Verrica Pharma Gains: What Is The Buzz?
(RTTNews) - The shares of Verrica Pharmaceuticals (VRCA), a therapeutics company, were trading up more than 5% with no immediately apparent company-specific catalyst.
Verrica focuses on developing medicines to treat dermatological diseases, including skin cancers. The commercial product line of the company includes YCANTH (VP-102) (cantharidin), 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. The company is also developing YCANTH to treat common warts.
The company recently announced second-quarter results reflecting a swing to a net loss compared with earnings a year ago and a revenue decline. In addition, the company closed a credit facility of up to $27.5 million with an entity controlled by Paul B. Manning, Verrica's largest shareholder.
Second Quarter 2026 Results
For the second quarter of 2026, the company incurred a net loss of $13.2 million, or $0.62 per share, compared to net income of $0.2 million, or $0.02 per share, in the year-ago period.
Adjusted net loss was $10.2 million, or $0.48 per share, compared to a net income of $1.2 million, or $0.12 per share, in the prior year.
Total revenue slipped to $5.9 million from $12.7 million in the prior year.
Meanwhile, U.S. YCANTH product revenue improved to $5.1 million from $4.5 million.
License and collaboration revenue was $0.8 million, primarily from commercial supply for Torii's YCANTH launch in Japan, compared to $8.2 million for the three months ended June 30, 2025, from Torii, including $8.0 million of one-time milestone revenue.
Road Ahead
Looking ahead, the company is expecting topline data from a Phase 3 program studying common warts currently expected in mid-2027.
The company expects its cash runway could extend into 2028 based on its current operating plan.
The credit facility was expected to provide Verrica with a source of non-dilutive capital to support the continued growth of our YCANTH business, as well as the global Phase 3 program studying YCANTH for the treatment of common warts.
Stock Performance
VRCA has traded between $3.28 and $9.82 over the last year. The stock closed Tuesday's trade at $4.68.
VRCA is currently up 5.32% at $4.93.
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