Dermata Therapeutics Stock Price, News & Analysis
Company Description
Dermata Therapeutics, Inc. (DRMA) is a biotechnology company in the field of dermatology that focuses on the treatment of medical skin diseases and aesthetic applications. According to company disclosures, Dermata has built its pipeline around its proprietary Spongilla technology, a platform derived from a naturally sourced freshwater sponge that is formulated as a once-weekly topical product candidate called XYNGARI™. The company is classified under medicinal and botanical manufacturing within the broader manufacturing sector and is headquartered in San Diego, California.
Dermata’s lead product candidate, XYNGARI™ (formerly known as DMT310), is described as a once-weekly, topical product candidate with multiple unique mechanisms of action. Company materials state that XYNGARI™ has been studied for the treatment of moderate-to-severe acne and has also been evaluated in clinical studies for psoriasis and rosacea. In its Phase 3 Spongilla Treatment of Acne Research (STAR-1) clinical trial, Dermata reports that XYNGARI™ achieved statistically significant results on three co-primary endpoints versus placebo, with separation from placebo observed as early as week four of treatment and at the 12-week endpoint.
Dermata’s second program, DMT410, uses the XYNGARI™ product candidate as a method for needle-free intradermal delivery of botulinum toxin for multiple aesthetic and medical skin conditions. Company disclosures explain that DMT410 involves an initial topical application of XYNGARI™ to create microchannels into the dermis, followed by topical application of botulinum toxin. Proof-of-concept Phase 1 clinical trials have been conducted using DMT410 in combination with botulinum toxin products for the treatment of primary axillary hyperhidrosis and for multiple aesthetic skin conditions, with the company reporting promising efficacy and tolerability in these early studies.
Strategic Pivot to OTC Dermatology
Dermata has announced a strategic pivot from a prescription-focused dermatology model toward the development and distribution of over-the-counter (OTC) pharmaceutical skin treatments. Company communications describe this shift as a move to prioritize dermatology-focused OTC products that can be sold directly to consumers. As part of this repositioning, Dermata has stated that it withdrew its investigational new drug application for XYNGARI™ with the U.S. Food and Drug Administration and plans to leverage the FDA’s OTC monograph pathway for future product development.
In connection with this pivot, Dermata reports that it is developing a once-weekly acne kit that utilizes an active ingredient from the OTC acne monograph in combination with its Spongilla technology. The company characterizes this as a unique treatment option for individuals with acne and has indicated plans to launch this initial OTC acne kit in the middle of 2026, with additional OTC product candidates anticipated to follow. Dermata has also communicated that it intends to sell this acne kit directly to consumers, as well as to estheticians and dermatologists for in-office treatments.
Spongilla Technology Platform and Intellectual Property
The Spongilla technology platform is central to Dermata’s business. Company descriptions state that this platform supports the development and formulation of singular and combination products designed for topical delivery of chemical compounds into the dermis. In acne, Dermata highlights that XYNGARI™ and its related acne kit target acne-driving mechanisms with a once-weekly topical regimen.
Dermata has reported progress in building an international patent estate around its technology. The company notes that it holds a U.S. patent covering its Spongilla technology combination as a method to topically treat acne and that the Australian Patent Office has accepted an application for a related acne treatment patent, with issuance expected absent opposition. Additionally, Dermata has announced that the Australian Patent Office granted a patent for its DMT410 program for the treatment of hyperhidrosis, strengthening its intellectual property position for topical botulinum toxin delivery using its Spongilla-based approach.
Clinical Development Highlights
Dermata’s disclosures outline several key clinical milestones:
- XYNGARI™ Phase 3 STAR-1 Trial in Acne: The company reports that the STAR-1 trial in moderate-to-severe acne met all three primary endpoints, achieving statistically significant results versus placebo at week 12, with statistically significant separation from placebo also observed at week 4. Detailed data released through an abstract presentation indicate improvements in Investigator Global Assessment (IGA) treatment success and reductions in inflammatory and non-inflammatory lesion counts compared with placebo.
- Additional Indications for XYNGARI™: Dermata states that XYNGARI™ has been studied in clinical trials for psoriasis and rosacea, in addition to acne, as part of its broader medical dermatology focus.
- DMT410 Hyperhidrosis and Aesthetic Studies: The company reports completion of proof-of-concept Phase 1 clinical trials using DMT410 in combination with BOTOX® for primary axillary hyperhidrosis and for multiple aesthetic skin conditions. Dermata has also disclosed a Clinical Trial Collaboration Agreement with Revance Therapeutics to study DMT410 (XYNGARI™ with DAXXIFY®) for topical treatment of axillary hyperhidrosis in a Phase 2a study.
Capital Markets Activity and Corporate Actions
Dermata’s common stock trades on the Nasdaq Stock Market under the symbol DRMA, and its warrants trade under DRMAW, as referenced in multiple company press releases. The company has engaged in several financing activities, including private placements and at-the-market offerings. In 2025, Dermata announced private placements that raised gross proceeds in the millions of dollars and described the intended use of proceeds for general corporate purposes, consumer research studies, pre-launch and launch activities for its OTC acne kit, potential investments or acquisitions related to its technologies, licensing activities, and working capital.
In an 8-K filing, Dermata disclosed that it filed a prospectus supplement to increase the maximum aggregate offering amount of common stock issuable under an At The Market Offering Agreement with a placement agent. The company has also reported amending certain outstanding warrants, including reducing exercise prices and adjusting terms, in connection with financing transactions.
Dermata has reported that it sent notice of termination of a License Agreement with Villani, Inc., which previously granted Dermata an exclusive, sub-licensable, royalty-bearing license under certain patents and know-how related to sponge-based pharmaceutical products for skin diseases. The company states that this termination was made in connection with its strategic shift to commercialize OTC skin care treatments and the withdrawal of its XYNGARI™ investigational new drug application. Following the termination, Dermata indicates that Villani will not be entitled to further milestone or royalty payments after the termination date, and Dermata will cease development and commercialization obligations related to licensed products under that agreement.
Business Focus and Sector Positioning
Across its communications, Dermata describes itself as a science-driven leader in dermatologic solutions and as a late-stage biotechnology company focusing on medical skin diseases and aesthetic applications. Its activities span prescription-oriented clinical development and, more recently, a planned OTC product portfolio. The company emphasizes the use of pharmaceutical-grade dermatology approaches, combining dermatologic research, clinical trial experience, and its Spongilla technology to develop topical treatments for conditions such as acne, psoriasis, rosacea, and hyperhidrosis.
Dermata’s strategic pivot toward OTC pharmaceutical skin treatments is framed by management as a way to reach a broader base of individuals seeking accessible, science-backed dermatology products. The company has indicated that it intends to build a portfolio of OTC offerings that apply its clinical and regulatory experience to consumer-facing products, while continuing to manage and evolve its clinical-stage assets and collaborations.