Full Press Release Details
Verrica Pharmaceuticals Reports Third Quarter 2023 Financial Results
Strong awareness and interest in prescribing YCANTH among dermatologists
Over 112 million lives covered to date on commercial insurance and managed Medicaid plans
Conference Call Scheduled for Today at 8:30 am ET
WEST CHESTER, PA Nov 9, 2023 (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 third quarter ended September 30, 2023.
Following the U.S Food and Drug Administration approval of YCANTH for the treatment of
molluscum in July, we continue to build momentum across our commercial operations, said Ted White, Verrica s President and Chief Executive Officer. As the only FDA-approved product for the
treatment of molluscum, we are seeing broad awareness and interest in prescribing YCANTH across dermatology and pediatric practices. With our commercial and reimbursement teams fully in place, we are focused on executing our launch strategy and
expanding our coverage among commercial plans and managed Medicaid plans. To date, over 112 million lives have access to YCANTH through commercial insurance or managed Medicaid plans,
and YCANTH has already gained acceptance of fee-for-service Medicaid coverage in Connecticut, Arkansas, New
As we previously announced, on August 24, 2023 we received our first commercial sale of YCANTH to our exclusive distributor, FFF Enterprises Inc., resulting in net product revenue for the third quarter 2023 of $2.8 million upon its delivery to FFF. This first sale to FFF primarily
represented stocking within the channel to allow patients to finally gain access to the first FDA-approved therapy for the treatment of molluscum as we build demand and drive adoption amongst healthcare
We also continue to make progress on our development pipeline. During the quarter, we announced the presentation of lesion clearance data from
Part 1 of our ongoing Phase 2 trial for our novel oncolytic peptide, VP-315, at the 2023 AAD Innovation Academy meeting. These data highlighted the antitumor response of
VP-315, as determined by clinical and histological clearance of treated BCC lesions. We look forward to the continued advancement of this program for the treatment basal cell carcinoma.
Conference Call and Webcast Information
The Company will host a conference call today, Thursday, November 9, 2023, at 8:30 AM, Eastern Time, to discuss the third quarter 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: 13741589
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
YCANTH (formerly VP-102)
VP-315 for Basal Cell Carcinoma
VP-102 for Common Warts
Third Quarter 2023 Financial Results
Year-to-Date September 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | ||||||||||||||||
| Product revenue, net | $ | 2,792 | $ | $ | 2,792 | $ | ||||||||||
| Collaboration revenue | 125 | 8,319 | 344 | 8,964 | ||||||||||||
| Total revenue | 2,917 | 8,319 | 3,136 | 8,964 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 20,054 | 3,925 | 30,310 | 14,216 | ||||||||||||
| Research and development | 6,510 | 2,780 | 14,975 | 9,170 | ||||||||||||
| Cost of product revenue | 145 | 145 | ||||||||||||||
| Cost of collaboration revenue | 125 | 166 | 329 | 663 | ||||||||||||
| Total operating expenses | 26,834 | 6,871 | 45,759 | 24,049 | ||||||||||||
| (Loss) income from operations | (23,917 | ) | 1,448 | (42,623 | ) | (15,085 | ) | |||||||||
| Interest income | 822 | 148 | 1,948 | 190 | ||||||||||||
| Interest expense and other expense | (1,707 | ) | (76 | ) | (1,706 | ) | (2,223 | ) | ||||||||
| Loss on extinguishment of debt | (1,437 | ) | (1,437 | ) | ||||||||||||
| Net (loss) income | $ | (24,802 | ) | $ | 83 | $ | (42,381 | ) | $ | (18,555 | ) | |||||
| Net (loss) income per share | ||||||||||||||||
| Basic | $ | (0.54 | ) | $ | 0.00 | $ | (0.94 | ) | $ | (0.58 | ) | |||||
| Diluted | $ | (0.54 | ) | $ | 0.00 | $ | (0.94 | ) | $ | (0.58 | ) | |||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 46,073,932 | 40,304,923 | 45,015,900 | 31,827,844 | ||||||||||||
| Diluted | 46,073,932 | 40,321,639 | 45,015,900 | 31,827,844 |
VERRICA PHARMACEUTICALS INC.
Selected Balance Sheet Data
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Cash and cash equivalents | $ | 84,308 | $ | 34,273 | ||||
| Accounts receivable | 3,946 | |||||||
| Collaboration revenue billed & unbilled receivables | 126 | 487 | ||||||
| Inventory | 279 | |||||||
| Prepaid expenses, and other assets | 3,066 | 4,355 | ||||||
| Total current assets | 91,725 | 39,115 | ||||||
| PP&E, lease right of use asset, other | 5,423 | 5,606 | ||||||
| Total assets | $ | 97,148 | $ | 44,721 | ||||
| Total liabilities | $ | 54,845 | $ | 4,688 | ||||
| Total stockholders equity | 42,303 | 40,033 | ||||||
| Total | $ | 97,148 | $ | 44,721 |
VERRICA PHARMACEUTICALS INC.
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
| Three Months Ended September 30, 2023 | ||||||||||||
| Loss from Operations | Net loss | Net loss per share | ||||||||||
| GAAP | $ | (23,917 | ) | $ | (24,802 | ) | $ | (0.54 | ) | |||
| Non-GAAP Adjustments: | ||||||||||||
| Stock-based compensation Selling, General & Admin (a) | 8,438 | 8,438 | ||||||||||
| Stock-based compensation Research & Development (a) | 1,225 | 1,225 | ||||||||||
| Non-cash interest expense (b) | 338 | |||||||||||
| Adjusted | $ | (14,254 | ) | $ | (14,801 | ) | $ | (0.32 | ) | |||
| Three Months Ended September 30, 2022 | ||||||||||||
| Income from Operations | Net income | Net income per share (basic and diluted) | ||||||||||
| GAAP | $ | 1,448 | $ | 83 | $ | 0.00 | ||||||
| Non-GAAP Adjustments: | ||||||||||||
| Stock-based compensation Selling, General & Admin (a) | 1,064 | 1,064 | ||||||||||
| Stock-based compensation Research & Development (a) | 349 | 349 | ||||||||||
| Loss on debt extinguishment | 1,437 | |||||||||||
| Adjusted | $ | 2,861 | $ | 2,933 | $ | 0.07 |
VERRICA PHARMACEUTICALS INC.
Reconciliation of Non-GAAP Financial Measures (unaudited)
(in thousands except per share data)
| Nine Months Ended September 30, 2023 | ||||||||||||
| Loss from Operations | Net loss | Net loss per share | ||||||||||
| GAAP | $ | (42,623 | ) | $ | (42,381 | ) | $ | (0.94 | ) | |||
| Non-GAAP Adjustments: | ||||||||||||
| Stock-based compensation Selling, General & Admin (a) | 10,223 | 10,223 | ||||||||||
| Stock-based compensation Research & Development (a) | 2,078 | 2,078 | ||||||||||
| Non-cash interest expense (b) | 338 | |||||||||||
| Adjusted | $ | (30,322 | ) | $ | (29,742 | ) | $ | (0.66 | ) | |||
| Nine Months Ended September 30, 2022 | ||||||||||||
| Loss from Operations | Net loss | Net loss per share | ||||||||||
| GAAP | $ | (15,085 | ) | $ | (18,555 | ) | $ | (0.58 | ) | |||
| Non-GAAP Adjustments: | ||||||||||||
| Stock-based compensation Selling, General & Admin (a) | 2,709 | 2,709 | ||||||||||
| Stock-based compensation Research & Development (a) | 1,105 | 1,105 | ||||||||||
| Loss on debt extinguishment | 1,437 | |||||||||||
| Non-cash interest expense (b) | 633 | |||||||||||
| Adjusted | $ | (11,271 | ) | $ | (12,671 | ) | $ | (0.40 | ) |
About YCANTH (formerly VP-102)
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 only 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 VP-102 for the treatment of common warts and a Phase 2 study of 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. VP-102 is also in development to treat common warts and external genital warts, two of the largest unmet needs in medical
dermatology. Verrica is developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts. 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. 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, future financial performance, including expectations related to revenue and
inventory for the remainder of 2023 and the first half of 2024, and the potential benefits of 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,
2022, Verrica s Quarterly Report on Form 10-Q for the quarter ended September 30, 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