Verrica announces amendment to collab, license agreement with Torri

Verrica Pharmaceuticals (VRCA) announced that it has entered into the second amendment to its existing Collaboration and Licensing Agreement with Torii Pharmaceutical to initiate a global pivotal Phase 3 clinical trial of Verrica’s product, YCANTH, for the treatment of common warts. Amendments to YCANTH Collaboration and License Agreement with Torii: Torii has agreed to accelerate the $8 million milestone payment to Verrica for initiating the global Phase 3 program to be triggered now, rather than waiting until the first patient is dosed in the trial, providing Verrica with a significant source of non-dilutive capital earlier than expected under the prior arrangement. Verrica expects to receive the $8 million cash payment from Torii in July 2025. Torii has agreed to pay Verrica a $10 million milestone payment for the Japanese approval of YCANTH for molluscum in cash, rather than as an offset to trial costs. The approval decision is expected to occur by the end of 2025. Verrica expects to dose the first patient in the global Phase 3 program in the United States in the fourth quarter of 2025. Torii will continue to split the costs of the global Phase 3 program with Verrica on a 50/50 basis and will pay the first $40 million of the trial costs, representing approximately 90% of the current trial budget. To repay its half of the trial costs, Verrica will offset amounts otherwise owed by Torii for future royalties, certain transfer price payments and remaining development milestones. Verrica will initiate a manufacturing transfer to Torii for YCANTH applicators to be sold in Japan, which is expected to take several years. In the interim, Verrica will continue to receive from Torii a transfer price for applicators manufactured by Verrica’s manufacturing partners. After the transfer of at least one component of the manufacturing process, Verrica will begin receiving royalties related to net sales in Japan of applicators manufactured by Torii and/or its manufacturing partners.