• An early-stage AbbVie, focused exclusively on developing new treatments for skin conditions.
• A biotech company like Moderna, but dedicated to finding treatments for medical and aesthetic skin conditions instead of vaccines.

• DMT310: A pharmaceutical product candidate in clinical trials for the treatment of moderate-to-severe acne, mild-to-moderate psoriasis, and moderate-to-severe rosacea.
• DMT410: A pharmaceutical product candidate that has completed Phase Ib POC trials for the treatment of hyperhidrosis and aesthetic conditions.

Dermata Therapeutics (DRMA) is a clinical-stage biotechnology company. As such, its pharmaceutical product candidates are still in various phases of clinical development and have not yet received regulatory approval for commercial sale. Therefore, the company does not currently have major commercial customers (either other companies or individuals) for its products.

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

Mr. Proehl became President and Chief Executive Officer of Dermata Therapeutics in 2014 and Chairman in 2021. He has over 30 years of experience in the pharmaceutical industry. From 2002 to 2014, he served as President and CEO of Santarus, Inc., where he led the company's sale to Salix Pharmaceuticals, Inc. for $2.6 billion. Mr. Proehl has a history of founding and operating specialty pharmaceutical companies.

Kyri Van Hoose, Senior Vice President, Chief Financial Officer

Ms. Van Hoose joined Dermata Therapeutics as Senior Vice President, Chief Financial Officer in September 2021, bringing over 20 years of experience in finance and accounting, with more than 15 years in the life science industry. Prior to Dermata, she was Chief Financial Officer of TEGA Therapeutics, Inc., a private biotechnology company. She also served as the head of finance for Curzion Pharmaceuticals, Inc., a private, rare disease company, until its acquisition by Horizon Therapeutics plc, and held a role at Avelas Biosciences, Inc., a clinical-stage biotechnology company.

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

Dr. Bedoya Toro Munera became Senior Vice President of Regulatory Affairs and Quality Assurance in January 2016. She possesses over 30 years of experience in regulatory compliance, quality control, and quality assurance within the pharmaceutical industry. Her previous roles include Director, Regulatory Affairs/Quality at BASF Bioresearch Corporation, and Director, Quality Assurance and Regulatory Compliance at Amylin Pharmaceuticals.

Christopher J. Nardo, Ph. D., Senior VP and Development

Dr. Nardo previously worked at Allergan in their dermatology clinical development area, where he was involved in developing Botox and its clinical studies.

The key risks for Dermata Therapeutics (DRMA), a clinical-stage biotechnology company, primarily stem from the inherent challenges of drug development and commercialization, as well as its financial position.

1. Clinical Trial Success and Regulatory Approval

   As a clinical-stage biotechnology company, Dermata Therapeutics' success hinges on the outcomes of its ongoing and future clinical trials and subsequent regulatory approvals. The company's lead product candidate, DMT310, has completed Phase IIb trials for moderate-to-severe acne and is in a Phase 2 trial for moderate-to-severe rosacea. DMT410 has completed Phase Ib proof-of-concept trials for hyperhidrosis and aesthetic conditions. The drug development process is lengthy, expensive, and faces high attrition rates, with many compounds failing to reach the market despite substantial investment. For instance, while DMT310 showed positive results in its Phase 2b acne study, its Phase 2 rosacea study did not meet primary endpoints. The probability of a compound advancing from Phase 1 trials to market approval is estimated at only 20%. The ability of the company's product candidates to achieve applicable endpoints in clinical trials and gain FDA approval is critical.

2. Financial Health and Funding

   Dermata Therapeutics faces significant financial risks, characterized by its current unprofitability and the substantial capital required for drug development. The company is forecast to remain unprofitable over the next three years and is not expected to generate revenue next year. In 2025, Dermata announced a strategic pivot from developing prescription dermatology products to focusing on over-the-counter (OTC) skin care treatments, aiming to accelerate its path to commercialization and reduce regulatory burdens. This pivot suggests challenges with the previous funding and regulatory model. The company has also faced a Nasdaq non-compliance notice regarding its minimum stockholders' equity requirement, though it later regained compliance. The high costs of clinical trials and the long development timelines necessitate continuous and significant investment in financial capital.

3. Commercialization and Market Acceptance

   Even with successful clinical trials and regulatory approvals, Dermata Therapeutics faces risks associated with commercializing its products and gaining market acceptance. The company's recent strategic pivot to launch an OTC pharmaceutical product line, starting with a once-weekly acne kit in mid-2026, highlights its effort to address consumer demand directly and build a scalable product portfolio. However, success in the competitive OTC market is not guaranteed, and the company will need to effectively bridge the gap between medical-grade science and everyday convenience to drive long-term value. For any product, whether prescription or OTC, demonstrating value, navigating pricing pressures, and achieving broad adoption are crucial challenges.

Dermata Therapeutics (symbol: DRMA) focuses on developing pharmaceutical product candidates for medical and aesthetic skin conditions. The addressable markets for their main products or services are as follows:

DMT310

• Acne: The United States market for acne vulgaris is estimated to have approximately 30 million patients seeking treatment. Globally, the acne vulgaris market size was approximately USD 4.256 billion in 2023 and is projected to increase through 2034. In the U.S., the market size for acne vulgaris was approximately USD 2.949 billion in 2023.
• Psoriasis: The global psoriasis drugs market size was estimated at USD 21,116.1 million in 2024 and is projected to reach USD 39,113.8 million by 2030. Another estimate for the global psoriasis treatment market size was USD 28.1 billion in 2024, with projections to grow to USD 68.4 billion by 2034. The U.S. psoriasis treatment market was valued at USD 10.4 billion in 2024.
• Rosacea: The global rosacea treatment market size is valued at USD 2.27 billion in 2025 and is predicted to increase to approximately USD 4.23 billion by 2034. Another report estimated the global rosacea treatment market at USD 2.08 billion in 2024, with projections to reach USD 3.7 billion by 2032. North America held the largest share of the global rosacea market, accounting for 39% in 2024 or 38.7% in 2024.

DMT410

• Hyperhidrosis: The global hyperhidrosis treatment market size was valued at USD 1.74 billion in 2024 and is anticipated to grow to USD 2.5 billion by 2033. Another estimate places the global hyperhidrosis treatment market size at USD 2.8 billion in 2024, projected to reach USD 4.4 billion by 2032. North America is a leading region in the hyperhidrosis treatment market with a 38% share.
• Aesthetic Conditions: The global aesthetic dermatology market size was valued at USD 4.31 billion in 2024 and is expected to reach USD 6.76 billion by 2032. North America dominated this market, holding a 40.6% revenue share in 2024. DMT410 is specifically being developed for the topical delivery of botulinum toxin for aesthetic applications. The medicines segment, which includes botulinum toxins, accounted for 44.5% of the aesthetic dermatology market share in 2024.

Dermata Therapeutics (NASDAQ: DRMA) is poised for potential revenue growth over the next 2-3 years, driven by the advancement of its key product candidates and a strategic shift towards the over-the-counter (OTC) market. The primary drivers include:

1. Commercialization of DMT310 (XYNGARI™) for Moderate-to-Severe Acne: Dermata's lead product candidate, DMT310 (also referred to as XYNGARI™), is in late-stage clinical development for moderate-to-severe acne. Topline results from the first of two pivotal Phase 3 trials (STAR-1) were reported as positive in March 2025. Positive outcomes from the full Phase 3 program could lead to the submission of a New Drug Application (NDA) and, if approved, position DMT310 as a potentially first-in-class once-weekly, natural, topical treatment for this condition. Concurrently, the company announced a strategic pivot in September 2025 to launch its first OTC product, a once-weekly acne kit utilizing its Spongilla technology (likely related to XYNGARI™), in mid-2026. This aims to accelerate time to revenue by circumventing lengthy prescription drug approval processes for certain products.

2. Partnerships and Development of DMT410 for Topical Botulinum Toxin Delivery: Dermata is actively engaged in partnership discussions for its DMT410 program, which facilitates the topical delivery of botulinum toxin. In January 2025, the company entered into a Clinical Trial Collaboration Agreement with Revance Therapeutics to conduct a Phase 2a trial evaluating DMT410 with DAXXIFY® for the topical treatment of axillary hyperhidrosis (excessive sweating). Successful development and potential commercialization through partnerships could generate revenue through milestone payments and royalties from this innovative needle-free delivery method for both medical and aesthetic applications.

3. Expansion of DMT310 into Other Dermatological Indications: Beyond acne, DMT310 has also been studied for other medical skin conditions such as psoriasis and rosacea. While acne remains the primary focus, positive results and subsequent development in these additional indications could broaden the market opportunity and provide further revenue streams for Dermata Therapeutics.

Share Issuance

• Dermata Therapeutics raised approximately $18.0 million in an initial public offering (IPO) in August 2021 by issuing 2,571,428 shares of common stock and accompanying warrants.
• In December 2025, the company secured $4.1 million in gross proceeds through a private placement by issuing 2.02 million shares of common stock and warrants, with the potential for an additional $8.3 million if all warrants are exercised.
• In January 2026, Dermata Therapeutics increased the maximum aggregate offering amount of its common stock under an "At The Market" (ATM) Offering Agreement by $705,000, adding to the previously authorized $3,454,390.

Inbound Investments

• Dermata Therapeutics completed a private placement in December 2025, generating $4.1 million in upfront gross proceeds, with an additional potential $8.3 million if associated warrants are fully exercised.
• Over the last 24 months, institutional investors have purchased approximately $4.18 million worth of Dermata Therapeutics' stock.