Journey Medical Corporation ((DERM)) has held its Q4 earnings call. Read on for the main highlights of the call.
Journey Medical Corporation’s recent earnings call exuded a positive sentiment, underscored by significant achievements such as the FDA approval and imminent launch of MROSI, a positive EBITDA, and a robust cash position. While there were challenges, including decreased revenue from legacy products and increased R&D expenses, the overall sentiment was buoyed by the transformational potential of MROSI and its anticipated market impact.
MROSI FDA Approval and Launch
Journey Medical Corporation celebrated a major milestone with the on-time first cycle FDA approval of MROSI in November 2024, with its launch scheduled for early April 2025. This marks the company’s first internally developed asset, poised to become a major growth driver with potential peak annual sales of $200 million in the U.S. and $100 million internationally.
Positive Non-GAAP Adjusted EBITDA
The company reported a positive non-GAAP adjusted EBITDA for the sixth consecutive quarter, totaling $800,000 for the year. This financial achievement highlights Journey Medical’s operational efficiency and strategic financial management.
Strong Cash Position
Despite incurring significant FDA filing fees and milestone payments, Journey Medical ended 2024 with a strong cash position of $20.3 million. This robust balance sheet demonstrates the company’s financial resilience and strategic foresight.
Successful Presence at Medical Conferences
MROSI’s clinical data received significant attention at key medical congresses, with the Phase 3 results published in JAMA Dermatology. This successful presence underscores the scientific credibility and market interest in MROSI.
Decrease in Total Revenue
The company experienced a decline in total net product revenue, which fell to $55.1 million in 2024 from $59.7 million in 2023. This decrease was primarily attributed to higher rebate costs and lower unit volumes from legacy products.
Increased Research and Development Expenses
R&D expenses rose by $2.3 million to $9.9 million, driven by non-recurring payments related to MROSI’s NDA filing and milestone payments. This increase reflects the company’s commitment to advancing its product pipeline.
Net Loss Increase
Journey Medical reported a net loss to common shareholders of $14.7 million in 2024, compared to $3.9 million in 2023. This increase was mainly due to the absence of significant licensee revenue from the previous year.
Forward-Looking Guidance
Journey Medical’s forward-looking guidance remains optimistic, with the company meeting all financial guidance ranges for 2024. The launch of MROSI positions the company in a lucrative $1 billion-plus treatment category, with expectations of significant operating leverage and potential peak annual sales of $200 million in the U.S. The company plans to expand MROSI’s commercial payer coverage throughout 2025, alongside other strategic initiatives aimed at driving growth and shareholder value.
In conclusion, Journey Medical Corporation’s earnings call highlighted a positive outlook, driven by the FDA approval and upcoming launch of MROSI, alongside a strong cash position and positive EBITDA. Despite challenges such as decreased revenue from legacy products and increased R&D expenses, the company is poised for growth, with strategic initiatives set to enhance shareholder value.