Verrica Pharmaceuticals and Medomie Pharma Enter into Exclusive Distribution, Marketing and Supply Agreement to Commercialize YCANTH® for the Treatment of Molluscum Contagiosum in Israel

Rhea-AI Summary

Verrica Pharmaceuticals (Nasdaq: VRCA) has entered into an exclusive distribution, marketing and supply agreement with Medomie Pharma, granting Medomie rights to seek regulatory approval for and distribute YCANTH for molluscum contagiosum in Israel. Verrica will manufacture YCANTH, supply commercial product to Medomie, and receive 60% of the net selling price of YCANTH sold in Israel, plus eligibility for up to $8.2 million in regulatory and commercial milestone payments.

YCANTH, a proprietary cantharidin-based, single-use applicator treatment, is the first and only FDA-approved, healthcare professional-administered therapy for molluscum in patients aged two years and older, supported by Phase 3 trials in about 500 patients and broad U.S. insurance coverage.

Positive

• 60% revenue share of YCANTH net selling price in Israel
• Eligibility for up to $8.2 million in regulatory and commercial milestones
• Exclusive partner Medomie to handle Israeli regulatory approvals and distribution
• Expansion of YCANTH geographic reach beyond US and Japan into Israel

Negative

• Up to $8.2 million in milestones are contingent, not guaranteed
• Israeli revenue depends on Medomie obtaining and maintaining marketing authorizations

News Explained

This is an agreement to seek Israeli approval, not evidence that YCANTH is already approved there: Medomie receives exclusive rights to pursue authorization and distribute the product, while Verrica will manufacture and supply it.

News Market Reaction – VRCA

-0.91%

1 alert

-0.91% Session close to close

$94.31M Market Cap

0.4x Rel. Volume

In the Jul 21 session, VRCA declined 0.91%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

TPST was up 4.97% in the current momentum scanner, providing a peer cross-check rather than a direct...

Analysis

TPST was up 4.97% in the current momentum scanner, providing a peer cross-check rather than a direct sector signal. The agreement expands commercialization scope, while the S-3 resale registration and absent company proceeds remain relevant risks to monitor.

Key Figures

Net selling price share: 60% Potential milestones: up to $8.2 million Approved patient age: 2 years and older +5 more

8 metrics

Net selling price share 60% Product sold by Medomie in Israel

Potential milestones up to $8.2 million Total regulatory and commercial milestones

Approved patient age 2 years and older FDA-approved molluscum treatment

U.S. affected population approximately 6 million people People affected by molluscum in the United States

Phase 3 trial size approximately 500 patients Two Phase 3 clinical trials supporting U.S. approval

Insurance-eligible lives approximately 250 million lives Lives eligible to receive YCANTH covered by insurance

Treatment visit cost $25 per treatment visit Commercially insured patients, up to two applicators

Japan Phase 3 trial size approximately 300 patients Additional Phase 3 trial supporting Japan approval

Historical Context

5 past events · Latest: Jun 22 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 22	Phase 3 trial dosing	Positive	+0.2%	First U.S. patient dosed in the second pivotal COVE-3 trial.
May 28	Conference participation	Neutral	-0.4%	CEO scheduled to present at the Jefferies Global Healthcare Conference.
May 13	Investor conference presentation	Neutral	+3.1%	CEO scheduled to present at the H.C. Wainwright BioConnect conference.
May 12	Quarterly earnings report	Positive	+3.1%	First-quarter revenue increased alongside higher YCANTH product revenue.
May 05	Phase 2 clinical data	Positive	+17.7%	VP-315 data showed reductions in untreated basal cell carcinoma lesions.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Verrica's recent news reactions aligned with four of five events, with one divergence.

Key Terms

marketing authorizations, drug-device combination product, GMP-controlled formulation, Phase 3 clinical trials, +1 more

5 terms

marketing authorizations regulatory

"exclusive right to obtain and maintain marketing authorizations for YCANTH in Israel"

A marketing authorization is an official government approval that allows a company to sell a drug, medical device, or health product in a particular country or region. It matters to investors because it is the legal key to generate revenue and reach customers—like a driver’s license for a product—so obtaining, losing, or delaying authorization directly affects a company’s potential sales, regulatory risk and valuation.

drug-device combination product technical

"YCANTH is a proprietary drug-device combination product"

A drug-device combination product is a single marketed or investigational healthcare product that combines a pharmaceutical drug and a physical medical device so both parts contribute to the product’s intended medical effect. Think of it like a smartphone that depends on both its hardware and its software to work. It matters to investors because regulatory review, development timelines, manufacturing complexity and reimbursement rules can differ from pure drugs or pure devices, affecting cost, approval risk and market size.

GMP-controlled formulation regulatory

"contains a GMP-controlled formulation of cantharidin"

A gmp-controlled formulation is a drug or product recipe that is manufactured and documented under Good Manufacturing Practice (GMP) rules, meaning the process, ingredients, facilities and quality checks meet regulated standards for consistency and safety. Think of it like a recipe prepared in a certified kitchen with step-by-step records so every batch is the same. For investors, it signals reduced production and regulatory risk and clearer paths to approval and market supply.

Phase 3 clinical trials medical

"positive results from two Phase 3 clinical trials"

Phase 3 clinical trials are large, late-stage studies that test a drug or medical treatment in hundreds to thousands of patients to confirm it is safe and effective and to compare it with existing options. Investors care because positive results are a key step toward regulatory approval and commercial sales, reducing uncertainty much like a full dress rehearsal before a product launch; negative results can sharply reduce a program’s value.

molluscum contagiosum medical

"treatment of molluscum contagiosum in Israel"

Molluscum contagiosum is a common viral skin infection that causes small, painless bumps or lesions on the skin. While it primarily affects children and healthy adults, it can spread easily through skin contact. For investors, understanding health conditions like this highlights the importance of healthcare companies involved in treatments and the potential impact of infectious diseases on public health and economic stability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WEST CHESTER, Pa., July 21, 2026 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (“Verrica”) (Nasdaq: VRCA), a therapeutics company developing and commercializing medications for the treatment of dermatological diseases, including skin cancers, today announced an exclusive distribution, marketing and supply agreement (“the Agreement”) granting Medomie Pharma Ltd. (“Medomie”) rights to seek regulatory approval for and distribute YCANTH^® for the treatment of molluscum contagiosum (“molluscum”) in Israel.

“We are pleased to partner with Medomie to make YCANTH available in Israel so that more patients have access to treatment for molluscum,” said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. “Medomie is a pharmaceutical company focused on providing access to and commercializing innovative treatments, and improving health and quality of life of patients in Israel. We look forward to working with them as we seek to establish YCANTH as the standard of care for molluscum in Israel. Verrica maintains exclusive global rights to YCANTH for all indications outside of Japan and Israel, and we will continue our work to bring YCANTH to patients with molluscum around the world,” Dr. Rieger continued.

Under the terms of the Agreement, Verrica has granted Medomie an exclusive right to obtain and maintain marketing authorizations for YCANTH in Israel. Verrica will manufacture YCANTH and provide commercial supply to Medomie and will receive 60% of the net selling price of product sold by Medomie in Israel. Verrica is also eligible to receive up to $8.2 million in total regulatory and commercial milestones.

About YCANTH^® (VP-102)
YCANTH^® is a proprietary drug-device combination product that contains a GMP-controlled formulation of cantharidin delivered via a single-use applicator that allows for precise topical dosing and targeted administration for the treatment of molluscum. YCANTH is the first and only healthcare professional-administered product approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum — a common, highly contagious skin disease that affects an estimated six million people in the United States, primarily children. Approval of YCANTH in the US was based upon the positive results from two Phase 3 clinical trials in approximately 500 patients which demonstrated that YCANTH was a safe and effective therapeutic for the treatment of molluscum. Approximately 250 million lives are eligible to receive YCANTH covered by insurance. Commercially insured patients pay just $25 per YCANTH treatment visit, for up to two applicators. Other uninsured patients may be eligible to receive YCANTH at a reduced cost if certain eligibility requirements are met for patient assistance. Please visit YCANTHPro.com for additional information.  

YCANTH is now approved for the treatment of molluscum contagiosum in Japan based upon an additional Phase 3 trial of approximately 300 patients. YCANTH is also now being studied in a global phase 3 program in the US and Japan for use in the treatment of common warts.

About Verrica Pharmaceuticals Inc.
Verrica is a therapeutics company developing and commercializing medications for the treatment of dermatological diseases, including skin cancers. Verrica’s product YCANTH^® (VP-102) (cantharidin), is the first and only healthcare professional-administered treatment approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH^® (VP-102) is also in development to treat common warts, the largest remaining unmet need in medical dermatology. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (ruxotemitide, formerly known as LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma.  For more information, visit www.verrica.com.

Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believe,” “expect,” “may,” “plan,” “potential,” “will,” and similar expressions, and are based on Verrica’s current beliefs and expectations. These forward-looking statements include statements about seeking regulatory approval and commercializing YCANTH in Israel, potential future payments pursuant to the Agreement and the clinical development and potential benefits of Verrica’s product candidates, including YCANTH (VP-102) and VP-315. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include risks and uncertainties related to market conditions and other risks and uncertainties that are described in Verrica’s Annual Report on Form 10-K for the year ended December 31, 2025, Verrica’s Quarterly Reports on Form 10-Q and other filings Verrica makes with the SEC. Any forward-looking statements speak only as of the date of this press release and are based on information available to Verrica as of the date of this release, and Verrica assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.

FOR MORE INFORMATION, PLEASE CONTACT:

Investors:

John Kirby
Interim Chief Financial Officer
jkirby@verrica.com

Kevin Gardner
LifeSci Advisors
kgardner@lifesciadvisors.com

FAQ

What did Verrica Pharmaceuticals (VRCA) announce about YCANTH distribution in Israel?

Verrica announced an exclusive agreement with Medomie Pharma to seek approval and distribute YCANTH in Israel. According to Verrica, Medomie will handle regulatory authorizations and distribution, while Verrica manufactures YCANTH and supplies commercial product for the Israeli market.

How will Verrica Pharmaceuticals (VRCA) earn revenue from YCANTH sales in Israel?

Verrica will receive 60% of the net selling price of YCANTH sold by Medomie in Israel. According to Verrica, it will also be eligible for up to $8.2 million in additional regulatory and commercial milestone payments tied to YCANTH in that market.

What are the financial terms of the Verrica (VRCA) and Medomie YCANTH agreement?

Under the agreement, Verrica grants Medomie exclusive rights to market YCANTH in Israel and receives 60% of net selling price. According to Verrica, it is also eligible for up to $8.2 million in regulatory and commercial milestone payments over time.

What is YCANTH and what clinical data support it, according to Verrica (VRCA)?

YCANTH is a cantharidin-based, single-use applicator treatment for molluscum contagiosum. According to Verrica, U.S. FDA approval was based on two Phase 3 trials in about 500 patients, showing safety and efficacy, and it is approved for patients aged two years and older.

In which countries is YCANTH currently approved, based on Verrica (VRCA) information?

YCANTH is approved in the United States and Japan for treating molluscum contagiosum. According to Verrica, Medomie will now seek marketing authorization in Israel, and YCANTH is also being studied globally for potential use in treating common warts.

How much could Verrica Pharmaceuticals (VRCA) earn in milestones from the Medomie YCANTH deal?

Verrica is eligible to receive up to $8.2 million in total regulatory and commercial milestone payments from the Medomie agreement. According to Verrica, these payments are in addition to its 60% share of YCANTH net selling price in Israel.