Verrica Pharmaceuticals Reports Q1 2025 Financial Results with Revenue Decline and Improved Losses

Verrica Pharmaceuticals Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $3.4 million, a decrease from $3.8 million in the same period last year. The decline was primarily attributed to a drop in collaboration revenue, which fell to $17,000 from $594,000 year-over-year. However, product revenue from its recently launched drug, YCANTH (VP-102), increased to $3.4 million from $3.2 million, reflecting ongoing sales efforts since the product's commercial launch in August 2023.

The company's operating expenses for the quarter were significantly reduced to $11.6 million, down from $22.4 million in the prior year. This reduction was driven by lower selling, general, and administrative expenses, which decreased from $16.3 million to $8.8 million, and a decline in research and development costs from $4.9 million to $2.3 million. As a result, Verrica's loss from operations improved to $8.1 million compared to a loss of $18.6 million in the first quarter of 2024. The net loss for the quarter was $9.7 million, a notable improvement from the $20.3 million loss reported in the same quarter last year.

In terms of operational developments, Verrica has focused on expanding its sales force, which now consists of 35 representatives targeting pediatric dermatologists and select pediatricians. The company is also advancing its pipeline, with plans to initiate a global Phase 3 program for YCANTH (VP-102) for the treatment of common warts, expected to begin in mid-2025. Additionally, the company is developing VP-315, an injectable therapy for dermatological oncology conditions, including basal cell carcinoma.

As of March 31, 2025, Verrica had cash and cash equivalents of $29.6 million, down from $46.3 million at the end of 2024. The company has incurred substantial operating losses since its inception, with an accumulated deficit of $316.8 million. The financial statements indicate substantial doubt regarding the company's ability to continue as a going concern within the next year, primarily due to ongoing losses and the need for additional funding. To address this, Verrica plans to seek further capital through equity offerings, debt financing, and strategic partnerships. The company is also subject to a financial covenant requiring it to maintain a minimum liquidity of $10 million, which it met as of the reporting date.