Full Press Release Details
Verrica Pharmaceuticals Reports First Quarter 2024 Financial Results
Reports YCANTH revenue of $3.2M for first quarter of 2024
Over 228 million lives now covered to date on commercial insurance, managed Medicaid, Tricare and Federal Employee plans
Preliminary Phase 2 results for VP-315 in the treatment of basal cell carcinoma (BCC)
expected in the second quarter of 2024
Conference Call Scheduled for Today at 8:30 am ET
WEST CHESTER, PA May 13, 2024 (GLOBE NEWSWIRE) Verrica Pharmaceuticals Inc. ( Verrica ) (Nasdaq: VRCA), a dermatology therapeutics
company developing medications for skin diseases requiring medical interventions, today announced financial results for the first quarter ended March 31, 2024.
The first quarter of 2024 marked a period of significant accomplishments across our business, as we continued to expand utilization of YCANTH, received
a permanent J-Code from CMS, and secured new chemical entity status from the FDA for YCANTH, said Ted White, Verrica s President and Chief Executive Officer. I am also pleased to report that
we have seen a meaningful uptick in prescription growth and onboarding of buy and bill accounts following the listing of the permanent J-Code for YCANTH, which went into effect on April 1.
Looking ahead, this quarter we expect to
announce Phase 2 results from our lead pipeline candidate, VP-315, which is being evaluated for the treatment of basal cell carcinoma. As a potential first-in-class oncolytic peptide, VP-315 is designed to have a direct killing activity of the cancer cells, and also to stimulate the immune system to recognize,
infiltrate, and attack the cancer. We expect to share data from the Phase 2 study later this quarter, and we are excited about VP-315 s potential to provide an important treatment alternative for the
thousands of patients who are diagnosed each year with BCC.
Conference Call and Webcast Information
The Company will host a conference call today, Monday, May 13, 2024, at 8:30 AM, Eastern Time, to discuss its first quarter 2024 financial results and
provide a business update. To participate in the conference call, please utilize the following information:
Domestic Dial-In Number: Toll-Free: 1-877-407-4018
International Dial-In Number: 1-201-689-8471
Conference ID: 13746100
The call will also be broadcast live over the Web and can be accessed on Verrica Pharmaceuticals website:
The conference call will also be
available for replay for one month on the Company s website in the Events Calendar of the Investors section.
Business Highlights and Recent
First Quarter 2024 Financial Results
Non-GAAP Financial Measures
In evaluating the operating performance of its business, Verrica s management considers non-GAAP loss
from operations, non-GAAP net loss and non-GAAP net loss per share. These non-GAAP financial
measures exclude stock-based compensation charges and non-cash interest expense that are required by GAAP. Verrica excludes non-cash stock-based compensation
expense from these non-GAAP measures to facilitate comparison to peer companies who also provide similar non-GAAP disclosures and because it reflects how management
internally manages the business. In addition, Verrica excludes non-cash interest expense from these non-GAAP measures to facilitate an understanding of the effects of
the debt service obligations on the Company s liquidity and comparisons to peer group companies who also provide similar non-GAAP disclosures and because it is reflective of how management internally
manages the business. Non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share
should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share have been reconciled to the nearest GAAP measure in the tables following the financial
statements in this press release.
VERRICA PHARMACEUTICALS INC.
Statements of Operations
(in thousands except share and per share data)
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue: | ||||||||
| Product revenue, net | $ | 3,232 | $ | |||||
| Collaboration revenue | 594 | 37 | ||||||
| Total revenue | 3,826 | 37 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 16,339 | 4,319 | ||||||
| Research and development | 4,948 | 2,739 | ||||||
| Cost of product revenue | 546 | |||||||
| Cost of collaboration revenue | 592 | 68 | ||||||
| Total operating expenses | 22,425 | 7,126 | ||||||
| Loss from operations | (18,599 | ) | (7,089 | ) | ||||
| Interest income | 598 | 500 | ||||||
| Interest expense | (2,319 | ) | ||||||
| Other expense | (11 | ) | ||||||
| Net loss | $ | (20,331 | ) | $ | (6,589 | ) | ||
| Net loss per share, basic and diluted | $ | (0.44 | ) | $ | (0.15 | ) | ||
| Weighted-average common shares outstanding, basic and diluted | 46,483,669 | 43,023,379 |
VERRICA PHARMACEUTICALS INC.
Selected Balance Sheet Data
| March 31, 2024 | December 31, 2023 | |||||||
| Cash and cash equivalents | $ | 48,939 | $ | 69,547 | ||||
| Other current assets | 12,437 | 7,983 | ||||||
| Total current assets | 61,376 | 77,530 | ||||||
| PP&E and other non-current assets | 4,931 | 4,067 | ||||||
| Total assets | $ | 66,307 | $ | 81,597 | ||||
| Total liabilities | $ | 64,799 | $ | 61,834 | ||||
| Total stockholders equity | 1,508 | 19,763 | ||||||
| Total liabilities and stockholders equity | $ | 66,307 | $ | 81,597 |
VERRICA PHARMACEUTICALS INC.
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
| Three Months Ended March 31, 2024 | ||||||||||||
| Loss from operations | Net loss | Net loss per share | ||||||||||
| GAAP | $ | (18,599 | ) | $ | (20,331 | ) | $ | (0.44 | ) | |||
| Non-GAAP Adjustments: | ||||||||||||
| Stock-based compensation | ||||||||||||
| Selling, general, and administrative (a) | 1,622 | 1,622 | ||||||||||
| Stock-based compensation | ||||||||||||
| Research and development (a) | 450 | 450 | ||||||||||
| Non-cash interest expense (b) | 483 | |||||||||||
| Adjusted | $ | (16,527 | ) | $ | (17,776 | ) | $ | (0.38 | ) | |||
| Three Months Ended March 31, 2023 | ||||||||||||
| Loss from operations | Net loss | Net loss per share | ||||||||||
| GAAP | $ | (7,089 | ) | $ | (6,589 | ) | $ | (0.15 | ) | |||
| Non-GAAP Adjustments: | ||||||||||||
| Stock-based compensation | ||||||||||||
| Selling, general, and administrative (a) | 836 | 836 | ||||||||||
| Stock-based compensation | ||||||||||||
| Research and development (a) | 258 | 258 | ||||||||||
| Adjusted | $ | (5,995 | ) | $ | (5,495 | ) | $ | (0.13 | ) |
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 molluscum a common, highly contagious skin disease that affects an estimated
six million people in the United States, primarily children. Please visit YCANTHPro.com for additional information.
In addition, Verrica has successfully
completed a Phase 2 study of YCANTH (VP-102) for the treatment of common warts and a Phase 2 study of YCANTH (VP-102) for the treatment of external genital warts.
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 lead product, YCANTH (cantharidin), is the first treatment approved by the FDA to treat pediatric and adult patients 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 potentially treat common warts and external
genital warts, two of the largest unmet needs in medical dermatology. 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 dermatologic oncology conditions. Verrica is developing VP-103, its
second cantharidin-based product candidate, for the treatment of plantar warts. For more information, visit www.verrica.com.
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
expectations regarding the continuing commercial launch of YCANTH , the potential for the J-Code to accelerate utilization of YCANTH, future financial
performance, the clinical development of Verrica s
product candidates, including the timing of reporting data from clinical trials, the potential benefits of YCANTH and Verrica s product candidates and Verrica s ability to fund its
operations into the first quarter of 2025. 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 uncertainties inherent in the drug development process and the regulatory approval process, Verrica s reliance on third parties over which it may not always have full control and uncertainties that are described in
Verrica s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and other
filings Verrica makes with the U.S. Securities and Exchange Commission. 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:
Chief Financial Officer