By Connor Hart

Verrica Pharmaceuticals' stock price fell in postmarket trading after it said it would explore strategies to strengthen its balance sheet, shook up its C-suite and posted third-quarter results that missed estimates.

Shares tumbled 20%, to $1.15. The stock, which ended Monday's regular session 6.5% lower, at $1.43, is down 80% since the beginning of the year.

The West Chester, Pa., company named Jayson Rieger as president and chief executive, and John Kirby as interim chief financial officer. Both appointments are effective Tuesday.

Rieger and Kirby will help oversee and implement operational changes, which were announced last month, including reducing its number of sales territories and cutting jobs. These changes, expected to lower total operating expenses by 50%, will result in a one-time restructuring charge of about $900,000, the company said.

Also on Monday, the company reported a net loss of $22.9 million, or 49 cents a share, compared with a loss of $24.8 million, or 54 cents a share, in last year's quarter. Analysts surveyed by FactSet were expecting a per-share loss of 38 cents.

On an adjusted basis, Verrica posted a loss of 43 cents a share.

The company recognized negative net product revenue of $1.9 million stemming from an increase in its return reserve for estimated returns from certain distributors of $1.7 million. Wall Street forecast revenue of $5.3 million, according to FactSet.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 04, 2024 18:31 ET (23:31 GMT)

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