Shares of Verrica Pharmaceuticals Inc. (VRCA) have been struggling lately and have lost 15.3% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road. Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors. Like every technical indicator ...

WEST CHESTER, Pa., March 31, 2025 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. ("Verrica" or "the Company") (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced that Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica Pharmaceuticals, will participate in a fireside chat at the 24 Annual Needham Virtual Healthcare Conference. Kevin Gardner LifeSci Advisors kgardner@lifesciadvisors.com Verrica is ...

WEST CHESTER, Pa., March 26, 2025 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (“Verrica” or the “Company”) (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced the appointment of Noah L. Rosenberg, M.D., as Chief Medical Officer. “We are excited to welcome Noah Rosenberg to the Verrica team as our new Chief Medical Officer,” said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. “As a highly ...

Financial Data and Key Metrics Changes - In Q4 2024, total revenues were $0.3 million, primarily from YCANTH revenue, with full-year revenues of $7.6 million compared to $5.1 million in the previous year [27][28] - Gross profit margins for the full year 2024 were reported at 72% [30] - GAAP net loss for Q4 2024 was $16.2 million or $0.24 per share, compared to a loss of $24.6 million or $0.53 per share in Q4 2023 [33] - For the full year 2024, GAAP net loss was $76.8 million or $1.48 per share, compared to a loss of $67 million or $1.48 per share in the prior year [33] Business Line Data and Key Metrics Changes - YCANTH dispense applicator units increased to 8,654 in Q4 2024 from 7,706 in Q3 2024, representing a sequential growth of 12.3% and a 44.8% increase compared to Q2 2024 [15][28] - Research and development expenses decreased to $1.2 million in Q4 2024 from $4.2 million in Q4 2023, primarily due to reduced clinical trial costs [31] - Selling, general, and administrative expenses decreased to $10 million in Q4 2024 from $16.8 million in Q4 2023, reflecting cost-saving measures [32] Market Data and Key Metrics Changes - The company is focusing on territories with high prevalence of molluscum contagiosum to drive demand for YCANTH [13] - The collaboration revenue for the full year 2024 was $1 million, up from $0.5 million in 2023, related to supplies and development activities with Torri [30] Company Strategy and Development Direction - The company is executing a turnaround plan with a focused commercialization strategy for YCANTH while reducing costs [7][8] - There is a strong emphasis on advancing late-stage pipeline programs, including YCANTH for common warts and VP-315 for basal cell carcinoma [11][12] - The company aims to achieve cash-positive monthly operating results by the end of 2025 [48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the adoption of YCANTH and the overall growth trajectory, noting early positive momentum in 2025 [52][53] - The company is cautiously optimistic about achieving growth in the business and is focused on building long-term relationships with healthcare providers [40][41] Other Important Information - The company raised approximately $42 million in an equity follow-on offering in November 2024 [12][26] - As of December 31, 2024, the company had cash and cash equivalents of $46.3 million, which may not be sufficient to fund operations for the next year without additional milestone payments or warrant exercises [34] Q&A Session Summary Question: What is the patient demand for YCANTH and feedback from clinicians? - Management reported good adoption and interest in YCANTH across both pediatricians and dermatologists, with continued use of the product [49][50] Question: What are the expectations for sales in 2025? - Management indicated that they would leave guidance where analysts have set it for now, remaining cautiously optimistic about growth [53][54] Question: What are the seasonal impacts on demand? - Management noted that warmer weather could support growth, and they are preparing for potential seasonal changes [61][62] Question: What are the barriers to generic entry for YCANTH? - The company has a robust IP portfolio and is addressing challenges from compounders, with good adoption of the product [65][66] Question: What is the impact of expanding usage into the pediatric setting? - Management noted growth in the pediatric market, with a mix of dermatologists and pediatricians treating patients with YCANTH [72][73] Question: What are the plans for moving VP-315 into Phase 3 trials? - Management indicated that the majority of expenses for the VP-315 program were incurred previously, and they will evaluate the program once they have the necessary data [75][76] Question: What is needed to achieve significant demand growth? - Management emphasized the importance of acquiring new customers and increasing utilization among existing customers, along with expanding into larger markets [81][82]

Verrica Pharmaceuticals, Inc. (NASDAQ:VRCA) Q4 2024 Earnings Conference Call March 10, 2025 4:30 PM ET Company Participants John Fraunces - Director, Corporate Communications, LifeSci Advisors, IR Jayson Rieger - President and CEO John Kirby - Interim CFO Conference Call Participants Stacy Ku - TD Cowen Gregory Renza - RBC Capital Markets Kemp Dolliver - Brookline Capital Markets Operator Good evening, ladies and gentlemen, and welcome to the Verrica Pharmaceuticals’ Fourth Quarter and Full Year 2024 Corpor ...

Core Viewpoint - Verrica Pharmaceuticals provided a corporate update during its Q4 and full year 2024 earnings conference call, highlighting key developments and future expectations regarding its product commercialization and overall business strategy [1][3]. Group 1: Company Overview - The conference call featured key executives including Jayson Rieger (President and CEO), John Kirby (Interim CFO), David Zawitz (COO), Chris Hayes (Chief Legal Officer), and Aaron Hullitt (Chief of Commercial) [3]. - The call was hosted by John Fraunces from LifeSci Advisors, indicating a structured approach to investor relations [2]. Group 2: Forward-Looking Statements - Management emphasized that forward-looking statements would be made during the call, covering topics such as the commercialization of the company's product, regulatory developments, and the financial outlook including cash runway and funding needs [4]. - These statements are based on current expectations and are subject to inherent risks and uncertainties, which could lead to actual results differing from those anticipated [5].

Product Development and Approval - YCANTH (VP-102) was approved by the FDA in July 2023 for the treatment of molluscum contagiosum, with a commercial launch in August 2023[19]. - The FDA granted New Chemical Entity (NCE) status to YCANTH's API in March 2024, providing a minimum of five years of regulatory exclusivity[22]. - The FDA accepted the IND for VP-315 in November 2021, with the first patient dosed in a Phase 2 trial for basal cell carcinoma (BCC) in April 2022[59]. - The Phase 2 trial for YCANTH (VP-102) showed a complete clearance of common warts in 51.4% of subjects by Day 84, with a mean decrease in the number of warts of 53.8%[56]. - The company expects to report genomic and immune response data from the Phase 2 trial of VP-315 in the first half of 2025, aiding in the advancement to Phase 3 trials[37]. - The Phase 3 clinical trial for YCANTH (VP-102) for common warts is anticipated to begin as early as mid-2025[36]. - The company is evaluating the design of a Phase 3 trial for YCANTH (VP-102) for common warts, with plans to commence in mid-2025[57]. - The design and execution of clinical trials are critical for regulatory approval, with potential setbacks in late-stage trials impacting business prospects[200]. - Clinical trials may fail to demonstrate safety and efficacy, resulting in increased costs or the abandonment of product candidates[203]. - The FDA may require additional studies or impose limitations on approved indications, affecting commercialization efforts[214]. Market Potential and Financial Outlook - Approximately 6 million people in the U.S. have molluscum, with an estimated annual diagnosis of 1 million, representing a total addressable market of over $1 billion[21]. - The company is developing YCANTH (VP-102) for common warts, estimating a total addressable U.S. market of over $1 billion with approximately 22 million people affected[24]. - VP-315 is being developed for basal cell carcinoma (BCC), with an estimated global BCC market of $6.7 billion in 2021, projected to grow to $11.5 billion by 2028[26]. - The company expects to incur significant expenses and operating losses until revenue from YCANTH (VP-102) is sufficient to fund operations[161]. - Future revenue will depend on market size, product pricing, coverage, and reimbursement capabilities[164]. - The market for YCANTH (VP-102) may not be as large as expected, impacting future revenue projections[156]. - The company faces substantial competition which may result in a smaller than expected commercial opportunity for its products[156]. - The company has incurred net losses of $76.6 million and $67.0 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $307.0 million as of December 31, 2024[159]. - The company may face substantial doubt regarding its ability to continue as a going concern if it cannot raise sufficient capital[169]. Collaborations and Partnerships - A collaboration agreement with Torii Pharmaceutical Co., Ltd. includes potential milestone payments of up to $50 million contingent on development and sales achievements[30]. - The company entered into a strategic partnership with Torii for the commercialization of YCANTH (VP-102) in Japan, expanding its market access[42]. - The company has received a total of $12 million from Torii, including $0.5 million for securing the exclusive option and $11.5 million upon exercising the option[78][79]. - An $8 million milestone payment was recognized as collaboration revenue for the year ended December 31, 2022, following the first patient dosing in Torii's Phase 3 trial of VP-102 in Japan[81]. - The company is entitled to receive an additional $50 million in aggregate payments contingent on achieving specified development, regulatory, and sales milestones from Torii[81]. Regulatory and Compliance Challenges - The FDA's approval process for drugs requires substantial time and financial resources, with the potential for delays or refusals based on compliance issues[92]. - The NDA submission process includes a substantial user fee and a review goal of ten months, although actual review may take up to twelve months[100]. - The FDA may require a risk evaluation and mitigation strategy (REMS) plan to ensure the drug's benefits outweigh its risks, which can affect market potential[102]. - The FDA prohibits approval of ANDA or 505(b)(2) applications until any applicable non-patent exclusivity for the branded reference drug has expired, which can be up to five years for New Chemical Entities (NCEs)[111]. - Drug manufacturers must comply with cGMP requirements and are subject to periodic unannounced inspections by the FDA[114]. - The company is subject to significant risks related to compliance with healthcare laws and regulations, which could lead to penalties and operational restructuring[132]. Intellectual Property and Competitive Position - YCANTH (VP-102) has two issued U.S. utility patents covering its cantharidin formulation, which will expire on May 28, 2035, and August 22, 2038, respectively[70]. - The company has nationalized seven international PCT patent applications related to YCANTH (VP-102), with expiration projected between 2034 and 2041[73]. - The company has in-licensed U.S. and international patents for VP-315, with projected expiration dates of April 12, 2044, and January 24, 2045, for its clinical protocol[74]. - The company relies on trade secrets and confidentiality agreements to protect its proprietary information and competitive position[76]. Operational and Financial Management - The company has 71 full-time employees as of December 31, 2024, with no employees represented by a labor union[146]. - The company has borrowed $50.0 million under a Credit Agreement with OrbiMed, secured by substantially all assets[171]. - The company is obligated to start making principal payments on the loan beginning January 1, 2025, due to net revenue not meeting specified amounts[173]. - The company has cash and cash equivalents of $46.3 million, with a requirement to maintain at least $10.0 million at all times[169]. - The company may need to raise additional capital through equity offerings or collaborations, which could dilute existing stockholders[175]. - The company has increased its returns reserve by $3.2 million for the year ended December 31, 2024, due to lower than forecasted sell-through and product expiration[181]. Risks and Uncertainties - The company has a limited operating history and limited history of commercializing products, making it difficult to assess future viability[156]. - The company may not be able to generate sufficient cash to service its indebtedness, raising concerns about its financial stability[156]. - The transition from a development focus to commercial activities may not be successful, posing risks to future operations[180]. - The company may experience significant delays in clinical trials due to various factors, including patient enrollment challenges and regulatory requirements[195]. - Interim results from clinical trials may change as more patient data become available, leading to significant fluctuations in stock prices[201]. - Regulatory approval processes are lengthy and unpredictable, with the potential for changes in policies that could delay approvals[210]. - Even with approval, the company must establish a viable pricing structure and secure reimbursement from payors to generate sufficient revenue[216].

Financial Performance - The company reported product revenue of $0.3 million for Q4 2024, a decrease from $1.9 million in Q4 2023, attributed to existing inventory meeting demand[10] - For the full year 2024, Verrica recognized product revenue of $6.6 million, an increase of $1.9 million from $4.7 million in 2023, despite a returns reserve of $3.2 million[12] - Total revenue for Q4 2024 was $344,000, a decrease of 82.7% compared to $1,988,000 in Q4 2023[22] - Product revenue for the year ended December 31, 2024, increased to $6,574,000, up 41% from $4,658,000 in 2023[24] Net Loss and Expenses - The net loss for Q4 2024 was $16.2 million, or $0.24 per share, compared to a net loss of $24.6 million, or $0.53 per share, in Q4 2023[12] - Research and development expenses for Q4 2024 were $1.2 million, down from $5.3 million in Q4 2023, primarily due to reduced clinical trial costs[12] - Selling, general and administrative expenses decreased to $10.0 million in Q4 2024 from $17.0 million in Q4 2023, reflecting a $7.0 million reduction[10] - Net loss for Q4 2024 was $16,202,000, a reduction of 34.2% from $24,614,000 in Q4 2023[22] - Total operating expenses for Q4 2024 were $11,754,000, down 53.3% from $25,124,000 in Q4 2023[22] - The company reported a net loss per share of $0.24 for Q4 2024, compared to $0.53 for Q4 2023[22] Cash Position and Liabilities - As of December 31, 2024, Verrica had cash and cash equivalents of $46.3 million, which may not be sufficient for one-year operations unless milestone payments are received[14] - Cash and cash equivalents decreased to $46,329,000 as of December 31, 2024, from $69,547,000 in 2023[27] - Total liabilities increased to $63,994,000 in 2024, compared to $61,834,000 in 2023[27] Future Outlook - The company expects to achieve cash positive monthly operating results by the end of 2025, focusing on establishing YCANTH as the standard of care for molluscum contagiosum[3] - The company aims to achieve cash positive monthly operating results by the end of 2025[18] Product Development - In Q4 2024, Verrica Pharmaceuticals achieved a 12.3% sequential growth in dispensed applicator units of YCANTH®, totaling 8,654 units compared to 7,706 units in Q3 2024[8] - VP-315 demonstrated a 97% objective response rate in a Phase 2 study for basal cell carcinoma, with plans to advance to Phase 3 trials[10] - YCANTH® is the first FDA-approved treatment for molluscum contagiosum, affecting approximately 6 million people in the U.S.[16] - Verrica has entered a worldwide license agreement with Lytix Biopharma AS to develop VP-315 for non-melanoma skin cancers[17] Non-GAAP Measures - The company emphasizes the usefulness of non-GAAP measures for investors to facilitate comparisons with peer companies[31] - For the year ended December 31, 2023, the GAAP net loss from operations was $(65,759) million, with a net loss per share of $(1.48)[31] - Non-GAAP adjusted loss was $(51,383) million, reflecting an adjusted net loss per share of $(1.14)[31] - Stock-based compensation for selling, general, and administrative expenses amounted to $11,796 million, while research and development stock-based compensation was $2,580 million[31] - Non-cash interest expense was recorded at $810 million, which was excluded from the adjusted figures to provide clarity on liquidity impacts[31]

Core Insights - Verrica Pharmaceuticals Inc. reported a sequential growth of 12.3% in dispensed applicator units of YCANTH in Q4 2024, alongside a significant reduction in operating expenses [1][2][6] - The company successfully raised $42 million through a public offering in November 2024, strengthening its balance sheet [1][10] - The CEO expressed confidence in the company's turnaround strategy, aiming for cash-positive monthly operating results by the end of 2025 [2][10] Financial Performance - In Q4 2024, Verrica recognized product revenue of $0.3 million, a decrease from $1.9 million in Q4 2023, attributed to existing inventory meeting demand [13][22] - The net loss for Q4 2024 was $16.2 million, or $0.24 per share, compared to a net loss of $24.6 million, or $0.53 per share, in the same period of 2023 [13][20] - For the full year 2024, the company reported a net loss of $76.6 million, or $1.48 per share, consistent with the net loss of $67.0 million, or $1.48 per share, in 2023 [16][22] Business Developments - The company has advanced its late-stage clinical programs for basal cell carcinoma (VP-315) and common warts (VP-102/YCANTH) [2][10][6] - A new single applicator configuration for YCANTH was introduced in Q1 2025 to meet growing demand and reduce costs for physician practices [10][6] - The company is finalizing plans for a global Phase 3 clinical program for VP-102 (YCANTH) in common warts, with potential initiation as early as mid-2025 [10][6] Operational Changes - A restructuring of commercial operations was implemented to reduce expenses, with total operating expenses expected to decrease by approximately 50% [10][6] - The company incurred a one-time restructuring charge of approximately $1.0 million [10][6] - The CEO and interim CFO were appointed in November 2024 as part of the leadership changes to support the new commercial strategy [10][6] Pipeline Progress - Positive data from a Phase 2 study of VP-315 for basal cell carcinoma showed a 97% objective response rate [10][6] - The company expects to report genomic and immune response data from the Phase 2 trial in the first half of 2025 [10][6] - The collaboration with Torii Pharmaceutical Co. Ltd. includes an $8 million milestone payment upon the initiation of the Phase 3 clinical trial for common warts [10][6]

Company Overview - Verrica Pharmaceuticals Inc. is a dermatology therapeutics company focused on developing medications for skin diseases requiring 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 - The company will host a conference call and live webcast on March 11, 2025, at 4:30 p.m. ET to discuss its financial results for Q4 and the full year ending December 31, 2024, along with a corporate update [1] - Participants can join the call via telephone or through the investor relations section of the company's website, with a replay available for 90 days post-event [2]