Journey Medical (US:DERM)2025-05-14 21:30Financial 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]