Group 1 - Verrica Pharmaceuticals Inc. reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.7 per share, and showing a significant improvement from a loss of $3.1 per share a year ago, resulting in an earnings surprise of +102.86% [1] - The company achieved revenues of $12.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 154.04%, compared to revenues of $5.18 million in the same quarter last year [2] - Over the last four quarters, Verrica Pharmaceuticals has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - The stock has underperformed the market, losing about 4.3% since the beginning of the year, while the S&P 500 has gained 8.4% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the upcoming quarter is -$0.60 on $7 million in revenues, and for the current fiscal year, it is -$3.00 on $21.7 million in revenues [7] Group 3 - The Medical - Drugs industry, to which Verrica Pharmaceuticals belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, IGC Pharma, Inc., is expected to report a quarterly loss of $0.03 per share, with revenues projected to be $0.33 million, reflecting a 22.2% increase from the year-ago quarter [9]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $12.7 million, a significant increase from $5.2 million in Q2 2024, primarily driven by an $8 million milestone payment from Torii and net YCANT revenue of $4.5 million [22][24] - GAAP net income for Q2 2025 was $200,000 or $0.02 per share, compared to a net loss of $17.2 million or $3.7 per share in Q2 2024 [24] - Non-GAAP net income for Q2 2025 was $2.4 million or $0.25 per share, compared to a net loss of $14.4 million or $3.11 per share in Q2 2024 [24][26] Business Line Data and Key Metrics Changes - The YCANT business reported a record 13,434 dispensed applicator units in Q2 2025, representing a sequential growth of 32.8% over the prior quarter [6][22] - Net YCANT revenue in Q2 2025 was $4.5 million, reflecting shipments to distribution partners, offset by standard gross to net adjustments [22][23] Market Data and Key Metrics Changes - The company is experiencing strong demand for YCANT, particularly in territories with high prevalence of molluscum contagiosum and robust medical and pharmacy benefit coverage [8][12] - Over 1.6 million patients in Japan contract molluscum annually, representing a significant market opportunity for YCANT [19] Company Strategy and Development Direction - The company is focused on expanding its commercial strategy for YCANT, targeting high-value territories and enhancing relationships with healthcare professionals [10][12] - An amended agreement with Torii Pharmaceutical is expected to provide up to $18 million in non-dilutive capital in 2025, strengthening the company's balance sheet [14][15] - The company plans to initiate a global Phase III program for YCANT for the treatment of common warts, with the first patient expected to be dosed in the U.S. in 2025 [18][19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in generating strong and sustainable growth driven by YCANT's unique product attributes and the relationships built with the medical community [28] - The company anticipates continued growth in the second half of 2025, supported by the ongoing expansion of its sales force and improved access to YCANT [28][44] Other Important Information - The company executed a reverse stock split at a ratio of one for ten shares, impacting the share price [24] - As of June 30, 2025, the company had cash and cash equivalents of $15.4 million, which may not be sufficient to fund operations for the next year without additional capital [26] Q&A Session Summary Question: Expansion of the sales force and reasons for increased YCANT adoption - Management expects to add 5 to 10 more sales representatives in the near term, attributing success to the tenacity of sales reps and strong support from the medical community [32][34] Question: Growth expectations for Q3 and patient access updates - Management noted that molluscum is often diagnosed year-round, and they are seeing increased adoption among pediatricians and dermatologists [43][44] Question: Increase in receivables and gross to net (GTN) changes - The increase in receivables is partly due to collection terms of sixty days, and management has not changed the WACC since launch [47][51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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, 2025 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: 001-38529 Verrica Pharmaceuticals Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 46-3137900 (State or ...

Exhibit 99.1 Verrica Pharmaceuticals Reports Second Quarter 2025 Financial Results – 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 developm ...

Core Insights - Verrica Pharmaceuticals reported a sequential quarterly growth of 32.8% in Q2 2025, with 13,434 YCANTH dispensed applicator units, indicating strong demand for the product [1][2] - The company received an $8 million milestone payment from Torii Pharmaceutical for the initiation of a global Phase 3 program for common warts [1][2] Company Performance - The growth in dispensed applicator units reflects the effectiveness of Verrica's focused commercial strategy, leading to increased prescriptions from dermatology and pediatric practices [2] - The company attributes its growth to a robust patient access strategy, strong reimbursement, and an extensive distribution network [2] Product Information - YCANTH (VP-102) is the first FDA-approved treatment for molluscum contagiosum, a contagious skin disease affecting approximately six million people in the U.S., primarily children [3][4] - The product is delivered via a single-use applicator, allowing for precise dosing and targeted administration [3] Financial Developments - The company has amended its Credit Agreement with OrbiMed and has a collaboration agreement with Torii Pharmaceutical, which includes potential additional milestone payments [2] - Approximately 225 million lives are eligible for YCANTH coverage, with commercially insured patients paying only $25 per treatment visit [3] Future Outlook - Verrica is looking forward to updates on its development strategy for VP-315, aimed at treating basal cell carcinoma [2][4]

Core Points - Verrica Pharmaceuticals is set to receive an $8 million milestone payment for the initiation of a global Phase 3 clinical trial for its product YCANTH, scheduled for July 2025, ahead of the previous timeline [1][3] - Common warts affect approximately 22 million patients in the United States, with no FDA-approved prescription therapies available, representing a significant multi-billion dollar market opportunity [1][2] - The company anticipates dosing the first patient in the Phase 3 trial in the United States in the fourth quarter of 2025 [1][9] - Verrica will retain global rights to YCANTH for all indications outside of Japan [1][2] Financial Aspects - The amended agreement with Torii Pharmaceutical includes a potential total of $18 million in new, non-dilutive capital for 2025, comprising the accelerated $8 million milestone payment and an additional $10 million upon approval for molluscum contagiosum in Japan [2][4] - Torii will cover the first $40 million of out-of-pocket costs for the global study, which constitutes approximately 90% of the current clinical budget [4][9] Product Information - YCANTH is a proprietary drug-device combination product containing a GMP-controlled formulation of cantharidin, approved by the FDA for treating molluscum contagiosum in patients aged two years and older [5][6] - The product is the first and only FDA-approved treatment for molluscum contagiosum, which affects around 6 million people in the U.S., primarily children [5][6] Strategic Partnerships - The collaboration with Torii has been described as extensive, optimizing the clinical program across Japan and the United States, creating strategic and financial synergies for both companies [2][9] - Verrica has also secured support from OrbiMed, which has assisted in restructuring the company and implementing a new commercial strategy for YCANTH [2]

Summary of Verrica Pharmaceuticals Inc (VRCA) Conference Call Company Overview - **Company**: Verrica Pharmaceuticals Inc (VRCA) - **Focus**: Dermatological treatments, specifically for molluscum contagiosum with the product YCAMF launched in July of the previous year [3][4] - **Market Need**: Molluscum contagiosum is a prevalent disease affecting approximately six million individuals, primarily children, with no prior commercially available treatments [4] Core Points and Arguments - **Product Efficacy**: YCAMF has shown a 100% clearance rate in clinical studies, significantly reducing lesions by 80% compared to placebo [11][12] - **Reimbursement Challenges**: Initially faced difficulties with reimbursement due to the drug-device combination nature, but a permanent J code was issued, improving reimbursement prospects [13][14] - **Distribution Strategy**: Shifted from a buy-and-bill model to a specialty pharmacy approach, allowing for easier access and treatment for patients [20][21] - **Insurance Coverage**: Over 20 million lives are now covered under either medical or pharmacy benefits, with ongoing efforts to expand coverage [22][23] - **Sales Performance**: Achieved 12% quarter-over-quarter growth and 16% growth over the previous quarter, with a milestone of 10,000 applicators sold [30][31] Pipeline and Future Opportunities - **Expansion Plans**: Plans to initiate a phase three trial for common warts in collaboration with Tori Pharmaceutical, which could expand the market significantly [6][38] - **Basal Cell Carcinoma Program**: Completed phase two trials showing promising results, with a 50% complete histological clearance rate after two to three treatments [53] Financial Position - **Cash Position**: Ended the last quarter with approximately $29.6 million, with ongoing efforts to manage expenses and achieve operational breakeven [49][50] - **Debt Management**: Currently managing a debt facility of approximately $45 million, with a structured repayment plan [51] Key Risks and Considerations - **Market Dynamics**: The company is navigating a complex healthcare environment with varying state regulations and insurance plans affecting treatment access [36][37] - **Sales Force Efficiency**: Despite reducing the sales force by two-thirds, productivity has increased, with plans to hire more reps as demand grows [42][43] Additional Insights - **Investor Confidence**: The management emphasizes execution and transparency, aiming to build investor confidence through consistent performance and milestone achievements [52][56] - **Unique Market Position**: The company holds a unique position in a market with significant unmet needs and limited competition, providing a strong foundation for growth [54][55]

Company Overview - Verrica Pharmaceuticals Inc. is a dermatology therapeutics company focused on developing medications for skin diseases that require medical interventions [3] - The company's product YCANTH® (VP-102) is the first and only FDA-approved treatment for molluscum contagiosum, a viral skin infection affecting approximately 6 million people in the U.S., primarily children [3] - YCANTH® (VP-102) is also being developed to address common warts, which represent a significant unmet need in medical dermatology [3] - Verrica has entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 for non-melanoma skin cancers, including basal cell carcinoma and squamous cell carcinoma [3] Upcoming Events - Jayson Rieger, PhD, MBA, President and CEO of Verrica, will present at the Jefferies Global Healthcare Conference in New York City [1] - The event is scheduled for June 4, 2025, at 4:20 pm ET [1] - Participants can access a live webcast of the event through the provided link or via the Investors/Presentations & Events section of the Verrica website [2]

Group 1 - Verrica Pharmaceuticals held its Q1 2025 Corporate Update Conference Call on May 13, 2025, with key participants including the CEO, CFO, and COO [1][3] - The call included discussions on the commercialization of YCANTH for treating molluscum contagiosum in the U.S., revenue growth, regulatory developments, and the company's product candidates [4][5] - Management emphasized the importance of forward-looking statements regarding the company's business strategy and operations, highlighting potential risks and uncertainties [4][5]

Financial Data and Key Metrics Changes - In Q1 2025, total revenues were reported at $3.4 million, primarily from WICANT sales, reflecting a significant increase in demand [6][16] - The GAAP net loss for Q1 2025 was $9.7 million, or $0.10 per share, a reduction from a net loss of $20.3 million, or $0.44 per share in Q1 2024 [17] - Non-GAAP net loss for Q1 2025 was $7.8 million, or $0.08 per share, compared to a loss of $17.8 million, or $0.38 per share in the same period last year [17] Business Line Data and Key Metrics Changes - WICANT's dispensed applicator units increased by 16.7% over Q4 2024, surpassing 10,000 units for the first time since its launch [6][7] - Gross product margins for Q1 2025 were approximately 88%, with product revenue costs amounting to $400,000, including $47,000 in obsolete inventory costs [16][17] - Research and development expenses decreased to $2.3 million in Q1 2025, down from $4.9 million in Q1 2024, primarily due to reduced clinical trial expenses [17] Market Data and Key Metrics Changes - The company is focusing on territories with high prevalence of molluscum contagiosum and has established strong insurance coverage, leading to improved sales force productivity [8][9] - The company is expanding its distribution network by adding local independent pharmacies alongside national specialty pharmacy partners [9] Company Strategy and Development Direction - The company is executing a focused commercialization strategy aimed at driving demand for WICANT, which is expected to become the standard of care for molluscum contagiosum [19] - The clinical pipeline includes advancing the phase three program for WICANT in treating common warts and the development of BP315 for basal cell carcinoma, which has shown promising results [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing positive feedback from healthcare professionals and improved patient access [19] - The company is exploring opportunities to strengthen its balance sheet while continuing to advance its commercial and clinical development efforts [18] Other Important Information - The company appointed Dr. Noah Rosenberg as Chief Medical Officer and Dr. Gavin Corcoran to the Board of Directors, enhancing its leadership team [13][14] - As of March 31, 2025, the company had cash and cash equivalents of $29.6 million, which may not be sufficient for one year of operations unless certain milestone payments are received [17][18] Q&A Session Summary Question: Could you discuss your success in targeting pediatricians and the current split of pediatric dermatologists versus pediatricians writing WICANT? - Management noted an increasing number of pediatricians prescribing WICANT, with strong advocacy from dermatologists as well [21][23] Question: What preparations are ongoing to capture potential summer patient demand for WICANT? - Management indicated marketing efforts are in place to build awareness of molluscum contagiosum and the availability of WICANT, anticipating a potential seasonal uptick in demand [24][25] Question: How is the conversion time between accounts receivable and top-line revenue for WICANT trending? - Management stated that with normalized inventory levels and smaller, more frequent orders, they expect stabilization in cash conversion from receivables [30][31] Question: What is the current split between commercial and Medicaid coverage for molluscum? - Management indicated a higher percentage of pediatric patients are covered under Medicaid, while dermatology patients tend to have more commercial coverage [36][37] Question: What trends are being observed in reordering and the number of applicators per patient? - Management reported solid growth and retention in customer reorders, indicating positive clinician experiences with the product [42][43]