Verrica Pharmaceuticals amends credit agreement

Published 12/06/2025, 21:40
Verrica Pharmaceuticals amends credit agreement

Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) has entered into a material definitive agreement, amending its existing credit agreement, as disclosed in a recent 8-K filing with the Securities and Exchange Commission. On Monday, the pharmaceutical company, headquartered in West Chester, PA, executed the sixth amendment to its Credit Agreement originally dated July 26, 2023, with OrbiMed Royalty & Credit Opportunities IV, LP, and other lenders.

The amendment includes a waiver of certain covenants for the quarters ending June 30, 2025, and September 30, 2025, as well as for the fiscal year ending December 31, 2025. Specifically, the lenders have waived the requirement that there be no "going concern" qualification on the company’s financial statements for these periods.

In exchange for the amendment, Verrica Pharmaceuticals has agreed to pay an amendment fee of $110,465.12 to the lenders. The other terms of the Credit Agreement remain unchanged. This adjustment is expected to be detailed further in the company’s forthcoming Quarterly Report on Form 10-Q for the quarter ending June 30, 2025.

This announcement comes as part of Verrica Pharmaceuticals’ ongoing financial arrangements and reflects adjustments to their credit terms with lenders. The company, which generated revenue of $7.18 million in the last twelve months, continues to navigate challenging market conditions. The company’s business address is 44 West Gay Street, Suite 400, West Chester, PA 19380, and it is incorporated in Delaware. The information provided is based on the company’s latest SEC filing and InvestingPro data.

In other recent news, Verrica Pharmaceuticals reported its first-quarter 2025 earnings, revealing a significant increase in revenue largely attributed to its product, WICANT. The company recorded total revenue of $3.4 million, surpassing analyst expectations of $2.48 million. Despite this revenue growth, Verrica reported a GAAP net loss of $9.7 million, or $0.10 per share, which was slightly better than the forecasted loss of $0.1075 per share. The company’s revenue growth was accompanied by a reduction in research and development (R&D) and selling, general, and administrative (SG&A) expenses, indicating a leaner operational approach.

In addition to its earnings report, Verrica Pharmaceuticals continues to advance its clinical pipeline, including the development of BP315 for basal cell carcinoma. The company is also working with Torii Pharmaceutical (TADAWUL:2070) on a phase three program for WICANT in the treatment of common warts. Verrica’s CEO, Jason Rieger, emphasized the company’s focus on expanding WICANT’s distribution and commercialization efforts, particularly through local independent pharmacies.

Analysts from firms such as TD Cowen and RBC Capital Markets have shown interest in the company’s commercialization strategy and its potential seasonal uptick in demand during the summer months. Verrica’s management highlighted strong Medicaid and commercial coverage as positive factors supporting product adoption. The company remains optimistic about its future revenue trajectory, with significant increases projected for upcoming quarters and fiscal years.

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

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