WEST CHESTER, Pa., Feb. 23, 2026 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (“Verrica”) (Nasdaq: VRCA), a dermatology therapeutics company developing and selling medications for skin diseases requiring medical interventions, today announced that Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica Pharmaceuticals, will present at the TD Cowen 46th Annual Healthcare Conference in Boston. TD Cowen 46th Annual Health Care Conference, March 2-4, 2026Event details:Date: Monday, March 2 ...

Core Viewpoint - Verrica Pharmaceuticals Inc. has appointed Chris Chapman as the new Chief Commercial Officer, aiming to enhance the commercialization of its products, particularly YCANTH for molluscum contagiosum and VP-315 for basal cell carcinoma [2][5]. Company Overview - Verrica Pharmaceuticals is focused on developing dermatology therapeutics for skin diseases that require medical interventions [5]. - The company's flagship product, YCANTH (VP-102), is the first FDA-approved treatment for molluscum contagiosum, affecting approximately 6 million people in the U.S., primarily children [4][5]. - YCANTH is also being developed for the treatment of common warts, addressing a significant unmet need in medical dermatology [5]. Leadership Appointment - Chris Chapman brings over 25 years of commercial experience in the pharmaceutical industry, having previously served as Chief Commercial Officer at Dermavant Sciences [2][3]. - His experience includes launching VTAMA for adult plaque psoriasis and leading the U.S. Prescription Business for Galderma [3]. Product Details - YCANTH is a proprietary drug-device combination that allows for precise topical dosing and is administered by healthcare professionals [4]. - The product has shown positive results in two Phase 3 clinical trials involving approximately 500 patients, demonstrating safety and efficacy [4]. - Approximately 250 million lives are eligible for YCANTH coverage by insurance, with commercially insured patients paying $25 per treatment visit [4]. Pipeline Development - Verrica has entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315, targeting non-melanoma skin cancers, including basal cell carcinoma and squamous cell carcinoma [5].

Core Viewpoint - Verrica Pharmaceuticals has launched YCANTH® in Japan through its partner Torii Pharmaceutical Co. Ltd. for the treatment of molluscum contagiosum, addressing a significant unmet medical need in the region [1][2]. Company Overview - Verrica Pharmaceuticals is a dermatology therapeutics company focused on developing medications for skin diseases requiring medical interventions, with YCANTH being its flagship product [5]. - YCANTH is the first and only healthcare professional-administered treatment approved by the FDA for molluscum contagiosum, affecting approximately 6 million people in the U.S., primarily children [4][5]. Product Launch and Approval - The launch of YCANTH in Japan follows its approval by the Japanese Ministry of Health, Labour and Welfare in September 2025, based on positive results from a confirmatory Phase 3 trial [2][3]. - The Phase 3 trial demonstrated a statistically significant improvement in the proportion of subjects achieving complete clearance of molluscum lesions compared to placebo [2]. Collaboration and Manufacturing - Verrica has an amended collaboration and license agreement with Torii, which includes plans for a manufacturing transfer of YCANTH applicators to be sold in Japan, expected to take several years [3]. - Verrica will receive a transfer price for applicators manufactured by its partners and will begin receiving royalties related to net sales in Japan after the transfer of at least one manufacturing component [3]. Market Potential - YCANTH is positioned to gain broad adoption in Japan due to the limited treatment options available for molluscum contagiosum, with the company expressing confidence in its safety and efficacy based on Phase 3 study results [2]. - Approximately 250 million lives are eligible to receive YCANTH covered by insurance, with commercially insured patients paying only $25 per treatment visit for up to two applicators [4].

Core Viewpoint - Verrica Pharmaceuticals Inc. (VRCA) shows significant upside potential with a mean price target of $15.67, indicating a 97.1% increase from the current trading price of $7.95 [1]. Price Targets - The average price target consists of three estimates ranging from a low of $10.00 to a high of $20.00, with a standard deviation of $5.13, suggesting a variability in analyst predictions [2]. - The lowest estimate indicates a 25.8% increase, while the highest suggests a 151.6% upside [2]. Analyst Sentiment - There is strong agreement among analysts regarding VRCA's ability to exceed previous earnings estimates, which supports the potential for stock price appreciation [4][11]. - The Zacks Consensus Estimate for the current year has increased by 12.9% due to positive revisions in earnings estimates [12]. Zacks Rank - VRCA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13]. Caution on Price Targets - While price targets are a common metric, they should be approached with skepticism as they may not accurately predict stock price movements [3][10]. - Analysts often set optimistic price targets influenced by business relationships, which can lead to inflated expectations [8].

Core Insights - Verrica Pharmaceuticals has initiated a global Phase 3 program for YCANTH (VP-102) aimed at treating common warts, a condition affecting approximately 22 million patients in the U.S. with no FDA-approved therapies available, representing a multibillion-dollar market opportunity [1][4] Group 1: Clinical Development - The first patient was dosed in December 2025, marking a significant milestone in the clinical development of YCANTH [1][2] - The Phase 3 program is based on positive results from the Phase 2 COVE-1 trial, where 51% of subjects treated with VP-102 achieved complete clearance of all treatable warts by Day 84 [3] - The COVE-1 trial demonstrated safety and efficacy, with adverse events primarily being local cutaneous reactions and no serious adverse events reported [3] Group 2: Commercial Opportunity - Common warts represent one of the largest unmet needs in dermatology, with a significant commercial opportunity anticipated if YCANTH is successfully developed and approved [4] - Approximately 50% of patients seeking treatment for common warts are children, indicating a substantial market segment [4] - Verrica retains full commercial rights for all potential YCANTH indications outside of Japan, enhancing its licensing and commercial prospects [2][4] Group 3: Financial Aspects - Verrica recently completed a $50 million financing and repaid its debt facility with OrbiMed, positioning the company for future growth [2] - Torii will share the costs of the global Phase 3 program with Verrica on a 50/50 basis, with Torii funding the first $40 million of trial costs [3]

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]