Verrica Pharmaceuticals reports 32.8% quarterly growth in YCANTH sales

WEST CHESTER, Pa. - Verrica Pharmaceuticals Inc. (NASDAQ:VRCA), a pharmaceutical company with a market capitalization of approximately $80 million, dispensed a record 13,434 units of its YCANTH applicators in the second quarter of 2025, representing a 32.8% sequential growth over the first quarter, the company announced Wednesday. The stock has shown strong momentum, gaining 33% in the past week according to InvestingPro data.

This growth rate nearly doubled the previous quarter’s sequential growth of 16.7%, according to the company’s press release statement. The dermatology therapeutics firm, which generated $7.18 million in revenue over the last twelve months, also reported receiving an $8 million milestone payment from its Japanese development partner, Torii Pharmaceutical, for initiating a global Phase 3 program for common warts.

YCANTH is a drug-device combination product containing cantharidin that was approved by the FDA for treating molluscum contagiosum in adults and children two years and older. The viral skin infection affects approximately 6 million people in the United States.

"The substantial growth for YCANTH dispensed applicator units in the second quarter proves that our more focused commercial strategy is driving significant product demand," said Jayson Rieger, President and CEO of Verrica Pharmaceuticals, in the company statement.

The company noted that approximately 225 million lives are eligible to receive YCANTH covered by insurance, with commercially insured patients paying $25 per treatment visit for up to two applicators.

In addition to its molluscum contagiosum treatment, Verrica is developing YCANTH for common warts and has licensed VP-315 for non-melanoma skin cancers including basal cell carcinoma.

The company also mentioned recent amendments to its Credit Agreement with OrbiMed and its Collaboration and License Agreement with Torii Pharmaceutical, which provide additional financial flexibility and potential for future milestone payments. InvestingPro analysis reveals that while analysts anticipate sales growth this year, the company faces challenges with negative gross margins and rapid cash burn. For deeper insights into Verrica’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 US stocks.

In other recent news, Verrica Pharmaceuticals reported a significant rise in revenue for the first quarter of 2025, totaling $3.4 million, which exceeded analyst expectations. This growth was primarily driven by their product, WICANT, despite the company posting a GAAP net loss of $9.7 million. Verrica also amended its collaboration agreement with Torii Pharmaceutical Co. Ltd., which will provide them with $18 million in milestone payments by the end of 2025. The amendment includes Torii funding 90% of the global Phase 3 clinical trial costs for YCANTH, with plans to dose the first patient in the U.S. in late 2025. Additionally, Verrica amended its credit agreement with OrbiMed Royalty & Credit Opportunities IV, LP, waiving certain covenants for financial statements through the end of 2025. The company agreed to pay a fee of $110,465.12 for this amendment. Analysts from firms such as TD Cowen and RBC Capital Markets have shown interest in the company’s strategic initiatives and future growth prospects. These developments reflect Verrica’s ongoing efforts to strengthen its financial position and advance its clinical and commercial strategies.

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