Verrica Pharmaceuticals Reports Strong Growth in YCANTH® Dispensed Applicator Units in 2Q 2025

Rhea-AI Summary

Verrica Pharmaceuticals (NASDAQ:VRCA) reported significant growth in YCANTH® dispensed applicator units for Q2 2025, achieving 13,434 units, representing a 32.8% sequential increase from Q1 2025. This growth rate nearly doubled the previous quarter's 16.7% sequential growth.

The company received an $8 million milestone payment from Japanese partner Torii Pharmaceutical for initiating a global Phase 3 program in common warts. Additional potential includes a $10 million milestone payment upon YCANTH's approval in Japan for molluscum. The company also highlighted amendments to its Credit Agreement with OrbiMed and progress with VP-315 for basal cell carcinoma treatment.

Positive

• Record 13,434 YCANTH dispensed applicator units in Q2 2025, showing 32.8% sequential growth
• Received $8 million milestone payment from Torii Pharmaceutical
• Potential additional $10 million milestone payment upon Japanese approval
• Strong reimbursement and extensive distribution network established
• Secured non-dilutive funding through partnership with Torii Pharmaceutical

Negative

• Dependent on milestone payments for significant funding
• VP-315 product candidate still in development phase

Insights

Pharmaceutical Industry Financial Analyst

VRCA shows accelerating YCANTH sales growth with 32.8% QoQ increase and received an $8M milestone payment, strengthening financial position.

Verrica Pharmaceuticals has reported substantial commercial momentum for its flagship product YCANTH, with 13,434 dispensed applicator units in Q2 2025, representing 32.8% sequential growth over Q1 2025. This acceleration is particularly noteworthy as it nearly doubles the previous quarter's growth rate of 16.7%, suggesting the company's commercial strategy is gaining significant traction.

The company's financial position has been simultaneously strengthened by an $8 million milestone payment from Japanese partner Torii Pharmaceutical for initiating a global Phase 3 program in common warts. This non-dilutive capital infusion comes alongside amendments to VRCA's Credit Agreement with OrbiMed that likely improves their debt terms, though specific details weren't disclosed.

The company's growth strategy appears to be working on multiple fronts - their focused commercial approach is expanding their prescriber base across both dermatology and pediatric practices, while their patient access strategy and distribution network are effectively removing barriers to product adoption. These operational improvements, combined with the potential for an additional $10 million milestone payment upon Japanese regulatory approval for molluscum, create multiple near-term value drivers.

Beyond YCANTH, management indicated forthcoming updates on VP-315, their developmental product for basal cell carcinoma, suggesting progress in pipeline expansion. The accelerating growth trajectory, strengthened balance sheet through non-dilutive funding, and potential pipeline developments position Verrica to potentially reach profitability sooner than previously anticipated if these growth rates can be sustained.

– Company reports sequential quarterly growth of 32.8% over Q1 2025 with a record 13,434 YCANTH^® dispensed applicator units in Q2 2025 –

– Company reports receipt of $8 million milestone payment from its Japanese development partner, Torii Pharmaceutical, for initiation of global Phase 3 program in common warts –

WEST CHESTER, Pa., July 09, 2025 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (“Verrica” or the “Company”) (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced that Company experienced strong demand for YCANTH^® in the second quarter of 2025, with 13,434 dispensed applicator units during the quarter. These dispensed applicator units represent accelerating sequential growth of 32.8% over the first quarter of 2025, which was nearly double the previous sequential growth rate of 16.7% seen for the first quarter of 2025 over the fourth quarter of 2024.

“We’re tremendously pleased and proud of our accelerating growth in the second quarter,” said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. “The substantial growth for YCANTH dispensed applicator units in the second quarter proves that our more focused commercial strategy is driving significant product demand, with a growing number of both dermatology and pediatric physician practices now prescribing YCANTH. Our second quarter growth in dispensed applicator units also shows that our patient access strategy, strong reimbursement, and extensive distribution network are enabling a growing number of healthcare providers to conveniently and reliably access YCANTH for their patients.”

Dr. Rieger continued, “This increase in quarterly growth reflects the dedication of our team to daily execution on our strategy. Accelerating dispensed applicator unit growth, coupled with the recently announced amendments to our Credit Agreement with OrbiMed and our Collaboration and License Agreement with our Japanese development partner, Torii Pharmaceutical, provide tangible evidence of the progress we have made since last year. The flexibility provided by OrbiMed and the non-dilutive funding provided by Torii (including the $8 million milestone payment received in July, the potential $10 million milestone payment triggered upon regulatory approval of YCANTH in Japan for molluscum, and Torii’s contributions to the global Phase 3 clinical program to study YCANTH for the treatment of common warts) alongside our sales growth are the key pillars supporting our business. In addition, we are looking forward to providing an update on our development strategy for VP-315, our product candidate for basal cell carcinoma. In short, we are tremendously excited for the patients we serve and for what the future holds for Verrica.”

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 commercially available 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 225 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 commercially available 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 (formerly 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.

About Dispensed Applicator Units
Dispensed applicator units represent applicators (a) shipped to healthcare professionals from Verrica’s contracted pharmacy partners for fulfillment, (b) sold by Verrica’s distribution partners to independent and regional pharmacies, and (c) sold to physician offices, hospitals and other clinics on a buy and bill basis.

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 receipt of additional non-dilutive capital from Torii, the commercialization of YCANTH and the clinical development and 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, 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, 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 J. Kirby 
Interim Chief Financial Officer 
jkirby@verrica.com

Kevin Gardner
LifeSci Advisors
kgardner@lifesciadvisors.com

FAQ

How many YCANTH applicator units did Verrica Pharmaceuticals (VRCA) dispense in Q2 2025?

Verrica Pharmaceuticals dispensed 13,434 YCANTH applicator units in Q2 2025, representing a 32.8% sequential growth from Q1 2025.

What milestone payment did Verrica Pharmaceuticals receive from Torii Pharmaceutical?

Verrica received an $8 million milestone payment from Torii Pharmaceutical for initiating the global Phase 3 program in common warts.

What is the potential milestone payment for YCANTH approval in Japan?

Verrica can receive a $10 million milestone payment upon regulatory approval of YCANTH in Japan for molluscum.

What products is Verrica Pharmaceuticals (VRCA) currently developing?

Verrica is commercializing YCANTH, developing a global Phase 3 program for common warts, and advancing VP-315, their product candidate for basal cell carcinoma.

How has YCANTH's growth rate changed in recent quarters?

YCANTH's sequential growth rate increased from 16.7% in Q1 2025 to 32.8% in Q2 2025, nearly doubling the previous quarter's growth rate.