On November 9, 2023, Verrica Pharmaceuticals Inc (VRCA, Financial), a dermatology therapeutics company, released its financial results for the third quarter ended September 30, 2023. The company reported a net product revenue of $2.8 million from the first commercial sale of YCANTH™, its FDA-approved treatment for molluscum contagiosum, to its exclusive distributor, FFF Enterprises Inc. This initial sale primarily represented stocking within the channel as the company builds demand and drives adoption among healthcare providers.
Commercial Progress and Development Pipeline
President and CEO Ted White expressed optimism about the momentum gained following the FDA approval of YCANTH™. The treatment is now covered for over 112 million lives through commercial insurance and managed Medicaid plans, with fee-for-service Medicaid coverage accepted in several states. Verrica also highlighted the advancement of its development pipeline, including positive data from a Phase 2 trial for VP-315 for the treatment of basal cell carcinoma.
Financial Highlights
The financial results for Q3 2023 showed a net loss of $24.8 million, or $0.54 per share, compared to a net income of $83,000 in Q3 2022. The increase in net loss was primarily due to higher operating expenses, which totaled $26.8 million for the quarter, reflecting the costs associated with the commercial launch of YCANTH™ and ongoing research and development activities. The company also reported an interest income of $822,000 and interest expense and other expenses totaling $1.7 million.
Balance Sheet and Non-GAAP Financial Measures
Verrica's balance sheet as of September 30, 2023, showed $84.3 million in cash and cash equivalents, with total assets amounting to $97.1 million. The company's total liabilities stood at $54.8 million, with stockholders' equity at $42.3 million. To provide a clearer picture of its operating performance, Verrica presented non-GAAP financial measures, excluding stock-based compensation charges and non-cash interest expense. The adjusted non-GAAP net loss for Q3 2023 was $14.8 million, or $0.32 per share.
Outlook and Conference Call
Verrica remains focused on the commercial launch of YCANTH™ and expects its financial performance, including revenue and inventory, to reflect the continued rollout for the remainder of 2023 and into the first half of 2024. The company hosted a conference call to discuss the Q3 2023 financial results and provide a business update.
For more detailed information on Verrica Pharmaceuticals Inc (VRCA, Financial) and its financial results, please visit www.verrica.com.
Explore the complete 8-K earnings release (here) from Verrica Pharmaceuticals Inc for further details.
