Verrica Pharmaceuticals reports increased YCANTH applicator sales, reduced distributor inventory, and plans for new packaging to enhance access and demand.

Quiver AI Summary

Verrica Pharmaceuticals Inc. has reported strong progress in its fourth quarter of 2024 regarding its lead product, YCANTH, for treating molluscum contagiosum. The company has exceeded previous dispensed applicator units even while implementing significant cost reductions in its sales and operational infrastructure. Notably, there has been a substantial decline in distributor inventory levels. In response to increasing demand, Verrica plans to launch a new single applicator configuration for YCANTH in early 2025, aimed at lowering acquisition costs for healthcare providers and improving patient access. The company is also advancing its pipeline for treating common warts and basal cell carcinoma, indicating a positive outlook for future growth and operational efficiency.

Potential Positives

• Dispensed applicator units for YCANTH in Q4 2024 exceeded the previous quarter, indicating strong market demand and effective execution of the commercial strategy.
• Significant reduction in distributor inventory levels suggests improved supply chain management and the efficiency of distribution efforts.
• Anticipation of a new single applicator configuration for YCANTH in Q1 2025 is expected to enhance convenience for physicians and expand access for patients.
• Continued advancements in the product pipeline addressing unmet medical needs in dermatology underscore the company's commitment to innovation and growth potential.

Potential Negatives

• Significant reduction in distributor inventory levels may indicate lower than expected demand for YCANTH, which could affect future sales projections.
• Execution of targeted cost management initiatives suggests previous operational inefficiencies, raising concerns about the company's existing financial health.
• The need for a new single applicator configuration to meet growing demand may imply prior product shortcomings or gaps in the product offering.

FAQ

What recent improvements have been made for YCANTH in Q4 2024?

YCANTH dispensed applicator units exceeded the previous quarter despite significant cost reductions in sales and operations.

When will the new single applicator configuration for YCANTH be available?

The new single applicator configuration for YCANTH is expected to be available in the first quarter of 2025.

How does the new YCANTH packaging benefit healthcare providers?

The single applicator packaging reduces acquisition costs and facilitates same-day treatment, making it more convenient for healthcare providers.

What progress is Verrica making in its product pipeline?

Verrica continues to advance its pipeline for common warts and basal cell carcinoma with promising preliminary data from recent studies.

What is the availability and cost of YCANTH for patients?

YCANTH is available for $25 per treatment, with financial assistance offered for those in need, covering many uninsured patients.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$VRCA Insider Trading Activity

$VRCA insiders have traded $VRCA stock on the open market 22 times in the past 6 months. Of those trades, 4 have been purchases and 18 have been sales.

Here's a breakdown of recent trading of $VRCA stock by insiders over the last 6 months:

• JAYSON RIEGER (CEO and President) purchased 280,898 shares.
• JOHN A III STALFORT purchased 1,123,595 shares.
• PAUL B MANNING has traded it 2 times. They made 2 purchases, buying 22,921,348 shares and 0 sales.
• TERRY KOHLER (CHIEF FINANCIAL OFFICER) has traded it 2 times. They made 0 purchases and 2 sales, selling 29,719 shares.
• JOE BONACCORSO (CHIEF COMMERCIAL OFFICER) has traded it 4 times. They made 0 purchases and 4 sales, selling 59,278 shares.
• GARY GOLDENBERG (Chief Medical Officer) has traded it 4 times. They made 0 purchases and 4 sales, selling 31,996 shares.
• CHRISTOPHER G. HAYES (CHIEF LEGAL OFFICER) has traded it 4 times. They made 0 purchases and 4 sales, selling 57,453 shares.
• TED WHITE (PRESIDENT AND CEO) has traded it 4 times. They made 0 purchases and 4 sales, selling 66,623 shares.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$VRCA Hedge Fund Activity

We have seen 42 institutional investors add shares of $VRCA stock to their portfolio, and 38 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• AVORO CAPITAL ADVISORS LLC removed 3,999,999 shares (-100.0%) from their portfolio in Q3 2024
• FMR LLC removed 474,437 shares (-42.8%) from their portfolio in Q3 2024
• INVESCO LTD. removed 423,520 shares (-100.0%) from their portfolio in Q3 2024
• QUBE RESEARCH & TECHNOLOGIES LTD added 322,186 shares (+inf%) to their portfolio in Q3 2024
• XTX TOPCO LTD added 231,148 shares (+inf%) to their portfolio in Q3 2024
• EXODUSPOINT CAPITAL MANAGEMENT, LP added 186,132 shares (+inf%) to their portfolio in Q3 2024
• DEUTSCHE BANK AG\ removed 181,429 shares (-99.7%) from their portfolio in Q3 2024

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

-- Dispensed applicator units in the fourth quarter of 2024 have exceeded the complete prior quarter even with significant cost reductions in sales and operational infrastructure

-- Observed significant reduction in YCANTH distributor inventory levels

-- New single applicator configuration for YCANTH







expected to be available in the first quarter of 2025 to help meet growing product demand, reduce acquisition costs for physician practices and expand distribution and patient access

-- Continue to advance pipeline of product candidates in common warts and basal cell carcinoma

WEST CHESTER, Pa., Dec. 20, 2024 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. ("Verrica" or the "Company") (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced a business and operational update outlining the significant progress being made with respect to the new commercial strategy for YCANTH, Verrica's lead product for the treatment of molluscum contagiosum ("molluscum").

"Over the last several weeks since our November common stock offering, we have made significant progress across a number of key initiatives to help drive demand for YCANTH," said Jayson Rieger, PhD MBA, President and Chief Executive Officer of Verrica. "First and foremost, we are executing effectively on our previously announced commercial strategy for YCANTH, as evidenced by achievement of fourth quarter dispensed applicator units already surpassing dispensed applicator units in the prior quarter. We are growing the YCANTH business while implementing highly targeted cost management initiatives to prioritize spend that creates value and reducing or eliminating inefficient and unnecessary expenses. We are also pleased to note a significant reduction in YCANTH inventory levels from our distribution partners."

Dr. Rieger continued, "We are responding to the growing patient demand for YCANTH by increasing our distribution capabilities, making YCANTH available to more dermatologists and pediatricians through our previous distribution channels as well as through local independent pharmacies. Furthermore, we expect to provide a single applicator packaging configuration for YCANTH in the first quarter of 2025, which we anticipate will provide an added level of convenience for our independent and specialty pharmacy network. We also expect that the single applicator packaging will facilitate initial purchases of the product by health care providers who prefer same day treatment for patients by requiring significantly less cash outlay under our buy-and-bill distribution model. Finally, we expect this new packaging may increase patient access by providing added optionality to buying groups, hospitals and government entities for including YCANTH on formulary to service their patients.

"As we enter 2025, we are excited about the opportunities that lie ahead for our company. As noted, we are already seeing favorable changes in the demand dynamics for YCANTH in response to our more focused and disciplined commercial strategy. Our recent financing also helped strengthen our balance sheet, while our ongoing efforts to improve Verrica's operational efficiencies will help preserve our capital resources."

Dr. Rieger concluded, "We also believe that our pipeline opportunities provide a tremendous source of potential upside for our company. Together with our development partner, Torii Pharmaceutical, we continue to advance YCANTH (referred to as TO-208 in Japan) for the treatment of common warts, which represents the opportunity to address the single largest unmet medical need in dermatology. Additionally, encouraging preliminary data from our Phase 2 study suggests that our oncolytic peptide, VP-315, may have the potential to become a new and differentiated treatment approach for basal cell carcinoma. In summary, we have made significant progress over a short period of time, and Verrica is becoming a more focused and efficient commercial-stage company."

About YCANTH







(VP-102)

YCANTH is a proprietary drug-device combination product that contains a GMP-controlled formulation of cantharidin delivered via a single-use applicator that allows for precise topical dosing and targeted administration for the treatment of molluscum. YCANTH is the first and only commercially available product approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum — a common, highly contagious skin disease that affects an estimated six million people in the United States, primarily children. Approval of YCANTH was based upon the positive results from two Phase 3 clinical trials in approximately 500 patients which demonstrated that YCANTH was a safe and effective therapeutic for the treatment of molluscum. Approximately 228 million lives are eligible to receive YCANTH covered by insurance. YCANTH is available to all patients with and without insurance coverage for $25 per treatment, and further financial assistance is available for patients in need. Please visit YCANTHPro.com for additional information.

YCANTH should only be administered by a trained healthcare professional. YCANTH is not for home use.

About Verrica Pharmaceuticals Inc.

Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica's product YCANTH (VP-102) (cantharidin), is the first and only commercially available treatment approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH (VP-102) is also in development to treat common warts and external genital warts, two of the largest remaining unmet needs in medical dermatology. Verrica is developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (formerly LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma. For more information, visit



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Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "believe," "expect," "may," "plan," "potential," "will," and similar expressions, and are based on Verrica's current beliefs and expectations. These forward-looking statements include statements about the availability of Verrica's single applicator packaging configuration and the benefits of such configuration, the commercialization of YCANTH, cost management initiatives and preservation of capital resources, and the clinical development and benefits of Verrica's product candidates, including YCANTH (VP-102). These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include risks and uncertainties related to market conditions, satisfaction of customary closing conditions related to the proposed public offering and other risks and uncertainties that are described in Verrica's Annual Report on Form 10-K for the year ended December 31, 2023, Verrica's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and other filings Verrica makes with the SEC. Any forward-looking statements speak only as of the date of this press release and are based on information available to Verrica as of the date of this release, and Verrica assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.

FOR MORE INFORMATION, PLEASE CONTACT:

Investors:

Kevin Gardner

LifeSci Advisors

kgardner@lifesciadvisors.com

Chris Calabrese

LifeSci Advisors

ccalabrese@lifesciadvisors.com