Summary of Journey Medical Corp (DERM) Conference Call - August 20, 2025 Company Overview - **Company Name**: Journey Medical Corporation - **Ticker Symbol**: DERM - **Industry**: Pharmaceutical, specifically focused on dermatology - **Founded**: Approximately 10 years ago, went public in November 2021 - **Average Daily Volume**: About 150,000 shares - **Outstanding Shares**: Approximately 23 million shares [6][5] Key Products and Market Focus - **Market Size**: The dermatology market is valued at nearly $6 billion [7] - **Primary Disease States**: Rosacea, hyperhidrosis, and acne [7] - **Key Product**: Imrozi, launched in April 2025, is the first product developed by Journey Medical and approved by the FDA in November 2024 [8][7] - **Core Business Revenue**: Approximately $55 million in net revenue for 2024 without Imrozi [8] Product Details - **Imrozi**: - Indicated for the treatment of inflammatory lesions, papules, and pustules of rosacea in adults - Lowest strength of minocycline available at 40 mg, with a once-daily dosage [15][16] - Demonstrated superior efficacy compared to Oratia, the only other oral treatment for rosacea [17][19] - Safety profile similar to placebo, with minimal adverse events [27][28] Clinical Trial Results - **Efficacy**: - Over 60% greater IgA success compared to Oratia and over 120% compared to placebo [20] - Approximately 30% greater inflammatory lesion reduction compared to Oratia and over 65% compared to placebo [21] - Fast-acting results observed as early as two weeks [24] Market Access and Growth Strategy - **Market Access**: - Approximately 100 million lives have access to Imrozi, with expectations for growth as payer acceptance increases [35][54] - **Prescription Growth**: - Rapid increase in prescriptions from 1,200 in April to over 5,200 in July 2025 [32] - Unique prescribers increased from 600 to over 1,800 [34][48] - **Sales Territories**: 35 sales territories covering 80 of the top 50 MSAs in the U.S., accessing about 70% of dermatology prescriptions [11][12] Financial Outlook - **Current Run Rate**: Approximately $60 million annually, nearing breakeven [49] - **EBITDA Positive**: Expected to achieve EBITDA positivity later in 2025 due to contributions from Imrozi [38][48] - **Out-Licensing Strategy**: Successful past deals, including a $20 million non-dilutive capital deal for QBREXZA [41][52] Long-Term Strategy - **Focus Areas**: - Continued growth of Imrozi, QBREXZA, and Accutane - Out-licensing opportunities to generate additional capital - Building a strong presence in dermatology with a robust product portfolio [57][40] Conclusion - Journey Medical is positioned for significant growth in the dermatology market with the launch of Imrozi and a strong sales strategy. The company aims to leverage its existing products and expand its market presence while focusing on achieving profitability and sustainable growth in the coming years [42][57].

Journey Medical Corp (DERM) Q2 2025 Earnings Call August 12, 2025 04:30 PM ET Speaker0Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to Journey Medical's Second Quarter twenty twenty five Financial Results and Corporate Update Conference Call. At this time, all participants are in listen only mode. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast repl ...

Financial Data and Key Metrics Changes - Journey Medical reported net product sales of $13.1 million for Q1 2025, a slight increase from $13.0 million in Q1 2024, which included approximately $2.0 million from the initial revenue of AMROCI [6][12] - Gross margin improved to 64% in Q1 2025 from 54% in the prior year, attributed to lower product costs and a favorable sales mix [13] - R&D costs were nil in Q1 2025 compared to $7.9 million in Q1 2024, which included preapproval and milestone payments related to AMROCI [13] - SG&A expenses increased by $2.1 million to $10.6 million in Q1 2025, reflecting investments in commercial infrastructure for the AMROCI launch [13] - Net loss for Q1 2025 was $4.1 million, or $0.18 per share, compared to a net loss of $10.4 million, or $0.53 per share, in Q1 2024 [14][15] - Cash position at the end of Q1 2025 was $21.1 million, up from $20.3 million at the end of 2024 [15] Business Line Data and Key Metrics Changes - The launch of AMROCI is seen as a significant milestone, contributing to initial sales and expected to become the flagship product [6][16] - Legacy products experienced a decline of approximately 10% to 15%, attributed to generic competition [24] - QBREXZA showed strong performance with a 15% increase in prescriptions year-over-year, despite new competition [25][26] - Accutane prescriptions decreased from 93,000 in Q1 2024 to 66,000 in Q1 2025, impacted by new competitors, but showed a 10% growth compared to Q4 2024 [28][30] Market Data and Key Metrics Changes - Approximately 30% of covered commercial insured lives now have access to AMROCI, up from 20% previously [11] - The company actively calls on 83% of dermatology offices that prescribe oral rosacea treatments, leveraging existing brand equity [9] Company Strategy and Development Direction - The company aims to expand access and grow prescription volume for AMROCI while publishing additional peer-reviewed data to support its clinical value [17] - Focus on building brand awareness and ensuring payer coverage to translate prescription momentum into sales [10][11] - The management believes 2025 will be a transformational year for Journey Medical, with a commitment to long-term value creation for patients and shareholders [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive initial response to AMROCI and its potential to achieve sustainable EBITDA positivity later in the year [6] - The dermatology-focused sales force is fully trained and actively promoting AMROCI, with early indicators showing over 660 unique healthcare providers writing prescriptions [16][17] - The company is optimistic about the trajectory of AMROCI's launch and expects continued growth in the coming months [40][41] Other Important Information - The Phase III clinical trial results for AMROCI were published in JAMA Dermatology, highlighting its statistical superiority over competitors [8] - The National Rosacea Society updated its treatment algorithms to include AMROCI, signaling confidence from the dermatology community [9] Q&A Session Summary Question: Expectations for AMROCI revenues in Q2 - Management indicated that the initial $2 million in revenue was largely due to stocking and expects additional revenues in Q2 as the product gains traction [20][21] Question: Performance of legacy business - The legacy business is experiencing a decline due to generic competition, with specific products like QBREXZA performing well despite new entrants [24][25] Question: Inventory levels in distribution - Management estimated that inventory levels are typically between two to four weeks during a new product launch [34][36] Question: Early feedback from prescribers - Positive feedback has been received regarding AMROCI's efficacy and tolerability, with many prescribers expressing satisfaction with the product's performance [37][39] Question: Erythema reduction feedback - Anecdotal feedback from dermatologists indicates satisfaction with AMROCI's impact on erythema, although this is not the primary focus of the marketing message [50][51] Question: Repeat prescribers for AMROCI - There is a mix of prescribers, with some writing multiple prescriptions, indicating a positive reception in the market [57]

Financial Data and Key Metrics Changes - Journey Medical reported net product sales of $13.1 million for Q1 2025, a slight increase from $13.0 million in Q1 2024, which included $2.0 million from the initial launch of AMROCI [5][11] - Gross margin improved to 64% in Q1 2025 from 54% in the prior year, attributed to lower product costs and a favorable sales mix [12] - Net loss for Q1 2025 was $4.1 million, or $0.18 per share, compared to a net loss of $10.4 million, or $0.53 per share, in Q1 2024 [13] Business Line Data and Key Metrics Changes - The launch of AMROCI is seen as a significant milestone, contributing positively to the overall sales performance [5] - The legacy business, which includes older brands facing generic competition, experienced a decline of approximately 10% to 15% [22] - QBREXZA showed strong performance with a 15% increase in prescriptions year-over-year for March and April 2025 [24] Market Data and Key Metrics Changes - Approximately 30% of covered commercial insured lives now have access to AMROCI, up from 20% previously [10] - The company actively calls on about 83% of dermatology offices that prescribe oral rosacea treatments, enhancing market penetration [8] Company Strategy and Development Direction - Journey Medical aims to expand access and grow prescription volume for AMROCI while publishing additional peer-reviewed data to support its clinical value [17] - The company is focused on building brand awareness and ensuring payer coverage to translate prescription momentum into sales [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive initial response to AMROCI and its potential to become the flagship product, contributing to sustainable EBITDA positivity later in the year [5] - The company views 2025 as a transformational year, with expectations for continued growth and market adoption of AMROCI [17] Other Important Information - The Phase III clinical trial results for AMROCI were published in JAMA Dermatology, highlighting its superiority over competitors [7] - The National Rosacea Society updated its treatment algorithms to include AMROCI, signaling confidence from the dermatology community [8] Q&A Session Summary Question: Expectations for AMROCI revenues in Q2 - Management indicated that the initial $2 million in revenue was primarily from stocking and expects additional revenues in Q2 as the product gains traction [19][20] Question: Performance of the legacy business - The legacy business is expected to continue facing challenges due to generic competition, with QBREXZA performing well despite new competition [22][23] Question: Inventory levels in the distribution channel - Management estimated that inventory levels are typically between two to four weeks during a new product launch [31][32] Question: Feedback from prescribers - Positive feedback has been received regarding AMROCI's efficacy, with many prescribers impressed by its clinical results [34][35] Question: Patient demographics for AMROCI - Initial prescriptions are primarily from new patients, with potential for switching from existing treatments as prescribers gain confidence [40][41] Question: Erythema reduction feedback - Anecdotal feedback indicates that some prescribers have noted significant erythema reduction, which may be incorporated into future messaging [46][50]

Financial Data and Key Metrics Changes - Journey Medical reported annual revenue of $56 million in 2024, a decrease from $79 million in 2023, primarily due to higher rebate costs and lower unit volumes from legacy products [7][18] - Total net product revenue for 2024 was $55.1 million, down from $59.7 million in 2023 [18] - The net loss for common shareholders was $14.7 million or $0.72 per share for 2024, compared to a net loss of $3.9 million or $0.21 per share in 2023 [21] - Non-GAAP adjusted EBITDA for 2024 was positive $800,000 or $0.04 per share, down from $15.6 million or $0.85 per share in 2023 [22] Business Line Data and Key Metrics Changes - Research and development expenses increased by $2.3 million to $9.9 million in 2024, driven by non-recurring payments related to the IMROCI NDA filing [19] - Selling, general and administrative expenses decreased by $3.7 million to $40.2 million in 2024, reflecting expense optimization efforts [20] Market Data and Key Metrics Changes - As of early 2025, Journey Medical achieved approximately 20% commercial payer coverage for IMROCI, up from 12% at the time of FDA approval [13] - The company anticipates significant increases in payer coverage throughout 2025 and into 2026 [13] Company Strategy and Development Direction - The launch of IMROCI is positioned as a transformational opportunity for Journey Medical, with potential peak annual sales estimated at $200 million in the U.S. and $100 million internationally [24] - The company plans to focus on driving value for patients and shareholders while preparing for a robust launch of IMROCI [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the early progress of IMROCI and the potential for significant operating leverage as the product gains market traction [10][14] - The company is optimistic about the impact of upcoming peer-reviewed publications and medical conference presentations on IMROCI's market awareness [25] Other Important Information - Journey Medical paid $22 million in FDA filing fees and milestone payments related to IMROCI in 2024, completing its financial obligations for the product's regulatory fees [9] - The company had $20.3 million in cash as of December 31, 2024, down from $27.4 million at the end of 2023 [22] Q&A Session Summary Question: Expectations for payer coverage by the end of 2025 - Management expects peak commercial coverage to take 12 to 18 months post-launch, with ongoing efforts to increase coverage [28][30] Question: Importance of erythema data from KOL interactions - The head-to-head performance data was of significant interest to physicians, overshadowing the erythema data [32][34] Question: Thoughts on 2025 guidance - Management plans to provide 2025 financial guidance later in the year after assessing initial prescription demand [41][42] Question: Reimbursement environment in early days - Initial coverage is around 20%, which aligns with expectations, but it is too early to provide a comprehensive assessment [44][45] Question: Revenue expectations for Q1 - Modest revenue is expected in Q1, with meaningful revenue anticipated starting in Q2 [46] Question: Performance of legacy products - Legacy products have shown consistent performance, with QBREXZA continuing to grow, while Accutane has stabilized after facing new competition [50][51] Question: Pricing across the portfolio - Pricing for legacy brands is expected to remain steady, with improved margins for certain products due to the cessation of royalty payments [61][62] Question: International licensing opportunities for IMROCI - The company is exploring out-licensing opportunities for IMROCI in international markets while focusing on the U.S. launch [68]