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reflected in such statements. Risks and uncertainties that may cause actual results our current beliefs, expectations and assumptions regarding the future of our business, to differ materially include uncertainties inherent in the drug development
process and future plans and strategies, our clinical results and other future conditions. All the regulatory approval process, our reliance on third parties over which we may not statements other than statements of historical facts contained in
this presentation, always have full control, and other risks and uncertainties that are described in our including statements regarding future results of operations and financial position, Annual Report on Form 10-K for the year ended December 31,
2019, filed with the U.S. business strategy, interactions with the FDA, including regarding the CRL Verrica Securities and Exchange Commission (SEC) on March 13, 2020, our Quarterly report on received related to its NDA submission for VP-102 for the
treatment of molluscum, Form 10-Q for the quarter ended June 30, 2020, filed with the SEC on August 5, 2020, current and prospective product candidates, planned clinical trials and preclinical and our other filings made with the SEC. New risk
factors and uncertainties may emerge activities, product approvals, degree of market acceptance of approved products, from time to time, and it is not possible to predict all risk factors and research and development costs, current and prospective
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or part of such investment. Investment future results of anticipated product candidates, are forward-looking statements. The results may vary significantly over any given time period. The appropriateness of a words "may,"
"will," "should," "expect," "plan," "anticipate," "could," "intend," "target," particular investment or strategy will depend on an investor's individual
circumstances "project," "estimate," "believe," "predict," "potential" or "continue" or the negative of and objectives. We recommend that investors independently evaluate
specific these terms or other similar expressions are intended to identify forward-looking investments and strategies. statements, although not all forward-looking statements contain these identifying words. 2 Copyright 2020 Verrica
or is based on studies, publications, surveys and other data statements contained herein, represent our views as of the date of this presentation. obtained from third-party sources and Verrica's own internal estimates and research. Although we
believe the expectations reflected in such forward-looking statements are While Verrica believes these third-party sources to be reliable as of the date of this reasonable, we can give no assurance that such expectations will prove to be correct.
presentation, it has not independently verified, and makes no representation as to the Accordingly, readers are cautioned not to place undue reliance on these forward- adequacy, fairness, accuracy or completeness of, any information obtained from
third- looking statements. Except as required by applicable law, we do not plan to publicly party sources. While Verrica believes its internal research is reliable, such research has update or revise any forward-looking statements contained herein,
whether as a result not been verified by any independent source. of any new information, future events, changed circumstances or otherwise. No representations or warranties (expressed or implied) are made about the accuracy of any such
forward-looking statements. The forward-looking statements in this presentation This presentation contains forward-looking statements. Forward-looking statements are involve risks and uncertainties that could cause actual results to differ
materially from neither historical facts nor assurances of future performance. Instead, they are based on those reflected in such statements. Risks and uncertainties that may cause actual results our current beliefs, expectations and assumptions
regarding the future of our business, to differ materially include uncertainties inherent in the drug development process and future plans and strategies, our clinical results and other future conditions. All the regulatory approval process, our
reliance on third parties over which we may not statements other than statements of historical facts contained in this presentation, always have full control, and other risks and uncertainties that are described in our including statements regarding
future results of operations and financial position, Annual Report on Form 10-K for the year ended December 31, 2019, filed with the U.S. business strategy, interactions with the FDA, including regarding the CRL Verrica Securities and Exchange
Commission (SEC) on March 13, 2020, our Quarterly report on received related to its NDA submission for VP-102 for the treatment of molluscum, Form 10-Q for the quarter ended June 30, 2020, filed with the SEC on August 5, 2020, current and
prospective product candidates, planned clinical trials and preclinical and our other filings made with the SEC. New risk factors and uncertainties may emerge activities, product approvals, degree of market acceptance of approved products, from time
to time, and it is not possible to predict all risk factors and research and development costs, current and prospective collaborations, timing and uncertainties. There can be no assurance that the opportunity will meet your investment likelihood of
success, plans and objectives of management for future operations, and objectives, that you will receive a return of all or part of such investment. Investment future results of anticipated product candidates, are forward-looking statements. The
results may vary significantly over any given time period. The appropriateness of a words "may," "will," "should," "expect," "plan," "anticipate," "could,"
"intend," "target," particular investment or strategy will depend on an investor's individual circumstances "project," "estimate," "believe," "predict," "potential"
or "continue" or the negative of and objectives. We recommend that investors independently evaluate specific these terms or other similar expressions are intended to identify forward-looking investments and strategies. statements,
Providing meaningful benefit for people living with skin diseases
INVESTMENT HIGHLIGHTS Dermatology Oncology YCANTH in Development
to Address Two of the Largest Unmet Needs in Dermatology Worldwide rights to LTX-315: first-in-class oncolytic peptide injected directly into tumor (1) Prevalence of ~6 million in molluscum contagiosum (2) Positive
tumor-specific immune cell responses in multi- and ~22 million in common warts in the U.S. indication Phase 1/2 oncology trials No FDA approved drugs to treat molluscum or warts Verrica to focus initially on development to treat
basal cell and squamous cell carcinomas Type A Meeting Request with FDA submitted August 2020 for YCANTH (VP-102) for the Treatment of Molluscum 5.4 million diagnoses annually in the U.S. of basal and (4) squamous cell skin cancers ;
patients typically treated with CRL received July 2020 focused on CMC and human factors surgery validation (no clinical safety or efficacy deficiencies) Submission of U.S. IND anticipated during first half of 2021 Positive Phase 3
Results in Molluscum Contagiosum Achieved statistical significance for primary endpoints in two Option Agreement with Torii Pharmaceuticals for pivotal trials for YCANTH (VP-102) Development and Commercialization of VP-102 in Japan
Torii option includes Verrica product candidates for the P-value <0.0001 for primary endpoint in both pivotal trials treatment of molluscum and common warts in Japan Innovative Product Candidate Proven Team Proprietary
drug-device combination of formulation Industry-leading, experienced management team with extensive and single-use applicator dermatology product launch experience Physician Acceptance Strengthened clinical and drug development
leadership in (3) August 2020 95% of pediatric dermatologists have used API (1) Prevalence in the US of 5.1% to 11.5% in children aged 0-16 years. (Fam Pract. 2014 Apr;31(2):130-6). US Census estimates ~69.4MM children aged 0 to 16 years in
2016. (2) IMS National Disease and Therapeutic Index (NDTI) Rolling 5 Years Ending June 2016. Nguyen et al, Laser Treatment of Nongenital Verrucae A Systemic Review. JAMA Dermatology. 2016; 152(9): 1025-1033 (3) Based on a survey of 115
dermatologists the results of which have been extrapolated to pediatric dermatologists. (4) https://www.cancer.org/cancer/basal-and-squamous-cell-skin-cancer/about/key-statistics.html and Rogers JAMA Derm 2015 4 Copyright 2020 Verrica
directly into tumor (1) Prevalence of ~6 million in molluscum contagiosum (2) Positive tumor-specific immune cell responses in multi- and ~22 million in common warts in the U.S. indication Phase 1/2 oncology trials No FDA
approved drugs to treat molluscum or warts Verrica to focus initially on development to treat basal cell and squamous cell carcinomas Type A Meeting Request with FDA submitted August 2020 for YCANTH (VP-102) for the Treatment of
Molluscum 5.4 million diagnoses annually in the U.S. of basal and (4) squamous cell skin cancers ; patients typically treated with CRL received July 2020 focused on CMC and human factors surgery validation (no clinical safety or
efficacy deficiencies) Submission of U.S. IND anticipated during first half of 2021 Positive Phase 3 Results in Molluscum Contagiosum Achieved statistical significance for primary endpoints in two Option Agreement with Torii
Pharmaceuticals for pivotal trials for YCANTH (VP-102) Development and Commercialization of VP-102 in Japan Torii option includes Verrica product candidates for the P-value <0.0001 for primary endpoint in both pivotal
trials treatment of molluscum and common warts in Japan Innovative Product Candidate Proven Team Proprietary drug-device combination of formulation Industry-leading, experienced management team with extensive and single-use
applicator dermatology product launch experience Physician Acceptance Strengthened clinical and drug development leadership in (3) August 2020 95% of pediatric dermatologists have used API (1) Prevalence in the US of 5.1% to 11.5% in
children aged 0-16 years. (Fam Pract. 2014 Apr;31(2):130-6). US Census estimates ~69.4MM children aged 0 to 16 years in 2016. (2) IMS National Disease and Therapeutic Index (NDTI) Rolling 5 Years Ending June 2016. Nguyen et al, Laser Treatment of
Nongenital Verrucae A Systemic Review. JAMA Dermatology. 2016; 152(9): 1025-1033 (3) Based on a survey of 115 dermatologists the results of which have been extrapolated to pediatric dermatologists. (4)
OUR PRODUCT PORTFOLIO NEXT EXPECTED PRE-IND PHASE 2 PHASE 3 NDA
MILESTONE FDA Type A Meeting in September/October Molluscum Contagiosum 2020* Initiate pivotal Phase 3 Common Warts trials** Topline Phase 2 results External Genital Warts in 2H 2020 Initiate Phase 2 trial** Plantar Warts Non-Melanoma Submit US IND
during 1H 2021 Skin Cancer*** * July 13, 2020 CRL focused on CMC and human factors validation - no clinical data requested ** Timing for initiating new clinical trials to be determined *** Initially focused on basal cell and squamous cell carcinomas
pivotal Phase 3 Common Warts trials** Topline Phase 2 results External Genital Warts in 2H 2020 Initiate Phase 2 trial** Plantar Warts Non-Melanoma Submit US IND during 1H 2021 Skin Cancer*** * July 13, 2020 CRL focused on CMC and human factors
VP-103 VP-102 YCANTH
YCANTH IN DEVELOPMENT TO ADDRESS TWO OF THE LARGEST UNMET NEEDS
IN DERMATOLOGY Common Warts Molluscum (3) (1) US Prevalence of ~22 million with US Prevalence of ~6 million with (4) (2) ~1.5 million diagnosed annually ~1 million diagnosed annually 22M 85% Prevalence in U.S. Not Diagnosed 5.1 million 1.5M Patients
Diagnosed Annually 15% Diagnosed 0.9 million (1) Prevalence in the US of 5.1% to 11.5% in children aged 0-16 years. (Fam Pract. 2014 Apr;31(2):130-6). US Census estimates ~69.4MM children aged 0 to 16 years in 2016. (2) IQVIA projected dataset for
12 months ending October 2017 (3) IMS National Disease and Therapeutic Index (NDTI) Rolling 5 Years Ending June 2016. Nguyen et al, Laser Treatment of Nongenital Verrucae A Systemic Review. JAMA Dermatology. 2016; 152(9): 1025-1033 (4) IQVIA
Warts Molluscum (3) (1) US Prevalence of ~22 million with US Prevalence of ~6 million with (4) (2) ~1.5 million diagnosed annually ~1 million diagnosed annually 22M 85% Prevalence in U.S. Not Diagnosed 5.1 million 1.5M Patients Diagnosed Annually
15% Diagnosed 0.9 million (1) Prevalence in the US of 5.1% to 11.5% in children aged 0-16 years. (Fam Pract. 2014 Apr;31(2):130-6). US Census estimates ~69.4MM children aged 0 to 16 years in 2016. (2) IQVIA projected dataset for 12 months ending
October 2017 (3) IMS National Disease and Therapeutic Index (NDTI) Rolling 5 Years Ending June 2016. Nguyen et al, Laser Treatment of Nongenital Verrucae A Systemic Review. JAMA Dermatology. 2016; 152(9): 1025-1033 (4) IQVIA Anonymous Longitudinal
THE PROBLEM Molluscum Contagiosum Copyright 2020 Verrica
MOLLUSCUM BACKGROUND ETIOLOGY AND CLINICAL PRESENTATION OVERVIEW
Skin to skin contact Caused by a pox virus Transmission Sharing of contaminated objects (e.g., clothing, towels, swimming pool toys) Primarily infects children, with the highest incidence occurring in children <14 years old Diagnosis
Typically 10 to 30 lesions & Symptoms 100+ lesions can be observed Highly contagious Lesions may be the only sign of infection and are often painless If untreated, lesions persist an Can be diagnosed with skin
biopsy average of 13 months, with some cases to differentiate from other lesions remaining unresolved for 2+ years Skin irritation, inflammation, and re-infection Complications Often leads to anxiety and social Follicular or
toys) Primarily infects children, with the highest incidence occurring in children <14 years old Diagnosis Typically 10 to 30 lesions & Symptoms 100+ lesions can be observed Highly contagious Lesions may be the only
sign of infection and are often painless If untreated, lesions persist an Can be diagnosed with skin biopsy average of 13 months, with some cases to differentiate from other lesions remaining unresolved for 2+ years Skin irritation,
inflammation, and re-infection Complications Often leads to anxiety and social Follicular or papillary conjunctivitis if lesions on eyelids challenges for the patients and parents and negatively impacts quality of life Cellulitis
CURRENT DESCRIPTION LIMITATIONS TREATMENTS Pain and scarring
Freezing the lesions FOR MOLLUSCUM Cryotherapy with liquid nitrogen Unsuitable for use in children ARE NOT FDA Using a curette or a surgical APPROVED AND Pain and scarring instrument with a scoop at Curettage Unsuitable for
use in children HAVE MANY the tip to scrape the lesions LIMITATIONS Pain, cost and lack Laser Applying a laser to target of availability and destroy the lesions Surgery Unsuitable for use in children Applying various acids Topical
(e.g. salicylic acid), creams Unproven efficacy or blistering solutions to Broad use limited by Products destroy the lesions unproven efficacy, scarring, lack of availability, Retinoids, antiviral Limited efficacy Off-Label safety
concerns & pain medicines, or immune Side-effects Drugs modulating therapies Significantly Unproven efficacy Applying natural oils undertreated Natural (e.g. tea tree oil) with Pain, irritation and Remedies antimicrobial
nitrogen Unsuitable for use in children ARE NOT FDA Using a curette or a surgical APPROVED AND Pain and scarring instrument with a scoop at Curettage Unsuitable for use in children HAVE MANY the tip to scrape the lesions
LIMITATIONS Pain, cost and lack Laser Applying a laser to target of availability and destroy the lesions Surgery Unsuitable for use in children Applying various acids Topical (e.g. salicylic acid), creams Unproven efficacy or
blistering solutions to Broad use limited by Products destroy the lesions unproven efficacy, scarring, lack of availability, Retinoids, antiviral Limited efficacy Off-Label safety concerns & pain medicines, or immune Side-effects
Drugs modulating therapies Significantly Unproven efficacy Applying natural oils undertreated Natural (e.g. tea tree oil) with Pain, irritation and Remedies antimicrobial properties patient population allergic reactions 9 Copyright
THE SOLUTION YCANTH (VP-102) Copyright 2020 Verrica
YCANTH (VP-102) IS A PROPRIETARY DRUG-DEVICE COMBINATION OF
CANTHARIDIN ADMINISTERED THROUGH OUR SINGLE-USE PRECISION APPLICATOR GMP-controlled new formulation of 0.7% w/v cantharidin Consistent and shelf-stable Single-use applicator to reduce cross-contamination and allow for more effective
Consistent and shelf-stable Single-use applicator to reduce cross-contamination and allow for more effective application of drug by HCP Visualization agent to identify treated lesions Bittering agent to deter oral ingestion Clinician administered,
REGULATORY STATUS NDA for VP-102 for molluscum contagiosum
submitted in September 2019 CRL received July 2020 No clinical safety or efficacy issues identified Requests for additional information regarding certain aspects of CMC and Human Factors validation Next steps
Request Type A meeting with FDA to determine path forward to resubmission of NDA Accelerating incorporation of ampule breaking tool Previously planned to incorporate ampule breaking tool post-approval as a potential convenience for
molluscum contagiosum submitted in September 2019 CRL received July 2020 No clinical safety or efficacy issues identified Requests for additional information regarding certain aspects of CMC and Human Factors validation
Next steps Request Type A meeting with FDA to determine path forward to resubmission of NDA Accelerating incorporation of ampule breaking tool Previously planned to incorporate ampule breaking tool post-approval as a
Molluscum Clinical Evidence Copyright 2020 Verrica
CANTHARIDIN ELICITS A DUAL RESPONSE IN THE SKIN 1 Superficial
blistering of lesional skin 2 Elicits Inflammation & Immune Response Cantharidin is a vesicant, causing the Cantharidin stimulates leukocyte infiltration (e.g., pharmacodynamic response of blistering in the skin. neutrophils, macrophages, B and
T cells and eosinophils) and the release of chemokines and cytokines including Once applied, cantharidin activates neutral (2) TNF-a, IL-8 and CXCL-5. serine proteases that cause degeneration of the (1) desmosomal plaque and intraepidermal
blistering. Desmosome Cleavage and Blister Formation Lymphocyte Neutrophil Eosinophil Macrophage (1) J Invest Dermatol. 1962 Jul;39:39-45. (2) J Immunol Methods. 2001 Nov 1;257(1-2):213-20.2 14 Copyright 2020 Verrica Pharmaceuticals. All