Journey Medical (US:DERM)2025-03-26 23:10Financial 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 [25][26] - The total net product revenue for 2024 was $55.1 million, compared to $59.7 million in 2023 [25][26] - The net loss for 2024 was $14.7 million or $0.72 per share, compared to a net loss of $3.9 million or $0.21 per share in 2023 [29] - 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 [30][31] - Cash and cash equivalents at the end of 2024 were $20.3 million, down from $27.4 million at the end of 2023 [31] 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 MROSI [27][28] - Selling, general and administrative (SG&A) expenses decreased by $3.7 million or 8% to $40.2 million in 2024, attributed to expense optimization efforts [29] Market Data and Key Metrics Changes - MROSI is entering a treatment category valued at over $1 billion, with expectations of significant operating leverage as it gains market traction [12] - As of early 2025, commercial payer coverage for MROSI increased to approximately 20% of 188 million commercial lives and 4% of 58 million Medicare lives [17] Company Strategy and Development Direction - The company is focused on the launch of MROSI, which is expected to be a major growth driver, with peak annual sales estimated at $200 million in the U.S. and $100 million internationally [33] - Journey Medical plans to continue attending and presenting at dermatology-focused medical congresses throughout 2025 to promote MROSI [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the launch of MROSI, highlighting its superior clinical results and the potential to transform the treatment of rosacea [32] - The company anticipates a ramp-up in payer coverage and prescription demand throughout 2025, with a focus on achieving sustainable positive EBITDA and profitability [34] Other Important Information - Journey Medical completed a total of $22 million in FDA filing fees and milestone payments related to MROSI in 2024 [10] - The company received a $1 million milestone payment upon Cutia Therapeutics receiving regulatory approval to market AmZEEK in China [26] 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, with ongoing efforts to increase covered lives [38][41] Question: Importance of erythema data from KOL interactions - The head-to-head performance data was of significant interest to physicians, while erythema data was less emphasized [42][44] Question: 2025 guidance and early prescription data - Management plans to provide 2025 financial guidance later in the year after assessing initial prescription demand [52][53] Question: Reimbursement environment and early prescription fill rates - Early indications show that prescription fill rates are on target, with around 20% coverage currently [55][56] Question: Pricing strategies for legacy products - Pricing for legacy brands is expected to remain steady, with some erosion in volume due to competition [79][80] Question: Milestones for MROSI launch and potential bottlenecks - Key focus areas include supply and formulary coverage, with management optimistic about progress [85][88] Question: International licensing opportunities for MROSI - The company is looking to out-license MROSI internationally after establishing a strong presence in the U.S. [90][91]