Verrica Pharmaceuticals Announces Launch of YCANTH® for the Treatment of Molluscum Contagiosum in Japan by Partner Torii Pharmaceutical

Rhea-AI Summary

Verrica Pharmaceuticals (Nasdaq: VRCA) announced the launch of YCANTH in Japan by partner Torii Pharmaceutical for the treatment of molluscum contagiosum. YCANTH received MHLW approval based on positive Phase 3 topline results showing statistically significant complete clearance versus placebo.

Verrica retains global rights outside Japan; a multi‑year manufacturing transfer to Torii is planned, with interim transfer pricing and future royalties tied to transferred components and Torii net sales.

Positive

• YCANTH launched in Japan by Torii, expanding commercial footprint
• MHLW approval based on positive Phase 3 topline results versus placebo
• Verrica retains global rights to YCANTH outside Japan, preserving future opportunity
• Agreement includes eventual royalties to Verrica after manufacturing transfer components are complete

Negative

• Manufacturing transfer to Torii is expected to take several years, delaying full local production
• Interim period uses transfer pricing from Verrica’s manufacturing partners before Torii manufacturing begins

News Market Reaction

%

12 alerts

% News Effect

-7.8% Trough in 5 hr 27 min

$106M Market Cap

1.3x Rel. Volume

On the day this news was published, VRCA declined NaN%, reflecting a moderate negative market reaction. Argus tracked a trough of -7.8% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Dosing schedule: Once every 21 days Maximum applications: Up to four applications NDA filing date: December 2024 +1 more

4 metrics

Dosing schedule Once every 21 days YCANTH (TO-208) Phase 3 molluscum trial in Japan

Maximum applications Up to four applications YCANTH (TO-208) Phase 3 molluscum trial regimen

NDA filing date December 2024 TO-208 New Drug Application submission to Japan MHLW

Japan approval date September 2025 MHLW approval of YCANTH (TO-208) for molluscum

Market Reality Check

Price: $5.69 Vol: Volume 123,732 is below t...

normal vol

$5.69 Last Close

Volume Volume 123,732 is below the 20-day average of 155,462 (relative volume 0.8x). normal

Technical Trading above its 200-day MA of $5.96 at a pre-news price of $6.91, about 29.6% below the 52-week high of $9.82.

Peers on Argus

VRCA was up 4.54% pre-news while key biotech peers like PSTV (+13%) and OTLK (+7...

VRCA was up 4.54% pre-news while key biotech peers like PSTV (+13%) and OTLK (+7.59%) were also positive, but no peers appeared in the momentum scanner and no same-day peer headlines were flagged, pointing to a stock-specific move.

Historical Context

5 past events · Latest: Jan 07 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 07	Clinical trial start	Positive	+0.9%	First patient dosed in global Phase 3 YCANTH program for common warts.
Nov 24	Private placement	Positive	+12.1%	Raised $50M in PIPE financing to retire debt and extend cash runway.
Nov 14	Earnings and update	Positive	-5.1%	Reported Q3 2025 revenue growth and positive regulatory feedback for programs.
Nov 10	Clinical data update	Positive	+11.8%	Strong Phase 2 VP-315 data in basal cell carcinoma with high response rates.
Oct 20	Regulatory feedback	Positive	+8.0%	EMA backed clear path to YCANTH MAA for molluscum without new Phase 3 trials.

Pattern Detected

VRCA has mostly traded higher on positive clinical, regulatory and financing updates, with one notable selloff on an earnings release despite solid YCANTH and collaboration metrics.

Recent Company History

Over the last few months, Verrica has reported a series of clinical, regulatory and financing milestones. In Oct 2025, EMA feedback supported a YCANTH MAA without additional Phase 3 trials. November brought strong VP-315 Phase 2 data and a $50M private placement used largely to retire OrbiMed debt, followed by Q3 2025 results showing $14.3M revenue and growing YCANTH usage. In Jan 2026, the company dosed the first Phase 3 common-warts patient. Today’s Japan YCANTH launch extends that commercialization arc into another major market.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-12-15

An effective S-3 shelf dated Dec 15, 2025 registers up to 14,756,230 common shares for resale by existing holders, including shares underlying pre-funded and common warrants from the November 2025 financing. Verrica does not receive proceeds from resales, but would receive cash if the registered warrants are exercised at their stated exercise prices.

Market Pulse Summary

This announcement marks the commercial launch of YCANTH in Japan for molluscum contagiosum by partne...

Analysis

This announcement marks the commercial launch of YCANTH in Japan for molluscum contagiosum by partner Torii, following MHLW approval based on a positive, double-blind Phase 3 trial. It extends Verrica’s strategy of globalizing YCANTH while retaining rights outside Japan. Investors may track Japanese uptake, progress on the multi-year manufacturing transfer, and how this launch complements ongoing Phase 3 programs and regulatory plans in other regions.

Key Terms

molluscum contagiosum, phase 3, double blind, randomized, +4 more

8 terms

molluscum contagiosum medical

"for the treatment of molluscum contagiosum (“molluscum”)."

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.

phase 3 medical

"based on the strength of its safety and efficacy data in multiple Phase 3 studies"

Phase 3 is the late-stage clinical testing step for a new drug or medical treatment, where the product is given to large groups of patients to confirm effectiveness, monitor side effects, and compare it to standard care. Successful Phase 3 results are often the final scientific hurdle before regulators decide on approval and market launch—like passing a final exam before graduation—and can sharply change a company's valuation and future revenue prospects.

double blind medical

"was a double blind, randomized and parallel-group comparison study"

A double blind study is a clinical test design where neither the participants nor the researchers know who receives the experimental treatment versus a control (often a placebo), preventing expectations from influencing results. Like a blind taste test for a new recipe, it helps ensure outcomes reflect the treatment’s real effect rather than people’s hopes or guesswork, making the data more trustworthy for assessing safety, efficacy and commercial prospects.

randomized medical

"was a double blind, randomized and parallel-group comparison study"

Randomized means participants or units in a study are assigned to different groups by chance rather than by choice, like flipping a coin to decide who gets a new treatment and who gets a comparison. For investors, randomized designs matter because they reduce bias and make results more trustworthy, so outcomes from randomized studies carry more weight when assessing regulatory approval, commercial prospects, and the risk that trial results will change a company’s valuation.

placebo medical

"to evaluate the efficacy and safety of TO-208 in comparison to placebo"

A placebo is an inactive pill, injection or procedure that looks and feels like the real treatment but contains no therapeutic ingredient, often called a sugar pill. Investors care because comparing a drug to a placebo reveals whether observed benefits come from the medicine itself or from expectation; clear superiority over placebo reduces regulatory and commercial risk, much like a blind taste test proves a new recipe really tastes better.

new drug application regulatory

"Torii filed the New Drug Application for TO-208 in molluscum"

A new drug application is a formal request submitted to government regulators seeking approval to market a new medicine. It is like a detailed proposal that shows the drug has been tested for safety and effectiveness. For investors, receiving approval signals that the drug may soon become available for sale, potentially leading to revenue growth and impacting the company's value.

statistically significant medical

"primary endpoint of efficacy, was statistically significant versus placebo."

"Statistically significant" means that a result or difference observed in data is unlikely to have occurred by chance alone, suggesting there is a real underlying effect. For investors, it indicates that the findings or patterns they see are likely meaningful and not just random noise, helping them make more informed decisions based on reliable information. Think of it as a pattern that is strong enough to stand out clearly from background randomness.

manufacturing transfer technical

"plans to initiate a manufacturing transfer to Torii for YCANTH applicators"

Manufacturing transfer is the process of moving the production of a product or a manufacturing process from one site or supplier to another, including shifting equipment, written instructions, quality checks and staff training. Investors care because the move can change costs, production speed, product quality and regulatory approvals—like relocating a bakery to a new kitchen, it can boost efficiency or introduce delays and risks that affect sales and the company’s stock performance.

AI-generated analysis. Not financial advice.

WEST CHESTER, Pa., Feb. 09, 2026 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (“Verrica”) (Nasdaq: VRCA), a dermatology therapeutics company developing and selling medications for skin diseases requiring medical interventions, today announced the launch of YCANTH® in Japan by its partner, Torii Pharmaceutical Co. Ltd. (“Torii”), a wholly-owned subsidiary of Shionogi & Co., Ltd., for the treatment of molluscum contagiosum (“molluscum”).

“We would like to congratulate our partner, Torii, on the launch of YCANTH in Japan for the treatment of molluscum. Torii’s achievement also represents an exciting milestone for Verrica, as we continue to execute on our long-term strategy of developing and commercializing YCANTH across multiple dermatologic indications around the world, as Verrica maintains ownership of global rights to YCANTH in all territories outside Japan,” said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. “With few treatments currently available in Japan, the launch of YCANTH will enable access to a therapy which addresses this significant unmet need, and based on the strength of its safety and efficacy data in multiple Phase 3 studies, we believe YCANTH is poised to gain broad adoption for this indication over time. We wish Torii continued success in developing and now commercializing YCANTH in molluscum, and we look forward to our continued collaboration as we advance YCANTH for the treatment of common warts.”

In September 2025, Verrica announced that Torii received approval from the Japanese Ministry of Health, Labour and Welfare (“MHLW”) for YCANTH^® (developed under the name TO-208) for the treatment of molluscum. Torii filed the New Drug Application for TO-208 in molluscum with MHLW in December 2024. Approval of YCANTH in Japan was based on positive top-line results from a confirmatory Phase 3 trial for the treatment of molluscum. The Phase 3 trial was conducted in Japan and was a double blind, randomized and parallel-group comparison study to evaluate the efficacy and safety of TO-208 in comparison to placebo, when applied once every 21 days for up to four applications in patients with molluscum. The top-line results from the trial showed that the proportion of subjects achieving complete clearance of all treatable molluscum lesions at the completion of the confirmatory study, the primary endpoint of efficacy, was statistically significant versus placebo. TO-208 was well tolerated during the study.

In July 2025, as part of its amended collaboration and license agreement with Torii, Verrica announced plans to initiate a manufacturing transfer to Torii for YCANTH applicators to be sold in Japan, which is expected to take several years. In the interim, Verrica will receive from Torii a transfer price for applicators manufactured by Verrica’s manufacturing partners. After the transfer of at least one component of the manufacturing process, Verrica will begin receiving royalties related to net sales in Japan of applicators manufactured by Torii and/or its manufacturing partners.

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 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.

About Verrica Pharmaceuticals Inc.
Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. 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.

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 the commercialization of YCANTH in Japan and the United States, and clinical development of YCANTH for the treatment of common warts. 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, satisfaction of customary closing conditions related to the proposed public offering and other risks and uncertainties that are described in Verrica’s Annual Report on Form 10-K for the year ended December 31, 2024, Verrica’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 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

When did Torii launch YCANTH in Japan and for what indication (VRCA)?

Torii launched YCANTH in Japan on February 9, 2026 for the treatment of molluscum contagiosum. According to Verrica, the launch follows MHLW approval and Phase 3 topline results showing statistically significant lesion clearance versus placebo.

What evidence supported MHLW approval of YCANTH in Japan (VRCA)?

Approval was supported by positive confirmatory Phase 3 topline results showing statistically significant complete clearance versus placebo. According to Verrica, the double‑blind, randomized trial evaluated applications every 21 days for up to four uses and found favorable safety and efficacy.

Does Verrica retain rights to YCANTH outside Japan (VRCA)?

Yes, Verrica maintains ownership of global rights to YCANTH in all territories outside Japan. According to Verrica, the Torii agreement covers Japan only, leaving Verrica responsible for other international commercialization opportunities.

How will manufacturing and royalties for YCANTH in Japan work (VRCA)?

Verrica will transfer manufacturing to Torii over several years; interim sales use Verrica’s manufacturing partners with a transfer price. According to Verrica, royalties to Verrica begin after transfer of at least one manufacturing component and relate to Torii net sales.

What was the Phase 3 trial design for TO‑208/YCANTH in Japan (VRCA)?

The Phase 3 study was a double‑blind, randomized, parallel‑group trial comparing TO‑208 to placebo with applications every 21 days for up to four treatments. According to Verrica, the primary endpoint was complete clearance of all treatable molluscum lesions.

What safety findings were reported for YCANTH in the Phase 3 trial (VRCA)?

TO‑208 was reported to be well tolerated in the Phase 3 study with no new major safety signals. According to Verrica, safety and efficacy data from multiple Phase 3 studies support potential broad adoption in Japan over time.