Verrica Pharmaceuticals(US:VRCA)2025-11-17 14:32Financial Data and Key Metrics Changes - For Q3 2025, total revenue was reported at $14.3 million, a significant increase from a negative revenue of $1.8 million in Q3 2024 [21] - Net YCANTH revenue for Q3 2025 was $3.6 million, compared to negative $1.9 million in Q3 2024, reflecting improved demand and sales [21][22] - 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 [24] 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 [11] - 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 [7] Market Data and Key Metrics Changes - The company received $18 million in cash milestone payments from Torii in 2025, with $10 million received in Q3 upon approval of YCANTH for molluscum in Japan [8] - Positive feedback from the European Medicines Agency indicated no further phase 3 studies are needed for YCANTH's approval for molluscum in the EU, with a filing anticipated in Q4 2026 [9][10] Company Strategy and Development Direction - The company aims to establish YCANTH as a leading therapy for multiple skin lesions, expanding beyond dermatology into pediatric and primary care [7][10] - The development of VP-315 for basal cell carcinoma is positioned as a potential standard of care, with plans for a phase 3 study design confirmed by the FDA [18][19] 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][26] - The company is focused on optimizing its cost structure while advancing its clinical programs, with expectations for continued organic growth into 2026 [19][26] Other Important Information - The company has expanded its sales force to 45 representatives, with plans to increase to 50 in 2026 [15] - A new non-dispensing pharmacy, YCANTH Rx, is expected to launch in Q4 2025 to streamline prescription processes for healthcare providers [14][15] 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 [31] Question: What kind of counter-detailing are you seeing, and what has been the prescriber feedback on Zelsuvmi? - Management indicated that the largest competitor remains the "watch and wait" approach, but the launch of Zelsuvmi has positively influenced the market by promoting the need for treatment [32] Question: When do you expect sales force productivity to fully ramp? - Management expects new sales representatives to become productive in early 2026, as it typically takes a few months for new hires to ramp up [36] Question: Why is there a 12-month timeline for the EU filing despite no additional clinical trials required? - Management explained that the timeline includes necessary sequential steps, such as securing a pediatric waiver, which adds time to the process [38] 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 improve patient access [45] Question: How should we think about seasonality impact in Q4 sales? - Management anticipates traditional slowdowns in November and December due to holidays but expects momentum to continue into early next year [50]