Journey Medical (US:DERM)2025-03-26 21:32Financial 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 [7][18] - Total net product revenue for 2024 was $55.1 million, down from $59.7 million in 2023 [18] - The net loss for common shareholders was $14.7 million or $0.72 per share for 2024, 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 or $0.04 per share, down from $15.6 million or $0.85 per share 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, reflecting 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] - The company plans to focus on driving value for patients and shareholders while preparing for a robust launch of IMROCI [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the early progress of IMROCI and the potential for significant operating leverage as the product gains market traction [10][14] - The company is optimistic about the impact of upcoming peer-reviewed publications and medical conference presentations on IMROCI's market awareness [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 post-launch, with ongoing efforts to increase coverage [28][30] Question: Importance of erythema data from KOL interactions - The head-to-head performance data was of significant interest to physicians, overshadowing the erythema data [32][34] 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 - Initial coverage is around 20%, which aligns with expectations, but it is too early to provide a comprehensive assessment [44][45] Question: Revenue expectations for Q1 - Modest revenue is expected in Q1, with meaningful revenue anticipated starting in Q2 [46] Question: Performance of legacy products - Legacy products have shown consistent performance, with QBREXZA continuing to grow, while Accutane has stabilized after facing new competition [50][51] Question: Pricing across the portfolio - Pricing for legacy brands is expected to remain steady, with improved margins for certain products due to the cessation of royalty payments [61][62] Question: International licensing opportunities for IMROCI - The company is exploring out-licensing opportunities for IMROCI in international markets while focusing on the U.S. launch [68]