Journey Medical (DERM)

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Journey Medical (DERM) - 2024 Q2 - Earnings Call Transcript
2024-08-12 23:37
Journey Medical Corporation (NASDAQ:DERM) Q2 2024 Results Conference Call August 12, 2024 4:30 PM ET Company Participants Jaclyn Jaffe - Senior Director, Corporate Operations Claude Maraoui - Co-Founder, President and CEO Joseph Benesch - Chief Financial Officer Srini Sidgiddi - Vice President, Research and Development Ramsey Alloush - General Counsel and Corporate Secretary Conference Call Participants Kalpit Patel - B. Riley Securities Scott Henry - Alliance Global Partners Jason Wittes - Roth Operator La ...
Journey Medical (DERM) - 2024 Q2 - Quarterly Report
2024-08-12 22:21
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-41063 JOURNEY MEDICAL CORPORATION (Exact name of registrant as specified in its charter) D ...
Journey Medical Corporation (DERM) Reports Q2 Loss, Tops Revenue Estimates
ZACKS· 2024-08-12 22:10
Journey Medical Corporation (DERM) came out with a quarterly loss of $0.17 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to loss of $0.46 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -13.33%. A quarter ago, it was expected that this company would post a loss of $0.26 per share when it actually produced a loss of $0.53, delivering a surprise of -103.85%. Over the last four quarters, the com ...
Journey Medical (DERM) - 2024 Q2 - Quarterly Results
2024-08-12 20:08
Exhibit 99.1 Journey Medical Corporation Reports Second Quarter 2024 Financial Results and Recent Corporate Highlights New Drug Application for DFD-29 to treat rosacea under FDA review; PDUFA goal date of November 4, 2024 Total revenues for the second quarter ended June 30, 2024 were $14.9 million, a 14% increase from the $13.0 million reported in the first quarter of 2024 Company to hold conference call today at 4:30 p.m. ET to discuss the financial results and provide a business update Scottsdale, AZ – Au ...
Journey Medical Corporation Reports Second Quarter 2024 Financial Results and Recent Corporate Highlights
GlobeNewswire News Room· 2024-08-12 20:01
New Drug Application for DFD-29 to treat rosacea under FDA review; PDUFA goal date of November 4, 2024 Total revenues for the second quarter ended June 30, 2024 were $14.9 million, a 14% increase from the $13.0 million reported in the first quarter of 2024 Company to hold conference call today at 4:30 p.m. ET to discuss the financial results and provide a business update SCOTTSDALE, Ariz., Aug. 12, 2024 (GLOBE NEWSWIRE) -- Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical" or "the Company"), a co ...
Journey Medical Corporation Appoints Michael C. Pearce to Board of Directors
Newsfilter· 2024-07-11 20:05
SCOTTSDALE, Ariz., July 11, 2024 (GLOBE NEWSWIRE) -- Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical"), a commercial-stage pharmaceutical company that primarily focuses on selling and marketing U.S. Food and Drug Administration ("FDA")-approved prescription pharmaceutical products for the treatment of dermatological conditions, today announced that on July 9, 2024, it appointed Michael C. Pearce to its Board of Directors. "We are very pleased to welcome Mike to our Board of Directors," said Cla ...
Journey Medical Corporation Appoints Michael C. Pearce to Board of Directors
GlobeNewswire News Room· 2024-07-11 20:05
About Journey Medical Corporation Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical") is a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions through its efficient sales and marketing model. The Company currently markets seven branded and two generic products that help treat and heal common skin conditions. The Journey Medical team comprises industry experts ...
Journey Medical Corporation to Participate in the Alliance Global Partners' (A.G.P.) Virtual Healthcare Company Showcase
Newsfilter· 2024-05-15 20:01
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 seven branded and two generic products aimed at treating common skin conditions [3] - Journey Medical was founded by Fortress Biotech, Inc. and is located in Scottsdale, Arizona [3] Upcoming Event - Claude Maraoui, Co-Founder, President and CEO of Journey Medical, will participate in a fireside chat at the Alliance Global Partners' Virtual Healthcare Company Showcase on May 21, 2024, at 1:00 p.m. ET [1] - A replay of the fireside chat will be available on the company's website for approximately 30 days after the event [2]
Journey Medical (DERM) - 2024 Q1 - Quarterly Report
2024-05-14 20:46
PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) The company reported increased Q1 2024 revenue but a wider net loss due to higher R&D expenses, raising going concern doubts [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets and stockholders' equity decreased as of March 31, 2024, primarily due to reduced cash and the net loss incurred Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $24,057 | $27,439 | | Total current assets | $47,013 | $56,455 | | Total assets | $66,571 | $76,849 | | **Liabilities & Equity** | | | | Total current liabilities | $38,936 | $41,868 | | Total liabilities | $53,620 | $56,499 | | Total stockholders' equity | $12,951 | $20,350 | [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 revenue increased 7% to $13.0 million, but a 288% surge in R&D expenses resulted in a net loss of $10.4 million Q1 2024 vs. Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenue | $13,030 | $12,213 | | Cost of goods sold | $6,816 | $6,449 | | Research and development | $7,884 | $2,033 | | Selling, general and administrative | $8,420 | $13,292 | | Loss from operations | $(10,090) | $(9,561) | | Net loss | $(10,442) | $(10,136) | | Net loss per share (Basic & Diluted) | $(0.53) | $(0.57) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to $5.0 million in Q1 2024, leading to an overall $3.4 million decrease in cash Q1 2024 vs. Q1 2023 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,019) | $(956) | | Net cash provided by (used in) investing activities | $— | $(5,000) | | Net cash provided by financing activities | $1,637 | $52 | | **Net change in cash** | **$(3,382)** | **$(5,904)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's dermatology focus, liquidity challenges, and accounting policies, including a going concern warning due to recurring losses - The company is a commercial-stage pharmaceutical firm focused on **dermatological treatments**, with a portfolio of seven branded and two authorized generic drugs[19](index=19&type=chunk) - As a result of recurring losses, **substantial doubt exists about the Company's ability to continue as a going concern** for at least twelve months from the financial statement issuance date[24](index=24&type=chunk) - The company is a **majority-owned subsidiary of Fortress Biotech, Inc.** as of March 31, 2024[20](index=20&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, noting a 7% revenue increase, a significant rise in R&D expenses, and ongoing liquidity challenges with a going concern warning - The company submitted a New Drug Application (NDA) for DFD-29 to the FDA on January 4, 2024, with a **PDUFA goal date of November 4, 2024**[85](index=85&type=chunk) - The company's ability to continue as a going concern is subject to **substantial doubt due to recurring losses**[87](index=87&type=chunk)[103](index=103&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Total revenue increased 7% in Q1 2024, but a significant rise in R&D expenses led to a wider loss from operations and increased net loss Comparison of Three-Month Periods Ended March 31, 2024 and 2023 (in thousands) | Metric | 2024 | 2023 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $13,030 | $12,213 | $817 | 7% | | Research and development | $7,884 | $2,033 | $5,851 | 288% | | Selling, general and administrative | $8,420 | $13,292 | $(4,872) | -37% | | Loss from operations | $(10,090) | $(9,561) | $(529) | 6% | | Net loss | $(10,442) | $(10,136) | $(306) | 3% | - Net product revenues increased by **$0.9 million (7%)**, primarily due to increased sales of Qbrexza (up **23%**) and Accutane (up **25%**) from focused marketing efforts[93](index=93&type=chunk) - R&D expenses increased by **$5.9 million**, driven by a **$4.0 million FDA filing fee** for DFD-29 and a **$3.0 million contractual milestone payment** to DRL[97](index=97&type=chunk) - SG&A expenses decreased by **$4.9 million (37%)** due to continued expense management efforts[98](index=98&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company held $24.1 million in cash, supported by a $20.0 million SWK term loan and ATM proceeds, despite ongoing going concern doubts - The company had **$24.1 million in cash and cash equivalents** at March 31, 2024[100](index=100&type=chunk) - The company has a term loan facility with SWK for up to **$20.0 million**, with **$15.0 million drawn** and an additional **$5.0 million available**[101](index=101&type=chunk) - During Q1 2024, the company sold **289,744 shares** under its ATM program, generating net proceeds of **$1.5 million**[102](index=102&type=chunk) [Material Cash Requirements](index=30&type=section&id=Material%20Cash%20Requirements) The company faces significant future cash requirements, including SWK term loan payments, potential DFD-29 milestones up to $155.0 million, and ongoing royalty obligations Future Payments for SWK Credit Facility (in thousands) | Period | Total | Interest | Principal | Exit Fee | | :--- | :--- | :--- | :--- | :--- | | Remainder of 2024 | $1,501 | $1,501 | $— | $— | | 2025 | $1,993 | $1,993 | $— | $— | | 2026 | $6,193 | $1,693 | $4,500 | $— | | 2027 | $12,336 | $1,086 | $10,500 | $750 | | **Total** | **$22,023** | **$6,273** | **$15,000** | **$750** | - The company faces up to **$155.0 million** in additional contingent regulatory and commercial milestone payments for DFD-29[110](index=110&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk - As a smaller reporting company, Journey Medical Corporation is **not required to provide quantitative and qualitative disclosures about market risk**[110](index=110&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - The company's principal executive and financial officers concluded that **disclosure controls and procedures were effective** as of March 31, 2024[111](index=111&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[112](index=112&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no pending legal proceedings expected to have a material adverse effect on its financial condition or operations - To the company's knowledge, there are **no material legal proceedings pending** against it[114](index=114&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section refers investors to the detailed risk factors in the 2023 Form 10-K, with no new or materially changed risks presented - The company directs readers to the **"Risk Factors" section in its 2023 Form 10-K** for a discussion of risks[115](index=115&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company confirms no unregistered sales of equity securities occurred during the reporting period - The company did not sell any equity securities in **unregistered transactions** during the reporting period[116](index=116&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, officer certifications, and Inline XBRL financial statements
Journey Medical (DERM) - 2024 Q1 - Earnings Call Transcript
2024-05-14 02:43
Journey Medical Corporation (NASDAQ:DERM) Q1 2024 Earnings Conference Call May 14, 2024 4:30 PM ET Company Participants Jaclyn Jaffe - Senior Director, Corporate Operations Claude Maraoui - Co-Founder, President and CEO Joseph Benesch - Interim Chief Financial Officer Dr. Srinivas Sidgiddi - Vice President, Research and Development Ramsey Allous - General Counsel and Corporate Secretary Conference Call Participants Scott Henry - Alliance Global Partner Kalpit - B. Riley Securities Operator Ladies and gentle ...