– Common warts affects approximately 22 million patients in the United States alone, and there are no FDA approved prescription therapies for what is believed to be a multibillion-dollar market opportunity– – Verrica has global rights to YCANTH for all indications in all territories outside of Japan – WEST CHESTER, Pa., Jan. 07, 2026 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (“Verrica”) (Nasdaq: VRCA), a dermatology therapeutics company developing and selling medications for skin diseases requiring m ...

Core Insights - Verrica Pharmaceuticals Inc. is facing significant challenges in capital efficiency, as indicated by its financial metrics [1] - The company's Return on Invested Capital (ROIC) is -65.23%, which is substantially lower than its Weighted Average Cost of Capital (WACC) of 15.85% [2] - This results in a ROIC to WACC ratio of -4.11, highlighting inefficiencies in capital utilization [2] Comparison with Peers - Y-mAbs Therapeutics, Inc. has a ROIC of -27.64% and a WACC of 6.23%, leading to a less negative ROIC to WACC ratio of -4.44, indicating relatively better capital efficiency compared to Verrica [3] - Scholar Rock Holding Corporation and Crinetics Pharmaceuticals, Inc. have even more negative ROIC to WACC ratios of -15.28 and -9.15, respectively, suggesting greater inefficiencies in their capital utilization [4] - Kezar Life Sciences, Inc. also shows a significant negative ratio of -11.75, emphasizing the challenges faced by these companies in generating returns above their cost of capital [4] Overall Analysis - All companies analyzed are experiencing negative ROIC, but Y-mAbs Therapeutics shows the most potential for improvement in capital efficiency [5] - Investors should consider these metrics alongside other financial and strategic factors when evaluating investment opportunities in these companies [5]

Core Viewpoint - Verrica Pharmaceuticals Inc. has announced a PIPE financing to raise approximately $50 million, which will strengthen its balance sheet, eliminate debt, and extend its cash runway into mid-2027 [1][2][4]. Financing Details - The PIPE financing involves the sale of 6,499,826 shares of common stock and pre-funded warrants to purchase 5,305,164 shares, along with accompanying Series C Warrants to purchase 2,951,241 shares, at a combined price of $4.24125 per share [2][3]. - The financing is anchored by Caligan Partners LP and PBM Capital, with Caligan Partners entitled to designate a new member to the Board of Directors [5]. Use of Proceeds - $35 million of the net proceeds will be used to fully repay outstanding obligations under the Credit Agreement with OrbiMed, while the remainder will be allocated for working capital and general corporate purposes [4]. Company Strategy and Pipeline - The financing will allow the company to advance its commercial strategy for YCANTH, aimed at treating molluscum contagiosum, and to prepare for a global Phase 3 clinical program for VP-315 targeting basal cell carcinoma [2][9]. - The company has expressed enthusiasm from clinicians regarding VP-315's potential and aims to start patient enrollment in the U.S. before the end of 2025, with expectations of billion-dollar market opportunities [2][9].

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was reported at $14.3 million, a significant increase from a negative revenue of $1.8 million in Q3 2024 [21] - Net YCANTH revenue for Q3 2025 was $3.6 million, compared to negative $1.9 million in Q3 2024, reflecting improved demand and sales [21][22] - GAAP net loss for Q3 2025 was $0.2 million, or $0.03 per share, compared to a GAAP net loss of $22.9 million, or $4.88 per share in Q3 2024 [24] Business Line Data and Key Metrics Changes - Dispensed applicator units of YCANTH reached 14,093 in Q3 2025, representing approximately 5% sequential growth over the prior quarter [11] - Year-to-date dispensed applicator units increased to 37,642 for the nine months ended September 30, 2025, a 120% increase compared to the same period in 2024 [7] Market Data and Key Metrics Changes - The company received $18 million in cash milestone payments from Torii in 2025, with $10 million received in Q3 upon approval of YCANTH for molluscum in Japan [8] - Positive feedback from the European Medicines Agency indicated no further phase 3 studies are needed for YCANTH's approval for molluscum in the EU, with a filing anticipated in Q4 2026 [9][10] Company Strategy and Development Direction - The company aims to establish YCANTH as a leading therapy for multiple skin lesions, expanding beyond dermatology into pediatric and primary care [7][10] - The development of VP-315 for basal cell carcinoma is positioned as a potential standard of care, with plans for a phase 3 study design confirmed by the FDA [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of YCANTH and the potential for VP-315, highlighting a strong foundation for future growth [4][26] - The company is focused on optimizing its cost structure while advancing its clinical programs, with expectations for continued organic growth into 2026 [19][26] Other Important Information - The company has expanded its sales force to 45 representatives, with plans to increase to 50 in 2026 [15] - A new non-dispensing pharmacy, YCANTH Rx, is expected to launch in Q4 2025 to streamline prescription processes for healthcare providers [14][15] Q&A Session Summary Question: Can you further speak to the YCANTH demand that you're seeing in Q4? - Management noted that momentum from September has continued into Q4, with expectations for increased demand as the cold and flu season approaches [31] Question: What kind of counter-detailing are you seeing, and what has been the prescriber feedback on Zelsuvmi? - Management indicated that the largest competitor remains the "watch and wait" approach, but the launch of Zelsuvmi has positively influenced the market by promoting the need for treatment [32] Question: When do you expect sales force productivity to fully ramp? - Management expects new sales representatives to become productive in early 2026, as it typically takes a few months for new hires to ramp up [36] Question: Why is there a 12-month timeline for the EU filing despite no additional clinical trials required? - Management explained that the timeline includes necessary sequential steps, such as securing a pediatric waiver, which adds time to the process [38] Question: What feedback has been received regarding YCANTH Rx? - Feedback has been positive, with the new pharmacy model expected to simplify the prescription process for clinicians and improve patient access [45] Question: How should we think about seasonality impact in Q4 sales? - Management anticipates traditional slowdowns in November and December due to holidays but expects momentum to continue into early next year [50]

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was reported at $14.3 million, a significant increase from a negative revenue of $1.8 million in Q3 2024 [21] - Net YCANTH revenue for Q3 2025 was $3.6 million, compared to negative $1.9 million in Q3 2024, reflecting improved demand and sales [21][22] - GAAP net loss for Q3 2025 was $0.2 million, or $0.03 per share, compared to a GAAP net loss of $22.9 million, or $4.88 per share in Q3 2024 [24] Business Line Data and Key Metrics Changes - Dispensed applicator units of YCANTH reached 14,093 in Q3 2025, representing a 5% sequential growth from the previous quarter [11] - Year-to-date dispensed applicator units increased to 37,642 for the nine months ended September 30, 2025, a 120% increase compared to the same period in 2024 [7] Market Data and Key Metrics Changes - The company received $18 million in cash milestone payments from Torii in 2025, with $10 million received in Q3 upon approval of YCANTH for molluscum in Japan [8] - Positive feedback from the European Medicines Agency indicated no further phase III studies are needed for YCANTH's approval for molluscum in the EU, with a filing anticipated in Q4 2026 [9][10] Company Strategy and Development Direction - The company aims to establish YCANTH as a leading therapy for multiple skin lesions, expanding its use beyond dermatology into pediatric and primary care [7][10] - The development of VP-315 for basal cell carcinoma is positioned as a potential standard of care, with plans for a phase III study design confirmed by the FDA [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of YCANTH, citing a strong foundation for future growth and the potential for multiple approvals across major pharmaceutical markets [4][9] - The company is focused on maintaining a highly efficient operating model while exploring strategic partnerships to advance its pipeline [26][19] Other Important Information - The company plans to launch YCANTH Rx, a non-dispensing pharmacy, in Q4 2025 to streamline the prescription process for healthcare providers [15] - The sales force has expanded to 45 representatives, with plans to increase to 50 in 2026 [15] Q&A Session Summary Question: Can you further speak to the YCANTH demand that you're seeing in Q4? - Management noted that momentum from September has continued into Q4, with expectations of increased demand [31] Question: What kind of counter-detailing are you seeing, and what has been the prescriber feedback on Zilretc? - Management views the Zilretc launch positively, as it raises awareness about the need to treat molluscum, while YCANTH remains a best-in-class option [32] Question: When do you expect sales force productivity to fully ramp? - Management indicated that new sales representatives typically take a few months to ramp up, with expectations for productivity to increase in early 2026 [36] Question: Why is there a 12-month timeline for the EU filing despite no additional clinical trials required? - Management explained that sequential steps, including securing a pediatric waiver, are necessary for the EU filing, which adds time to the process [38] Question: What feedback have you received regarding YCANTH RX? - Feedback has been positive, with the new pharmacy model expected to simplify the prescription process for clinicians and patients [45] Question: How should we think about seasonality impact in Q4 sales? - Management expects traditional slowdowns in November and December but anticipates increased doctor visits in the cold and flu season could boost diagnoses of molluscum [50]

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $14.3 million, a significant increase from negative revenue of $1.8 million in Q3 2024 [18] - Net YCANTH revenue for Q3 2025 was $3.6 million, compared to negative $1.9 million in Q3 2024, reflecting improved demand and sales [18][19] - GAAP net loss for Q3 2025 was $0.2 million, or $0.03 per share, compared to a GAAP net loss of $22.9 million, or $4.88 per share in Q3 2024 [21] - Non-GAAP net income for Q3 2025 was $1.2 million, or $0.13 per share, compared to a net loss of $20.2 million, or $4.30 per share in Q3 2024 [21] Business Line Data and Key Metrics Changes - Dispensed applicator units of YCANTH reached 14,093 in Q3 2025, representing approximately 5% sequential growth over the prior quarter [10] - Year-to-date dispensed applicator units increased to 37,642 for the nine months ended September 30, 2025, a 120% increase compared to the same period in 2024 [6] Market Data and Key Metrics Changes - The approval of YCANTH in Japan for molluscum is expected to lead to multiple approvals across major pharmaceutical markets, including the EU [8] - Feedback from the European Medicines Agency indicated no further phase III studies are needed for YCANTH's approval for molluscum, with a filing anticipated as early as Q4 2026 [8] Company Strategy and Development Direction - The company aims to establish YCANTH as a leading therapy for multiple types of skin lesions, leveraging its existing clinician relationships [6] - The development of VP-315 for basal cell carcinoma is positioned as a potential standard of care, with plans for a phase III study design confirmed by the FDA [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of YCANTH and the potential for VP-315, highlighting a strong foundation for future growth [4][17] - The company is focused on optimizing its cost structure while expanding its commercial strategy, which has led to reduced spending and increased product adoption [5][20] Other Important Information - The company received $18 million in cash milestone payments from Torii in 2025, with $10 million received in Q3 upon YCANTH's approval in Japan [7] - A new non-dispensing pharmacy, YCANTH Rx, is expected to launch in Q4 2025 to streamline the prescription process for healthcare providers [12][13] Q&A Session Summary Question: Can you further speak to the YCANTH demand that you're seeing in Q4? - Management noted that momentum from September has continued into Q4, with expectations for increased demand as the cold and flu season approaches [24][25] Question: What kind of counter-detailing are you seeing, and what has been the prescriber feedback on Zilretc? - Management views the Zilretc launch positively, as it raises awareness about the need to treat molluscum, while YCANTH remains a best-in-class option [25] Question: When do you expect sales force productivity to fully ramp? - It typically takes a few months for new sales representatives to become fully productive, with expectations for many to be effective early in 2026 [26][27] Question: Why is there a 12-month timeline for the EU filing despite no additional clinical trials required? - The timeline includes necessary sequential steps, such as securing a pediatric waiver, which adds time to the process [27][28] Question: What feedback has been received regarding YCANTH Rx? - Feedback has been positive, with the new pharmacy model expected to simplify the prescription process for clinicians and patients [29][30] Question: How should we think about seasonality impact in Q4 sales? - Traditional seasonal slowdowns are expected in November and December, but increased doctor visits during the cold and flu season may boost diagnoses of molluscum [32][33]

Product Development and Approval - YCANTH (VP-102) was approved by the FDA in July 2023 for the treatment of molluscum contagiosum in patients aged two years and older [131]. - The company launched YCANTH (VP-102) commercially in August 2023, supported by a specialized sales team of 36 representatives [132]. - The company plans to expand its sales force to 50 representatives by 2026 and launch YCANTH Rx in Q4 2025 to streamline prescription processes [133]. - The Phase 3 program for YCANTH (VP-102) targeting common warts is expected to begin dosing the first patient in Q4 2025 [134]. - The company received positive feedback from the European Medicines Agency for filing a Marketing Authorization Application for YCANTH (VP-102) in the EU [135]. - VP-315 is being developed for basal cell carcinoma, with two Phase 3 studies planned, each involving approximately 100 subjects [136]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $14.3 million, a decrease of $1.8 million from $16.1 million in the same period of 2024 [160]. - Product revenue, net increased to $3.6 million for the three months ended September 30, 2025, compared to a negative $1.9 million in 2024, primarily due to increased deliveries of YCANTH [161]. - License and collaboration revenue rose significantly to $10.7 million for the three months ended September 30, 2025, from $0.1 million in 2024, driven by a $10.0 million milestone payment from Torii [162]. - For the nine months ended September 30, 2025, total revenue was $30.5 million, an increase of $23.3 million from $7.2 million in 2024 [172]. - Product revenue, net for the nine months ended September 30, 2025, was $11.6 million, up from $6.3 million in 2024, attributed to increased deliveries of YCANTH [173]. - License and collaboration revenue for the nine months ended September 30, 2025, reached $18.9 million, compared to $1.0 million in 2024, mainly from milestone payments from Torii [174]. Expenses and Losses - Selling, general and administrative expenses decreased to $9.4 million for the three months ended September 30, 2025, down from $16.1 million in 2024, reflecting lower commercial activity costs [165]. - Research and development expenses were $2.2 million for the three months ended September 30, 2025, a slight decrease from $2.4 million in 2024 [166]. - Selling, general and administrative expenses for the nine months ended September 30, 2025, were $27.1 million, down from $48.9 million in 2024, due to reduced commercial activities [177]. - Research and development expenses for the nine months ended September 30, 2025, totaled $6.3 million, a decrease from $10.7 million in 2024, primarily due to lower clinical trial costs [179]. - Interest expense decreased to $6.4 million for the nine months ended September 30, 2025, down from $7.1 million in the same period of 2024, due to a lower outstanding principal balance under the Credit Agreement [182]. - The company has incurred significant operating losses and expects to continue doing so for the foreseeable future, raising substantial doubt about its ability to continue as a going concern [195][197]. Cash and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $21.1 million, with an accumulated deficit of $316.8 million [141]. - The company is obligated to maintain a liquidity of at least $10.0 million under its Credit Agreement [139]. - The company entered into a Credit Agreement on July 26, 2023, borrowing $50.0 million, with net proceeds of approximately $44.1 million after fees [186]. - The company is obligated to maintain a liquidity of at least $10.0 million under the Credit Agreement, with a waiver for certain financial statement qualifications until the end of 2025 [187]. - Net cash used in operating activities was $13.0 million for the nine months ended September 30, 2025, compared to $44.9 million in the same period of 2024, indicating a significant reduction in cash outflow [189][190]. - Net cash used in financing activities was $12.2 million for the nine months ended September 30, 2025, primarily due to debt repayment related to the Credit Agreement [193]. - The company may receive up to $25.0 million from the exercise of Series A Warrants, which could provide additional liquidity in 2025 [195].

Financial Performance - Verrica reported $14.3 million in total revenue for Q3 2025, with $3.6 million from YCANTH® and $10.7 million from license and collaboration revenue[1]. - Total revenue for the nine months ended September 30, 2025, reached $30.485 million, up from $7.222 million in the same period of 2024, indicating a growth of approximately 322%[23]. - Product revenue for the three months ended September 30, 2025, was $3.607 million, compared to a loss of $1.865 million in the same period of 2024, representing a significant increase[21]. - For Q3 2025, net loss was $0.3 million, or $0.03 per share, compared to a net loss of $22.9 million, or $4.88 per share, for the same period in 2024[12]. - The net loss for the three months ended September 30, 2025, was $274 thousand, a substantial improvement from a net loss of $22.860 million in the same period of 2024[21]. - Non-GAAP adjusted net income for the three months ended September 30, 2025, was $1.194 million, compared to a non-GAAP adjusted net loss of $20.180 million in the same period of 2024[27]. Revenue Sources - License and collaboration revenue for the nine months ended September 30, 2025, was $18.9 million, compared to $1.0 million for the same period in 2024[13]. - The company received a $10 million cash milestone payment for the approval of YCANTH for molluscum in Japan[1]. Expenses - Selling, general and administrative expenses decreased to $9.4 million in Q3 2025 from $16.1 million in Q3 2024, a reduction of $5.6 million[12]. - Research and development expenses were $2.2 million for Q3 2025, compared to $2.4 million for the same period in 2024[12]. - Total operating expenses for the nine months ended September 30, 2025, were $35.478 million, a decrease from $61.731 million in the same period of 2024, reflecting a reduction of approximately 43%[23]. Product Development - YCANTH® (VP-102) is the first FDA-approved product for treating molluscum contagiosum, affecting approximately 6 million people in the U.S., primarily children[15]. - The company plans to launch YCANTH Rx, a new non-dispensing pharmacy option, in Q4 2025[10]. - The company plans to launch YCANTH Rx in the fourth quarter of 2025, with expectations for future commercial growth[19]. - The FDA provided positive feedback on the study design for a Phase 3 program for VP-315 in basal cell carcinoma, with a primary endpoint of complete clearance assessed at week 14[10]. - VP-315, a potential first-in-class oncolytic chemotherapeutic peptide immunotherapy, is being developed for non-melanoma skin cancers, with a focus on basal cell and squamous cell carcinomas[16]. Cash Position - As of September 30, 2025, Verrica had $21.1 million in cash and cash equivalents[12]. - The company’s cash and cash equivalents decreased to $21.097 million as of September 30, 2025, down from $46.329 million at the end of 2024[25]. Stockholders' Equity - The company reported a total stockholders' deficit of $17.040 million as of September 30, 2025, compared to a deficit of $9.860 million at the end of 2024[25]. Product Dispensation - The company dispensed 37,642 applicator units of YCANTH for the nine months ending September 30, 2025, representing a 120% increase compared to 17,119 units in the prior year[3].

Core Insights - Verrica Pharmaceuticals Inc. reported significant progress in its commercial and clinical activities, particularly with its product YCANTH for molluscum contagiosum, and highlighted a strong foundation for future growth [2][4]. Financial Performance - The company reported $14.3 million in total revenue for Q3 2025, which includes $3.6 million from YCANTH and $10.7 million from license and collaboration revenue [4][21]. - For the nine months ending September 30, 2025, product revenue was $11.6 million, up from $6.3 million in the same period in 2024 [11][15]. - The net loss for Q3 2025 was $0.3 million, or $0.03 per share, compared to a net loss of $22.9 million, or $4.88 per share, for Q3 2024 [12][21]. Product and Pipeline Developments - YCANTH dispensed 37,642 applicator units in the first nine months of 2025, a 120% increase from 17,119 units in the prior year [2][11]. - The company initiated a global Phase 3 clinical program for YCANTH in common warts, with first patient enrollment expected in the U.S. by the end of 2025 [9][12]. - Positive feedback was received from the FDA regarding the study design for a Phase 3 program for VP-315, an oncology asset targeting basal cell carcinoma [4][12]. Regulatory Milestones - The approval of YCANTH for molluscum in Japan triggered a $10 million milestone payment to Verrica [12][15]. - The European Medicines Agency provided a pathway for YCANTH's registration in Europe without the need for additional Phase 3 studies [4][12]. Strategic Partnerships - Verrica's collaboration with Torii Pharmaceutical includes a 50/50 cost-sharing agreement for the global Phase 3 program, with Torii funding the first $40 million of trial costs [12][15]. - The company is exploring potential partnerships and non-dilutive financing discussions to support further development and commercialization of its late-stage programs [2][12].

Core Insights - Verrica Pharmaceuticals has presented new data from its Phase 2 study of VP-315, an oncolytic peptide immunotherapy, showing its potential to reprogram the tumor microenvironment and enhance immune response in basal cell carcinoma patients [1][2][3] Study Overview - VP-315 is administered intratumorally and aims to induce immunogenic tumor cell death while promoting anti-tumor immune responses [3] - The Phase 2 study involved 82 subjects with 92 tumors, receiving daily injections of 8 mg VP-315 for 2-3 consecutive days [3] Clinical Outcomes - VP-315 demonstrated a 51% complete histologic clearance rate and an overall 97% objective response rate [5] - The treatment was well-tolerated, with no serious adverse events reported [5] - Patients experienced an 86% overall reduction in tumor size, with a 71% reduction in those with residual carcinomas [5] Immune Microenvironment Analysis - The treatment resulted in significant increases in CD3+, CD3+/CD4+, and CD3+/CD8+ T cell densities, indicating enhanced immune activation [11] - There was also an increase in B-cell infiltration, suggesting activation of humoral immunity [11] - The findings indicate a shift from an immunosuppressive to an anti-tumor state in the tumor microenvironment [6][11] Market Potential - The company views VP-315 as a potential first-in-class, non-surgical immunotherapy for basal cell carcinoma, addressing a significant unmet need in dermatologic oncology [2][8] - The annual incidence of basal cell carcinoma in the U.S. is approximately 3.6 million, highlighting the market opportunity for new treatment options [8]