank you, operator. I'd just like to thank everyone for joining the call this evening. We look forward to providing updates on our progress throughout 2025. Have a nice evening. Operator This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful afternoon.
Yahoo
13-05-2025
- Business
- Yahoo
Verrica Pharmaceuticals Reports Quarterly 2025 Financial Results
– Company reports $3.4 million in YCANTH revenue, reflective of increasing demand, following the dispensing of more than 10,000 applicator units in the quarter, the most in company history and a 16.7% growth over Q4'24 – – Late-stage pipeline continues to advance with completion of end-of-Phase 2 meeting with Food and Drug Administration for VP-315, Verrica's candidate for basal cell carcinoma, and continued advancement towards initiation of global Phase 3 program in common warts (VP-102/YCANTH) with partner Torii Pharmaceutical – – Conference call scheduled for today at 4:30 pm ET – WEST CHESTER, Pa., May 13, 2025 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. ('Verrica') (Nasdaq: VRCA), a dermatology therapeutics company developing and selling medications for skin diseases requiring medical interventions, today announced financial results for the quarter ended March 31, 2025. 'I am pleased to report that our focused commercialization strategy is helping to drive increased demand for YCANTH and the demand has allowed us to normalize distributor inventory levels. For the first time, we dispensed more than 10,000 applicator units in a quarter. We are excited by the strong pull-through from our distributors, which translated to $3.4 million in revenue in the first quarter, and we expect this closer alignment between dispensed applicator units and revenue to continue going forward. Furthermore, we saw momentum in dispensed applicator units build throughout the first quarter and we are looking to build on that momentum in the second quarter,' said Dr. Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. Dr. Rieger continued, 'In parallel with our commercial progress, Verrica's clinical-stage pipeline also continues to advance. We are working with our Japanese development and commercialization partner, Torii Pharmaceutical, to initiate our global Phase 3 program of YCANTH for the treatment of common warts. Meanwhile, we continue to advance our novel oncolytic peptide, VP-315, which has shown promising safety and efficacy data in a Phase 2 trial for the treatment of basal cell carcinoma, as we have recently held our end-of-Phase 2 meeting with the FDA that will help us to design a Phase 3 program.' Conference Call and Webcast Information The Company will host a conference call today, May 13 at 4:30 pm, to discuss its first quarter 2025 financial results and provide a business update. To participate in the conference call, please utilize the following information: Domestic Dial-In Number: Toll-Free: 1-800-343-4136International Dial-In Number: 1-203-518-9843Conference ID: VERRICA Participants can use Guest dial-in #s above and be answered by an operator. Webcast: The call will be broadcast live over the Web and can also be accessed on Verrica Pharmaceuticals' website: The conference call will also be available for replay for one month on the Company's website in the Events Calendar of the Investors section. Business Highlights and Recent Developments CORPORATE On March 24, 2025, the Company announced the appointment of Noah L. Rosenberg, M.D., as Chief Medical Officer. Dr. Rosenberg has served as Chief Medical Officer for both public and private biotechnology companies, and has been responsible for the clinical development and medical strategy for pipeline candidates and multiple product launches. Dr. Rosenberg led the clinical development and approval of Xepi, a topical antibiotic for the treatment of impetigo, at Medimetriks Pharmaceuticals. He most recently served as CMO of Travere Therapeutics (NASDAQ:TVTX), where he led the team responsible for the development and subsequent approval of Filspari. Earlier in his career, Dr. Rosenberg held senior positions with Esperion Therapeutics, Forest Research Institute, Sanofi, and Pfizer, where he focused on cardiovascular/metabolic drug development. He received his medical degree from Drexel University College of Medicine and completed his Residency in Internal Medicine at The Mount Sinai School of Medicine, Mount Sinai Hospital. Dr. Rosenberg received his Bachelor of Arts in Natural Sciences from The Johns Hopkins University. On April 2, 2025, the Company announced the appointment of Dr. Gavin Corcoran to its Board of Directors. Dr. Corcoran has served as the Chief Development Officer of Formation Bio since November 2021. He previously held several R&D leadership positions including Chief Research and Development Officer at Sio Gene Therapies, Inc. (formerly known as Axovant), Chief Medical Officer at Allergan and Head of R&D at Stiefel Laboratories. He received his M.B. from the University of Witwatersrand in South Africa and completed his clinical training in internal medicine and infectious diseases at the University of Texas Health Science Center at San Antonio. YCANTH® (VP-102) The Company experienced strong demand-led growth for YCANTH®, with the number of dispensed applicator units increasing to 10,102 in the first quarter of 2025. This first quarter growth in dispensed applicator units represents a sequential increase of 16.7% over the fourth quarter of 2024 (8,654 dispensed applicator units). VP-315 The Company expects to announce additional genomic and immune response data for VP-315 in mid-2025. The Company is also encouraged by its recent end-of-Phase 2 meeting with the FDA. After reviewing the final meeting minutes and additional data, Verrica plans on providing a global development program update, including information on the design of the Phase 3 clinical program, in mid-2025. Financial Results First Quarter 2025 Financial Results Verrica recognized product revenue of $3.4 million in the first quarter of 2025, which relates to the delivery of YCANTH (VP-102) to its distribution partners. Costs of product revenue were $0.4 million for the quarter ended March 31, 2025, compared to $0.5 million for the quarter ended March 31, 2024, partially due to obsolete inventory write offs of $47,000 and $0.3 million, respectively. Selling, general and administrative expenses were $8.8 million in the quarter ended March 31, 2025, compared to $16.3 million for the same period in 2024. The decrease of $7.5 million was primarily due to lower expenses related to commercial activities for YCANTH (VP-102), including decreases in compensation, stock compensation, recruiting fees, benefits and travel due to reduced sales force of $4.4 million, decreased marketing and sponsorship costs of $2.1 million and other commercial activity of $0.4 million, and decreased legal costs of $0.7 million. Research and development expenses were $2.3 million in the first quarter of 2025 compared to $4.9 million for the same period in 2024. The decrease of $2.6 million was primarily related to a $2.1 million decrease in clinical trial expenses related to VP 315 as well as costs related to a decrease in regulatory and medical affairs expenses of $0.4 million. Interest income was $0.3 million for the three months ended March 31, 2025, compared to $0.6 million for the same period in 2024. The decrease of $0.3 million was primarily due to a lower cash balance. Interest expense was $2.2 million for the three months ended March 31, 2025 and $2.3 million for the same period in 2024. Interest expense is related to borrowings under the OrbiMed Credit Agreement. The decrease of $0.1 million was related to a lower principal balance. For the quarter ended March 31, 2025, net loss was $9.7 million, or $0.10 per share, compared to a net loss of $20.3 million, or $0.44 per share, for the same period in 2024. For the quarter ended March 31, 2025, non-GAAP net loss was $7.8 million, or $0.08 per share, compared to a non-GAAP net loss of $17.8 million, or $0.38 per share, for the same period in 2024. As of March 31, 2025, Verrica had $29.6 million in cash and cash equivalents. Non-GAAP Financial Measures In evaluating the operating performance of its business, Verrica's management considers non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation expense and non-cash interest expense that are required by GAAP. Verrica excludes non-cash stock-based compensation expense from these non-GAAP measures to facilitate comparison to peer companies who also provide similar non-GAAP disclosures and because it reflects how management internally manages the business. In addition, Verrica excludes non-cash interest expense from these non-GAAP measures to facilitate an understanding of the effects of the debt service obligations on the Company's liquidity and comparisons to peer group companies who also provide similar non-GAAP disclosures and because it is reflective of how management internally manages the business. Non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share have been reconciled to the nearest GAAP measure in the tables following the financial statements in this press release. About YCANTH® (VP-102)YCANTH® is a proprietary drug-device combination product that contains a GMP-controlled formulation of cantharidin delivered via a single-use applicator that allows for precise topical dosing and targeted administration for the treatment of molluscum. YCANTH® is the first and only commercially available product approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum — a common, highly contagious skin disease that affects an estimated six million people in the United States, primarily children. Approval of YCANTH® was based upon the positive results from two Phase 3 clinical trials in approximately 500 patients which demonstrated that YCANTH® was a safe and effective therapeutic for the treatment of molluscum. Approximately 225 million lives are eligible to receive YCANTH® covered by insurance. Commercially insured patients pay just $25 per YCANTH treatment visit, for up to two applicators. Other uninsured patients may be eligible to receive YCANTH at a reduced cost if certain eligibility requirements are met for patient assistance. Please visit for additional information. About Verrica Pharmaceuticals Inc. Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica's product YCANTH® (VP-102) (cantharidin), is the first and only commercially available treatment approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH® (VP-102) is also in development to treat common warts, the largest remaining unmet need in medical dermatology. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (formerly LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma. For more information, visit About Dispensed Applicator Units Dispensed applicator units represent applicators (a) shipped to healthcare professionals from Verrica's contracted pharmacy partners for fulfillment, (b) sold by Verrica's distribution partners to independent and regional pharmacies , and (c) sold to physician offices, hospitals and other clinics on a buy and bill basis. Forward-Looking Statements Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as 'believe,' 'expect,' 'may,' 'plan,' 'potential,' 'will,' and similar expressions, and are based on Verrica's current beliefs and expectations. These forward-looking statements include statements about Verrica's ability to sustain revenue growth and the alignment between dispensed applicator units and revenue going forward, the commercialization of YCANTH and the clinical development and benefits of Verrica's product candidates, including YCANTH (VP-102) and VP-315. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include risks and uncertainties related to market conditions, satisfaction of customary closing conditions related to the proposed public offering and other risks and uncertainties that are described in Verrica's Annual Report on Form 10-K for the year ended December 31, 2024 and other filings Verrica makes with the SEC. Any forward-looking statements speak only as of the date of this press release and are based on information available to Verrica as of the date of this release, and Verrica assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise. VERRICA PHARMACEUTICALS of Operations(in thousands except share and per share data)(unaudited) Three Months Ended March 31, 2025 2024 Product revenue, net $ 3,422 $ 3,232 Collaboration revenue 17 594 Total revenue 3,439 3,826 Operating expenses: Cost of product revenue 423 546 Cost of collaboration revenue 14 592 Selling, general and admin. 8,848 16,339 Research and development 2,284 4,948 Total operating expenses 11,569 22,425 Loss from operations (8,130 ) (18,599 ) Interest income 337 598 Interest expense (2,203 ) (2,319 ) Change in fair value of derivative liability 254 - Other expense - (11 ) Net loss $ (9,742 ) $ (20,331 ) Net loss per share, basic and diluted $ (0.10 ) $ (0.44 ) Weighted-average common shares outstanding, basic and diluted 94,837,343 46,483,669 VERRICA PHARMACEUTICALS Balance Sheet Data(in thousands)(unaudited) March 31, 2025 December 31, 2024 Cash and cash equivalents $ 29,595 $ 46,329 Accts rec., prepaid expenses and inventory 9,879 4,850 Total current assets 39,474 51,179 PP&E, lease right of use asset, other 2,704 2,955 Total assets $ 42,178 $ 54,134 Total liabilities $ 60,754 $ 63,994 Total stockholders' equity (18,576 ) (9,860 ) Total liabilities and stockholders' equity $ 42,178 $ 54,134 VERRICA PHARMACEUTICAS of Non-GAAP Financial Measures (unaudited)(in thousands except per share data) Three Months Ended March 31, 2025 Loss from operations Net loss Net loss per share GAAP $ (8,130 ) $ (9,742 ) $ (0.10 ) Non-GAAP Adjustments: Stock-based compensation – Selling, general and admin (a) 784 784 Stock-based compensation – Research and development (a) 241 241 Derivative liability change in value - 254 Non-cash interest expense (b) - 668 Adjusted $ (7,105 ) $ (7,795 ) $ (0.08 ) Three Months Ended March 31, 2024 Loss from operations Net loss Net loss per share GAAP $ (18,599 ) $ (20,331 ) $ (0.44 ) Non-GAAP Adjustments: Stock-based compensation – Selling, general & admin (a) 1,622 1,622 Stock-based compensation – Research & development (a) 450 450 Non-cash interest expense (b) - 483 Adjusted $ (16,527 ) $ (17,776 ) $ (0.38 ) (a) The effects of non-cash stock-based compensation are excluded because of varying available valuation methodologies and subjective assumptions. Verrica believes this is a useful measure for investors because such exclusion facilitates comparison to peer companies who also provide similar non-GAAP disclosures and is reflective of how management internally manages the business. (b) The effects of non-cash interest charges are excluded because Verrica believes such exclusion facilitates an understanding of the effects of the debt service obligations on the Company's liquidity and comparisons to peer group companies and is reflective of how management internally manages the business. FOR MORE INFORMATION, PLEASE CONTACT: Investors: John KirbyChief Financial Officerjkirby@ Kevin GardnerLifeSci Advisorskgardner@
Yahoo
07-04-2025
- Business
- Yahoo
Verrica Pharmaceuticals Reports Strong Demand-Led Growth in YCANTH® Dispensed Applicator Units in First Quarter 2025
– Company generated quarterly sequential growth with Q1 YCANTH® dispensed applicator units rising above 10,000 for the first time in a quarter – – As YCANTH distributor inventory levels have normalized, Company expects that dispensed applicator units will now more closely track demand and gross revenue – WEST CHESTER, Pa., April 07, 2025 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. ('Verrica' or the 'Company') (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced that Company experienced strong demand-led growth for YCANTH® in the first quarter of 2025, with the number of dispensed applicator units increasing to 10,102 in the first quarter. This first quarter growth represents a sequential increase of 16.7% over the fourth quarter of 2024 (8,654 dispensed applicator units). 'We believe the strong performance we experienced for YCANTH in first quarter of 2025 reflects the positive impact from our recent commercial restructuring,' said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. 'Importantly, our YCANTH distribution inventory has normalized. The sequential growth in the first quarter represents increasing demand for YCANTH by prescribers, which we believe will drive revenue.' Dr. Rieger emphasized, ' With strong market access now in place, normalized channel inventory levels, and a more focused commercial team that continues to build solid relationships within the dermatology and pediatric communities, I believe we are now positioned for sustainable revenue growth in 2025 and beyond as we seek to establish YCANTH as the standard of care for the treatment of molluscum contagiosum.' Company to Participate in Fireside Chat at 24th Annual Needham Virtual Healthcare Conference As previously announced, Dr. Rieger will participate in a fireside chat at the 24th Annual Needham Virtual Healthcare Conference. Event details: Date: Tuesday, April 8, 2025 Time: 1:30 pm ET Location: Virtual Participants may access a live webcast of the event by clicking the link here. The webcast can also be accessed in the Investors/Presentations & Events section of the Verrica website at A replay of the webcast will be posted shortly after the presentation and will be available for 90 days following the event. About YCANTH® (VP-102)YCANTH® is a proprietary drug-device combination product that contains a GMP-controlled formulation of cantharidin delivered via a single-use applicator that allows for precise topical dosing and targeted administration for the treatment of molluscum. YCANTH® is the first and only commercially available product approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum — a common, highly contagious skin disease that affects an estimated six million people in the United States, primarily children. Approval of YCANTH® was based upon the positive results from two Phase 3 clinical trials in approximately 500 patients which demonstrated that YCANTH® was a safe and effective therapeutic for the treatment of molluscum. Approximately 225 million lives are eligible to receive YCANTH® covered by insurance. YCANTH® is available to all patients with and without insurance coverage for $25 per treatment, and further financial assistance is available for patients in need. Please visit for additional information. About Verrica Pharmaceuticals is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica's product YCANTH® (VP-102) (cantharidin), is the first and only commercially available treatment approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH® (VP-102) is also in development to treat common warts, the largest remaining unmet need in medical dermatology. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (formerly LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma. For more information, visit About Dispensed Applicator UnitsDispensed applicator units represent applicators (a) shipped to healthcare professionals from Verrica's contracted pharmacy partners for fulfillment, (b) sold by Verrica's distribution partners to independent and regional pharmacies , and (c) sold to physician offices, hospitals and other clinics on a buy and bill basis. Forward-Looking Statements Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as 'believe,' 'expect,' 'may,' 'plan,' 'potential,' 'will,' and similar expressions, and are based on Verrica's current beliefs and expectations. These forward-looking statements include statements about Verrica's ability to sustain revenue growth, the commercialization of YCANTH and the clinical development and benefits of Verrica's product candidates, including YCANTH (VP-102) and VP-315. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include risks and uncertainties related to market conditions, satisfaction of customary closing conditions related to the proposed public offering and other risks and uncertainties that are described in Verrica's Annual Report on Form 10-K for the year ended December 31, 2024 and other filings Verrica makes with the SEC. Any forward-looking statements speak only as of the date of this press release and are based on information available to Verrica as of the date of this release, and Verrica assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise. FOR MORE INFORMATION, PLEASE CONTACT: Investors: John J Kirby Interim Chief Financial Officer jkirby@ Kevin GardnerLifeSci Advisorskgardner@
Yahoo
31-03-2025
- Business
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Verrica Pharmaceuticals to Participate in the 24th Annual Needham Virtual Healthcare Conference
WEST CHESTER, Pa., March 31, 2025 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. ('Verrica' or 'the Company') (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced that Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica Pharmaceuticals, will participate in a fireside chat at the 24th Annual Needham Virtual Healthcare Conference. 24th Annual Needham Virtual Healthcare Conference, April 7-10, 2025Event details:Date: Tuesday, April 8, 2025Time: 1:30 pm ETLocation: Virtual Participants may access a live webcast of the event by clicking the link here. The webcast can also be accessed in the Investors/Presentations & Events section of the Verrica website at A replay of the webcast will be posted shortly after the presentation and will be available for 90 days following the event. About Verrica Pharmaceuticals Inc. Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica's product YCANTH® (VP-102) (cantharidin), is the first and only commercially available treatment approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH® (VP-102) is also in development to treat common warts, the largest remaining unmet need in medical dermatology. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (formerly LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma. For more information, visit FOR MORE INFORMATION, PLEASE CONTACT:Investors: John J Kirby Interim Chief Financial Officer jkirby@ Kevin Gardner LifeSci Advisors kgardner@ in to access your portfolio
Yahoo
25-02-2025
- Business
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Verrica Pharmaceuticals to Participate in the TD Cowen 45th Annual Health Care Conference in Boston
WEST CHESTER, Pa., Feb. 25, 2025 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. ('Verrica' or 'the Company') (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced that Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica Pharmaceuticals, will participate in a fireside chat at the TD Cowen 45th Annual Health Care Conference in Boston. TD Cowen 45th Annual Health Care Conference, March 3-5, 2025Event details:Date: Monday, March 3, 2025Time: 2:30 pm ETLocation: Boston, MA Participants may access a live webcast of the event by clicking the link here. The webcast can also be accessed in the Investors/Presentations & Events section of the Verrica website at A replay of the webcast will be posted shortly after the presentation and will be available for 90 days following the event. About Verrica Pharmaceuticals Inc. Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica's product YCANTH (VP-102) (cantharidin), is the first and only commercially available treatment approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH (VP-102) is also in development to treat common warts and external genital warts, two of the largest remaining unmet needs in medical dermatology. Verrica is developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (formerly LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma. For more information, visit FOR MORE INFORMATION, PLEASE CONTACT:Investors: John J Kirby Interim Chief Financial Officer jkirby@ Kevin Gardner LifeSci Advisors kgardner@ Chris Calabrese LifeSci Advisors ccalabrese@ in to access your portfolio
