Menlo Reports First Quarter 2020 Financial Results and Provides Business Update Conference Call Today at 8:30am Eastern Time BRIDGEWATER, N.J.

Reports First Quarter 2020 Financial Results and Provides Business Update

Call Today at 8:30am Eastern Time

BRIDGEWATER, N.J., May 11, 2020 -- Menlo Therapeutics

Inc. (Nasdaq: MNLO) ("Menlo" or the "Company"), a specialty pharmaceutical company focused on developing

and commercializing proprietary therapies to address unmet needs in dermatology, today announced financial results for the first

quarter ended March 31, 2020 and provided a corporate update.

launch of AMZEEQ at the beginning of 2020 marked

the transition of Menlo to a commercial company," said Dave Domzalski, Chief Executive Officer of Menlo. "We have been

encouraged by the positive reception to AMZEEQ from both physicians and patients, and noted strong increases in weekly prescriptions

from launch through early March. During the current economic slowdown, our sales representatives are engaging with healthcare providers

virtually and we continue to see positive momentum in our discussions with payors. The recent license agreement we signed with

Cutia Therapeutics for the Chinese market underscores the demand that exists for innovative dermatology products in markets outside

the U.S. and also provides the company with non-dilutive capital."

"Our NDA for FMX103 for the potential treatment of papulopustular

rosacea is currently being reviewed by the FDA, with a PDUFA action date of June 2nd," continued Mr. Domzalski. "If

approved, we expect to have two products on the market by the end of this year, providing us with the opportunity to expand our

franchise in dermatology and create increased operational leverage for the company."

First Quarter and Recent highlights:

Financial Results for the First Quarter Ended March 31, 2020

Revenues totaled $1.8 million and $0.3 million for the three

months ended March 31, 2020 and 2019, respectively. For the three months ended March 31, 2020, revenues were generated from product

sales of AMZEEQ, which was launched in January 2020. For the three months ended March 31, 2019, revenues consisted solely of royalty

Cost of goods sold was $0.3 million for the three months ended

March 31, 2020. There was no cost of goods sold in the three months ended March 31, 2019 because the revenues in that period consisted

solely of royalties, which do not bear related cost of goods sold.

Our gross margin percentage of 85% was favorably

impacted during the three months ended March 31, 2020 due to the fact that some inventory was produced prior to FDA

approval and therefore expensed in prior periods. If inventory sold during the three months ended March 31, 2020 was

valued at cost, our gross margin for the period then ended would have been 79%.

Research and Development Expenses

Our research and development expenses for the three months

ended March 31, 2020 were $16.0 million, representing an increase of $5.2 million, or 48%, compared to $10.8 million for the three

months ended March 31, 2019. Employee-related expenses increased by $4.7 million, including $3.8 million related to severance

expenses associated with legacy Menlo employees, and $0.9 million in increased payroll and related expenses. In addition, clinical

and manufacturing costs related to serlopitant, which was acquired in the transaction combining Menlo with Foamix (the "Merger"),

increased by $2.2 million, offset by a decrease of $2.2 million related to clinical and manufacturing expenses for AMZEEQ and

Selling, General and Administrative Expenses

Our selling, general and administrative expenses for the three

months ended March 31, 2020 were $25.4 million, representing an increase of $20.1 million, or 379%, compared to $5.3 million for

the three months ended March 31, 2019. Employee-related expenses increased by $10.5 million, consisting of $6.0 million primarily

due to the expansion of our employee base, including sales force, to support the growth of our operations and $4.3 million related

to severance expenses paid to legacy Menlo employees. We incurred $3.6 million expenses relating to the Merger included in selling,

general and administrative expenses. Sales and marketing expenses increased by $1.8 million related to the commercialization of

Our operating loss for the three months ended March 31, 2020

was $39.9 million, compared to an operating loss of $15.9 million for the three months ended March 31, 2019, representing an increase

of $24.0 million, or 151%.

During the three months ended March 31, 2020 we had no tax

expenses, as compared to tax benefits of $0.2 million during the three months ended March 31, 2019.

Our net loss for the three months ended March 31, 2020 was

$40.2 million or ($0.95) per share, as compared to $15.2 million or ($0.47) per share for the three months ended March 31, 2019,

representing an increase of $25.0 million, or 164%. The increase was primarily due to an increase in expenses incurred in connection

with our commercial launch of AMZEEQ, Merger expenses and severance expenses for legacy Menlo employees.

Cash & Cash Equivalents

As of March 31, 2020, the combined Company had cash, cash equivalents

and investments of $82.7 million. This amount does not include the $10 million upfront payment expected pursuant to the license

agreement entered into with Cutia in April 2020.

There will be a conference call at 8:30 a.m. Eastern Time today,

Monday, May 11, during which management of Menlo will provide a corporate update.

Monday May 11th @ 8:30amET

A replay of the call will be archived on the Company's

website at www.menlotherapeutics.com promptly after the conference call.

Menlo Therapeutics Inc. recently combined with Foamix Pharmaceuticals

Ltd. to form a different type of biopharmaceutical company working to solve some of today's most difficult therapeutic challenges

in dermatology and beyond.

With expertise in topical medicine innovation as a springboard,

the Company is working to develop and commercialize a variety of solutions using its proprietary Molecule Stabilizing Technology

(MST ), and has received FDA approval for the world's first topical minocycline, AMZEEQ (minocycline) topical

For more information about Menlo or its investigational products,

visit www.menlotherapeutics.com. Menlo may use its website to comply with its disclosure obligations under Regulation FD.

Therefore, investors should monitor Menlo's website in addition to following its press releases, filings with the U.S. Securities

and Exchange Commission, public conference calls, and webcasts.

Cautionary Statement Regarding Forward-Looking Statements

This release includes forward-looking statements within the

meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding expectations

with respect to the financial results of Menlo and statements regarding the development and commercialization of Menlo's

products and product candidates and other statements regarding the future expectations, plans and prospects of Menlo. All statements

in this press release which are not historical facts are forward-looking statements. Any forward-looking statements are based on

Menlo's current knowledge and its present beliefs and expectations regarding possible future events and are subject to risks,

uncertainties and assumptions that could cause actual results to differ materially and adversely from those set forth or implied

by such forward-looking statements. These risks and uncertainties include, but are not limited to the COVID-19 pandemic and its

impact on our business operations; adverse events associated with the commercialization of AMZEEQ; the achievement of certain expected

cost synergies related to the Merger; the outcome and cost of clinical trials for current and future product candidates; determination

by the FDA that results from Menlo's clinical trials are not sufficient to support registration or marketing approval of

product candidates; the outcome of pricing, coverage and reimbursement negotiations with third party payors for AMZEEQ or any other

products or product candidates that Menlo may commercialize in the future; whether, and to what extent, third party payors impose

additional requirements before approving AMZEEQ prescription reimbursement; the eligible patient base and commercial potential

of AMZEEQ or any of Menlo's other product or product candidates; risks that Menlo's intellectual property rights, such

as patents, may fail to provide adequate protection, may be challenged and one or more claims may be revoked or interpreted narrowly

or will not be infringed; risks that any of Menlo's patents may be held to be narrowed, invalid or unenforceable or one or

more of Menlo's patent applications may not be granted and potential competitors may also seek to design around Menlo's

granted patents or patent applications; additional competition in the acne and dermatology markets; risks related to our indebtedness;

inability to raise additional capital on favorable terms or at all; Menlo's ability to recruit and retain key employees;

and Menlo's ability to stay in compliance with applicable laws, rules and regulations. For a discussion of other risks and

uncertainties, and other important factors, any of which could cause Menlo's actual results to differ from those contained

in the forward-looking statements, see the section titled "Risk Factors" in Menlo's Quarterly Report on Form

10-Q for the quarter ended March 31, 2020, as well as discussions of potential risks, uncertainties, and other important factors