Journey Medical Corporation Reports Full-Year 2024 Financial Results and Recent Corporate Highlights
FDA Approval of Emrosi$(TM)$ (40 mg Minocycline Hydrochloride Modified-Release Capsules) for Rosacea
Emrosi Initial Distribution Ongoing; First Prescriptions Filled
Total Revenues for the Full Year Ended December 31, 2024 were $56.1 million
Met All Financial Guidance for 2024
Emrosi Phase 3 Clinical Trial Results Published in JAMA Dermatology
Company to Hold Conference Call Today at 4:30 p.m. ET
SCOTTSDALE, Ariz., March 26, 2025 (GLOBE NEWSWIRE) -- Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical" or "the Company", "we", or "our"), a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of U.S. Food and Drug Administration ("FDA") approved prescription pharmaceutical products for the treatment of dermatological conditions, today announced financial results and recent corporate highlights for the full year ended December 31, 2024.
Claude Maraoui, Journey Medical's Co-Founder, President and Chief Executive Officer, said, "We delivered a solid performance in 2024, meeting all of our financial guidance ranges and received first cycle FDA approval for Emrosi(TM) in November, ahead of the scheduled PDUFA date. Emrosi's superb Phase 3 clinical results demonstrated its best-in-class profile, and we expect it will become the standard of care and transform our business. Our cash position remains strong ahead of Emrosi's launch and our objective is to deliver enhanced revenue growth and become sustainably EBITDA positive. I am pleased to report that we have begun distribution of Emrosi, that first prescriptions have been dispensed and that we continue to execute ahead of schedule, with full promotion expected in April 2025."
2024 Financial Guidance:
Full Year 2024 Full Year 2024
($'s in millions) Financial Guidance Actual Results
--------------------------- ------------------ ----------------
Product revenue, net $ 55 - 60 $ 55.1
Selling general and
administrative ("SG&A")
expense $ 39 - 42 $ 40.2
Research and development
("R&D") expense $ 9 - 10 $ 9.9
2024 Financial Results:
-- Total revenues were $56.1 million for the full year 2024 compared to
$79.2 million for the full year of 2023.
Year Ended
December 31, Change
--------------- -----------------
($'s in millions) 2024 2023 $ %
------------------ ------ ------ -------- -------
Product revenue,
net $55,134 $59,662 $ (4,528) -8%
Other revenue 1,000 19,519 (18,519) -95%
------
Total Revenue $56,134 $79,181 $(23,047) -29%
====== ====== ======= ===
-- Product revenue, net decreased $4.5 million, or 8%, to $55.1 million for
2024, from $59.7 million for 2023, due to overall higher rebates costs
across the Company's product portfolio and lower unit sales volumes,
mainly from our legacy products. Increases in unit sales volumes for
Qbrexza$(R)$ and Accutane(R) were offset by higher rebate costs.
-- Other revenue for 2023 reflects a one-time upfront license payment of
$19.0 million and $0.5 million in product related royalties for Qbrexza
from Maruho Ltd., our exclusive licensing partner in Japan. 2024 reflects
a $1.0 million milestone payment pursuant to Journey's license agreement
with Cutia Therapeutics (HK) Limited ("Cutia") that became payable to us
upon Cutia receiving marketing approval for Amzeeq(R) in the People's
Republic of China.
-- Cost of goods sold ("COGS") decreased by $2.0 million, or 9%, to $20.9
million for 2024, from $22.9 million for 2023 due to a decrease in
product royalties, stemming from the contractual royalty decreases in
2023 and the discontinuation of Ximino. The Company's gross margin
percentage slightly improved from period-to-period, as the cost savings
noted above were partially offset by higher product COGS.
-- SG&A expenses decreased by $3.7 million, or 8%, to $40.2 million for
2024, from $43.9 million for 2023. The decrease is mainly due to expense
reduction efforts primarily in sales and marketing, partially offset by
increases in non-cash share-based compensation expense, Emrosi launch
expenses, and increased SG&A related to the expansion of our market
access and coverage platforms.
-- R&D expenses were $9.9 million for 2024, compared to $7.5 million for
2023. R&D expenses for 2024 include a $4.1 million application filing fee
payment to the FDA for Emrosi, and a $3.0 million milestone payment
triggered by the FDA's acceptance of the Company's NDA application for
Emrosi. Clinical trial expenses were significantly lower than 2023, as
clinical development for Emrosi concluded in 2024.
-- The Company's net loss was $(14.7) million, or $(0.72) per share basic
and diluted for the full year 2024, compared to the net loss of $(3.9)
million or $(0.21) per share basic and diluted for the full year 2023.
Net loss for 2023 includes revenue from the Maruho upfront fee license
payment of $19.0 million and $0.5 million in product related royalties.
-- The Company's non-GAAP results in the table below reflect Adjusted EBITDA
of $0.8 million, or $0.04 per share basic and $0.03 per share diluted for
the full year 2024. This compares to Adjusted EBITDA of $15.6 million, or
$0.85 per share basic and $0.75 per share diluted for the full year 2023.
Adjusted EBITDA, Adjusted EBITDA per share basic and Adjusted EBITDA per
share diluted are non-GAAP financial measures, each of which are
reconciled to the most directly comparable financial measures calculated
in accordance with GAAP below.
-- At December 31, 2024, Journey Medical's cash and cash equivalents totaled
$20.3 million, compared to $22.5 million on September 30, 2024, and $27.4
million on December 31, 2023, a decrease of $2.2 million for the quarter
and a decrease of $7.1 million from the prior-year period.
Recent Corporate Highlights:
-- In March 2025, Journey Medical announced publication in the Journal of
the American Medical Association - Dermatology of the Phase 3 clinical
trial results of Emrosi (40 mg Minocycline Hydrochloride Modified-Release
Capsules, 10 mg immediate release and 30 mg extended release) to treat
rosacea. Emrosi achieved the co-primary and all secondary endpoints with
no significant safety issues when administered once daily for 16 weeks.
-- In February 2025, Journey Medical hosted a conference call and webcast to
discuss its U.S. commercial launch plan for Emrosi (40 mg Minocycline
Hydrochloride Modified-Release Capsules) for the treatment of rosacea. A
replay of the webcast is available on the IR calendar page of the Journey
Medical website, here.
-- In November 2024, the U.S. FDA approved Emrosi for the treatment of
inflammatory lesions of rosacea in adults.
-- In October 2024, clinical data were presented at the 44th Fall Clinical
Dermatology Conference assessing the dermal and systemic pharmacokinetics
of Emrosi versus oral Doxycycline 40 mg capsules (Oracea(R))1 in healthy
subjects.
-- In July 2024, Journey Medical appointed Michael C. Pearce to its Board of
Directors. Mr. Pearce is an accomplished executive, with substantial
strategic, business and financial expertise across many industries,
including healthcare.
-- In April 2024, Journey Medical appointed Joseph M. Benesch as its
permanent Chief Financial Officer. Mr. Benesch served as Journey
Medical's Interim Chief Financial Officer since January 2023 and
previously, he was Corporate Controller at the Company since November
2021.
Conference Call and Webcast Information
Journey Medical management will conduct a conference call and audio webcast on March 26, 2025, at 4:30 p.m. ET.
To listen to the conference call, interested parties within the U.S. should dial 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Journey Medical conference call. Participants can register for the conference here: https://dpregister.com/sreg/10197674/feaf5b7354. Please note that registered participants will receive their dial-in number upon registration.
A live audio webcast can be accessed on the News and Events page of the Investors section of Journey Medical's website, www.journeymedicalcorp.com, and will remain available for replay for approximately 30 days after the meeting.
(1) Oracea(R) is a registered trademark of Galderma Holdings, S.A. Société Anonyme.
About Journey Medical Corporation
Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical") is a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions through its efficient sales and marketing model. The Company currently markets eight FDA approved prescription drugs that help treat and heal common skin conditions. The Journey Medical team comprises industry experts with extensive experience in developing and commercializing some of dermatology's most successful prescription brands. Journey Medical is located in Scottsdale, Arizona and was founded by Fortress Biotech, Inc. (Nasdaq: FBIO). Journey Medical's common stock is registered under the Securities Exchange Act of 1934, as amended, and it files periodic reports with the U.S. Securities and Exchange Commission ("SEC"). For additional information about Journey Medical, visit www.journeymedicalcorp.com.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words "the Company", "we", "us" and "our" may refer to Journey Medical. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. The words "anticipate," "believe," "estimate," "may," "expect," "will," "could," "project," "intend," "potential" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include: the fact that our products and product candidates are subject to time and cost intensive regulation and clinical testing and as a result, may never be successfully developed or commercialized; a substantial portion of our sales derive from products that may become subject to third-party generic competition, the introduction of new competitor products, or an increase in market share of existing competitor products, any of which could have a significant adverse impact on our operating income; we operate in a heavily regulated industry, and we cannot predict the impact that any future legislation or administrative or executive action may have on our operations; our revenue is dependent mainly upon sales of our dermatology products and any setback relating to the sale of such products could impair our operating results; competition could limit our products' commercial opportunity and profitability, including competition from manufacturers of generic versions of our products; the risk that our products do not achieve broad market acceptance, including by government and third-party payors; our reliance third parties for several aspects of our operations; our dependence on our ability to identify, develop, and acquire or in-license products and integrate them into our operations, at which we may be unsuccessful; the dependence of the success of our business, including our ability to finance our company and generate additional revenue, on the successful commercialization of our recently approved product, Emrosi(TM), and any future product candidates that we may develop, in-license or acquire; clinical drug development is very expensive, time consuming, and uncertain and our clinical trials may fail to adequately demonstrate the safety and efficacy of our current or any future product candidates; our competitors could develop and commercialize products similar or identical to ours; risks related to the protection of our intellectual property and our potential inability to maintain sufficient patent protection for our technology and products; our business and operations would suffer in the event of computer system failures, cyber-attacks, or deficiencies in our or our third parties' cybersecurity; the substantial doubt about our ability to continue as a going concern; the effects of major public health issues, epidemics or pandemics on our product revenues and any future clinical trials; our potential need to raise additional capital; Fortress controls a voting majority of our common stock, which could be detrimental to our other shareholders; as well as other risks described in Part I, Item 1A, "Risk Factors," in our Annual Report on Form 10-K for the year ended December 31, 2024, subsequent Reports on Form 10-Q, and our other filings we make with the SEC. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Company Contact:
Jaclyn Jaffe
(781) 652-4500
ir@jmcderm.com
Media Relations Contact:
Tony Plohoros
6 Degrees
(908) 591-2839
tplohoros@6degreespr.com
JOURNEY MEDICAL CORPORATION
Consolidated Balance Sheets
($ in thousands except for share and per share amounts)
December 31,
----------------------
2024 2023
--------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 20,305 $ 27,439
Accounts receivable, net of reserves 10,231 15,222
Inventory 14,431 10,206
Prepaid expenses and other current assets 3,212 3,588
Total current assets 48,179 56,455
------- -------
Intangible assets, net 31,863 20,287
Operating lease right-of-use asset, net 199 101
Other assets - 6
Total assets $ 80,241 $ 76,849
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 16,050 $ 18,149
Due to related party 528 195
Accrued expenses 17,425 20,350
Accrued interest 404 22
Income taxes payable 60 53
Installment payments -- licenses, short-term 625 3,000
Operating lease liability, short-term 83 99
Total current liabilities 35,175 41,868
Term loan, net of discount 24,879 14,622
Operating lease liability, long-term 118 9
Total liabilities 60,172 56,499
------- -------
Stockholders' equity
Common stock, $.0001 par value, 50,000,000
shares authorized, 16,153,610 and
13,323,952 shares issued and outstanding as
of December 31, 2024 and December 31, 2023,
respectively 1 1
Common stock - Class A, $.0001 par value,
50,000,000 shares authorized, 6,000,000
shares issued and outstanding as of
December 31, 2024 and December 31, 2023 1 1
Additional paid-in capital 107,094 92,703
Accumulated deficit (87,027) (72,355)
Total stockholders' equity 20,069 20,350
------- -------
Total liabilities and stockholders' equity $ 80,241 $ 76,849
======= =======
JOURNEY MEDICAL CORPORATION
Consolidated Statements of Operations
($ in thousands except for share and per share amounts)
Years Ended December 31,
----------------------------
2024 2023
Revenue:
Product revenue, net $ 55,134 $ 59,662
Other revenue 1,000 19,519
---------- ----------
Total Revenue 56,134 79,181
---------- ----------
Operating expenses
Cost of goods sold -- (excluding
amortization of acquired intangible
assets) 20,879 22,893
Amortization of acquired intangible
assets 3,424 3,767
Research and development 9,857 7,541
Selling, general and administrative 40,204 43,910
Loss on impairment of intangible
assets - 3,143
Loss Recovery (4,553) -
Total operating expenses 69,811 81,254
---------- ----------
Loss from operations (13,677) (2,073)
Other expense (income)
Interest income (757) (322)
Interest expense 2,700 1,698
Gain on extinguishment of debt (1,125) -
Foreign exchange transaction losses 116 183
Total other expense 934 1,559
---------- ----------
Loss before income taxes (14,611) (3,632)
Income tax expense 61 221
---------- ----------
Net Loss $ (14,672) $ (3,853)
========== ==========
Net loss per common share:
Basic and diluted $ (0.72) $ (0.21)
Weighted average number of common
shares:
Basic and diluted 20,431,400 18,232,422
Use of Non-GAAP Measures:
In addition to the GAAP financial measures as presented in our Form 10-K that will be filed with the Securities and Exchange Commission ("SEC"), the Company has, in this press release, included certain non-GAAP measurements, including Adjusted EBITDA, Adjusted EBITDA per share basic and Adjusted EBITDA per share diluted. We define Adjusted EBITDA as net income (loss) excluding interest, taxes and depreciation and amortization, less certain other non-cash and infrequent items not considered to be normal, recurring operating expenses, including, share-based compensation expense, amortization and impairments of acquired intangible assets, severance, short-term research and development expense and foreign exchange transaction losses. In particular, we exclude the following matters for the reasons more fully described below:
-- Share-Based Compensation Expense: We exclude share-based compensation
from our adjusted financial results because share-based compensation
expense, which is non-cash, fluctuates from period to period based on
factors that are not within our control, such as our stock price on the
dates share-based grants are issued.
-- Gain on Extinguishment of Debt: We exclude the gain on extinguishment of
debt to settle amounts owed as part of license installment payments,
because we consider this to be a non-cash, non-recurring item.
-- Short-Term Research and Development Expense: We exclude research and
development costs incurred in connection with Emrosi, formerly referred
to as DFD-29, including the filing fee payment made to the FDA and
contractual milestone payments, which was the only product in our
portfolio not approved for marketing and sale during the reporting period,
because we do not consider such costs to be normal, recurring operating
expenses that are core to our long-term strategy. Instead, our long-term
strategy is focused on the marketing and sale of our core FDA-approved
dermatological products and out licensing our intellectual property and
related technologies.
-- Amortization and Impairments of Acquired Intangible Assets: We exclude
the impact of certain amounts recorded in connection with the
acquisitions of intangible assets that are either non-cash or not normal,
recurring operating expenses due to their nature, variability of amounts,
and lack of predictability as to occurrence and/or timing. These amounts
may include non-cash items such as the amortization impairments of
acquired intangible assets.
-- Loss Recovery: We exclude the loss recovery payment because we consider
this to be a one-time, non-recurring source of income.
Adjusted EBITDA per share basic and Adjusted EBITDA per share diluted are determined by dividing the resulting Adjusted EBITDA by the number of shares outstanding on an actual and fully diluted basis.
Management believes the use of these non-GAAP measures provide meaningful supplemental information regarding the Company's performance because (i) it allows for greater transparency with respect to key measures used by management in its financial and operational decision-making, (ii) it excludes the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the Company's core operating performance and that may obscure trends in the Company's core operating performance and (iii) it is used by institutional investors and the analyst community to help analyze the Company's results. However, Adjusted EBITDA, Adjusted EBITDA per share basic, Adjusted EBITDA per share diluted and any other non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the Company and the manner in which they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP financial measures used by other companies, including the Company's competitors.
The table below provides a reconciliation from GAAP to non-GAAP measures:
JOURNEY MEDICAL CORPORATION
Reconciliation of GAAP to Non-GAAP Adjusted EBITDA
($ in thousands except for share and per share amounts)
Years Ended December 31,
----------------------------
2024 2023
GAAP Net Loss $ (14,672) $ (3,853)
EBITDA:
Interest 1,943 1,376
Taxes 61 221
Amortization of acquired intangible
assets 3,424 3,767
EBITDA (9,244) 1,511
---------- ----------
Non-GAAP Adjusted EBITDA:
Non-Cash Components:
Share-based compensation 6,098 2,606
Gain on extinguishment of debt (1,125) -
Loss on impairment of intangible
assets - 3,143
Non-core & Infrequent Components:
Short-term R&D (includes one-time
DFD-29 license and milestone
payments) 9,349 7,433
Foreign exchange transaction losses 116 183
Severance 147 711
Loss recovery (4,553) -
Non-GAAP Adjusted EBITDA $ 788 $ 15,587
========== ==========
Net income (loss) & Non-GAAP Adjusted
EBITDA per common share:
Basic
GAAP Net Loss $ (0.72) $ (0.21)
Non-GAAP Adjusted EBITDA $ 0.04 $ 0.85
Diluted
GAAP Net Loss $ (0.72) $ (0.21)
Non-GAAP Adjusted EBITDA $ 0.03 $ 0.75
Weighted average number of common
shares:
GAAP - Basic & Diluted 20,431,400 18,232,422
Non-GAAP - Basic 20,431,400 18,232,422
Non-GAAP - Diluted 24,457,450 20,884,538
(END) Dow Jones Newswires
March 26, 2025 16:01 ET (20:01 GMT)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.