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The Alcon of dermatology, focusing on specialized treatments for skin conditions.

Vertex Pharmaceuticals for skin conditions, developing breakthrough therapies for specific dermatological diseases.

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• YCANTH (Cantharidin Topical Solution): A topical solution approved for the treatment of molluscum contagiosum in adults and pediatric patients 2 years of age and older.

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Verrica Pharmaceuticals (VRCA) sells primarily to other companies, specifically pharmaceutical wholesalers, who then distribute its prescription product, YCANTH, to pharmacies, hospitals, and clinics.

Based on its financial disclosures, Verrica Pharmaceuticals' major customers are:

• AmerisourceBergen Drug Corporation (Symbol: ABC)
• Cardinal Health, Inc. (Symbol: CAH)
• McKesson Corporation (Symbol: MCK)

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• Catalent, Inc. (CTLT)
• Siegfried AG (SFZN)

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Jayson Rieger, Ph.D., M.B.A. President & CEO

Dr. Rieger joined Verrica Pharmaceuticals as President and CEO, effective November 5, 2024. He has over 20 years of experience in leadership roles in the life sciences industry. Prior to Verrica, Dr. Rieger served as Executive Vice President of PBM Capital Group, LLC, and is also a Managing Partner with PBM Capital, a private equity firm. He previously held positions as Corporate Senior Vice President and President of the Human Therapeutics Division at Intrexon Corporation, Vice President of Research and Virginia Operations for Clinical Data, Inc., and Vice President of Lead Development at Adenosine Therapeutics, LLC.

John Kirby Interim Chief Financial Officer

Mr. Kirby was appointed Interim Chief Financial Officer of Verrica Pharmaceuticals, effective November 5, 2024. He brings over 25 years of public company accounting and finance experience, particularly with small to mid-sized public pharmaceutical companies. Before joining Verrica, Mr. Kirby served as an independent consulting Chief Financial Officer to publicly traded, development-stage life science companies. He was the Chief Financial Officer of Aceragen, Inc. (formerly Idera Pharmaceuticals, Inc.) from July 2019 to April 2023, transitioning as part of the 2022 merger between the two companies. His prior experience includes various finance and accounting roles at Idera, Endo Pharmaceuticals, Inc., ViroPharma Incorporated, and beginning his career at KPMG, LLP.

David Zawitz Chief Operating Officer

David Zawitz serves as the Chief Operating Officer for Verrica Pharmaceuticals. He has over 25 years of experience in the biopharmaceutical industry across commercial, market access, and operations functions. Prior to Verrica, he was the Senior Vice President of Commercial at Noven Pharmaceuticals Inc., leading the commercialization of dermatology and women's health products. His career also includes roles at Johnson & Johnson, where he managed various product portfolios.

Noah Rosenberg, M.D. Chief Medical Officer

Dr. Rosenberg is the Chief Medical Officer at Verrica Pharmaceuticals. He is a board-certified dermatologist with extensive experience in clinical development and medical affairs within the pharmaceutical industry. Before joining Verrica, Dr. Rosenberg held leadership roles in medical affairs at various dermatology-focused companies, including Foamix Pharmaceuticals (now Menlo Therapeutics) and Dermira (acquired by Eli Lilly).

Paul B. Manning Chairman of the Board

Paul B. Manning serves as the Chairman of the Board for Verrica Pharmaceuticals. He is the Founder, Chairman, and CEO of PBM Capital Group, a healthcare-focused private equity firm. Mr. Manning has a history of founding and leading companies in the pharmaceutical and healthcare sectors, including the founding of United Pharma, and managing PBM Capital Group, which has backed numerous companies. He also founded and was CEO of PBM Products, which was sold to Perrigo Company plc for $800 million.

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Key Risks to Verrica Pharmaceuticals (VRCA)

1. Financial Stability and Cash Runway: Verrica Pharmaceuticals is experiencing a precarious financial situation with a limited cash balance and a high burn rate, leading to an estimated cash runway of less than a year. The company has reported negative EBITDA and weak gross profit margins, and there are concerns regarding compliance with loan liquidity covenants, which raise substantial doubt about its ability to continue as a going concern. While the company has undertaken restructuring efforts and secured some recent financing, its ability to achieve profitability and sustain operations remains a significant challenge.
2. Commercialization Challenges for YCANTH: Despite YCANTH being the first FDA-approved treatment for molluscum contagiosum, its market penetration has been hampered by issues such as payer coverage barriers and problems with residual compound cantharidin. The company reported negative net revenues in the third quarter of 2024, partly due to product returns. Sustained and improved commercial adoption of YCANTH is crucial for the company's revenue growth and overall financial health.
3. Drug Development and Regulatory Risks: As a pharmaceutical company, Verrica is inherently exposed to the uncertainties of the drug development process and regulatory approval. The company's past has seen challenges, including allegations of misleading investors about the prospects of FDA approval for YCANTH due to manufacturing quality control issues, which resulted in a substantial drop in stock value. Ongoing and future product development and regulatory pathways present inherent risks that could significantly impact the business.

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Verrica Pharmaceuticals (VRCA) has several key products and product candidates with the following addressable market sizes:

• YCANTH (VP-102) for Molluscum Contagiosum: YCANTH is the first FDA-approved treatment for molluscum contagiosum. Approximately 6 million people in the United States are affected by molluscum contagiosum, primarily children. The global molluscum contagiosum treatment market size was valued at USD 2.42 billion in 2024 and is projected to reach USD 3.67 billion by 2033. The U.S. molluscum contagiosum treatment market was valued at approximately USD 1.2 billion in 2023.
• YCANTH (VP-102) for Common Warts: YCANTH (VP-102) is in development for the treatment of common warts, with a Phase 3 trial anticipated to begin as early as mid-2025. There are approximately 22 million cases of common warts in the United States, representing a multi-billion dollar market opportunity. There are currently no FDA-approved treatments for common warts.
• VP-315 for Basal Cell Carcinoma (BCC): VP-315 is an oncolytic peptide in Phase 2 clinical trials for dermatologic oncology conditions, with an initial focus on basal cell carcinoma (BCC) and squamous cell carcinoma. Basal cell carcinoma is the most common form of cancer in the U.S. and its incidence is rising worldwide. Approximately 5.4 million basal and squamous cell skin cancers are diagnosed in the U.S. each year, with over three-quarters of these being basal cell carcinoma.

Verrica Pharmaceuticals is currently not advancing the development of VP-103 for plantar warts or VP-102 for external genital warts.

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Verrica Pharmaceuticals (VRCA) is poised for future revenue growth over the next 2-3 years, driven by the expanding commercialization of its lead product, YCANTH, both in its approved indication and new markets, as well as the advancement of its clinical pipeline.

Here are 3-5 expected drivers of future revenue growth:

1. Accelerated Commercialization and Adoption of YCANTH for Molluscum Contagiosum: Verrica has demonstrated significant sequential growth in dispensed YCANTH applicator units for molluscum contagiosum, with a 32.8% increase in Q2 2025 over Q1 2025 and 16.7% in Q1 2025 over Q4 2024. This growth is attributed to a focused commercial strategy targeting high-prevalence territories, expanding pharmacy access, and increased physician prescribing from both dermatology and pediatric practices. The normalization of distributor inventory levels is also ensuring that dispensed units more closely reflect actual market demand and revenue. The introduction of a single applicator configuration in Q1 2025 is expected to further enhance convenience, reduce acquisition costs for physician practices, and expand distribution and patient access.

2. Global Expansion of YCANTH into New Indications (Common Warts): Verrica, in partnership with Torii Pharmaceutical, is initiating a global Phase 3 program to evaluate YCANTH for the treatment of common warts, with the first patient expected to be dosed in the United States in the fourth quarter of 2025. Torii Pharmaceutical has committed to funding approximately 90% of the global program costs (up to $40 million), and Verrica retains 100% ownership of global rights for all indications outside of Japan. This expansion into common warts represents a significant opportunity to address a large unmet medical need in dermatology.

3. Market Entry and Revenue from YCANTH in Japan for Molluscum Contagiosum: Verrica's development partner, Torii Pharmaceutical, received approval from Japan's Ministry of Health, Labour and Welfare for YCANTH (TO-208) for the treatment of molluscum contagiosum as of September 1, 2025. This approval triggered a $10 million milestone payment to Verrica. Beyond the initial milestone, the commercial launch and sales of YCANTH in Japan by Torii are expected to generate future royalty streams and transfer payments for Verrica.

4. Advancement and Potential Commercialization of VP-315 for Basal Cell Carcinoma: Verrica is progressing VP-315, an oncolytic peptide immunotherapy, for the treatment of basal cell carcinoma (BCC), a non-melanoma skin cancer. Promising Phase 2 trial results for VP-315 were presented in November 2025, highlighting strong local immune activation and clinical activity in patients with BCC. The company believes this program has strong potential to drive future value and is ready for Phase 3 trials, representing a significant late-stage pipeline asset.

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Share Issuance

• Verrica Pharmaceuticals executed a follow-on public offering on March 25, 2021, issuing 2,033,899 shares of common stock at $14.75 per share.
• The company's shares outstanding increased by 63.95% over a recent one-year period.
• On July 24, 2025, Verrica Pharmaceuticals implemented a 1-for-10 reverse stock split, reducing the number of outstanding shares from approximately 92.5 million to 9.25 million.

Inbound Investments

• Verrica Pharmaceuticals received $0.5 million in December 2020 and $11.5 million in April 2021 from Torii Pharmaceutical Co., Ltd. as upfront payments from a collaboration and license agreement.
• An $8.0 million milestone payment was received from Torii Pharmaceutical in August 2022 following the initiation of a Phase 3 trial of VP-102 in Japan. In July 2025, an accelerated $8 million milestone payment was received from Torii for initiating a global Phase 3 program for common warts, with an additional $10 million expected upon Japanese approval of YCANTH for molluscum contagiosum by the end of 2025.
• In March 2020, Verrica secured loan facilities of up to $50 million in term loans and a $5.0 million revolving line of credit, with $35.0 million in proceeds received at closing.

Outbound Investments

• In August 2020, Verrica Pharmaceuticals entered into an exclusive worldwide license agreement with Lytix Biopharma AS to develop and commercialize LTX-315 (now VP-315) for dermatological oncology indications. Under the terms, Verrica is obligated to pay Lytix an upfront payment, contingent regulatory and sales milestones totaling up to $113.5 million, in addition to tiered royalties.

Capital Expenditures

• Capital expenditures for the last 12 months were approximately -$16,000.
• Annual capital expenditures, reflected as "Net Change In Property, Plant, And Equipment," were -$0.02 million in 2024, -$0.36 million in 2023, -$0.48 million in 2022, -$1.08 million in 2021, and -$1.69 million in 2020.
• The primary focus of these expenditures, given the nature of a dermatology therapeutics company, would typically be related to laboratory equipment, office improvements, and other operational assets supporting research and development.