Verrica to receive $18 million in milestone payments from Torii in 2025

Published 01/07/2025, 12:10
Verrica to receive $18 million in milestone payments from Torii in 2025

WEST CHESTER, Pa. - Verrica Pharmaceuticals Inc. (NASDAQ:VRCA), a small-cap pharmaceutical company with a market capitalization of $49 million, announced Tuesday it has amended its existing collaboration agreement with Torii Pharmaceutical Co. Ltd. to initiate a global Phase 3 clinical trial of YCANTH for the treatment of common warts. The company’s stock has seen significant volatility this year, with InvestingPro data showing a 93% decline over the past year.

Under the revised agreement, Verrica will receive an $8 million milestone payment from Torii in July 2025, earlier than previously scheduled. The company is also set to receive an additional $10 million upon approval of YCANTH for molluscum contagiosum in Japan, which is expected by the end of 2025. These milestone payments are crucial for Verrica, as InvestingPro analysis indicates the company is quickly burning through cash with last twelve months revenue of $7.18 million and negative gross profit margins.

Torii will fund the first $40 million of out-of-pocket costs for the global study, representing approximately 90% of the current clinical budget. The companies will ultimately split the costs of the global Phase 3 program on a 50/50 basis.

Verrica plans to dose the first patient in the Phase 3 trial in the United States in the fourth quarter of 2025. The company will maintain ownership of global rights to YCANTH for all indications in all territories outside of Japan.

"This amendment reflects our extensive collaboration with Torii as we have together worked with regulatory authorities to optimize the clinical program across Japan and the United States," said Jayson Rieger, President and CEO of Verrica, in the press release.

Common warts affect approximately 22 million patients in the United States, with no FDA-approved prescription therapies currently available. While analysts anticipate sales growth for Verrica, InvestingPro subscribers can access 8 additional key insights about the company’s financial health, growth prospects, and detailed valuation analysis in the comprehensive Pro Research Report, helping investors make more informed decisions about this volatile biotech stock (Beta: 1.76).

YCANTH is already FDA-approved for the treatment of molluscum contagiosum in adults and children two years of age and older. The drug-device combination product contains a formulation of cantharidin delivered via a single-use applicator.

The agreement also includes a manufacturing transfer to Torii for YCANTH applicators to be sold in Japan, which is expected to take several years.

In other recent news, Verrica Pharmaceuticals has reported its first-quarter 2025 earnings, revealing a significant increase in revenue driven by its primary product, WICANT. The company achieved a total revenue of $3.4 million, which exceeded analysts’ expectations. Despite this revenue growth, Verrica Pharmaceuticals posted a GAAP net loss of $9.7 million, or $0.10 per share, aligning closely with the forecasted loss. The revenue figure notably surpassed the expected $2.48 million, marking a positive surprise for investors. Additionally, Verrica Pharmaceuticals has amended its existing credit agreement with OrbiMed Royalty & Credit Opportunities IV, LP, and other lenders, including a waiver of certain covenants for future periods. In return for this amendment, the company agreed to pay an amendment fee of $110,465.12. These developments reflect Verrica Pharmaceuticals’ ongoing efforts to manage its financial arrangements and operational strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.