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– Company reports $12.7 million in revenue in Q2’25, consisting primarily of $4.5 million in YCANTH® revenue, net, reflecting sequential growth of 32.5% over Q1’25 and $8.0 million in milestone revenue from Torii Pharmaceutical –
– Completed Successful End of Phase 2 Meeting for VP-315 for Basal Cell Carcinoma; Company is preparing for the Phase 3 program and exploring non-dilutive opportunities for financing further development –
– Conference call scheduled for today at 4:30 pm ET –
WEST CHESTER, Pa., Aug. 12, 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 second quarter ended June 30, 2025.
“I am pleased to report that the business momentum we experienced in the first quarter has continued into the second quarter of 2025, as demonstrated by YCANTH’s strong sequential quarterly growth in dispensed applicator units of 32.8%. As we previously reported, during the second quarter we dispensed 13,434 applicator units, and we are encouraged by this increased adoption for what we believe is the best option for healthcare providers to treat molluscum contagiosum. We are proud of achieving these results with our streamlined expense structure as we have substantially increased our productivity following our restructuring last Fall,” said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. “As our commercial team continues to execute, we also made significant progress in advancing our global Phase 3 program in common warts with our Japanese development partner, Torii Pharmaceutical. The commercial adoption of YCANTH by healthcare providers for patients with molluscum contagiosum is the foundation for Verrica’s potential growth into new products and markets, including the development of YCANTH for the treatment of common warts and VP-315 for the treatment of basal cell carcinoma.”
“Looking ahead, we believe our positive momentum is likely to continue. We have the opportunity to receive an additional $10 million in non-dilutive funding from Torii upon Japanese regulatory approval of YCANTH (TO-208 in Japan) for the treatment of molluscum contagiosum, and we expect a regulatory decision by the end of the year. Furthermore, we have made great strides in advancing our other key, late-stage pipeline asset, VP-315, which has demonstrated positive proof-of-concept efficacy data in a Phase 2 trial for the treatment of basal cell carcinoma. Following our End-of-Phase 2 meeting with the FDA, we now have additional clarity and broad agreement on advancing this unique and promising therapy into a pivotal Phase 3 program and preparation activities are underway. We plan to explore opportunities to fund the basal cell program, which may include strategic, non-dilutive partnerships for financing both the development of this program as well as post-approval commercialization for this potential multiple billion-dollar opportunity in the most common form of skin cancer. We plan to provide a comprehensive overview of the basal cell program, including an announcement of additional genomic and immune response data, later this year at a scientific conference. With these pipeline catalysts for our product candidates and continued momentum in our existing commercial business in molluscum, we believe Verrica is poised to generate strong and sustainable growth.”
Conference Call and Webcast Information
The Company will host a conference call today, August 12, 2025, at 4:30 pm, to discuss its second 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: 1-800-267-6316
International Dial-In Number: 1-203-518-9783
Conference ID: VERRICA
Participants can use Guest dial-in #s above and be answered by an operator.
Webcast:
https://viavid.webcasts.com/starthere.jsp?ei=1725073&tp_key=4eb16e1992
The call will be broadcast live over the Web and can also be accessed on Verrica Pharmaceuticals’ website: www.verrica.com.
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
YCANTH® (VP-102)
VP-315
Financial Results
Second Quarter 2025 Financial Results
Year-to-Date Financial Results
Non-GAAP Financial Measures
In evaluating the operating performance of its business, Verrica’s management considers non-GAAP income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (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 income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (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 income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (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 YCANTHPro.com 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 www.verrica.com.
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 receipt of additional non-dilutive capital from Torii and the timing of the related regulatory decision, 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 INC.
Statements of Operations
(in thousands except share and per share data)
(unaudited)
| Three Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Product revenue, net | $ | 4,534 | $ | 4,892 | ||||
| License and collaboration revenue | 8,168 | 285 | ||||||
| Total revenue | 12,702 | 5,177 | ||||||
| Operating expenses: | ||||||||
| Cost of product revenue | 340 | 360 | ||||||
| Cost of collaboration revenue | 154 | 182 | ||||||
| Selling, general and admin. | 8,852 | 16,522 | ||||||
| Research and development | 1,846 | 3,319 | ||||||
| Total operating expenses | 11,192 | 20,383 | ||||||
| Income (loss) from operations | 1,510 | (15,206 | ) | |||||
| Interest income | 228 | 393 | ||||||
| Interest expense | (2,131 | ) | (2,368 | ) | ||||
| Change in fair value of derivative liability | 598 | - | ||||||
| Other expense | (1 | ) | (5 | ) | ||||
| Net income (loss) | $ | 204 | $ | (17,186 | ) | |||
| Net income (loss) per share, basic | $ | 0.02 | $ | (3.70 | ) | |||
| Weighted-average common shares outstanding, basic and diluted | 9,488,055 | 4,650,227 | ||||||
| Net income (loss) per share, basic and diluted | $ | 0.02 | $ | (3.70 | ) | |||
| Weighted-average common shares outstanding, basic and diluted | 9,490,600 | 4,650,227 | ||||||
| VERRICA PHARMACEUTICALS INC. Statements of Operations (in thousands except share and per share data) (unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Product revenue, net | $ | 7,956 | $ | 8,124 | ||||
| License and collaboration revenue | 8,185 | 879 | ||||||
| Total revenue | 16,141 | 9,003 | ||||||
| Operating expenses: | ||||||||
| Cost of product revenue | 763 | 906 | ||||||
| Cost of collaboration revenue | 168 | 774 | ||||||
| Selling, general and admin. | 17,700 | 32,861 | ||||||
| Research and development | 4,130 | 8,267 | ||||||
| Total operating expenses | 22,761 | 42,808 | ||||||
| Loss from operations | (6,620 | ) | (33,805 | ) | ||||
| Interest income | 565 | 991 | ||||||
| Interest expense | (4,334 | ) | (4,687 | ) | ||||
| Change in fair value of derivative liability | 852 | - | ||||||
| Other expense | (1 | ) | (16 | ) | ||||
| Net loss | $ | (9,538 | ) | $ | (37,517 | ) | ||
| Net loss per share | $ | (1.01 | ) | $ | (8.07 | ) | ||
| Weighted-average common shares outstanding | 9,485,907 | 4,649,297 | ||||||
| VERRICA PHARMACEUTICALS INC. Selected Balance Sheet Data (in thousands) (unaudited) | ||||||||
| June 30, 2025 | June 30, 2024 | |||||||
| Cash and cash equivalents | $ | 15,396 | $ | 46,329 | ||||
| Accts rec., prepaid expenses and inventory | 21,385 | 4,850 | ||||||
| Total current assets | 36,781 | 51,179 | ||||||
| PP&E, lease right of use asset, other | 2,326 | 2,955 | ||||||
| Total assets | $ | 39,107 | $ | 54,134 | ||||
| Total liabilities | $ | 56,591 | $ | 63,994 | ||||
| Total stockholders' equity | (17,484 | ) | (9,860 | ) | ||||
| Total liabilities and stockholders’ equity | $ | 39,107 | $ | 54,134 | ||||
| VERRICA PHARMACEUTICALS INC. Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data) | |||||||||||
| Three Months Ended June 30, 2025 | |||||||||||
| Income from operations | Net income | Net income per share (basic and diluted) | |||||||||
| GAAP | $ | 1,510 | $ | 204 | $ | 0.02 | |||||
| Non-GAAP Adjustments: | |||||||||||
| Stock-based compensation – Selling, general and admin (a) | 588 | 588 | |||||||||
| Stock-based compensation – Research and development (a) | 300 | 300 | |||||||||
| Derivative liability change in value | - | 598 | |||||||||
| Non-cash interest expense (b) | - | 691 | |||||||||
| Adjusted | $ | 2,398 | $ | 2,381 | $ | 0.25 | |||||
| Three Months Ended June 30, 2024 | |||||||||||
| Loss from operations | Net loss | Net loss per share | |||||||||
| GAAP | $ | (15,206 | ) | $ | (17,186 | ) | $ | (3.70 | ) | ||
| Non-GAAP Adjustments: | |||||||||||
| Stock-based compensation – Selling, general & admin (a) | 1,715 | 1,715 | |||||||||
| Stock-based compensation – Research & development (a) | 513 | 513 | |||||||||
| Non-cash interest expense (b) | - | 516 | |||||||||
| Adjusted | $ | (12,978 | ) | $ | (14,442 | ) | $ | (3.11 | ) | ||
| (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. |
| VERRICA PHARMACEUTICALS INC. Reconciliation of Non-GAAP Financial Measures (unaudited) (in thousands except per share data) | |||||||||||
| Six Months Ended June 30, 2025 | |||||||||||
| Loss from operations | Net loss | Net loss per share | |||||||||
| GAAP | $ | (6,620 | ) | $ | (9,538 | ) | $ | (1.01 | ) | ||
| Non-GAAP Adjustments: | |||||||||||
| Stock-based compensation – Selling, general and admin (a) | 1,373 | 1,373 | |||||||||
| Stock-based compensation – Research and development (a) | 541 | 541 | |||||||||
| Derivative liability change in value | - | 852 | |||||||||
| Non-cash interest expense (b) | - | 1,359 | |||||||||
| Adjusted | $ | (4,706 | ) | $ | (5,413 | ) | $ | (0.57 | ) | ||
| Six Months Ended June 30, 2024 | |||||||||||
| Loss from operations | Net loss | Net loss per share | |||||||||
| GAAP | $ | (33,805 | ) | $ | (37,517 | ) | $ | (8.07 | ) | ||
| Non-GAAP Adjustments: | |||||||||||
| Stock-based compensation – Selling, general & admin (a) | 3,337 | 3,337 | |||||||||
| Stock-based compensation – Research & development (a) | 963 | 963 | |||||||||
| Non-cash interest expense (b) | - | 999 | |||||||||
| Adjusted | $ | (29,505 | ) | $ | (32,218 | ) | $ | (6.93 | ) | ||
| (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 Kirby
Chief Financial Officer
[email protected]
Kevin Gardner
LifeSci Advisors
[email protected]
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