Verrica Pharmaceuticals Inc. Q4 FY2025 earnings call

• Commercial strategy: Implemented an optimized commercial strategy to establish Y-CAMP as a new standard of care for molluscum. Grew YCAMP's revenue by over 130% in 2025 compared to 2024 and reduced selling general administrative expenses by over 40% in the fourth quarter of 2025 compared to the same period. - Pipeline progress: Advanced common warts and basal cell carcinoma programs. Launched the global phase three program study for Y-CANTH for common warts and dosed the first patient in December 2025. Made progress with VP315 for basal cell carcinoma, aligned with the FDA on a streamlined Phase III design and are actively assessing funding opportunities. - Commercial updates: Expanded YCAMP distribution, built relationships with dermatology, pediatric, and primary care offices. Launched Y-CANTH-RX in the fourth quarter, added to commercial leadership and field teams, and made progress in bringing YCAMP to the EU with positive feedback from the CHMP. - Financial: Completed a $50 million equity raise, retired outstanding debt, and had cash and cash equivalents of $30.1 million as of December 31, 2025, funding operations into 2027.

For Y-CAMP commercial business: In 2025, net Wycanth revenue grew over 130% relative to 2024. Fourth quarter 2025 Wycanth revenue was $3.7 million, up 3.2% from third quarter. Full year 2025 Wycanth dispensed applicator units total 51,196, vs 25,773 units for 2024, representing 99% year-over-year growth. Tory collaboration revenue in fourth quarter 2025 was $1.4 million. For full year 2025, total revenue was $35.6 million, with net YCAMP revenue of $15.3 million and Tory milestone and collaboration revenue of $20.3 million. Gross product margins for full year 2025 were 85.7% compared to 71.8% in the prior year. Research and development expenses in the fourth quarter of 2025 were $2.5 million, and selling general and administrative expenses in the fourth quarter of 2025 were $8.1 million, showing specific changes from prior periods.

• No specific 2026 guidance has been provided yet. However, noted that the momentum seen in recent weeks gives optimism and the intention is to report as data is generated. - Regarding Salesforce expansion, expecting to reach approximately 50 reps in 2026, but the impact on sales will be seen as the transformation continues.

Q: Curious about initiatives to broaden YCAMP launch, details on YCAMP RX patient hub services, Salesforce additions in 2026 and thoughts on 2026 consensus.

A: Discussed Y Canthar X uptake, initiatives to simplify patient and physician acquisition, Salesforce targeting and segmentation, and the lack of specific 2026 guidance yet.

Q: What kind of partnerships are being looked into around commercial expansion into the EU and competitive dynamics with Zuvni.

A: General exploration of partners to bring the product to EU patients, and noted that Zuvni helps validate demand with the largest competitor being watchful waiting for molluscum.

Q: How much of the TAM to target with the Salesforce team and insurance coverage wins.

A: Targeting includes pediatricians and dermatologists with dermatology being a key focus, and coverage wins in both Medicaid and commercial.

Q: Sequential decline in applicators in the quarter, cost and outside capital for VP315 Phase 3 program, and revisiting private equity-backed dermatology chains.

A: Sequential decline was due to field force replacements, pre-planning for VP315 Phase 3 with CMC supply, and continuing relationships with private equity-backed chains.

Q: Seasonality curve for YCAMP and enrollment timeline for common warts Phase 3.

A: February was a record month with seasonality factors, and there is ongoing enrollment in common warts Phase 3 with updates to come on trial initiation and registrational filing.

Q: Comparison of common warts vs molluscum opportunity and applicability of VP315 to Mohs surgery candidates.

A: The common warts market is larger than the molluscum market, and VP315 has potential for Mohs surgery candidates by reducing lesion size and providing an alternative to surgery.