News Release Details
Verrica Pharmaceuticals Reports First Quarter 2020 Financial Results
- Continued to prepare for potential
- Issuance of Letters Patent directed to the Composition, Methods and Systems for the Treatment of Cutaneous Disorders by the Japan Patent Office -
“During the first quarter of 2020, we made several important advancements in our business, securing
Business Highlights and Recent Developments
$55 millionin non-dilutive loan facilities, of which $35 millionwas borrowed upon closing in March 2020.
- Issued a Letters Patent bearing Japanese Patent No. 6668240, by the Japan Patent Office. The patent issued on
February 28, 2020and will expire on August 21, 2034, twenty years from the patent application date. The issuance of this application follows the grant of a patent in Australiacovering the formulation of VP-102, applicator devices and systems comprising the formulation, and methods of using VP-102. Related patent applications are currently pending in various jurisdictions around the world, including the United States, Australia, Brazil, Canada, China, Europe, Israel, India, Japan, South Korea, and Mexico. The invention covers certain formulations containing cantharidin for the treatment of cutaneous disorders, including molluscum contagiosum and common warts.
- Presented positive data supporting the safety and efficacy of VP-102 at the
Winter Clinical Dermatology Conference. This post hoc analysis of the pooled data from the Phase 3 CAMP studies showed a statistically significantly greater percentage of complete lesion clearance in subjects with molluscum contagiosum by the end of the study (Day 84) across each body region analyzed among patients receiving VP-102, as compared to vehicle. In addition, the rates and types of adverse events were similar across body regions, including potentially sensitive areas like the head/neck and groin.
First Quarter Financial Results
- Verrica reported net losses of
$9.8 million for the first quarter of 2020, compared to a $7.5 millionnet loss for the same period in 2019.
- Research and development expenses were
$4.9 million in the first quarter of 2020, compared to $4.5 million for the same period in 2019. The increase was primarily attributable to increased compensation costs and increased clinical costs related to our development of VP-102 for external genital warts, partially offset by a decrease in clinical costs related to Verrica’s development of VP-102 for molluscum contagiosum.
- General and administrative expenses were
$5.0 million in the first quarter of 2020, compared to $3.5 million for the same period in 2019. The increase was primarily a result of expenses related to increased headcount, an increase in insurance, professional fees and other operating costs, and an increase in expenses related to pre-commercial activities for VP-102.
- As of
March 31, 2020, Verrica had aggregate cash, cash equivalents, and marketable securities of $88.4 million, which the Company believes will be sufficient to support planned operations, including expenses for the potential commercialization of the Company’s lead product candidate, VP-102, as well as the ongoing development of the compound for additional indications, including common warts and external genital warts, and the development of VP-103 for plantar warts, at least through the second quarter of 2021.
About Verrica Pharmaceuticals Inc.
Verrica is a dermatology therapeutics company developing medications for viral skin diseases requiring medical interventions. The Company’s late-stage product candidate, VP-102, is a potential first-in-class topical therapy for the treatment of molluscum contagiosum (molluscum) and common warts. Molluscum is a highly contagious viral skin infection affecting approximately six million people, primarily children, in the United States, and common warts are contagious skin growths affecting 22 million people. There are currently no FDA-approved treatments for molluscum or common warts. Following positive topline results from two pivotal Phase 3 trials, the Company submitted an NDA on
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believe,” “expect,” “may,” “plan,” “potential,” “will,” and similar expressions, and are based on Verrica’s current beliefs and expectations. These forward-looking statements include expectations regarding the potential benefits and potential approval of YCANTH™ for the treatment of molluscum, the clinical development of product candidates for additional indications, including common warts, external genital warts and plantar warts, and the Company’s ability to fund its operations through the second quarter of 2021 with its existing cash, cash equivalents and marketable securities. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include uncertainties inherent in the drug development process and the regulatory approval process, Verrica’s reliance on third parties over which it may not always have full control, uncertainties related to the COVID-19 pandemic and other risks and uncertainties that are described in Verrica’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the U.S. Securities and Exchange Commission on March 13, 2020, Verrica’s Quarterly Report on Form 10-Q for the quarter ended
Statements of Operations
(unaudited, in thousands except share and per share data)
|Three Months Ended March 31,|
|Research and development||$||4,892||$||4,487|
|General and administrative||4,988||3,539|
|Total operating expenses||9,880||8,026|
|Loss from operations||(9,880||)||(8,026||)|
|Net loss per share, basic and diluted||$||(0.39||)||$||(0.30||)|
|Weighted average common shares outstanding, basic and diluted||24,964,167||24,857,771|
Selected Balance Sheet Data
(unaudited, in thousands)
|Cash, cash equivalents and marketable securities||$||88,382||$||62,017|
|Long-term debt, net||34,434||—|
|Total stockholders’ equity||56,608||65,015|
FOR MORE INFORMATION, PLEASE CONTACT:
Chief Financial Officer
484.453.3300 ext. 103
Source: Verrica Pharmaceuticals Inc.