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SCOTTSDALE, Ariz. - Journey Medical Corporation (NASDAQ:DERM), a dermatology-focused pharmaceutical company with a market capitalization of $166.56 million and impressive gross margins of 65%, announced Monday that its rosacea treatment Emrosi now has pharmacy benefit coverage for 65% of commercial lives in the United States, up from 29% in May. According to InvestingPro data, the company has demonstrated strong momentum with a remarkable 91.69% price return over the past six months.
The expanded insurance coverage applies to approximately 121 million of the 187 million Americans with commercial health insurance, potentially increasing access to the company’s minocycline hydrochloride modified-release capsules. This expansion could significantly impact Journey Medical’s revenue, which currently stands at $56.24 million for the last twelve months.
Emrosi, which received FDA approval for treating inflammatory lesions of rosacea in adults, combines 10 mg immediate release and 30 mg extended release formulations in a 40 mg capsule.
"We are extremely pleased with the ongoing adoption of Emrosi by commercial payers," said Claude Maraoui, Co-Founder, President, and CEO of Journey Medical Corporation, attributing the coverage expansion to the company’s "targeted contracting strategy, increasing prescription demand, and strong clinical data."
Rosacea affects an estimated 16 million Americans and up to 415 million people worldwide, according to The National Rosacea Society. The chronic inflammatory skin condition typically presents with symptoms including facial redness, inflammatory lesions, and spider veins.
The most common adverse reaction reported in clinical trials was dyspepsia, occurring in at least 1% of subjects and more frequently than in those receiving placebo, according to information provided in the company statement.
Journey Medical Corporation focuses on marketing FDA-approved prescription pharmaceutical products for dermatological conditions. The company is based in Scottsdale, Arizona. While analysts maintain a bullish outlook with price targets ranging from $9 to $11, InvestingPro analysis suggests the stock may be overvalued at current levels. Investors can access detailed financial analysis and 6 additional exclusive ProTips for DERM through an InvestingPro subscription, including comprehensive insights available in the Pro Research Report.
In other recent news, Journey Medical Corporation reported its Q1 2025 earnings, revealing a net revenue of $13.1 million, which exceeded the forecast of $12.06 million. Despite the revenue beat, the company reported a net loss of $0.18 per share, missing the expected loss of $0.10 per share. Journey Medical has also announced that it will be joining the Russell 2000 and 3000 indexes, which could increase its visibility among investors. Additionally, the company highlighted the successful launch of its rosacea treatment, Amroci, which contributed approximately $2 million in revenue during the quarter. The drug, Emrosi, also demonstrated consistent efficacy in Phase 3 trials regardless of patient body weight, indicating it can be prescribed without dosage adjustments. Analyst feedback from firms like AGP and B. Riley Securities suggests positive market reception for Amroci, despite competitive pressures in the rosacea treatment market. Journey Medical aims to expand market access for Amroci, with 30% of covered commercial insured lives now having access to the drug. These developments reflect the company’s strategic efforts to enhance its market presence and financial performance.
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