Full Press Release Details
Journey Medical Corporation Reports Second Quarter
2025 Financial Results and Recent Corporate Highlights
Second quarter 2025 revenues were $15.0 million
Emrosi net sales of $2.8 million generated
in first full quarter on the market
The Company joined the Russell 2000 and
Russell 3000 Indexes in June 2025
Company to hold conference
call today at 4:30 p.m. ET to discuss the financial results and provide a business update
Scottsdale, AZ - August 12, 2025
- Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical," "the Company," "we" or "our"),
a commercial-stage pharmaceutical company primarily focused on selling and marketing 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, 2025.
Claude Maraoui, Journey Medical's Co-Founder,
President and Chief Executive Officer, said, "We are pleased to report solid results for the second quarter of 2025, with total
revenue of $15 million and a net sales contribution from Emrosi of $2.8 million during the period. The second quarter marks the
first full quarter since Emrosi entered the market, and in a short period of time, we have delivered a strong initial prescription
ramp for the product while payer coverage continues to expand. This momentum reflects growing physician and payer adoption, and confidence
in Emrosi's differentiated profile, including statistically superior efficacy versus Oracea and placebo, as published in the
Journal of the American Medical Association (JAMA) - Dermatology. With the Emrosi launch showing strong traction out of the
gate, continued improvement in cash generation, and the execution of our focused dermatology commercial organization, we believe Journey
Medical is well-positioned for continued growth and operating leverage in the second half of 2025 and beyond."
Recent Corporate Highlights:
Conference Call and Webcast Information
Journey Medical management will conduct a conference
call and audio webcast on August 12, 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/10201702/ffa49f90a2. 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.
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," "continue." "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 Condensed Consolidated Balance Sheets
(Dollars in thousands except for share and per
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 20,293 | $ | 20,305 | ||||
| Accounts receivable, net of reserves | 15,644 | 10,231 | ||||||
| Inventory | 12,852 | 14,431 | ||||||
| Prepaid expenses and other current assets | 2,479 | 3,212 | ||||||
| Total current assets | 51,268 | 48,179 | ||||||
| Intangible assets, net | 29,734 | 31,863 | ||||||
| Operating lease right-of-use asset, net | 156 | 199 | ||||||
| Total assets | $ | 81,158 | $ | 80,241 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 12,754 | $ | 16,050 | ||||
| Due to related party | 840 | 528 | ||||||
| Accrued expenses | 22,554 | 17,425 | ||||||
| Accrued interest | 416 | 404 | ||||||
| Income taxes payable | 71 | 60 | ||||||
| Term loan - short-term | 3,750 | - | ||||||
| Installment payments - licenses, short-term | - | 625 | ||||||
| Operating lease liability, short-term | 96 | 83 | ||||||
| Total current liabilities | 40,481 | 35,175 | ||||||
| Term loan, long-term, net of debt discount | 21,362 | 24,879 | ||||||
| Operating lease liability, long-term | 69 | 118 | ||||||
| Total liabilities | 61,912 | 60,172 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $.0001 par value, 50,000,000 shares authorized, 17,471,835 and 16,153,610 shares issued and outstanding as of June 30, 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 June 30, 2025 and December 31, 2024 | 1 | 1 | ||||||
| Additional paid-in capital | 114,140 | 107,094 | ||||||
| Accumulated deficit | (94,896 | ) | (87,027 | ) | ||||
| Total stockholders' equity | 19,246 | 20,069 | ||||||
| Total liabilities and stockholders' equity | $ | 81,158 | $ | 80,241 |
JOURNEY MEDICAL CORPORATION
Unaudited Condensed Consolidated Statements
(Dollars in thousands except for share and per
| Three-Month Periods Ended | Six-Month Periods Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue, net | $ | 15,009 | $ | 14,855 | $ | 28,148 | $ | 27,885 | ||||||||
| Operating expenses | ||||||||||||||||
| Cost of goods sold - (excluding amortization of acquired intangible assets) | 4,939 | 5,727 | 9,729 | 11,728 | ||||||||||||
| Amortization of acquired intangible assets | 1,064 | 814 | 2,129 | 1,629 | ||||||||||||
| Research and development | - | 913 | 39 | 8,797 | ||||||||||||
| Selling, general and administrative | 11,882 | 10,328 | 22,451 | 18,748 | ||||||||||||
| Total operating expenses | 17,885 | 17,782 | 34,348 | 40,902 | ||||||||||||
| Loss from operations | (2,876 | ) | (2,927 | ) | (6,200 | ) | (13,017 | ) | ||||||||
| Other expense (income) | ||||||||||||||||
| Interest income | (138 | ) | (161 | ) | (287 | ) | (378 | ) | ||||||||
| Interest expense | 937 | 563 | 1,828 | 1,111 | ||||||||||||
| Foreign exchange transaction losses | 61 | 32 | 68 | 53 | ||||||||||||
| Total other expense (income) | 860 | 434 | 1,609 | 786 | ||||||||||||
| Loss before income taxes | (3,736 | ) | (3,361 | ) | (7,809 | ) | (13,803 | ) | ||||||||
| Income tax expense | 60 | - | 60 | - | ||||||||||||
| Net loss | $ | (3,796 | ) | $ | (3,361 | ) | $ | (7,869 | ) | $ | (13,803 | ) | ||||
| Net loss per common share: | ||||||||||||||||
| Basic and diluted | $ | (0.16 | ) | $ | (0.17 | ) | $ | (0.34 | ) | $ | (0.69 | ) | ||||
| Weighted average number of common shares: | ||||||||||||||||
| Basic and diluted | 23,290,806 | 19,993,858 | 22,952,801 | 19,875,653 |
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, inventory step-ups from the purchases of intangibles assets and products, 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