Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) announced today that its flagship product YCANTH® has achieved record growth in the first quarter of 2025, with dispensed applicator units exceeding 10,000 for the first time in a single quarter. This represents a 16.7% sequential increase over Q4 2024, when 8,654 units were dispensed.
The company attributes this growth to its recent commercial restructuring efforts and normalized distribution inventory levels, which executives believe will translate directly into revenue growth.
"We believe the strong performance we experienced for YCANTH in first quarter of 2025 reflects the positive impact from our recent commercial restructuring," said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. "Importantly, our YCANTH distribution inventory has normalized. The sequential growth in the first quarter represents increasing demand for YCANTH by prescribers, which we believe will drive revenue."
Market Position and Commercial Strategy
YCANTH® (VP-102) is the first and only FDA-approved treatment for molluscum contagiosum in patients two years of age and older. This highly contagious viral skin infection affects approximately 6 million people in the United States, primarily children, representing a significant unmet medical need prior to YCANTH's approval.
The company has focused on ensuring broad access to the treatment, with approximately 225 million lives covered by insurance. Verrica has also implemented a patient assistance program that makes YCANTH® available to all patients for $25 per treatment, with additional financial assistance for those in need.
Dr. Rieger emphasized the company's strategic positioning: "With strong market access now in place, normalized channel inventory levels, and a more focused commercial team that continues to build solid relationships within the dermatology and pediatric communities, I believe we are now positioned for sustainable revenue growth in 2025 and beyond as we seek to establish YCANTH as the standard of care for the treatment of molluscum contagiosum."
Product Development Pipeline
Beyond molluscum contagiosum, Verrica is developing YCANTH® for the treatment of common warts, which the company identifies as "the largest remaining unmet need in medical dermatology."
Additionally, Verrica has entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (formerly LTX-315 and VP-LTX-315) for non-melanoma skin cancers, including basal cell carcinoma and squamous cell carcinoma. The company recently presented positive preliminary results for VP-315 at the 2025 Winter Clinical Dermatology Conference, reporting a 97% Calculated Objective Response Rate (ORR) in study subjects.
Clinical Evidence and Regulatory Background
YCANTH's FDA approval was based on positive results from two Phase 3 clinical trials involving approximately 500 patients, which demonstrated the product's safety and efficacy for molluscum treatment. The drug-device combination product contains a GMP-controlled formulation of cantharidin delivered via a single-use applicator that allows for precise topical dosing and targeted administration.
Financial Outlook
The company's financial trajectory appears to be improving after a challenging period. In late 2024, Verrica reported $0 in product shipments for the third quarter and recognized negative net product revenue of $1.9 million, including a provision for product returns of $1.7 million. The company subsequently completed a $42.0 million public offering in November 2024 to strengthen its financial position.
With the normalization of distribution inventory levels, Verrica expects that dispensed applicator units will now more closely track actual demand and gross revenue, providing a clearer picture of the product's market performance.
Leadership and Corporate Development
Verrica has recently strengthened its leadership team with several key appointments. In March 2025, the company appointed Noah L. Rosenberg, M.D., as Chief Medical Officer, and in April 2025, Gavin Corcoran, M.D. joined the Board of Directors. These appointments follow the addition of David Zawitz as Chief Operating Officer in December 2024.
The company will continue to provide updates on its commercial progress and pipeline developments, with Dr. Rieger scheduled to participate in a fireside chat at the 24th Annual Needham Virtual Healthcare Conference on April 8, 2025.
As Verrica continues to expand its commercial footprint in dermatology therapeutics, the company appears focused on leveraging its FDA-approved treatment while advancing its pipeline of dermatological medications for conditions requiring medical intervention.
