Full Press Release Details
Verrica Pharmaceuticals Reports Fourth Quarter and Full-Year 2023 Financial Results
Reports YCANTH revenue of $1.9M for fourth quarter and $4.7M for full year
Over 200 million lives now covered on commercial insurance and managed Medicaid plans
Conference Call Scheduled for Today at 8:30 am ET
WEST CHESTER, PA Feb 29, 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 fourth quarter and year ended December 31, 2023.
We continued to make considerable progress with the launch of YCANTH during our first full
quarter of commercial operations, said Ted White, Verrica s President and Chief Executive Officer. With a growing confidence and adoption in our prescriber base, over 200 million commercial and Medicaid lives now covered, a
permanent J-code that will be published on April 1, and a significant decrease in the availability and supply of improperly compounded cantharidin, we continue to execute on the core pillars of our YCANTH launch strategy. With these fundamentals in place, we look forward to accelerating the trajectory of the YCANTH launch in 2024.
During the quarter, we also continued to advance our pipeline. As previously announced, we recently held a successful meeting with the FDA where we gained
alignment on the Phase 3 clinical trial for evaluating YCANTH (VP-102) for the treatment of common warts. With a prevalence of 22 million patients in the U.S. alone, common warts represents one of the
largest unmet needs in dermatology. We also announced the completion of enrollment in the ongoing Phase 2 study evaluating our novel oncolytic peptide, VP-315, for the treatment of basal cell carcinoma. We
expect initial results from our VP-315 study in the first half of 2024.
Business Highlights and Recent
Conference Call and Webcast Information
host a conference call today, Thursday, February 29, 2024, at 8:30 AM, Eastern Time, to discuss the fourth quarter and full-year 2023 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: 13744217
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.
Fourth Quarter 2023 Financial Results
Full Year 2023 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 December 31, | Year Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Product revenue | $ | 1,866 | $ | $ | 4,658 | $ | ||||||||||
| Collaboration revenue | 122 | 68 | 466 | 9,032 | ||||||||||||
| Total revenue | 1,988 | 68 | 5,124 | 9,032 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and admin. | 16,994 | 3,189 | 47,305 | 17,405 | ||||||||||||
| Research and development | 5,320 | 3,030 | 20,295 | 12,198 | ||||||||||||
| Loss on disposal of assets | 2,537 | 2,537 | ||||||||||||||
| Cost of product revenue | 145 | 289 | ||||||||||||||
| Cost of collaboration revenue | 128 | 62 | 457 | 725 | ||||||||||||
| Total operating expenses | 25,124 | 6,281 | 70,883 | 30,328 | ||||||||||||
| Loss from operations | (23,136 | ) | (6,213 | ) | (65,759 | ) | (21,296 | ) | ||||||||
| Interest income | 792 | 287 | 2,740 | 476 | ||||||||||||
| Interest expense | (2,306 | ) | (3,962 | ) | (2,172 | ) | ||||||||||
| Loss on extinguishment of debt | (1,437 | ) | ||||||||||||||
| Other income (expense) | 36 | (6 | ) | (14 | ) | (58 | ) | |||||||||
| Net loss | $ | (24,614 | ) | $ | (5,932 | ) | $ | (66,995 | ) | $ | (24,487 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.53 | ) | $ | (0.14 | ) | $ | (1.48 | ) | $ | (0.72 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 46,311,454 | 41,094,053 | 45,342,451 | 34,163,437 |
VERRICA PHARMACEUTICALS INC.
Selected Balance Sheet Data
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| Cash and cash equivalents | $ | 69,547 | $ | 34,273 | ||||
| Prepaid assets and other expenses | 7,983 | 4,842 | ||||||
| Total current assets | 77,530 | 39,115 | ||||||
| PP&E, lease right of use asset, other | 4,067 | 5,606 | ||||||
| Total assets | $ | 81,597 | $ | 44,721 | ||||
| Total liabilities | 61,834 | 4,688 | ||||||
| Total stockholders equity | 19,763 | 40,033 | ||||||
| Total liabilities and equity | $ | 81,597 | $ | 44,721 |
VERRICA PHARMACEUTICAS INC.
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
| Year Ended December 31, 2023 | ||||||||||||
| Loss from Operations | Net loss | Net loss per share | ||||||||||
| GAAP | $ | (65,759 | ) | $ | (66,995 | ) | $ | (1.48 | ) | |||
| Non-GAAP Adjustments: | ||||||||||||
| Stock-based compensation Selling, General & Admin (a) | 11,796 | 11,796 | ||||||||||
| Stock-based compensation Research & Development (a) | 2,580 | 2,580 | ||||||||||
| Non-cash interest expense (b) | 810 | |||||||||||
| Adjusted | $ | (51,383 | ) | $ | (51,809 | ) | $ | (1.14 | ) |
| Year Ended December 31, 2022 | ||||||||||||
| Loss from Operations | Net loss | Net loss per share | ||||||||||
| GAAP | $ | (21,296) | $ | (24,487) | $ | (0.72) | ||||||
| Non-GAAP Adjustments: | ||||||||||||
| Stock-based compensation Selling, General & Admin (a) | 3,525 | 3,525 | ||||||||||
| Stock-based compensation Research & Development (a) | 1,460 | 1,460 | ||||||||||
| Loss on debt extinguishment | 1,437 | |||||||||||
| Non-cash interest expense (b) | 617 | |||||||||||
| Adjusted | $ | (16,311) | $ | (17,448) | $ | (0.51) |
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. On July 21, 2023, Verrica s
lead product, YCANTH (cantharidin), became 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 , including accelerating the trajectory of the YCANTH launch in
2024, the J-Code for YCANTH becoming fully published on April 1, 2024, future financial performance, including expectations related to revenue
and inventory for 2024, the clinical development of Verrica s product candidates, including the timing of reporting data from clinical trials, and the potential benefits of YCANTH and
Verrica s product candidates to patients. 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 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