Verrica Pharmaceuticals Inc. Q3 FY2025 earnings call

• YCANTH achieved growth in adoption with quarter-over-quarter growth in dispensed applicator units of about 5% in Q3 2025, and year-over-year increase of 120% for the 9 months ended September 30, 2025.
• Received $18 million in cash milestones from Torii in 2025, with $10 million received in Q3 upon YCANTH approval in Japan.
• VP-315 presented new data at SITC 40th Annual Meeting showing promising efficacy for basal cell carcinoma, and alignment with FDA on Phase III study design.
• YCANTH Rx to launch in Q4 2025, aiming to simplify prescription process for prescribers and patients.
• Sales force expanded to 45 reps in Q3 2025, with plan to increase to 50 in 2026.
• YCANTH inventory remained at normalized levels, tracking market demand.

In the third quarter of 2025, Verrica's total revenue was $14.3 million. The revenue included $10.7 million of Torii milestone and collaboration revenue and $3.6 million net YCANTH revenue. For YCANTH, in the third quarter, dispensed applicator units reached 14,093, representing approximately 5% sequential growth. For the 9 months ended September 30, 2025, dispensed applicator units were 37,642, a 120% increase over the same period in 2024. YCANTH's growth reflects expansion through the pharmacy channel and into pediatric and primary care offices.

• YCANTH has potential for label expansion into common warts with Phase III program in U.S. starting later 2025.
• VP-315 Phase III program to include two placebo-controlled studies with ~100 subjects each, aiming for NDA filing.
• Anticipate EU filing for YCANTH for molluscum in Q4 2026.
• Sales force productivity expected to ramp in 2026 as new reps get up to speed.

• Competitive headwinds in the molluscum treatment market with 'watch and wait' being a significant competitor.
• Uncertainties around EU filing timeline despite no additional clinical trials required, with sequential steps in Europe adding time.
• Potential delays in commercialization of VP-315 Phase III program if funding or partnership opportunities face challenges.

Q: Can you further speak to the YCANTH demand in Q4 and competitive headwinds, including prescriber feedback on Zelsuvmi?

A: In Q4, momentum from September continued. Competitor to molluscum treatment is 'watch and wait'; Zelsuvmi launch is positive for marketplace, and YCANTH is seen as best-in-class with patients often seeing disease addressed in 1-2 treatments.

Q: On recent sales force expansion, when expect productivity to fully ramp? And on EU filing in Q4 '26, why 12 months despite no additional trials needed?

A: Productivity expected to ramp in early 2026 as new reps get up to speed. In EU, sequential steps like securing pediatric waiver add time, but efforts are underway to expedite; partnership could help with commercial plan.

Q: How to think about seasonality impact in Q4 sales? And on YCANTH Rx, any benchmark from similar models and KPI for success?

A: Q4 may have traditional slowdown due to vacations and holidays, but momentum expected to continue into early 2026 as molluscum is often a secondary diagnosis. No specific benchmarks yet, but will track time to fill and number of scripts fulfilled as KPIs for YCANTH Rx success.