Verrica Pharmaceuticals ((VRCA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Verrica Pharmaceuticals’ recent earnings call painted a picture of robust growth and strategic advancements, tempered by some operational challenges. The sentiment was largely positive, driven by impressive growth in YCANTH dispensations and strategic partnerships, although tempered by seasonal sales impacts and a prolonged EU filing process.
Significant Growth in YCANTH Dispensations
YCANTH dispensed applicator units saw a remarkable 120% increase year-over-year, reaching 37,642 units for the nine months ending September 30, 2025. This growth underscores the strong market demand and effective distribution strategies employed by Verrica Pharmaceuticals.
Strategic Partnership with Torii Pharmaceutical
Verrica’s collaboration with Torii Pharmaceutical yielded $18 million in cash milestone payments in 2025, with $10 million received in the third quarter following YCANTH’s approval for molluscum in Japan. This partnership highlights Verrica’s strategic focus on expanding its market presence internationally.
Positive FDA Feedback for Basal Cell Carcinoma Asset VP-315
The FDA provided encouraging feedback on the Phase III development of Verrica’s oncology asset, VP-315, which demonstrated a 97% objective response rate and an 86% reduction in tumor size. This positive regulatory feedback bodes well for the future of VP-315.
EU Regulatory Milestone for YCANTH
Feedback from the European Medicines Agency indicated that no further Phase III studies are needed for YCANTH’s Marketing Authorization Application in the EU. This milestone is a significant step towards expanding YCANTH’s availability in the European market.
Financial Turnaround
Verrica reported a total revenue of $14.3 million in Q3 2025, a significant turnaround from a negative revenue of $1.8 million in Q3 2024. This financial rebound reflects the company’s successful strategic initiatives and operational efficiencies.
Seasonality Impact on Sales
Sales were notably affected by seasonality, particularly in August, due to scheduled vacations and fewer doctor visits. This seasonal impact is a challenge that Verrica will need to navigate in future quarters.
Incremental Growth Slowed
The company experienced a slowdown in incremental growth in pull-through during Q3 compared to the previous quarter. This deceleration suggests potential areas for strategic adjustments to maintain growth momentum.
Extended EU Filing Timeline
Despite no additional clinical trials being required, the filing for YCANTH in the EU is not expected until Q4 2026. This extended timeline presents a challenge in bringing YCANTH to the European market.
Forward-Looking Guidance
Looking ahead, Verrica Pharmaceuticals anticipates continued growth and strategic advancements. The company plans to expand its sales force to 50 reps by 2026 and launch YCANTH Rx, a non-dispensing pharmacy, in Q4 2025. These initiatives are expected to enhance YCANTH’s market penetration and streamline prescription processing.
In summary, Verrica Pharmaceuticals’ earnings call highlighted a strong performance with significant growth in YCANTH dispensations and strategic partnerships. While challenges such as seasonality impacts and an extended EU filing timeline persist, the company’s forward-looking strategies and regulatory milestones position it well for future success.