Stacy Ku, an analyst from TD Cowen, maintained the Buy rating on Verrica Pharmaceuticals (VRCA – Research Report). The associated price target is $5.00.
Stacy Ku’s rating is based on several strategic and market-driven factors. Verrica Pharmaceuticals has shown promising signs of growth, particularly with an increase in applicator demand and a strategic resizing of their salesforce. The company’s management has implemented a focused commercial strategy targeting key territories with high molluscum prevalence and strong insurance coverage, which is expected to drive demand-driven sales growth in 2025.
Furthermore, the stabilization of inventory levels and the anticipated increase in Ycanth sales, projected to reach $15 million in 2025, align with market expectations. The new management’s efforts to improve commercial adoption by targeting practices with high volumes of molluscum cases and expanding to pediatricians are seen as positive steps. Despite challenges such as the lingering supply of compounded cantharidin, the company’s strategic focus and the discontinuation of compounded cantharidin shipments by April 2025 are expected to bolster demand for Ycanth, supporting the Buy rating.
According to TipRanks, Ku is an analyst with an average return of -11.8% and a 29.85% success rate. Ku covers the Healthcare sector, focusing on stocks such as Supernus Pharmaceuticals, VYNE Therapeutics, and Centessa Pharmaceuticals.
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