Verrica Pharmaceuticals (VRCA) investor relations material

Commercial performance and strategy

• YCANTH, approved for molluscum contagiosum, is now commercialized in the US and Japan, with streamlined pharmacy delivery improving access for clinicians and patients.

• Revenue for Q1 was $4.3 million, with recent months showing an uptick in prescription volume and dispensed applicator units exceeding 100,000 since launch.

• Transitioned from a buy-and-bill model to pharmacy distribution, reducing clinician burden and improving patient access, supported by a co-pay program.

• Sales force is in the low to mid-40s, with plans to expand to around 50, focusing on both new and existing prescribers for long-term growth.

• Physician feedback is increasingly positive, with growing inbound interest and broader adoption as clinical experience and comfort with YCANTH increase.

Market dynamics and competition

• The main competitor is the historical mindset of non-treatment; both YCANTH and its competitor are driving early adoption and education in the market.

• YCANTH is positioned as a convenient, clinician-administered, room-temperature-stable product, contrasting with the competitor's cold-chain requirements and at-home application.

• Clinicians are compensated for in-office administration, and the product's safety and efficacy profile is emphasized as a differentiator.

Pipeline and development programs

• The Common Warts Program is in global phase III, with two trials (US and US/Japan), each targeting ~300 patients; first trial is 50% enrolled as of mid-2024.

• Phase II data for common warts showed ~50% lesion eradication after four treatments, with 80% persistence at follow-up.

• The basal cell carcinoma (BCC) program (VP-315) showed 50% complete histological clearance and 80-85% lesion volume reduction in phase II; phase III will include two placebo-controlled trials.

• Torii is funding 90% of the common warts phase III trial costs, with future milestones and royalties expected to repay this investment.

• Anticipated phase III readout for common warts could be mid-2027, assuming enrollment completes by end of 2024 and primary endpoint at day 84, with follow-up at day 147.