In a report released today, Stacy Ku from TD Cowen maintained a Buy rating on Verrica Pharmaceuticals (VRCA – Research Report), with a price target of $5.00.
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Stacy Ku’s rating is based on several promising developments at Verrica Pharmaceuticals. The company reported significant growth in Ycanth sales, achieving $3.4 million in Q1, which is a substantial increase both year-over-year and quarter-over-quarter. This growth is attributed to a heightened demand for applicators and an effective commercial strategy targeting key territories with high molluscum prevalence and robust insurance coverage.
Additionally, the new management’s focus on overcoming access hurdles and expanding into new territories is expected to drive further adoption of Ycanth. The anticipated discontinuation of compounded cantharidin in 2024 is projected to boost demand-based sales significantly by 2025. The potential for Ycanth to meet an unmet need in treating molluscum, a common and uncomfortable viral skin infection, further supports the Buy rating. The DCF-derived price target of $5 reflects these dynamics and the associated risks.
According to TipRanks, Ku is an analyst with an average return of -13.2% and a 30.49% success rate. Ku covers the Healthcare sector, focusing on stocks such as Supernus Pharmaceuticals, Centessa Pharmaceuticals, and LENZ Therapeutics.