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]

Over the last four quarters, the company has surpassed consensus EPS estimates three times. Verrica Pharmaceuticals Inc. (VRCA) came out with a quarterly loss of $0.10 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to loss of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this company would post a loss of $0.25 per share when it actually produ ...

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]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total revenues of $3,400,000, primarily from WICANT, with gross product margins around 88% [16][17] - The GAAP net loss was $9,700,000 or $0.10 per share, a significant improvement from a net loss of $20,300,000 or $0.44 per share in Q1 2024 [17] - Non-GAAP net loss for Q1 2025 was $7,800,000 or $0.08 per share, compared to $17,800,000 or $0.38 per share in the same period last year [17][18] 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] - Collaboration revenues totaled $17,000 in Q1 2025, related to the supply of applicators to Torii Pharmaceutical [16] Market Data and Key Metrics Changes - The company is focusing on territories with high prevalence of molluscum 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 [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 advancing 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] Q&A Session Summary Question: Discussion on targeting pediatricians and summer demand - Management noted an increasing number of pediatricians prescribing WICANT, with marketing efforts aimed at building awareness for the treatment [22][25] Question: Conversion time between accounts receivable and revenue - The company offers sixty-day payment terms to distributors, expecting stabilization in cash conversion as inventory levels normalize [31][32] Question: Overall TAM for molluscum and coverage split - Management indicated a significant percentage of pediatric patients are covered under Medicaid, while dermatologists have a higher percentage of commercial pay [36] Question: Trends in reordering and applicators per patient - The company is seeing solid growth in customer retention and reordering, indicating positive clinician experiences with the product [42][43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) (Exact Name of Registrant as Specified in its Charter) Delaware 46-3137900 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 44 West Gay Street, Suite 400 West Chester, PA 19380 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (484) 453-3300 N/A (Former name, former address and former fiscal year, if changed since ...

Exhibit 99.1 Verrica Pharmaceuticals Reports Quarterly 2025 Financial Results – Company reports $3.4 million in YCANTH revenue, reflective of increasing demand, following the dispensing of more than 10,000 applicator units in the quarter, the most in company history and a 16.7% growth over Q4'24 – The Company will host a conference call today, May 13 at 4:30 pm, to discuss its first quarter 2025 financial results and provide a business update. To participate in the conference call, please utilize the follow ...

Core Insights - Verrica Pharmaceuticals reported $3.4 million in revenue from YCANTH, driven by a record dispensing of over 10,000 applicator units in Q1 2025, marking a 16.7% increase from Q4 2024 [1][3][8] - The company is advancing its late-stage pipeline, including the completion of an end-of-Phase 2 meeting with the FDA for VP-315, a candidate for basal cell carcinoma, and progressing towards a global Phase 3 program for common warts (VP-102/YCANTH) in collaboration with Torii Pharmaceutical [1][3][9] Financial Performance - For Q1 2025, Verrica recognized product revenue of $3.4 million, with costs of product revenue at $0.4 million, leading to a net loss of $9.7 million or $0.10 per share, compared to a net loss of $20.3 million or $0.44 per share in Q1 2024 [12][20] - Selling, general, and administrative expenses decreased to $8.8 million from $16.3 million year-over-year, primarily due to reduced commercial activity costs [12][20] - Research and development expenses were $2.3 million in Q1 2025, down from $4.9 million in the same period last year, reflecting a decrease in clinical trial expenses for VP-315 [12][20] Business Developments - The company appointed Noah L. Rosenberg, M.D., as Chief Medical Officer, bringing extensive experience in clinical development and product launches [6][7] - Dr. Gavin Corcoran was appointed to the Board of Directors, contributing significant R&D leadership experience [7] Product Insights - YCANTH (VP-102) is the first FDA-approved treatment for molluscum contagiosum, with a strong demand reflected in the dispensing of 10,102 applicator units in Q1 2025 [8][14] - The company plans to provide additional genomic and immune response data for VP-315 in mid-2025, following a positive end-of-Phase 2 meeting with the FDA [9]