Verrica Pharmaceuticals (NasdaqGM:VRCA) Q3 2025 Earnings Call November 17, 2025 08:30 AM ET Company ParticipantsJayson Rieger - President and CEOStacy Ku - Biotechnology Equity ResearchKevin Gardner - Managing DirectorJohn Kirby - Interim CFOConference Call ParticipantsDennis Ding - VP and Equity Research AnalystNone - AnalystNone - AnalystOperatorGood morning, ladies and gentlemen, and welcome to the Verrica Pharmaceuticals third quarter 2025 corporate update conference call. At this time, all participants ...

Verrica Pharmaceuticals (NasdaqGM:VRCA) Q3 2025 Earnings Call November 17, 2025 08:30 AM ET Company ParticipantsJayson Rieger - President and CEOStacy Ku - Biotechnology Equity ResearchKevin Gardner - Managing DirectorJohn Kirby - Interim CFOConference Call ParticipantsDennis Ding - VP and Equity Research AnalystNone - AnalystNone - AnalystOperatorGood morning, ladies and gentlemen, and welcome to the Verrica Pharmaceuticals Third Quarter 2025 Corporate Update Conference Call. At this time, all participants ...

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $14.3 million, a significant increase from negative revenue of $1.8 million in Q3 2024 [18] - Net YCANTH revenue for Q3 2025 was $3.6 million, compared to negative $1.9 million in Q3 2024, reflecting improved demand and sales [18][19] - GAAP net loss for Q3 2025 was $0.2 million, or $0.03 per share, compared to a GAAP net loss of $22.9 million, or $4.88 per share in Q3 2024 [21] - Non-GAAP net income for Q3 2025 was $1.2 million, or $0.13 per share, compared to a net loss of $20.2 million, or $4.30 per share in Q3 2024 [21] Business Line Data and Key Metrics Changes - Dispensed applicator units of YCANTH reached 14,093 in Q3 2025, representing approximately 5% sequential growth over the prior quarter [10] - Year-to-date dispensed applicator units increased to 37,642 for the nine months ended September 30, 2025, a 120% increase compared to the same period in 2024 [6] Market Data and Key Metrics Changes - The approval of YCANTH in Japan for molluscum is expected to lead to multiple approvals across major pharmaceutical markets, including the EU [8] - Feedback from the European Medicines Agency indicated no further phase III studies are needed for YCANTH's approval for molluscum, with a filing anticipated as early as Q4 2026 [8] Company Strategy and Development Direction - The company aims to establish YCANTH as a leading therapy for multiple types of skin lesions, leveraging its existing clinician relationships [6] - The development of VP-315 for basal cell carcinoma is positioned as a potential standard of care, with plans for a phase III study design confirmed by the FDA [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of YCANTH and the potential for VP-315, highlighting a strong foundation for future growth [4][17] - The company is focused on optimizing its cost structure while expanding its commercial strategy, which has led to reduced spending and increased product adoption [5][20] Other Important Information - The company received $18 million in cash milestone payments from Torii in 2025, with $10 million received in Q3 upon YCANTH's approval in Japan [7] - A new non-dispensing pharmacy, YCANTH Rx, is expected to launch in Q4 2025 to streamline the prescription process for healthcare providers [12][13] Q&A Session Summary Question: Can you further speak to the YCANTH demand that you're seeing in Q4? - Management noted that momentum from September has continued into Q4, with expectations for increased demand as the cold and flu season approaches [24][25] Question: What kind of counter-detailing are you seeing, and what has been the prescriber feedback on Zilretc? - Management views the Zilretc launch positively, as it raises awareness about the need to treat molluscum, while YCANTH remains a best-in-class option [25] Question: When do you expect sales force productivity to fully ramp? - It typically takes a few months for new sales representatives to become fully productive, with expectations for many to be effective early in 2026 [26][27] Question: Why is there a 12-month timeline for the EU filing despite no additional clinical trials required? - The timeline includes necessary sequential steps, such as securing a pediatric waiver, which adds time to the process [27][28] Question: What feedback has been received regarding YCANTH Rx? - Feedback has been positive, with the new pharmacy model expected to simplify the prescription process for clinicians and patients [29][30] Question: How should we think about seasonality impact in Q4 sales? - Traditional seasonal slowdowns are expected in November and December, but increased doctor visits during the cold and flu season may boost diagnoses of molluscum [32][33]

Group 1 - Verrica Pharmaceuticals held its Q1 2025 Corporate Update Conference Call on May 13, 2025, with key participants including the CEO, CFO, and COO [1][3] - The call included discussions on the commercialization of YCANTH for treating molluscum contagiosum in the U.S., revenue growth, regulatory developments, and the company's product candidates [4][5] - Management emphasized the importance of forward-looking statements regarding the company's business strategy and operations, highlighting potential risks and uncertainties [4][5]

Financial Data and Key Metrics Changes - In Q4 2024, total revenues were reported at $0.3 million, primarily from YCANTH revenue, with full-year revenues of $7.6 million compared to $5.1 million in the prior year [27][28] - Gross profit margins for the full year 2024 were 72%, with a cost of product revenue of $1.9 million, including $0.9 million of obsolete inventory costs [30] - GAAP net loss for Q4 2024 was $16.2 million or $0.24 per share, compared to a loss of $24.6 million or $0.53 per share in Q4 2023 [33] Business Line Data and Key Metrics Changes - YCANTH dispense applicator units increased to 8,654 in Q4 2024, a sequential growth of 12.3% from 7,706 units in the prior quarter, and a 44.8% increase from 5,975 units in Q2 2024 [15][28] - Research and development expenses decreased to $1.2 million in Q4 2024, down from $4.2 million in Q4 2023, primarily due to reduced clinical trial costs [31] Market Data and Key Metrics Changes - The company is focusing on territories with high prevalence of molluscum contagiosum and has established strong insurance coverage for YCANTH [13] - The pediatric market is showing growth, with an increasing percentage of pediatricians treating with YCANTH, although dermatologists remain the primary customer base [72] Company Strategy and Development Direction - The company is executing a turnaround plan with a focused commercialization strategy for YCANTH while reducing costs across the organization [7][8] - Plans to develop YCANTH for common warts are underway, with a Phase 3 clinical program expected to start as early as mid-2025 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the growth trajectory of YCANTH, noting good adoption and interest in the product [49][52] - The company aims to achieve cash-positive monthly operating results by year-end 2025, although specific revenue guidance was not provided [53][54] Other Important Information - The company raised approximately $42 million in an equity follow-on offering in November 2024, strengthening its balance sheet [26] - As of December 31, 2024, the company had cash and cash equivalents of $46.3 million, which may not be sufficient to fund operations for the next year without additional milestone payments [34] Q&A Session Summary Question: What is the patient demand for YCANTH and feedback from clinicians? - Management noted good adoption and interest in YCANTH across both pediatricians and dermatologists, with continued use of the product being reported [49][50] Question: What are the expectations for sales in 2025? - Management indicated that they are cautiously optimistic about growth and will maintain current guidance until more clarity is achieved [53][54] Question: What are the seasonal impacts on demand? - Management acknowledged that warmer weather could support growth and that they are prepared for potential seasonal changes [61][62] Question: What is the status of the IP protection for YCANTH? - The company has a robust IP portfolio and is addressing challenges from compounders while finding good adoption of the product [65][66] Question: What are the plans for advancing VP-315 into Phase 3 trials? - Management stated that the majority of expenses for the VP-315 program were incurred previously, and they will evaluate the program once they have the necessary data [75][76]