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Sep 30, 2020

Verrica Q3 2020 Earnings Report

Verrica reported a net loss for Q3 2020, with increased R&D and G&A expenses, and anticipates resubmitting its NDA for VP-102 in Q1 2021.

Key Takeaways

Verrica Pharmaceuticals reported a net loss of $10.5 million for the third quarter of 2020. The company is preparing to resubmit its New Drug Application (NDA) for VP-102 in the first quarter of 2021.

Verrica expects to resubmit its New Drug Application for VP-102 in the first quarter of 2021.

The positive results from the Company’s two pivotal Phase 3 CAMP studies evaluating the safety and efficacy of VP-102 in children and adults with molluscum were published in the Journal of the American Medical Association (JAMA) Dermatology on September 23, 2020.

Verrica reported a net loss of $10.5 million for the third quarter of 2020, compared to a $6.1 million net loss for the same period in 2019.

As of September 30, 2020, Verrica had aggregate cash, cash equivalents, and marketable securities of $71.9 million.

EPS
-$0.42
Previous year: -$0.24
+75.0%
Cash and Equivalents
$71.9M
Total Assets
$79.9M

Verrica

Verrica

Forward Guidance

Verrica anticipates resubmitting its NDA for VP-102 in Q1 2021 and believes its cash will support operations through Q4 2021.

Positive Outlook

  • Expects to resubmit its New Drug Application for VP-102 in the first quarter of 2021
  • Believes it has clear alignment on the path forward to resubmit the NDA
  • Continued engagement with Torii as they evaluate the option to exclusively license VP-102 in Japan
  • Strategically expanded product portfolio into dermatologic cancers
  • Cash, cash equivalents, and marketable securities are expected to support operations through the fourth quarter of 2021

Challenges Ahead

  • Uncertainties inherent in the drug development process and the regulatory approval process
  • Reliance on third parties over which it may not always have full control
  • Uncertainties related to the COVID-19 pandemic
  • Potential payments by Torii under the Option Agreement should Torii exercise its opinion
  • The potential benefits and potential commercialization of VP-102 for the treatment of molluscum, if approved