WEST CHESTER, PA — Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) released its third-quarter financial results for 2024, unveiling a strategic restructuring plan to reduce expenses and improve market access for its YCANTH product. The company aims to streamline operations and enhance its commercial strategy to drive demand in key territories.
Chairman Paul B. Manning highlighted the company’s efforts, stating, “Following the close of the third quarter, we took decisive steps to significantly lower our operating expenses, and these actions are expected to materially reduce Verrica’s cash burn rate in the coming year.” Manning emphasized that these changes will support a focused approach to expanding YCANTH’s reach, especially in areas with high incidences of pediatric molluscum.
Financially, Verrica reported a net loss of $22.9 million, or $0.49 per share, for the quarter ending September 30, 2024, an improvement from a $24.8 million loss the previous year. Despite negative net product revenue of $1.9 million due to returns, collaboration revenue reached $0.1 million, while product revenue for the year-to-date was $6.3 million, up from $2.8 million last year.
The company also announced leadership changes, with Dr. Jayson Rieger appointed as President and CEO, and John Kirby stepping in as interim CFO. Dr. Rieger brings over two decades of experience in the life sciences industry, and Kirby comes with a strong background in finance for pharmaceutical firms.
The restructuring includes a reduction of sales territories and a focus on regions with strong reimbursement potential for YCANTH. Verrica expects a 50% reduction in operating expenses following these changes. In addition, the company settled litigation with Dormer Laboratories, Inc., ceasing the sale of cantharidin-containing products in the U.S., and reported favorable outcomes from a Phase 2 study of VP-315 for basal cell carcinoma.
As of September 30, 2024, Verrica held $23.0 million in cash and equivalents, projected to fund operations into early 2025. The company remains committed to refining its business model to support sustained growth and deliver value to stakeholders.
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