Verrica Pharmaceuticals Q4 revenue jumps on stronger YCANTH demand

Overview

• Dermatology therapeutics firm's Q4 adjusted loss per share beat analyst expectations

• Q4 revenue rose sharply yr/yr, driven by higher YCANTH demand and license revenue

• Company repaid all outstanding debt and extended cash runway into Q1 2027

Outlook

• Company expects to initiate second Phase 3 study of YCANTH in US and Japan in mid-2026

• Verrica says cash runway extends into first quarter of 2027

• Company preparing pivotal Phase 3 studies of VP-315 for basal cell carcinoma in 2026

Result Drivers

• YCANTH DEMAND - Higher product revenue in Q4 was driven by increased demand for YCANTH, as reflected in the rise in dispensed applicator units

• LICENSE REVENUE - License and collaboration revenue increased, primarily from commercial supply for YCANTH's launch in Japan

• LOWER OPERATING COSTS - Selling, general and administrative expenses fell due to reduced commercial activities and a smaller sales force

Company press release: ID:nGNX9Ms64S

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Verrica Pharmaceuticals Inc is $18.00, about 201% above its March 10 closing price of $5.98

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