Journey Medical (US:DERM)2025-05-15 10:01Product Launch and Revenue - EmrosiTM received FDA approval on November 1, 2024, for treating inflammatory lesions of rosacea, with initial supply available in March 2025 and sales promotion starting in April 2025[92]. - Total net product revenue for Q1 2025 was $13.1 million, a slight increase of 1% from $13.0 million in Q1 2024, driven by $2.0 million from EmrosiTM[99]. - EmrosiTM generated $2.1 million in revenue during its first quarter of commercial launch, offsetting declines in other products like Accutane, which saw a 37% decrease in revenue[99]. - Gross-to-net sales accruals increased to $15.5 million as of March 31, 2025, up from $9.9 million a year earlier, attributed to coupon rebate allowances for EmrosiTM[100]. Financial Performance - Loss from operations improved by 67%, decreasing from $10.1 million in Q1 2024 to $3.3 million in Q1 2025[98]. - The company reported a net loss of $4.1 million for Q1 2025, a 61% reduction compared to a net loss of $10.4 million in Q1 2024[98]. - Operating expenses decreased by 29% from $23.1 million in Q1 2024 to $16.5 million in Q1 2025, primarily due to a 100% reduction in research and development expenses[98]. - Selling, general, and administrative expenses rose by 26% from $8.4 million in Q1 2024 to $10.6 million in Q1 2025[98]. - Interest expense increased by 63% from $548,000 in Q1 2024 to $891,000 in Q1 2025[98]. - Cost of goods sold decreased by $1.2 million, or 20%, to $4.8 million for the three-month period ended March 31, 2025, from $6.0 million for the same period in 2024[101]. Research and Development - Research and development costs were nil in Q1 2025, compared to $7.9 million in Q1 2024, which included Emrosi pre-approval project expenses[103]. - Amortization of acquired intangible assets increased by $0.3 million, or 31%, to $1.1 million for the three-month period ended March 31, 2025, driven by the addition of the Emrosi acquired intangible asset[102]. Cash Flow and Financing - Cash and cash equivalents increased to $21.1 million at March 31, 2025, compared to $20.3 million at December 31, 2024[106]. - Net cash used in operating activities decreased by $2.2 million to $2.8 million for the three-month period ended March 31, 2025, driven by a decrease in net loss[114]. - Net cash flows provided by financing activities increased by $2.0 million to $3.6 million for the three-month period ended March 31, 2025, primarily due to net proceeds from common stock issuances[115]. - Total cash requirements under the SWK Credit Facility include $7.3 million in interest and $25.0 million in principal payments[117]. - The company may seek to raise capital through debt or equity financings to expand its product portfolio and for other strategic initiatives[108]. Industry and Market Risks - The company operates in a heavily regulated industry, with significant risks related to product development, competition, and market acceptance[89].