Full Press Release Details
Journey Medical Corporation Reports First Quarter
2025 Financial Results and Recent Corporate Highlights
Revenue for the First Quarter Ended March 31,
2025 was $13.1 million
Emrosi (40 mg Minocycline Hydrochloride
Modified-Release Capsules) Commercial Launch Off to a Strong Start, Initial Prescriptions Filled in Late March 2025
Phase 3 Clinical Trial Results for Emrosi Published
Emrosi Now Included in Updated National Rosacea
Society Treatment Algorithms
Company to Hold Conference Call Today at 4:30
Scottsdale, AZ - May 14, 2025 -
Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical" or "the Company", "we", or "our"),
a commercial-stage pharmaceutical company that primarily focuses on selling and marketing U.S. Food and Drug Administration ("FDA")
approved prescription pharmaceutical products for the treatment of dermatological conditions, today announced financial results and recent
corporate highlights for the first quarter ended March 31, 2025.
"The first quarter of 2025 was highly productive,
as our in-line dermatology products continue to perform and the launch of Emrosi , our best-in-class oral rosacea treatment, is
off to a strong start," said Claude Maraoui, Journey Medical's Co-Founder, President and Chief Executive Officer. "The
Emrosi launch is enjoying high visibility among dermatology prescribers with momentum from our exhibition booth at the American Academy
of Dermatology (AAD) conference in late March, the recent publication of Emrosi's statistically superior Phase 3 clinical trial
results over Oracea and placebo in JAMA Dermatology, and the promotional efforts from our experienced and highly effective
dermatology salesforce. Emrosi was also recently incorporated into the National Rosacea Society's Rosacea Treatment Algorithms,
and payer coverage of the product continues to increase."
Mr. Maraoui continued, "Financially, we
remain in a strong position with $21.1 million in cash as of March 31, an improvement in our gross margin, and overall operating spend
down year-over-year. We believe that our first quarter financial results and launch progress with Emrosi demonstrate that we are executing
on our strategic objectives, and that 2025 will be a transformational year for the Company as we drive the business to sustainable positive
EBITDA and profitability."
Recent Corporate Highlights:
Conference Call and Webcast Information
Journey Medical management will conduct a conference
call and audio webcast on May 14, 2025, at 4:30 p.m. ET.
To listen to the conference call, interested
parties within the U.S. should dial 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately
10 minutes prior to the scheduled start time and ask to be joined into the Journey Medical conference call. Participants can register
for the conference here: https://dpregister.com/sreg/10199519/ff117b0a70. Please note that registered participants will receive
their dial-in number upon registration.
A live audio webcast can be accessed on the News
and Events page of the Investors section of Journey Medical's website, www.journeymedicalcorp.com, and will remain available
for replay for approximately 30 days after the meeting.
| (1) | We define gross margin as net product revenue less cost of goods sold divided by net product revenue. |
| (2) | Oracea is a registered trademark of Galderma Holdings, S.A. Soci t Anonyme. |
About Journey Medical Corporation
Journey Medical Corporation (Nasdaq: DERM) ("Journey
Medical") is a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of FDA-approved prescription
pharmaceutical products for the treatment of dermatological conditions through its efficient sales and marketing model. The Company currently
markets eight branded FDA-approved prescription drugs that help treat and heal common skin conditions. The Journey Medical team comprises
industry experts with extensive experience in developing and commercializing some of dermatology's most successful prescription
brands. Journey Medical is located in Scottsdale, Arizona and was founded by Fortress Biotech, Inc. (Nasdaq: FBIO). Journey Medical's
common stock is registered under the Securities Exchange Act of 1934, as amended, and it files periodic reports with the U.S. Securities
and Exchange Commission ("SEC"). For additional information about Journey Medical, visit www.journeymedicalcorp.com.
Forward-Looking Statements
This press release may contain "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. As used below and throughout this press release, the words "the Company", "we", "us"
and "our" may refer to Journey Medical. Such statements include, but are not limited to, any statements relating to our growth
strategy and product development programs and any other statements that are not historical facts. The words "anticipate,"
"believe," "estimate," "may," "expect," "will," "could," "project,"
"intend," "potential" and similar expressions are generally intended to identify forward-looking statements. Forward-looking
statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect
our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from
those currently anticipated include: the fact that our products and product candidates are subject to time and cost intensive regulation
and clinical testing and as a result, may never be successfully developed or commercialized; a substantial portion of our sales derive
from products that may become subject to third-party generic competition, the introduction of new competitor products, or an increase
in market share of existing competitor products, any of which could have a significant adverse impact on our operating income; we operate
in a heavily regulated industry, and we cannot predict the impact that any future legislation or administrative or executive action may
have on our operations; our revenue is dependent mainly upon sales of our dermatology products and any setback relating to the sale of
such products could impair our operating results; competition could limit our products' commercial opportunity and profitability,
including competition from manufacturers of generic versions of our products; the risk that our products do not achieve broad market acceptance,
including by government and third-party payors; our reliance third parties for several aspects of our operations; our dependence on our
ability to identify, develop, and acquire or in-license products and integrate them into our operations, at which we may be unsuccessful;
the dependence of the success of our business, including our ability to finance our company and generate additional revenue, on the successful
commercialization of our recently approved product, EmrosiTM, and any future product candidates that we may develop, in-license
or acquire; clinical drug development is very expensive, time consuming, and uncertain and our clinical trials may fail to adequately
demonstrate the safety and efficacy of our current or any future product candidates; our competitors could develop and commercialize products
similar or identical to ours; risks related to the protection of our intellectual property and our potential inability to maintain sufficient
patent protection for our technology and products; our business and operations would suffer in the event of computer system failures,
cyber-attacks, or deficiencies in our or our third parties' cybersecurity; the substantial doubt about our ability to continue as
a going concern; the effects of major public health issues, epidemics or pandemics on our product revenues and any future clinical trials;
our potential need to raise additional capital; Fortress controls a voting majority of our common stock, which could be detrimental to
our other shareholders; as well as other risks described in Part I, Item 1A, "Risk Factors," in our Annual Report on Form
10-K for the year ended December 31, 2024, subsequent Reports on Form 10-Q, and our other filings we make with the SEC. We expressly disclaim
any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect
any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may
be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.
Media Relations Contact:
JOURNEY MEDICAL CORPORATION
Unaudited Consolidated
($ in thousands except for share and per share
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 21,070 | $ | 20,305 | ||||
| Accounts receivable, net of reserves | 18,025 | 10,231 | ||||||
| Inventory | 12,496 | 14,431 | ||||||
| Prepaid expenses and other current assets | 2,395 | 3,212 | ||||||
| Total current assets | 53,986 | 48,179 | ||||||
| Intangible assets, net | 30,798 | 31,863 | ||||||
| Operating lease right-of-use asset, net | 178 | 199 | ||||||
| Total assets | $ | 84,962 | $ | 80,241 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 14,404 | $ | 16,050 | ||||
| Due to related party | 399 | 528 | ||||||
| Accrued expenses | 23,011 | 17,425 | ||||||
| Accrued interest | 381 | 404 | ||||||
| Income taxes payable | 59 | 60 | ||||||
| Term loan - short-term | 1,875 | - | ||||||
| Installment payments - licenses, short-term | - | 625 | ||||||
| Operating lease liability, short-term | 93 | 83 | ||||||
| Total current liabilities | 40,222 | 35,175 | ||||||
| Term loan - long-term, net of discount | 23,105 | 24,879 | ||||||
| Operating lease liability, long-term | 94 | 118 | ||||||
| Total liabilities | 63,421 | 60,172 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $.0001 par value, 50,000,000 shares authorized, 17,104,437 and 16,153,610 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively | 1 | 1 | ||||||
| Common stock - Class A, $.0001 par value, 50,000,000 shares authorized, 6,000,000 shares issued and outstanding as of March 31, 2025 and December 31, 2024 | 1 | 1 | ||||||
| Additional paid-in capital | 112,639 | 107,094 | ||||||
| Accumulated deficit | (91,100 | ) | (87,027 | ) | ||||
| Total stockholders' equity | 21,541 | 20,069 | ||||||
| Total liabilities and stockholders' equity | $ | 84,962 | $ | 80,241 |
Unaudited Consolidated
Statements of Operations
except for share and per share amounts)
| Three-Month Periods Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue: | ||||||||
| Product revenue, net | $ | 13,139 | $ | 13,030 | ||||
| Operating expenses | ||||||||
| Cost of goods sold - (excluding amortization of acquired intangible assets) | 4,790 | 6,002 | ||||||
| Amortization of acquired intangible assets | 1,065 | 814 | ||||||
| Research and development | 39 | 7,884 | ||||||
| Selling, general and administrative | 10,569 | 8,420 | ||||||
| Total operating expenses | 16,463 | 23,120 | ||||||
| Loss from operations | (3,324 | ) | (10,090 | ) | ||||
| Other expense (income) | ||||||||
| Interest income | (149 | ) | (217 | ) | ||||
| Interest expense | 891 | 548 | ||||||
| Foreign exchange transaction losses | 7 | 21 | ||||||
| Total other expense (income) | 749 | 352 | ||||||
| Loss before income taxes | (4,073 | ) | (10,442 | ) | ||||
| Income tax expense | - | - | ||||||
| Net loss | $ | (4,073 | ) | $ | (10,442 | ) | ||
| Net loss per common share: | ||||||||
| Basic and diluted | $ | (0.18 | ) | $ | (0.53 | ) | ||
| Weighted average number of common shares: | ||||||||
| Basic and diluted | 22,611,040 | 19,757,449 |
Use of Non-GAAP Measures:
In addition to the GAAP financial measures as
presented in our Form 10-Q that will be filed with the Securities and Exchange Commission ("SEC"), the Company has, in this
press release, included certain non-GAAP measurements, including Adjusted EBITDA, Adjusted EBITDA per share basic and Adjusted EBITDA
per share diluted. We define Adjusted EBITDA as net income (loss) excluding interest, taxes and depreciation, less certain other non-cash