Verrica Pharmaceuticals Inc. Q1 FY2026 earnings call

Commercial YCAMP Updates

• Achieved record YCAMP dispensed applicator units in Q1 2026 and March 2026, with further sequential growth in April 2026; U.S. demand accelerated sharply after a weather-impacted January.
• Partner Torrey Pharmaceutical (a subsidiary of Shinogi) launched YCAMP in Japan for molluscum in February 2026, marking the first international commercial launch of the product; commercial supply shipments to Torrey have begun offsetting Verica's share of the common warts program clinical costs.
• Launched YCANTH-RX, a non-dispensing prescription hub, in Q4 2025 to simplify benefit investigation, prior authorization support, and routing to in-network pharmacies for providers and patients; the early rollout is well-received and growing in adoption.
• Expanded sales force optimization efforts: current deployment covers ~85% of YCAMP's total addressable market, with ongoing plans to optimize reach and frequency, and staff up to approximately 50 field representatives to drive further adoption.
• Over 100,000 YCAMP applicators have been dispensed since the product's launch; dermatologists are the leading early and repeat prescribers, with growing adoption among pediatricians and physician extenders.
• CHMP (EMA) provided positive feedback supporting a YCAMP marketing authorization application for molluscum in the EU, with no additional Phase III trials required for approval; regulatory submission work is ongoing, and the company is evaluating potential commercial partnerships for the region.

Pipeline Development Updates

• The global Phase III program for YCAMP to treat common warts (an indication with no currently FDA-approved therapies) reached over 50% enrollment in the first Phase III trial (COVE-2), and enrollment has begun in the long-term follow-up study (COVE-4). Initiation of the second Phase III trial (COVE-3, with sites in the U.S. and Japan) remains on track for mid-2026. Torrey Pharmaceutical funds 90% of the current trial budget, with costs split 50/50, and Verica will repay its share via future Japanese sales offsets.
• VP315 for basal cell carcinoma (BCC) completed Phase II development with compelling results: 97% objective response rate, 86% average tumor size reduction, and complete histological resolution in over half of treated lesions, with encouraging early abscopal effect signals in untreated lesions. New data will be presented at the 2026 SID annual meeting.
• Market research for VP315 shows strong stakeholder acceptance: a majority of patients prefer to try VP315 as first-line therapy before existing surgical or non-surgical options, and the product is viewed favorably across dermatologists, medical oncologists, and Mohs surgeons. Preparations for Phase III initiation are underway, including securing clinical supplies, selecting a CRO, and evaluating funding opportunities.

Corporate Updates

• Added Chris Chapman as the new Chief Commercial Officer in Q1 2026, who has begun optimizing commercial resources to maximize YCAMP productivity. As of March 31, 2026, Verica held $20.6 million in aggregate cash, enough to fund operations into Q1 2027.

Verica Pharmaceuticals operates two core business segments: commercial YCAMP and pipeline development. In Q1 2026, total company revenue was $5 million. U.S. YCAMP product revenue, the primary commercial segment, was $4.3 million, accounting for 86% of total revenue. This represented a 25.4% year-over-year increase from Q1 2025, and a 15.3% sequential increase from Q4 2025. YCAMP dispensed applicator units grew 51.3% YoY to 15,302 units, with a 12.1% sequential increase from Q4 2025. YCAMP gross product margin was 87.3% in Q1 2026, slightly down from 87.6% in the prior year period. The license and collaboration segment, tied to the YCAMP Japan partnership with Torrey Pharmaceutical, generated $0.7 million in revenue, accounting for 14% of total Q1 2026 revenue, up from $17,000 in Q1 2025. The pipeline development segment has no current revenue, with $3.9 million in Q1 2026 research and development expenses, a $1.5 million increase YoY (excluding stock-based compensation) driven by spend on the common warts clinical program.

• Management declined to provide full-year 2026 revenue guidance at this time, but noted that strong Q1 performance and accelerating April demand give management confidence in the projected full-year growth trajectory.
• Initiation of the COVE-3 Phase III trial for common warts remains on track to meet the existing mid-2026 target timeline, with no revision to prior guidance.
• No guidance was provided on the timeline for EU YCAMP approval or launch, as regulatory submission work is still ongoing, and partnership and launch strategy is still being developed.
• Management expects that incremental sales force optimization and YCANTH-RX adoption will drive continued adoption growth through the second half of 2026, with more formal guidance expected as the year progresses into Q3 and Q4.

• Forward-looking statements around clinical trial success, regulatory approval, revenue growth, and product adoption involve inherent risks and uncertainties, and actual results may differ materially from current expectations. These risks are detailed in Verica's SEC filings.
• Commercial adoption of YCAMP remains dependent on overcoming the historical 'watch and wait' standard of care for molluscum, which is a key barrier to expanding penetration beyond early adopter prescribers.
• Product access and reimbursement have not been fully resolved, with ongoing work needed to expand coverage across all geographies and PBM formularies.
• VP315's abscopal effect signal is still early and exploratory, and requires validation in larger Phase III trials; there is no guarantee the signal will hold in larger patient populations.
• Verica's current cash runway is only expected to fund operations into Q1 2027, which creates funding risk for ongoing and future clinical programs if additional capital is not secured.

Q: Full-year 2026 consensus revenue is ~$20 million, can you comment given strong April demand? What seasonality do you expect for molluscum, how will YCANTH-RX support summer demand growth? What is the sales force expansion plan? Where will VP315 be positioned in the BCC treatment paradigm, and what patients will use it?

A: Management declined to update full-year guidance at this time, but confirmed strong early 2026 growth gives confidence in full-year performance. General consensus expects higher molluscum incidence in spring and summer, which is contributing to current growth alongside strong commercial execution. YCANTH-RX will support demand by simplifying access and fulfillment for providers and patients. The current sales force covers 85% of TAM, and the company is optimizing reach and frequency to reach ~50 total representatives to drive further adoption. VP315's Phase III program will initially target low-risk superficial and nodular BCC primary tumors, with longer-term potential as a neoadjuvant treatment for more complex tumors. Most patients, including both treatment-naive and previously treated patients, are receptive to using VP315 as first-line therapy to reduce tumor size or eliminate lesions before any required surgery.

Q: VP315's SID data shows abscopal effects in untreated lesions. How will you validate this signal, and what is the opportunity for patients with multiple BCC lesions? How is YCANTH-RX performing, and what is current adoption?

A: The abscopal signal is early but extremely encouraging, and will be further explored in the two 100-patient Phase III trials, which will generate larger datasets to validate the observation. Many BCC patients present with multiple lesions, so this effect could expand the addressable market for VP315 as a non-surgical alternative. YCANTH-RX launched a few months ago, is optional for providers, and provides benefits investigation and prior authorization support. Early performance is strong, adoption is growing, and it is proving useful for providers seeking the additional support. Management declined to share the current percentage of scripts routed through the platform at this time.

Q: What explains the gap between higher dispensed applicator unit growth and lower revenue growth quarter-over-quarter? How has the competing molluscum product impacted YCAMP performance?

A: Quarter-over-quarter variability is largely driven by annual insurance deductible resets in January, which typically suppress Q1 demand relative to Q4, when most patients have met their annual deductibles. The presence of a second competitor in the market has been a net tailwind for YCAMP: it increases overall market awareness of molluscum treatment, converts more patients from watchful waiting to active treatment, and the increased share of voice benefits all approved treatment options. YCAMP's strong early adoption and repeat prescribing demonstrates its competitive position in this growing market.