Verrica Pharmaceuticals Inc. reported a net loss of $76.6 million for the year ended December 31, 2024, compared to a net loss of $67.0 million in 2023. The company's product revenue, net, increased to $6.6 million in 2024 from $4.7 million in 2023, partially offset by a $3.2 million increase in the returns reserve due to lower than forecasted sell-through and product expiration. Collaboration revenue reached $1.0 million in 2024, up from $0.5 million in 2023, primarily due to supplies and development activity for Torii Pharmaceutical Co., Ltd. Selling, general, and administrative expenses rose to $58.8 million in 2024 from $47.3 million in 2023, largely due to increased commercial activities for YCANTH (VP-102), including sales force expansion and severance costs. Research and development expenses decreased to $11.8 million in 2024 from $20.3 million in 2023, primarily due to reductions in pre-approval activities for YCANTH (VP-102) and VP-315.
Significant changes in the company's financial performance during 2024 included the commercial launch of YCANTH (VP-102) in August 2023, resulting in increased product revenue, and a restructuring of the sales force in October 2024, leading to increased severance costs and a decrease in research and development expenses. The company also completed an underwritten offering of common stock and warrants in November 2024, generating net proceeds of $39.6 million. A key development was the amendment to the Torii Agreement in May 2024, outlining a cost-sharing arrangement for a global Phase 3 clinical trial of YCANTH (VP-102) for the treatment of common warts, anticipated to begin in mid-2025. The company also entered into a credit agreement with OrbiMed in July 2023, borrowing $50 million, which triggered principal repayment obligations starting January 1, 2025, due to the company not meeting specified revenue targets.
Operational developments included the expansion of YCANTH (VP-102) distribution to approximately 225 million covered lives in the United States through positive insurance payor coverage decisions. The company's sales organization consists of approximately 35 field sales representatives focused on dermatologists and pediatricians. In the clinical development area, the Phase 2 trial of VP-315 for basal cell carcinoma concluded in December 2023, with preliminary positive results announced in August 2024 and further data released in October and November 2024. The company expects to report genomic and immune response data from this trial and receive minutes from an end-of-phase 2 meeting in the first half of 2025. The company's employee headcount was 71 as of December 31, 2024.
Verrica Pharmaceuticals Inc. reported cash and cash equivalents of $46.3 million as of December 31, 2024. The company stated that substantial doubt exists regarding its ability to continue as a going concern within one year, based on its current business plan, capital resources, and debt obligations. The company plans to address this by securing additional capital through various financing methods. The company's outlook includes continued commercialization of YCANTH (VP-102) for molluscum contagiosum, development of YCANTH (VP-102) for common warts, and advancement of VP-315 for basal cell carcinoma. The company also highlighted the uncertainties associated with clinical trials, regulatory approvals, and market acceptance of its products. The company's financial statements were prepared assuming it will continue as a going concern, but they do not include adjustments that might result from the outcome of this uncertainty.
About Verrica Pharmaceuticals Inc.
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