Full Press Release Details
Journey Medical Corporation Reports Second
Quarter 2024 Financial Results and Recent Corporate Highlights
New Drug Application for DFD-29 to treat rosacea
under FDA review; PDUFA goal date of November 4, 2024
revenues for the second quarter ended June 30, 2024 were $14.9 million, a 14% increase from the $13.0 million reported
in the first quarter of 2024
Company to hold conference
call today at 4:30 p.m. ET to discuss the financial results and provide a business update
AZ - August 12, 2024 - Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical" or "the
Company"), a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of 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 second quarter ended June 30, 2024.
Maraoui, Journey Medical's Co-Founder, President and Chief Executive Officer, said, "We continued to execute on our business
plan in the second quarter, delivering $14.9 million in total net product revenue and positive Adjusted EBITDA. We are pleased with these
results, particularly given our strategic decision to reduce the Company's expense base in 2023. We believe that the business is
now sufficiently right-sized to support our core dermatology franchise and effectively launch DFD-29. We're looking forward to
the DFD-29 PDUFA date and anticipate a productive second half of 2024 with additional business progress and continued financial performance.
Importantly, we grew revenue 14% sequentially from the first quarter of this year as we remain on track to deliver on our 2024
financial guidance. We also strengthened our corporate team with the appointment of Joseph M. Benesch as our permanent Chief Financial
Officer and the appointment of Michael C. Pearce to our Board of Directors."
Recent Corporate Highlights:
Conference Call and Webcast Information
Journey Medical management will conduct a conference
call and audio webcast on August 12, 2024, at 4:30 p.m. ET.
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/10190841/fd0fed9bae. Please
note that registered participants will receive their dial-in number upon registration.
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.
About Journey Medical Corporation
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 seven branded and two generic products 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 development and regulatory approval of the DFD-29 product candidate 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, 2023, 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:
Unaudited Consolidated
($ in thousands except
for share and per share amounts)
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 23,912 | $ | 27,439 | ||||
| Accounts receivable, net of reserves | 10,465 | 15,222 | ||||||
| Inventory | 9,687 | 10,206 | ||||||
| Prepaid expenses and other current assets | 2,406 | 3,588 | ||||||
| Total current assets | 46,470 | 56,455 | ||||||
| Intangible assets, net | 18,658 | 20,287 | ||||||
| Operating lease right-of-use asset, net | 55 | 101 | ||||||
| Other assets | 6 | 6 | ||||||
| Total assets | $ | 65,189 | $ | 76,849 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 14,604 | $ | 18,149 | ||||
| Due to related party | 260 | 195 | ||||||
| Accrued expenses | 15,972 | 20,350 | ||||||
| Accrued interest | 251 | 22 | ||||||
| Income taxes payable | - | 53 | ||||||
| Installment payments - licenses, short-term | 3,000 | 3,000 | ||||||
| Operating lease liability, short-term | 59 | 99 | ||||||
| Total current liabilities | 34,146 | 41,868 | ||||||
| Term loan, long-term, net of debt discount | 19,748 | 14,622 | ||||||
| Operating lease liability, long-term | - | 9 | ||||||
| Total liabilities | 53,894 | 56,499 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $.0001 par value, 50,000,000 shares authorized, 14,018,146 and 13,323,952 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 1 | 1 | ||||||
| Common stock - Class A, $.0001 par value, 50,000,000 shares authorized, 6,000,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 1 | 1 | ||||||
| Additional paid-in capital | 97,451 | 92,703 | ||||||
| Accumulated deficit | (86,158 | ) | (72,355 | ) | ||||
| Total stockholders' equity | 11,295 | 20,350 | ||||||
| Total liabilities and stockholders' equity | $ | 65,189 | $ | 76,849 |
Consolidated Statements of Operations
in thousands except for share and per share amounts)
| Three-Month Periods Ended | Six-Month Periods Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue, net | $ | 14,855 | $ | 16,961 | $ | 27,885 | $ | 29,126 | ||||||||
| Other revenue | - | 211 | - | 259 | ||||||||||||
| Total revenue | 14,855 | 17,172 | 27,885 | 29,385 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Cost of goods sold - product revenue | 6,541 | 7,767 | 13,357 | 14,216 | ||||||||||||
| Research and development | 913 | 1,774 | 8,797 | 3,807 | ||||||||||||
| Selling, general and administrative | 10,328 | 12,141 | 18,748 | 25,433 | ||||||||||||
| Loss on impairment of intangible assets | - | 3,143 | - | 3,143 | ||||||||||||
| Total operating expenses | 17,782 | 24,825 | 40,902 | 46,599 | ||||||||||||
| Loss from operations | (2,927 | ) | (7,653 | ) | (13,017 | ) | (17,214 | ) | ||||||||
| Other expense (income) | ||||||||||||||||
| Interest income | (161 | ) | (79 | ) | (378 | ) | (201 | ) | ||||||||
| Interest expense | 563 | 756 | 1,111 | 1,406 | ||||||||||||
| Foreign exchange transaction losses | 32 | 33 | 53 | 80 | ||||||||||||
| Total other expense (income) | 434 | 710 | 786 | 1,285 | ||||||||||||
| Loss before income taxes | (3,361 | ) | (8,363 | ) | (13,803 | ) | (18,499 | ) | ||||||||
| Income tax expense | - | - | - | - | ||||||||||||
| Net loss | $ | (3,361 | ) | $ | (8,363 | ) | $ | (13,803 | ) | $ | (18,499 | ) | ||||
| Net loss per common share: | ||||||||||||||||
| Basic and diluted | $ | (0.17 | ) | $ | (0.46 | ) | $ | (0.69 | ) | $ | (1.03 | ) | ||||
| Weighted average number of common shares: | ||||||||||||||||
| Basic and diluted | 19,993,858 | 18,005,055 | 19,875,653 | 17,906,671 |
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
and infrequent items not considered to be normal, recurring operating expenses, including, share-based compensation expense, amortization
and impairments of acquired intangible assets, severance, short-term research and development expense and foreign exchange transaction
losses. In particular, we exclude the following matters for the reasons more fully described below:
Adjusted EBITDA per share basic and Adjusted
EBITDA per share diluted are determined by dividing the resulting Adjusted EBITDA by the number of shares outstanding on an actual and
fully diluted basis.
Management believes the use of these non-GAAP
measures provide meaningful supplemental information regarding the Company's performance because (i) it allows for greater transparency
with respect to key measures used by management in its financial and operational decision-making, (ii) it excludes the impact of non-cash
or, when specified, non-recurring items that are not directly attributable to the Company's core operating performance and that
may obscure trends in the Company's core operating performance and (iii) it is used by institutional investors and the analyst
community to help analyze the Company's results. However, Adjusted EBITDA, Adjusted EBITDA per share basic, Adjusted EBITDA per share