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Verrica Pharmaceuticals Inc. (VRCA) filed an 8-K to disclose a Second Amendment to its March 2021 Collaboration and License Agreement with Torii Pharmaceutical Co., Ltd.
- Up-front cash: Torii will pay Verrica an $8.0 million milestone tied to the ongoing global Phase 3 trial of YCANTH (VP-102) for common warts.
- Cost-sharing: The parties will continue to split trial expenses 50/50. Torii will advance the first $40.0 million of out-of-pocket costs; Verrica will subsequently reimburse Torii for half. If expenses exceed $40 million, Verrica will fund the overage (up to a stated cap) and Torii will reimburse 50% of that excess.
- Additional milestone: Torii agreed to a separate $10.0 million cash payment upon Japanese approval of YCANTH for molluscum contagiosum—paid in cash rather than as a trial-cost offset.
- Manufacturing rights: A technology-transfer program will allow Torii to manufacture the product. Until partial transfer is complete, Torii will buy commercial supply from Verrica at transfer pricing; thereafter Verrica will receive quarterly royalties in the high-single- to low-double-digit range.
- All other material terms of the original agreement remain unchanged.
The amendment improves Verrica’s near-term liquidity via non-dilutive funding, caps some development risk, and may accelerate commercial scale-up in Japan. A press release announcing the amendment (Exhibit 99.1) was issued on July 1, 2025.