Financial Data and Key Metrics Changes - The total net revenue for Q2 2025 was $15 million, compared to $14.9 million for Q2 2024, with $2.8 million attributed to the U.S. commercial launch of Amrozi [15][18] - Gross margin increased to 67% in Q2 2025 from 61% in the prior year [15] - Net loss for common shareholders was $3.8 million or $0.16 per share in Q2 2025, compared to a net loss of $3.4 million or $0.17 per share in Q2 2024 [18] Business Line Data and Key Metrics Changes - Amrozi sales contributed approximately $2.8 million to the total net product revenue, marking a significant improvement in gross profit margins [6][15] - Accutane sales declined by $2.3 million due to generic competition, but growth brands like Amrozi and QBREXZA offset this decline [7][15] - QBREXZA revenue for the quarter was reported at $6.9 million [38] Market Data and Key Metrics Changes - Amrozi achieved over 12,800 prescriptions by July, with a consistent increase in weekly prescriptions since its launch [9][11] - The product captured more than 10% of new prescription demand among dermatology writers within three months of promotion [10] - Payer access for Amrozi increased from 30% of commercial lives in May to approximately 65% by July [10] Company Strategy and Development Direction - The company aims to become sustainably EBITDA positive later in 2025 through strategic initiatives focused on optimizing operations and controlling expenses [6] - The focus remains on expanding the base of Amrozi prescribers, growing prescription volume, and increasing payer access [21] - The company is committed to leveraging its established dermatology commercial organization to enhance product sales and profitability [11][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing momentum of Amrozi's launch and its potential to become the standard of care for rosacea treatment [21] - The company is optimistic about achieving its core objectives, which include improving patient lives and creating long-term shareholder value [22] - Management noted that while there is some seasonality in the dermatology market, the current growth trajectory of Amrozi is expected to continue [35] Other Important Information - Journey Medical's common stock was added to the small-cap Russell 2000 and broad market Russell 3000 indexes, enhancing public awareness and institutional investor ownership [13] - The product was featured in a segment on Lifetime TV, increasing visibility [12] Q&A Session Summary Question: What is the goal for coverage by the end of the year? - Management indicated that while they have not publicly disclosed a specific target, they are focused on increasing both the quantity and quality of coverage for Amrozi [24][25] Question: How do you see gross margins evolving over the year? - Management expects incremental improvements in gross margins as Amrozi becomes a larger part of the sales mix, given its low cost [27][28] Question: When will guidance for the year be provided? - Management stated that it is too early in the launch to provide hard guidance and will wait a few more quarters [29] Question: What is the expected net revenue per prescription for Amrozi? - Management refrained from providing specific guidance on average selling price due to the complexities involved in early quarters [33][34] Question: How does seasonality affect the rosacea market? - Management acknowledged some seasonality but believes the current growth pace will not be significantly impacted [35] Question: What is the market share goal for Amrozi? - Management noted that the 10% market share among high-volume dermatologists is a strong start, with expectations for continued growth [48][50]

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]