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Jun 30, 2023

Verrica Q2 2023 Earnings Report

Verrica's Q2 2023 financial results were announced, featuring FDA approval of YCANTHâ„¢ and a secured $125 million debt facility.

Key Takeaways

Verrica Pharmaceuticals reported its Q2 2023 financial results, highlighted by the FDA approval of YCANTHâ„¢ for molluscum treatment and a $125 million debt facility to support its launch. The company's cash runway has been extended into the first quarter of 2025.

FDA approved YCANTHâ„¢ for treating molluscum.

YCANTHâ„¢ launch is expected by September 2023.

Expanded Part 2 enrollment of VP-315 Phase 2 trial in basal cell carcinoma to accelerate clinical development.

Secured a $125 million debt facility to support the launch of YCANTHâ„¢.

Total Revenue
$182K
Previous year: $214K
-15.0%
EPS
-$0.21
Previous year: -$0.37
-43.2%
Gross Profit
$46K
Previous year: $51K
-9.8%
Cash and Equivalents
$55.1M
Previous year: $54.4M
+1.3%
Free Cash Flow
-$4.73M
Previous year: -$7.34M
-35.5%
Total Assets
$62.2M
Previous year: $63.4M
-1.9%

Verrica

Verrica

Forward Guidance

The company expects to commercially launch YCANTHâ„¢, achieve revenue milestones under the debt facility, and fund operations into Q1 2025.

Positive Outlook

  • Successful commercial launch of YCANTHâ„¢.
  • Achievement of revenue milestones under the debt facility.
  • Availability of future financing from the debt facility with OrbiMed.
  • Ability to fund ongoing operations without additional equity financing if the additional $75 million is borrowed.
  • Ability to fund its operations into the first quarter of 2025.

Challenges Ahead

  • Uncertainties inherent in the drug development process.
  • Uncertainties inherent in the regulatory approval process.
  • Reliance on third parties over which it may not always have full control.
  • Uncertainties described in Verrica’s Annual Report on Form 10-K.
  • Risks that could cause actual results to differ materially from expectations.