Verrica Pharmaceuticals Reports Fourth Quarter and Full-Year 2022 Financial Results New Drug Application for VP-102 assigned PDUFA goal date of

Verrica Pharmaceuticals Reports Fourth Quarter and Full-Year 2022 Financial Results

New Drug Application for VP-102 assigned PDUFA goal date of July 23, 2023

VP-102 has potential to address the approximately six million patients in the U.S. with molluscum

Dosing of first patient in Part 2 of Phase 2 study of VP-315 for treatment of

basal cell carcinoma expected in 2Q 2023

Raised gross proceeds of $32.5 million in secondary offering; pro forma cash and cash

equivalents to fund planned operations into 1Q 2024

WEST CHESTER, PA March 6, 2023 (GLOBE NEWSWIRE) Verrica Pharmaceuticals Inc. ( Verrica or the Company ) (Nasdaq:

VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced financial results for the fourth quarter and year ended December 31, 2022.

We continue to execute across all aspects of our business, highlighted by the FDA s recent acceptance of the filing of the resubmission of our NDA

for VP-102, which is being developed for the treatment of molluscum contagiosum, said Ted White, Verrica s President and Chief Executive Officer. Our potentially

first-in-class oncolytic peptide immunotherapy, VP-315, for the treatment of basal cell carcinoma also continues to advance, and

we remain on track to dose patients in Part 2 of our ongoing Phase 2 trial in the second quarter.

In parallel with our regulatory and clinical

accomplishments, we continue to make progress in our pre-commercial activities as we prepare for a potential U.S. launch of what could potentially be the first

FDA-approved therapy for molluscum a condition afflicting millions of children each year in the U.S. Utilizing our innovative

Buy-and-Bill commercial model, we believe shelf-stable products for in-office administration such as VP-102 can be efficiently distributed to reach this large and underserved patient population with minimal capital outlay for dermatology practices.

Business Highlights and Recent Developments

Fourth Quarter 2022 Financial Results

Full Year 2022 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, loss on debt extinguishment and non-cash interest expense that are required by GAAP. Verrica believes that

non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share provides useful information to both management and investors by excluding the effect of certain non-cash expenses and items that Verrica believes may not be indicative

of its operating performance, because either they are unusual and Verrica does not expect them to recur in the ordinary course of its business, or they are unrelated to the ongoing operation of the business in the ordinary course. 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 s lead product candidate, VP-102, is a proprietary drug-device combination product that contains a GMP-controlled formulation of cantharidin (0.7% w/v) delivered via a single-use applicator that allows for precise topical dosing and targeted administration. VP-102 could potentially be the first product approved by the FDA to treat molluscum contagiosum a common, highly contagious skin disease that affects an estimated six million people in the United States,

primarily children. Verrica is seeking conditional approval to market VP-102 in the United States under the brand name YCANTH . In addition, Verrica

has successfully completed a Phase 2 study of VP-102 for the treatment of common warts and a Phase 2 study of VP-102 for the treatment of external genital warts.

About Molluscum Contagiosum (Molluscum)

currently no FDA-approved treatments for molluscum, a highly contagious viral skin disease that affects approximately six million people primarily children in the United States. Molluscum is

caused by a pox virus that produces distinctive raised, skin-toned-to-pink-colored lesions that can cause pain, inflammation, itching and bacterial infection. It is

easily transmitted through direct skin-to-skin contact or through fomites (objects that carry the disease like toys, towels or wet surfaces) and can spread to other

parts of the body or to other people, including siblings. The lesions can be found on most areas of the body and may carry substantial social stigma. Without treatment, molluscum can last for an average of 13 months, and in some cases, up to several

About Verrica Pharmaceuticals Inc.

is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica s late-stage product candidate, VP-102, is in development to treat molluscum, common

warts and external genital warts, three of the largest unmet needs in medical dermatology. Verrica is also developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts.

The Company 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. 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 approval of VP-102 for the treatment of molluscum, the timing

of clinical trial completion for VP-315 and Verrica s cash and cash equivalents being sufficient to support planned operations into the first quarter of 2024. 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, uncertainties related to the COVID-19 pandemic and other risks and uncertainties that

are described in Verrica s Annual Report on Form 10-K for the year ended December 31, 2022 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.

VERRICA PHARMACEUTICALS INC.

Statements of Operations

(in thousands except share and per share data)

VERRICA PHARMACEUTICALS INC.

Selected Balance Sheet Data

VERRICA PHARMACEUTICAS INC.

Reconciliation of Non-GAAP Financial Measures (unaudited)

(in thousands except per share data)

FOR MORE INFORMATION, PLEASE CONTACT:

Chief Financial Officer