Journey Medical Corp. Q1 FY2025 earnings call

• Emrosi was launched in Q1 2025, with initial net product sales of ~$2 million. It was showcased at the 2025 American Academy of Dermatology Annual Meeting, and Phase 3 clinical trial results were published in JAMA Dermatology. It was also included in the National Rosacea Society's treatment algorithms.
• Financials: Q1 2025 net revenue was $13.1 million vs $13 million in Q1 2024. Gross margin increased to 64% from 54% due to lower product cost of goods. R&D costs were nil in Q1 2025 vs $7.9 million in Q1 2024. SG&A expenses increased to $10.6 million from $8.4 million. Net loss was $4.1 million vs $10.4 million in Q1 2024. Cash position ended Q1 2025 at $21.1 million.
• Market access: Payer coverage for Emrosi expanded to 30% of covered commercial insured lives, and a contract was secured with a large commercial GPO starting July 1st.

In the first quarter of 2025, Journey Medical's net product sales were $13.1 million. Approximately $2 million of this was from the initial launch of Emrosi, the best-in-class oral rosacea treatment. The legacy business saw a decline, but Qbrexza showed growth with 15% month-over-month growth in April 2025 compared to April 2024, and Accutane is stabilizing after a hit from new competitors last year. Emrosi contributed about 15% of the Q1 net revenue ($2M out of $13.1M).

• Journey Medical expects to become sustainably EBITDA positive later in 2025.
• Focus is on expanding access, growing prescription volume, and publishing additional peer-reviewed data to support Emrosi's clinical value.
• No specific Q2 revenue guidance provided, but expects growth from Emrosi launch as sales force is actively driving demand starting April 7th.

• Forward-looking statements involve risks and factors that may cause actual results to differ materially from those stated. Risks are detailed in Journey Medical's most recently filed periodic reports on Form 10-K and Form 10-Q, the Form 8-K filed with the SEC, and the company's press release accompanying this call.

Q: Scott Henry asked about Q1 revenues for Emrosi being largely stocking and expectations for future revenues and Q2.

A: Claude Maraoui responded that they stocked distribution channels in late March, sales force started official launch on April 7th, and they expect Q2 revenues to come from product pull through, but no specific Q2 revenue expectations given yet.

Q: Kalpit Patel inquired about inventory day supply in the distribution channel and early prescriber feedback.

A: Claude Maraoui said inventory day supply in distribution is typically 2-4 weeks in a new launch. Early feedback from prescribers was very positive regarding Emrosi's efficacy vs ORACEA, tolerability, and early onset of efficacy (visible in 2 weeks). Ramsey Alloush added on early efficacy at week 8 surpassing ORACEA at 16 weeks.

Q: Thomas Flatten asked about feedback from docs on erythema and strategy to use that data.

A: Claude Maraoui mentioned anecdotal positive feedback from docs on erythema reduction, and Dr. Srinivas Sidgiddi noted the JAMA Dermatology publication includes data on erythema improvement and that Medical Affairs is building on that data to inform providers about Emrosi's impact on erythema.

Q: Thomas Flatten also asked about repeat writers among the 660 unique prescribers.

A: Claude Maraoui responded that there are repeat writers, with some prescribers having written Emrosi multiple times, from onesies to over 25 times.