The trading of Journey Medical (DERM, Financial) shares has been temporarily paused as a result of heightened market volatility. This halt is part of standard procedures to manage significant price fluctuations and ensure orderly trading. Investors are advised to stay informed about further developments regarding the situation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Journey Medical Corp (DERM, Financial) is $9.88 with a high estimate of $11.00 and a low estimate of $9.00. The average target implies an upside of 30.02% from the current price of $7.60. More detailed estimate data can be found on the Journey Medical Corp (DERM) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Journey Medical Corp's (DERM, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Journey Medical Corp (DERM, Financial) in one year is $3.26, suggesting a downside of 57.08% from the current price of $7.595. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Journey Medical Corp (DERM) Summary page.
DERM Key Business Developments
Release Date: March 26, 2025
- Annual Revenue 2024: $56 million.
- Net Product Revenue 2024: $55.1 million.
- Total Revenues 2024: $56.1 million, including a $1 million milestone payment.
- Cost of Goods Sold 2024: $20.9 million, a decrease of 9% from the previous year.
- Research and Development Expenses 2024: $9.9 million, an increase driven by non-recurring payments.
- SG&A Expenses 2024: $40.2 million, a decrease of 8% year-over-year.
- Net Loss 2024: $14.7 million or $0.72 per share.
- Non-GAAP Adjusted EBITDA 2024: Positive $800,000 or $0.04 per share basic.
- Cash and Cash Equivalents as of December 31, 2024: $20.3 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Journey Medical Corp (DERM, Financial) reported annual revenue of $56 million in 2024, achieving positive non-GAAP adjusted EBITDA for the sixth consecutive quarter.
- The company successfully launched Emrosi, an oral treatment for rosacea, with FDA approval received on time in November 2024.
- Journey Medical Corp (DERM) has a strong balance sheet with $20.3 million in cash as of December 31, 2024, despite significant one-time payments for Emrosi's regulatory fees.
- Emrosi's Phase 3 clinical results showed superiority against the current oral standard of care, entering a $1 billion plus treatment category.
- The company anticipates significant operating leverage from Emrosi sales, with potential peak annual sales of $200 million in the U.S. and $100 million internationally.
Negative Points
- Total net product revenue in 2024 decreased to $55.1 million from $59.7 million in 2023, primarily due to higher rebate costs and lower unit volumes from legacy products.
- Research and development expenses increased by $2.3 million to $9.9 million in 2024, driven by non-recurring payments related to Emrosi's NDA filing.
- Net loss to common shareholders was $14.7 million for 2024, compared to a net loss of $3.9 million in 2023.
- The company has not yet provided 2025 financial guidance, citing the variability associated with the Emrosi launch.
- Initial commercial payer coverage for Emrosi is limited, with only 20% of commercial lives and 4% of Medicare lives covered, though this is expected to improve over time.
