Verrica Pharmaceuticals Announces Private Placement Financing of $50 Million to Retire Debt and Extend Cash Runway

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].