Verrica Pharmaceuticals (VRCA) The Citizens JMP Life Sciences Conference 2025 summary

Strategic focus and commercial execution

• Implemented a new commercial strategy for an FDA-approved molluscum treatment, YCANTH, targeting both pediatric and adult patients, with a relaunch and rebranding in 2023 and new management joining late last year.

• Expanded sales focus to include pediatricians, primary care, and dermatologists, with a tactical sales team and enhanced insurance coverage, including robust Medicaid and dual benefit plans.

• Achieved sequential quarterly growth in dispensed applicators: 12% in Q4 and 16% in Q1, despite significant cost reductions and a leaner team.

• Enhanced copay assistance and distribution models, including specialty pharmacy and buy-and-bill, to improve patient and clinician access.

• Strengthened IP portfolio with patents extending to 2041 for YCANTH and 2044 for the basal cell carcinoma program.

Financial position and operational efficiency

• Ended last year with $46 million in cash and equivalents, a $50 million debt facility, and raised $42 million in November to support operations.

• Cost and expense reductions exceeded 50% last year, supporting operational efficiency and extending cash runway into next year, contingent on debt covenants.

• Commercial asset is launched and growing, with minimal additional cash needed to advance pipeline programs.

Product and clinical pipeline updates

• YCANTH is the only FDA-approved, single-use, topical cantharidin product for molluscum, offering consistent dosing, safety, and reduced cross-contamination risk.

• Phase III trials for molluscum showed nearly 50% complete clearance versus 15% for placebo, with 76% reduction in total lesions and only mild to moderate local adverse events.

• Expanded target population and insurance coverage, with up to 225 million covered lives and a $25 copay cap for patients.

• Red Book endorsement and increased pediatrician engagement are driving greater brand awareness and adoption.