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Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) announced Tuesday that it will implement a 1-for-10 reverse stock split of its common stock, according to a press release statement based on a recent SEC filing. The move comes as the company’s stock has experienced a significant 90% decline over the past year, with shares currently trading at $0.72. According to InvestingPro data, the stock has shown high volatility with a beta of 1.76. The reverse stock split will become effective at 5:00 p.m. Eastern Time on Thursday.
Under the terms of the reverse split, every 10 shares of Verrica’s issued and outstanding common stock will be automatically converted into one share, with no change to the par value per share. The reverse stock split was authorized by stockholders at the company’s annual meeting on June 5, 2025.
Following the split, proportionate adjustments will be made to the per share exercise price and the number of shares issuable upon the exercise or vesting of all outstanding stock options and warrants. The number of shares reserved for issuance under the company’s 2018 Equity Incentive Plan and 2024 Inducement Plan will also be reduced proportionately.
No fractional shares will be issued. Stockholders entitled to a fractional share as a result of the split will receive a cash payment instead. The reverse stock split will affect all stockholders proportionately and will not alter any stockholder’s percentage ownership, except for adjustments due to the handling of fractional shares.
Verrica’s common stock will begin trading on a split-adjusted basis on The Nasdaq Global Market when the market opens on Friday. The new CUSIP number for the common stock will be 92511W207.
As of July 11, 2025, Verrica reported approximately 92.5 million shares of common stock outstanding. Immediately after the reverse split, this number will be reduced to approximately 9.25 million shares, subject to adjustment for fractional shares. The company, currently valued at $66.78 million in market capitalization, has been facing challenges with cash burn and profitability, as highlighted by InvestingPro analysis. Subscribers to InvestingPro can access 12 additional key insights about Verrica’s financial health and future prospects through the comprehensive Pro Research Report.
This information is based on a press release statement and details provided in Verrica Pharmaceuticals Inc.’s filing with the Securities and Exchange Commission.
In other recent news, Verrica Pharmaceuticals reported a 32.8% growth in quarterly sales of its YCANTH applicators, with 13,434 units dispensed in the second quarter of 2025. This marks a significant increase from the previous quarter’s growth of 16.7%. The company also announced it received an $8 million milestone payment from its Japanese partner, Torii Pharmaceutical (TADAWUL:2070), for initiating a global Phase 3 program for common warts. Additionally, Verrica is set to receive another $10 million from Torii upon the approval of YCANTH for molluscum contagiosum in Japan, expected by the end of 2025.
In its first-quarter 2025 earnings, Verrica posted a revenue of $3.4 million, exceeding expectations despite a GAAP net loss of $9.7 million. Furthermore, Verrica has amended its credit agreement with OrbiMed Royalty & Credit Opportunities IV, LP, which includes a waiver of certain covenants for specific fiscal periods in 2025. These developments highlight Verrica’s ongoing strategic efforts and financial maneuvers in the pharmaceutical sector.
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