Journey Medical (US:DERM)2025-03-26 20:30Financial Data and Key Metrics Changes - Journey Medical reported annual revenue of $56 million for 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 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 [21] - Non-GAAP adjusted EBITDA for 2024 was positive $800,000, down from $15.6 million 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, attributed to 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][25] - The company plans to focus on driving value for patients and shareholders while preparing for additional publications and medical congress presentations throughout 2025 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the early progress of IMROCI's launch and the positive reception from dermatologists at the AAD Conference [11][12] - The company is focused on achieving sustainable positive EBITDA and profitability while exploring potential licensing opportunities for international markets [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, with ongoing efforts to increase coverage based on demand [28][30] Question: Importance of erythema data from KOL interactions - The head-to-head performance data was more significant to providers than erythema data, which will be disseminated through the JAMA publication [32][35] 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 - The reimbursement environment is currently on target, with approximately 20% adoption on formularies [44][46] Question: Revenue expectations for Q1 - Minimal revenue is expected in Q1, with meaningful revenue anticipated starting in Q2 [47] Question: Base business performance in Q4 - The base business has been steady, with legacy brands continuing to erode but core products performing consistently [48][50] Question: Pricing across the legacy portfolio in 2025 - Pricing for legacy brands is expected to remain steady, with some erosion in volume due to competition [62] Question: Milestones for IMROCI launch - Key focus areas include supply and formulary coverage, with management optimistic about progress [66][68] Question: International licensing opportunities for IMROCI - The company is looking to out-license IMROCI internationally while focusing on the U.S. market [70]