Verrica Pharmaceuticals Reports Second Quarter 2025 Financial Results

Core Insights - Verrica Pharmaceuticals reported a revenue of $12.7 million for Q2 2025, with $4.5 million from YCANTH® and $8.0 million from milestone revenue with Torii Pharmaceutical, marking a sequential growth of 32.5% from Q1 2025 [1][10][21] - The company successfully completed an End of Phase 2 meeting for VP-315 for Basal Cell Carcinoma and is preparing for the Phase 3 program while seeking non-dilutive financing opportunities [1][3][9] - A conference call is scheduled for today at 4:30 pm ET to discuss the financial results and business updates [1][4] Financial Performance - Product revenue, net for Q2 2025 was $4.5 million, a decrease from $4.9 million in Q2 2024, primarily due to a one-time stock-in related to distribution network expansion in the previous year [10][21] - License and collaboration revenue increased significantly to $8.2 million in Q2 2025 from $0.3 million in Q2 2024, driven by an $8.0 million milestone payment from Torii [12][21] - The company reported a net income of $0.2 million, or $0.02 per share, compared to a net loss of $17.2 million, or $3.70 per share, in the same period last year [12][21] Product and Pipeline Developments - YCANTH® (VP-102) saw a record of 13,434 dispensed applicator units in Q2 2025, reflecting a sequential growth of 32.8% over Q1 2025 [3][8] - The company is advancing its global Phase 3 program for common warts in collaboration with Torii Pharmaceutical, with the first patient expected to be dosed in Q4 2025 [11][12] - VP-315 has shown positive proof-of-concept efficacy data in Phase 2 trials for basal cell carcinoma, and the company plans to present additional data at a scientific conference later this year [3][9] Strategic Partnerships and Funding - Verrica expects to receive an additional $10 million in non-dilutive funding from Torii upon Japanese regulatory approval of YCANTH for molluscum contagiosum, with a decision anticipated by the end of 2025 [3][11] - The collaboration with Torii includes a 50/50 cost-sharing agreement for the global Phase 3 program, with Torii covering the first $40 million of trial costs [11][12] Operational Efficiency - Selling, general, and administrative expenses decreased to $8.9 million in Q2 2025 from $16.5 million in Q2 2024, attributed to reduced commercial activity expenses [12][21] - Research and development expenses also declined to $1.8 million in Q2 2025 from $3.3 million in Q2 2024, mainly due to lower clinical trial costs for VP-315 [12][21]