Core Viewpoint - Journey Medical Corporation is enhancing the visibility of its FDA-approved product Emrosi™ through a feature on "The Balancing Act," aimed at educating patients and healthcare providers about its benefits in treating rosacea [2][3]. Company Overview - Journey Medical Corporation (Nasdaq: DERM) is a commercial-stage pharmaceutical company focused on marketing FDA-approved prescription products for dermatological conditions [8]. - The company currently markets eight FDA-approved prescription drugs targeting common skin conditions and is based in Scottsdale, Arizona [8]. Product Information - Emrosi™ (40 mg Minocycline Hydrochloride Modified-Release Capsules) is the lowest-dose oral minocycline available, approved by the FDA in November 2024 for treating inflammatory lesions of rosacea in adults [2]. - Emrosi offers an effective treatment option with a favorable safety profile and is available by prescription at specialty pharmacy chains [2]. Industry Context - Rosacea is a chronic inflammatory skin condition affecting over 16 million Americans and approximately 415 million people worldwide, primarily seen in adults aged 30 to 50 [4]. - The National Rosacea Society reports that over 90% of rosacea patients feel their condition lowers their self-confidence, with significant impacts on social and professional interactions [4].

Product Launch and Revenue - EmrosiTM received FDA approval on November 1, 2024, for treating inflammatory lesions of rosacea, with initial supply available in March 2025 and sales promotion starting in April 2025[92]. - Total net product revenue for Q1 2025 was $13.1 million, a slight increase of 1% from $13.0 million in Q1 2024, driven by $2.0 million from EmrosiTM[99]. - EmrosiTM generated $2.1 million in revenue during its first quarter of commercial launch, offsetting declines in other products like Accutane, which saw a 37% decrease in revenue[99]. - Gross-to-net sales accruals increased to $15.5 million as of March 31, 2025, up from $9.9 million a year earlier, attributed to coupon rebate allowances for EmrosiTM[100]. Financial Performance - Loss from operations improved by 67%, decreasing from $10.1 million in Q1 2024 to $3.3 million in Q1 2025[98]. - The company reported a net loss of $4.1 million for Q1 2025, a 61% reduction compared to a net loss of $10.4 million in Q1 2024[98]. - Operating expenses decreased by 29% from $23.1 million in Q1 2024 to $16.5 million in Q1 2025, primarily due to a 100% reduction in research and development expenses[98]. - Selling, general, and administrative expenses rose by 26% from $8.4 million in Q1 2024 to $10.6 million in Q1 2025[98]. - Interest expense increased by 63% from $548,000 in Q1 2024 to $891,000 in Q1 2025[98]. - Cost of goods sold decreased by $1.2 million, or 20%, to $4.8 million for the three-month period ended March 31, 2025, from $6.0 million for the same period in 2024[101]. Research and Development - Research and development costs were nil in Q1 2025, compared to $7.9 million in Q1 2024, which included Emrosi pre-approval project expenses[103]. - Amortization of acquired intangible assets increased by $0.3 million, or 31%, to $1.1 million for the three-month period ended March 31, 2025, driven by the addition of the Emrosi acquired intangible asset[102]. Cash Flow and Financing - Cash and cash equivalents increased to $21.1 million at March 31, 2025, compared to $20.3 million at December 31, 2024[106]. - Net cash used in operating activities decreased by $2.2 million to $2.8 million for the three-month period ended March 31, 2025, driven by a decrease in net loss[114]. - Net cash flows provided by financing activities increased by $2.0 million to $3.6 million for the three-month period ended March 31, 2025, primarily due to net proceeds from common stock issuances[115]. - Total cash requirements under the SWK Credit Facility include $7.3 million in interest and $25.0 million in principal payments[117]. - The company may seek to raise capital through debt or equity financings to expand its product portfolio and for other strategic initiatives[108]. Industry and Market Risks - The company operates in a heavily regulated industry, with significant risks related to product development, competition, and market acceptance[89].

Group 1 - Journey Medical Corporation reported a quarterly loss of $0.18 per share, better than the Zacks Consensus Estimate of a loss of $0.24, and an improvement from a loss of $0.53 per share a year ago, representing an earnings surprise of 25% [1] - The company posted revenues of $13.14 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 10.55%, and showing a slight increase from $13.03 million in the same quarter last year [2] - Journey Medical shares have increased approximately 61.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.1% [3] Group 2 - The earnings outlook for Journey Medical is mixed, with the current consensus EPS estimate for the coming quarter at -$0.12 on revenues of $15.1 million, and -$0.41 on revenues of $68.24 million for the current fiscal year [7] - The Medical - Drugs industry, to which Journey Medical belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Journey Medical reported net product sales of $13.1 million for Q1 2025, a slight increase from $13.0 million in Q1 2024, which included approximately $2.0 million from the initial revenue of AMROCI [6][12] - Gross margin improved to 64% in Q1 2025 from 54% in the prior year, attributed to lower product costs and a favorable sales mix [13] - R&D costs were nil in Q1 2025 compared to $7.9 million in Q1 2024, which included preapproval and milestone payments related to AMROCI [13] - SG&A expenses increased by $2.1 million to $10.6 million in Q1 2025, reflecting investments in commercial infrastructure for the AMROCI launch [13] - Net loss for Q1 2025 was $4.1 million, or $0.18 per share, compared to a net loss of $10.4 million, or $0.53 per share, in Q1 2024 [14][15] - Cash position at the end of Q1 2025 was $21.1 million, up from $20.3 million at the end of 2024 [15] Business Line Data and Key Metrics Changes - The launch of AMROCI is seen as a significant milestone, contributing to initial sales and expected to become the flagship product [6][16] - Legacy products experienced a decline of approximately 10% to 15%, attributed to generic competition [24] - QBREXZA showed strong performance with a 15% increase in prescriptions year-over-year, despite new competition [25][26] - Accutane prescriptions decreased from 93,000 in Q1 2024 to 66,000 in Q1 2025, impacted by new competitors, but showed a 10% growth compared to Q4 2024 [28][30] Market Data and Key Metrics Changes - Approximately 30% of covered commercial insured lives now have access to AMROCI, up from 20% previously [11] - The company actively calls on 83% of dermatology offices that prescribe oral rosacea treatments, leveraging existing brand equity [9] Company Strategy and Development Direction - The company aims to expand access and grow prescription volume for AMROCI while publishing additional peer-reviewed data to support its clinical value [17] - Focus on building brand awareness and ensuring payer coverage to translate prescription momentum into sales [10][11] - The management believes 2025 will be a transformational year for Journey Medical, with a commitment to long-term value creation for patients and shareholders [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive initial response to AMROCI and its potential to achieve sustainable EBITDA positivity later in the year [6] - The dermatology-focused sales force is fully trained and actively promoting AMROCI, with early indicators showing over 660 unique healthcare providers writing prescriptions [16][17] - The company is optimistic about the trajectory of AMROCI's launch and expects continued growth in the coming months [40][41] Other Important Information - The Phase III clinical trial results for AMROCI were published in JAMA Dermatology, highlighting its statistical superiority over competitors [8] - The National Rosacea Society updated its treatment algorithms to include AMROCI, signaling confidence from the dermatology community [9] Q&A Session Summary Question: Expectations for AMROCI revenues in Q2 - Management indicated that the initial $2 million in revenue was largely due to stocking and expects additional revenues in Q2 as the product gains traction [20][21] Question: Performance of legacy business - The legacy business is experiencing a decline due to generic competition, with specific products like QBREXZA performing well despite new entrants [24][25] Question: Inventory levels in distribution - Management estimated that inventory levels are typically between two to four weeks during a new product launch [34][36] Question: Early feedback from prescribers - Positive feedback has been received regarding AMROCI's efficacy and tolerability, with many prescribers expressing satisfaction with the product's performance [37][39] Question: Erythema reduction feedback - Anecdotal feedback from dermatologists indicates satisfaction with AMROCI's impact on erythema, although this is not the primary focus of the marketing message [50][51] Question: Repeat prescribers for AMROCI - There is a mix of prescribers, with some writing multiple prescriptions, indicating a positive reception in the market [57]

Financial Data and Key Metrics Changes - Journey Medical reported net product sales of $13.1 million for Q1 2025, a slight increase from $13.0 million in Q1 2024, which included $2.0 million from the initial launch of AMROCI [5][11] - Gross margin improved to 64% in Q1 2025 from 54% in the prior year, attributed to lower product costs and a favorable sales mix [12] - Net loss for Q1 2025 was $4.1 million, or $0.18 per share, compared to a net loss of $10.4 million, or $0.53 per share, in Q1 2024 [13] Business Line Data and Key Metrics Changes - The launch of AMROCI is seen as a significant milestone, contributing positively to the overall sales performance [5] - The legacy business, which includes older brands facing generic competition, experienced a decline of approximately 10% to 15% [22] - QBREXZA showed strong performance with a 15% increase in prescriptions year-over-year for March and April 2025 [24] Market Data and Key Metrics Changes - Approximately 30% of covered commercial insured lives now have access to AMROCI, up from 20% previously [10] - The company actively calls on about 83% of dermatology offices that prescribe oral rosacea treatments, enhancing market penetration [8] Company Strategy and Development Direction - Journey Medical aims to expand access and grow prescription volume for AMROCI while publishing additional peer-reviewed data to support its clinical value [17] - The company is focused on building brand awareness and ensuring payer coverage to translate prescription momentum into sales [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive initial response to AMROCI and its potential to become the flagship product, contributing to sustainable EBITDA positivity later in the year [5] - The company views 2025 as a transformational year, with expectations for continued growth and market adoption of AMROCI [17] Other Important Information - The Phase III clinical trial results for AMROCI were published in JAMA Dermatology, highlighting its superiority over competitors [7] - The National Rosacea Society updated its treatment algorithms to include AMROCI, signaling confidence from the dermatology community [8] Q&A Session Summary Question: Expectations for AMROCI revenues in Q2 - Management indicated that the initial $2 million in revenue was primarily from stocking and expects additional revenues in Q2 as the product gains traction [19][20] Question: Performance of the legacy business - The legacy business is expected to continue facing challenges due to generic competition, with QBREXZA performing well despite new competition [22][23] Question: Inventory levels in the distribution channel - Management estimated that inventory levels are typically between two to four weeks during a new product launch [31][32] Question: Feedback from prescribers - Positive feedback has been received regarding AMROCI's efficacy, with many prescribers impressed by its clinical results [34][35] Question: Patient demographics for AMROCI - Initial prescriptions are primarily from new patients, with potential for switching from existing treatments as prescribers gain confidence [40][41] Question: Erythema reduction feedback - Anecdotal feedback indicates that some prescribers have noted significant erythema reduction, which may be incorporated into future messaging [46][50]

[Financial Results](index=1&type=section&id=Financial%20Results) Journey Medical reported stable Q1 2025 net product revenues, a 10 p.p. gross margin increase to 64%, and a reduced net loss of $4.1 million Q1 2025 vs Q1 2024 Financial Performance | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Net Product Revenues | $13.1 million | $13.0 million | +0.8% | | Gross Margin | 64% | 54% | +10 p.p. | | Research and Development | Nil | $7.9 million | -100% | | Selling, General & Administrative | $10.6 million | $8.4 million | +$2.2 million | | Net Loss | $(4.1) million | $(10.4) million | +$6.3 million | | Net Loss Per Share | $(0.18) | $(0.53) | +$0.35 | | Cash and Cash Equivalents (at end of period) | $21.1 million | N/A | N/A | - The launch of Emrosi contributed **$2.1 million** in incremental net product revenue in Q1 2025[4](index=4&type=chunk) - The increase in SG&A expenses was primarily due to incremental operational activities related to the launch and commercialization of Emrosi[10](index=10&type=chunk) [Recent Corporate Highlights](index=2&type=section&id=Recent%20Corporate%20Highlights) Q1 highlights include the strong commercial launch of Emrosi™, publication of its superior Phase 3 clinical trial results, and a new COO appointment - The commercial launch of Emrosi™ is off to a strong start, with initial prescriptions filled in late March 2025 and a full launch on April 7, 2025[1](index=1&type=chunk)[3](index=3&type=chunk)[10](index=10&type=chunk) - Emrosi's Phase 3 clinical trial results, published in JAMA Dermatology, demonstrated statistical superiority over both Oracea® and placebo for treating rosacea[1](index=1&type=chunk)[3](index=3&type=chunk)[10](index=10&type=chunk) - Emrosi™ was incorporated into the National Rosacea Society's updated Rosacea Treatment Algorithms, enhancing its credibility among prescribers[1](index=1&type=chunk)[3](index=3&type=chunk)[10](index=10&type=chunk) - In April 2025, Ramsey Alloush, previously General Counsel, was appointed as the company's Chief Operating Officer[10](index=10&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section details the unaudited consolidated balance sheets and statements of operations, outlining the company's financial position and performance [Unaudited Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $85.0 million, supported by higher cash and receivables, with total liabilities and equity also rising Consolidated Balance Sheet Highlights ($ in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $21,070 | $20,305 | | Total current assets | $53,986 | $48,179 | | Total assets | $84,962 | $80,241 | | Total current liabilities | $40,222 | $35,175 | | Total liabilities | $63,421 | $60,172 | | Total stockholders' equity | $21,541 | $20,069 | [Unaudited Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) Q1 2025 net loss significantly improved to $4.1 million, or $(0.18) per share, driven by stable revenue and reduced R&D expenses Consolidated Statements of Operations Highlights ($ in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Product revenue, net | $13,139 | $13,030 | | Cost of goods sold | $4,790 | $6,002 | | Research and development | $39 | $7,884 | | Selling, general and administrative | $10,569 | $8,420 | | Loss from operations | $(3,324) | $(10,090) | | Net loss | $(4,073) | $(10,442) | | Net loss per share (Basic & Diluted) | $(0.18) | $(0.53) | [Non-GAAP Financial Measures](index=6&type=section&id=Use%20of%20Non-GAAP%20Measures) Non-GAAP Adjusted EBITDA is used to clarify core performance, showing a Q1 2025 loss of $0.9 million versus a positive $11,000 in Q1 2024 - Management uses non-GAAP measures like Adjusted EBITDA to provide transparency on core performance by excluding non-cash and infrequent items such as share-based compensation, amortization, and short-term R&D expenses related to the Emrosi pre-approval phase[18](index=18&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA ($ in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net Loss** | **$(4,073)** | **$(10,442)** | | Interest | $742 | $331 | | Amortization of acquired intangible assets | $1,065 | $814 | | **EBITDA** | **$(2,266)** | **$(9,297)** | | Share-based compensation | $1,323 | $1,406 | | Short-term R&D | $39 | $7,740 | | Other (Foreign exchange, Severance) | $7 | $162 | | **Non-GAAP Adjusted EBITDA** | **$(897)** | **$11** | - Non-GAAP Adjusted EBITDA was a loss of **$0.9 million**, or **$(0.04) per share**, for Q1 2025, compared to income of **$11,000**, or **$0.00 per share**, for Q1 2024[23](index=23&type=chunk)

Revenue for the First Quarter Ended March 31, 2025 was $13.1 million Emrosi™ (40 mg Minocycline Hydrochloride Modified-Release Capsules) Commercial Launch Off to a Strong Start, Initial Prescriptions Filled in Late March 2025 Phase 3 Clinical Trial Results for Emrosi Published in JAMA Dermatology Emrosi Now Included in Updated National Rosacea Society Treatment Algorithms Company to Hold Conference Call Today at 4:30 p.m. ET SCOTTSDALE, Ariz., May 14, 2025 (GLOBE NEWSWIRE) -- Journey Medical Corporation ( ...

Core Insights - Journey Medical Corporation will release its first quarter 2025 financial results on May 14, 2025, after U.S. financial markets close [1] - A conference call and audio webcast will be held on the same day at 4:30 p.m. ET to discuss the financial results and provide a corporate update [1] Company Overview - Journey Medical Corporation is a commercial-stage pharmaceutical company focused on selling and marketing FDA-approved prescription products for dermatological conditions [4] - The company currently markets eight FDA-approved prescription drugs and has a team of industry experts with extensive experience in dermatology [4] - Journey Medical is based in Scottsdale, Arizona, and was founded by Fortress Biotech, Inc. [4]

Company Overview - Journey Medical Corporation (DERM) shares increased by 9.1% to $7.19 in the last trading session, with a notable trading volume, contributing to a 30.2% gain over the past four weeks [1] - The rise in stock price is linked to positive investor sentiment regarding the growing sales of its branded and generic dermatological drugs [1] Financial Expectations - The company is projected to report a quarterly loss of $0.24 per share, reflecting a year-over-year change of +54.7% [2] - Expected revenues are $11.89 million, which is an 8.8% decline from the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Journey Medical has been revised down by 1100% over the last 30 days [3] - A negative trend in earnings estimate revisions typically does not lead to stock price appreciation, indicating potential caution for future performance [3] Industry Context - Journey Medical is part of the Zacks Medical - Drugs industry, where Assertio (ASRT) has seen a decline of 15.7% over the past month, closing at $0.63 [3] - Assertio's consensus EPS estimate has changed by -150% over the past month, indicating a significant downturn compared to the previous year [4]

Core Viewpoint - Journey Medical Corporation has promoted Ramsey Alloush to Chief Operating Officer, reflecting his leadership and critical role in the company's growth, particularly with the upcoming launch of Emrosi™ [2][3] Company Overview - Journey Medical Corporation is a commercial-stage pharmaceutical company focused on selling and marketing FDA-approved prescription products for dermatological conditions [3] - The company currently markets eight FDA-approved prescription drugs aimed at treating common skin conditions [3] - Founded by Fortress Biotech, Inc., Journey Medical is located in Scottsdale, Arizona and is publicly traded on NASDAQ under the ticker DERM [3] Leadership and Strategic Initiatives - Ramsey Alloush, who joined Journey Medical in 2020 as General Counsel, has over 15 years of experience in the pharmaceutical industry and has played a significant role in the company's regulatory and corporate governance matters [2] - Alloush's promotion to COO is expected to enhance operational capabilities and drive strategic initiatives that deliver value to patients, partners, and shareholders [2] - The imminent launch of Emrosi™ is seen as a pivotal moment for the company, with expectations to set a new standard of care in dermatology [2]