• Total Revenue (Q4 2024): $0.3 million, primarily from YCA sales.
• Total Revenue (Full Year 2024): $7.6 million, up from $5.1 million in 2023.
• Net Product Revenue (Full Year 2024): $6.6 million, compared to $4.7 million in 2023.
• Gross Product Margin (Full Year 2024): 72%.
• Research and Development Expenses (Q4 2024): $1.2 million, decreased by $4.2 million from Q4 2023.
• Research and Development Expenses (Full Year 2024): $11.8 million, down from $20.3 million in 2023.
• Selling, General and Administrative Expenses (Q4 2024): $10 million, decreased by $6.8 million from Q4 2023.
• Selling, General and Administrative Expenses (Full Year 2024): $58.8 million, up from $47.3 million in 2023.
• GAAP Net Loss (Q4 2024): $16.2 million or $0.24 per share.
• GAAP Net Loss (Full Year 2024): $76.8 million or $1.48 per share.
• Non-GAAP Net Loss (Full Year 2024): $64.6 million or $1.25 per share.
• Cash and Cash Equivalents (End of 2024): $46.3 million.
• YCA Dispense Applicator Units (Q4 2024): 8,654 units, a 12.3% increase from Q3 2024.
• Equity Financing (November 2024): Raised approximately $42 million.

• Warning! GuruFocus has detected 5 Warning Signs with VRCA.

Release Date: March 11, 2025

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

Positive Points

• Verrica Pharmaceuticals Inc (NASDAQ:VRCA) reported a sequential quarterly growth of 12.3% in YCA applicator units in Q4 2024, indicating positive sales momentum.
• The company successfully raised approximately $42 million in an equity follow-on offering in November 2024, strengthening its financial position.
• Verrica Pharmaceuticals Inc (NASDAQ:VRCA) reduced its operating expense burn rate by approximately 50%, achieving cost efficiency while maintaining sales levels.
• The company is advancing its clinical stage pipeline, including pursuing YCA for common warts and BP 315 for basal cell carcinoma, which are potential key value drivers.
• Verrica Pharmaceuticals Inc (NASDAQ:VRCA) has established strong insurance coverage for YCA and introduced a new single applicator configuration to reduce acquisition costs for physicians.

Negative Points

• Verrica Pharmaceuticals Inc (NASDAQ:VRCA) reported a GAAP net loss of $16.2 million for Q4 2024, reflecting ongoing financial challenges.
• The company's total revenues for Q4 2024 were only $0.3 million, indicating limited revenue generation from YCA.
• Verrica Pharmaceuticals Inc (NASDAQ:VRCA) faces risks related to its debt obligations, including the initiation of principal payments in 2025.
• The company has not provided specific revenue guidance for 2025, creating uncertainty about future financial performance.
• Verrica Pharmaceuticals Inc (NASDAQ:VRCA) continues to face competition from compounders, which could impact market adoption of its products.

Q & A Highlights

Q: Can you provide insights into the patient demand for YCA and the feedback from clinicians regarding its accessibility? Additionally, how is the new single applicator performing, and what are your expectations for 2025 sales? A: Jayson Rieger, President and CEO, responded that there is strong adoption and interest in YCA for treating molluscum contagiosum among both pediatricians and dermatologists. The company is seeing good momentum in 2025, with positive growth in the business. However, they are not providing specific revenue guidance at this time.

Q: How do you anticipate seasonal changes affecting demand for YCA, and what are your views on potential market momentum? A: Jayson Rieger noted that the company is prepared for potential seasonal changes, such as increased activity in warmer months, which could support growth. They are cautiously optimistic about the upcoming quarters, considering the weather and deductible season.

Q: What are the barriers to generic entry for YCA, and how robust is your IP protection? A: Jayson Rieger explained that Verrica has a strong IP portfolio extending well into the future. The main concern historically has been compounders, but the company is addressing these challenges and finding good market adoption for YCA.

Q: How is the expansion of YCA usage into the pediatric setting progressing, and what is the expected distribution between pediatrics and dermatologists? A: Jayson Rieger stated that while the majority of customers are still dermatologists, there is significant growth in the pediatric market. The mix is expected to fluctuate, but they are approaching an equilibrium between the two segments.

Q: What are the plans for advancing the BP 315 program into Phase 3 trials, considering the new cost structure? A: Jayson Rieger mentioned that most expenses for BP 315 were incurred in the prior year. Once they have the necessary data and regulatory feedback, they will evaluate the program's cost and explore options for advancement, as the company owns full rights to the program.

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