Verrica Pharmaceuticals Inc.

What they do

Verrica develops and commercializes clinician-administered therapies for dermatologic diseases. Its commercial product, YCANTH (VP-102), a drug-device combination containing a GMP-controlled formulation of cantharidin, was approved by the FDA in July 2023 for molluscum in patients two years and older and launched in the U.S. in August 2023. The company also runs pipeline programs in common warts and skin cancer.

Revenue drivers

• YCANTH (VP-102) U.S. molluscum product sales — U.S. YCANTH net product revenue was $5.1 million in Q2 2026, the main contributor to total quarterly revenue of $5.9 million.
• Dispensed applicator unit volume — 19,626 YCANTH dispensed applicator units in Q2 2026, up about 28% sequentially and 46% year-over-year, indicating demand growth for the commercial product.
• Annual revenue base — Full-year 2025 revenue was $35.6 million, up from $7.6 million in 2024 and $5.1 million in 2023, reflecting the U.S. YCANTH launch.
• YCANTH royalties / partnership revenue — YCANTH (TO-208) was approved in Japan in September 2025 under partner Torii, and in July 2026 Verrica signed an exclusive distribution, marketing and supply agreement with Medomie Pharma for Israel; both are licensing/partnership arrangements rather than direct U.S. sales.

Recent performance

Q2 2026 total revenue was $5.9 million, including U.S. YCANTH net product revenue of $5.1 million, up 18.7% sequentially and 12.3% year-over-year. YCANTH dispensed applicator units reached 19,626, up about 28% sequentially and 46% year-over-year, a record since launch. Quarterly revenue was $5.0 million in Q1 2026, $5.1 million in Q4 2025 and $14.3 million in Q3 2025. Full-year 2025 revenue was $35.6 million versus $7.6 million in 2024, and annual net loss narrowed to $17.9 million from $76.6 million in 2024. Operating cash flow was negative $17.6 million for 2025 and cash and equivalents were $11.2 million at June 30, 2026.

Strategy

Management is focused on commercializing YCANTH for molluscum, developing YCANTH for common warts and advancing VP-315 for basal cell carcinoma. The field sales force was 45 representatives as of July 31, 2026, with plans to expand to approximately 50 by the end of 2026. Verrica launched YcanthRx, a non-dispensing pharmacy, in Q4 2025 to simplify the prescription process, and it continues a global Phase 3 common warts program with Torii. The company entered a credit facility of up to $27.5 million with an entity controlled by Chairman Paul B. Manning, which it says could extend cash runway into 2028, and it is exploring non-dilutive partnerships outside Japan and Israel.

Risks

• Going concern / capital needs — The 10-K states Verrica does not currently have sufficient working capital to fund planned operations for the next twelve months and that substantial doubt exists about its ability to continue as a going concern.
• Product return reserve risk — The company warns that greater-than-expected returns of YCANTH (VP-102) may exceed its reserve for returns and adversely affect revenue and operating results.
• Dependence on a single commercial product — YCANTH for molluscum is the only approved commercial product, so U.S. product revenue and payor coverage for that one indication drive near-term results.
• Pipeline and regulatory execution risk — Common warts Phase 3 topline data is expected mid-2027, and the VP-315 basal cell carcinoma program is still in development, so additional approvals and revenue are not assured.

Outlook

Management expects topline data from the global Phase 3 YCANTH common warts program in mid-2027. It plans to expand the field sales force to approximately 50 representatives by the end of 2026. The company says that, assuming full availability of the new $27.5 million credit facility, its cash runway could extend into 2028, and it continues Phase 3 readiness activities for VP-315 in basal cell carcinoma. It also stated that positive EMA feedback supports filing a Marketing Authorization Application for YCANTH in the EU for molluscum without additional clinical studies.