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Dec 31, 2024
Verrica Q4 2024 Earnings Report
Verrica Pharmaceuticals reported a net loss in Q4 2024 but saw positive revenue growth and cost reductions from restructuring efforts.
Key Takeaways
Verrica Pharmaceuticals reported Q4 2024 revenue of $0.3 million, reflecting a decline due to distributor inventory adjustments. The company reported a net loss of $16.2 million, or ($0.24) per share. Operating expenses were significantly reduced following restructuring, helping to control costs. The company expects continued revenue growth in 2025 as demand for YCANTH increases and its pipeline progresses.
Q4 2024 revenue declined to $0.3 million due to distributor inventory normalization.
Net loss reduced to $16.2 million, compared to $24.6 million in Q4 2023.
Restructuring efforts resulted in a 41% reduction in operating expenses.
Company raised $42 million in a public offering to strengthen its balance sheet.
Verrica
Verrica
Verrica Revenue by Segment
Revenue by Segment
YCANTH Revenue
CapyFin.com Forward Guidance
Verrica aims to achieve positive cash flow from operations by the end of 2025, focusing on growing YCANTH adoption and advancing its clinical pipeline.
Positive Outlook
- Company expects continued revenue growth as demand for YCANTH increases.
- Operational cost reductions expected to improve financials in 2025.
- Initiation of Phase 3 trial for common warts expected in mid-2025.
- Potential $8 million milestone payment from Torii upon trial initiation.
- Company has a strengthened balance sheet following the $42 million public offering.
Challenges Ahead
- Company remains in a net loss position with limited revenue in Q4 2024.
- Significant cash burn may require additional funding beyond 2025.
- Potential delays in receiving the $8 million milestone payment.
- Ongoing competitive pressure in the dermatology therapeutics market.
- Uncertain regulatory and market dynamics for YCANTH and pipeline products.