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• It's like an early-stage Amgen or Biogen, but solely focused on developing new treatments for skin conditions.
• Imagine a specialized, clinical-stage Pfizer or Johnson & Johnson that only invents drugs for dermatological diseases.
• A startup pharmaceutical company aiming to be a leader in dermatology treatments, similar to how AbbVie has a strong presence in inflammatory conditions that affect the skin.

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• DMT310 for Acne Vulgaris: This investigational drug candidate is being developed as a once-daily topical treatment for moderate-to-severe acne vulgaris.
• DMT310 for Rosacea: This investigational drug candidate is being developed as a once-daily topical treatment for papulopustular rosacea.
• DMT310 for Psoriasis: This investigational drug candidate is being developed as a once-daily topical treatment for plaque psoriasis.

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Dermata Therapeutics (symbol: DRMA) is a clinical-stage biotechnology company focused on the development of novel therapeutics for chronic inflammatory skin diseases and other medical conditions.

As of its most recent financial reports (e.g., Form 10-K for the fiscal year ended December 31, 2023), DRMA does not have any commercialized products on the market. Consequently, the company does not currently generate product revenue and, therefore, does not have any "major customers" in the traditional sense that purchase its products.

The company's current activities are primarily focused on research and development, including clinical trials for its pipeline candidates.

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Gerald T. Proehl Chairman, President, and Chief Executive Officer

Mr. Proehl became a director and Dermata Therapeutics' President and Chief Executive Officer in 2014 and became Chairman in 2021. He also co-founded Dermata Therapeutics, Inc.. With over 30 years of experience in the pharmaceutical industry, Mr. Proehl previously served as President and CEO of Santarus, Inc. from 2002 to 2014, where he successfully led its sale to Salix Pharmaceuticals, Inc. for $2.6 billion. Prior to Santarus, Inc., he spent 14 years at Hoechst Marion Roussel, Inc., holding various roles including VP of Global Marketing.

Kyri Van Hoose Senior Vice President, Chief Financial Officer

Ms. Van Hoose joined Dermata Therapeutics, Inc. as Senior Vice President, Chief Financial Officer in September 2021. She brings over 20 years of experience in finance and accounting, with more than 15 years in the life science industry. Her previous roles include Chief Financial Officer of TEGA Therapeutics, Inc., a private biotechnology company. She was also the head of finance for Curzion Pharmaceuticals, Inc., a private, rare disease company, until its acquisition by Horizon Therapeutics plc. Additionally, Ms. Van Hoose served at Avelas Biosciences, Inc., a clinical-stage biotechnology company, and held various financial leadership positions for over a decade at Acadia Pharmaceuticals, Inc..

Maria Bedoya Toro Munera, Ph.D. Senior Vice President, Regulatory Affairs and Quality Assurance

Dr. Bedoya Toro Munera became Dermata's Senior Vice President of Regulatory Affairs and Quality Assurance in January 2016, bringing over 30 years of experience in regulatory compliance, quality control, and quality assurance within the pharmaceutical industry. Before joining Dermata, she served as Senior Vice President, Regulatory Affairs and Quality Assurance at Receptos Inc. from 2014 until its sale to Celgene in 2015. She also held the same position at Santarus, Inc. from June 2007 to January 2014.

Christopher J. Nardo, M.P.H., Ph. D. Senior Vice President and Chief Development Officer

Dr. Nardo joined Dermata as Senior Vice President and Chief Development Officer in July 2022, with more than 15 years of experience in the pharmaceutical industry. He previously held various clinical development leadership positions at CancerVax Corporation, The Immune Response Corporation, and Procter and Gamble Company.

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The public company Dermata Therapeutics (symbol: DRMA) faces several key risks to its business, primarily stemming from its financial position and recent strategic shift.

The most significant risk is the **limited cash runway and the need for additional financing**. As of September 30, 2025, Dermata Therapeutics had only $4.7 million in cash and cash equivalents, which is projected to fund operations only into the second quarter of 2026. This necessitates securing new financing or generating substantial revenue rapidly, as a six-to-nine-month cash runway is considered tight in the biopharma sector. The company currently relies almost entirely on equity financing, meaning future capital raises could lead to shareholder dilution.

Secondly, there is a substantial **execution risk associated with the strategic pivot to the Over-the-Counter (OTC) market**. Dermata Therapeutics recently shifted its focus from high-risk prescription drug development to OTC skincare, with plans to launch a once-weekly acne kit in mid-2026. This change represents a "massive strategic shift" that introduces high execution risk in a crowded consumer market. The company's financial health is entirely dependent on its ability to successfully implement this new OTC strategy and quickly generate meaningful revenue from the new product.

Finally, a key risk is the **absence of current revenue and profitability**. As a pre-commercial company, Dermata Therapeutics reported no revenue for the nine months ended September 30, 2025, and for the full fiscal year 2024. The company is not yet profitable, reporting a net loss of $1.69 million for the third quarter of 2025, and analysts forecast $0 in revenue for the full fiscal year 2025. This lack of commercial operations means the company's cash flow is currently driven by financing activities, underscoring the critical need for a successful product launch to transition to a revenue-generating business model.

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Dermata Therapeutics (DRMA) is developing products targeting several dermatological conditions, with the following addressable market sizes in the U.S.:

• For acne vulgaris, which is targeted by their lead product candidate XYNGARI (formerly DMT310), the addressable market in the United States is approximately 30 million patients seeking treatment. The U.S. market size for acne, which is targeted by both DMT310 and DMT410, is approximately $2.3 billion, with an estimated U.S. prevalence of 50 million people.
• For psoriasis, also targeted by XYNGARI (DMT310), the U.S. prevalence is approximately 9 million, with a U.S. market size of about $10.4 billion.
• For axillary hyperhidrosis, targeted by DMT410, there are approximately 2 million diagnosed patients in the U.S., representing a U.S. market size of about $281 million.
• For aesthetic skin conditions, DMT410 is being developed for needle-free intradermal delivery of botulinum toxin. No specific addressable market size for this aesthetic application was identified in the provided information.

Dermata Therapeutics has also announced a strategic shift towards developing and distributing over-the-counter (OTC) pharmaceutical products, initially focusing on a once-weekly acne kit, with plans to introduce products for psoriasis and seborrheic dermatitis. The company believes the OTC dermatology segment is projected to grow faster than the prescription market, thereby expanding their addressable market to all consumers seeking improved skin health. However, specific market sizes for these new OTC products are not yet available.

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Dermata Therapeutics (DRMA) is strategically positioning itself for future revenue growth over the next 2-3 years by focusing on its proprietary Spongilla technology across various dermatological applications. The expected drivers of this growth include:

1. Launch and Market Penetration of OTC XYNGARI™ Acne Kit: A primary driver is the planned mid-2026 launch of Dermata's over-the-counter (OTC) acne kit, XYNGARI™, which combines an FDA-approved OTC monograph active ingredient with its proprietary Spongilla technology. This strategic pivot from prescription to OTC is expected to provide quicker time to revenue, reduced commercialization costs (e.g., no sales force, no PBM/insurance rebates), and significantly broaden patient accessibility to the approximately 50 million US acne patients.
2. Advancement and Commercialization of DMT410 through Strategic Partnerships: Dermata is developing DMT410, which utilizes its Spongilla technology for the topical delivery of large molecules, such as botulinum toxin. The company has entered into a Clinical Trial Collaboration Agreement with Revance (now Crown Laboratories) to study DMT410 with DAXXIFY® for axillary hyperhidrosis treatment. This collaboration, along with ongoing discussions for partnerships in other aesthetic and dermatological conditions (including acne and rosacea), is expected to pave the way for future revenue streams.
3. Expansion into Additional OTC Dermatological Conditions: Beyond acne, Dermata plans to leverage its Spongilla technology platform for other dermatological conditions by combining it with existing FDA-approved OTC monograph active ingredients. Potential target areas include psoriasis and seborrheic dermatitis, which could open new and significant market opportunities for additional OTC product launches.
4. Enhanced Accessibility and Operational Efficiency of the OTC Business Model: The pivot to an OTC model for its products is expected to generate revenue sooner and at a lower price point for consumers, as it bypasses the lengthy regulatory approval processes and high commercialization costs associated with prescription drugs. This direct-to-consumer approach is anticipated to accelerate market entry and improve overall profitability by eliminating the need for a large sales force and reducing reliance on insurance coverage and rebates.

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Share Issuance

• Dermata Therapeutics raised $18 million in an initial public offering (IPO) in August 2021, issuing 2,571,428 shares at $7.00 per share.
• In March 2025, the company received approximately $6.2 million in gross proceeds from the exercise of existing warrants.
• The number of shares outstanding increased by 1,442.75% in one year.

Inbound Investments

• In August 2021, Dermata Therapeutics raised $18 million through its initial public offering.
• The company received approximately $6.2 million in gross proceeds from the exercise of existing warrants in March 2025.