• Annual Revenue 2024: $56 million.
• Net Product Revenue 2024: $55.1 million.
• Total Revenues 2024: $56.1 million, including a $1 million milestone payment.
• Cost of Goods Sold 2024: $20.9 million, a decrease of 9% from the previous year.
• Research and Development Expenses 2024: $9.9 million, an increase driven by non-recurring payments.
• SG&A Expenses 2024: $40.2 million, a decrease of 8% year-over-year.
• Net Loss 2024: $14.7 million or $0.72 per share.
• Non-GAAP Adjusted EBITDA 2024: Positive $800,000 or $0.04 per share basic.
• Cash and Cash Equivalents as of December 31, 2024: $20.3 million.

• Warning! GuruFocus has detected 10 Warning Signs with DERM.

Release Date: March 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Journey Medical Corp (NASDAQ:DERM) reported annual revenue of $56 million in 2024, achieving positive non-GAAP adjusted EBITDA for the sixth consecutive quarter.
• The company successfully launched Emrosi, an oral treatment for rosacea, with FDA approval received on time in November 2024.
• Journey Medical Corp (NASDAQ:DERM) has a strong balance sheet with $20.3 million in cash as of December 31, 2024, despite significant one-time payments for Emrosi's regulatory fees.
• Emrosi's Phase 3 clinical results showed superiority against the current oral standard of care, entering a $1 billion plus treatment category.
• The company anticipates significant operating leverage from Emrosi sales, with potential peak annual sales of $200 million in the U.S. and $100 million internationally.

Negative Points

• Total net product revenue in 2024 decreased to $55.1 million from $59.7 million in 2023, primarily due to higher rebate costs and lower unit volumes from legacy products.
• Research and development expenses increased by $2.3 million to $9.9 million in 2024, driven by non-recurring payments related to Emrosi's NDA filing.
• Net loss to common shareholders was $14.7 million for 2024, compared to a net loss of $3.9 million in 2023.
• The company has not yet provided 2025 financial guidance, citing the variability associated with the Emrosi launch.
• Initial commercial payer coverage for Emrosi is limited, with only 20% of commercial lives and 4% of Medicare lives covered, though this is expected to improve over time.

Q & A Highlights

Q: What is the expected payer coverage for Emrosi by the end of 2025? A: Claude Maraoui, President and CEO, stated that the goal is to obtain as many covered lives as possible, with peak commercial coverage expected to take 12 to 18 months. Louis Donati, Director of Market Access, added that the market access team is actively working on commercial and Medicare coverage, with significant ramp-up expected throughout the year.

Q: How important is the erythema data to dermatologists, and how is it being communicated given it is not in the label? A: Claude Maraoui noted that the head-to-head performance of Emrosi is the primary interest for dermatologists, rather than erythema. Dr. Srinivas Sidgiddi, VP of Research & Development, added that the erythema data is published in JAMA Dermatology, providing visibility and credibility. The medical affairs team is prepared to address specific questions from prescribers.

Q: When can we expect 2025 financial guidance? A: Claude Maraoui mentioned that guidance will be provided later in the year after assessing initial Emrosi prescription demand and conducting additional payer contract negotiations.

Q: How has the reimbursement environment been for Emrosi so far? A: Claude Maraoui indicated that it is too early to fully assess, but initial coverage is around 20%, which is on target. Meaningful revenue from Emrosi is expected to begin in Q2 2025.

Q: What are the expectations for pricing across the legacy portfolio in 2025? A: Joseph Benesch, Interim CFO, stated that pricing for legacy brands like Exelderm and Targadox is expected to hold steady, with no significant changes anticipated. The focus remains on maintaining stable pricing amidst competitive pressures.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.