Verrica reports net loss of $24.8 million in third quarter of 2023

Key takeaways:

• Verrica made $2.8 million in product revenue following its first sale of Ycanth to distributor FFF Enterprises Inc.
• Year to date, the company reported a net loss of $42.4 million.

Verrica reported a net loss of $24.8 million, or $0.54 per share in the third quarter of 2023, according to a press release. The company had a net income of $83,000 in the same period last year.

The company’s topical solution, Ycanth, received FDA approval in July for the treatment of molluscum contagiosum in patients aged 2 and older. Following FDA approval, Verrica made $2.8 million in product revenue during the third quarter of 2023 due to the sale of Ycanth to distributor FFF Enterprises Inc.

Selling, general and administrative expenses increased five-fold from $3.9 million in the third quarter of 2022 to $20.1 million in the third quarter of 2023. The increase was attributed to $3.7 million in commercial activities for Ycanth, $3.8 million in compensation to expand the company’s sales force and $7.4 million in stock compensation expenses.

Year to date, the company’s net loss is $42.4 million, or $0.94 per share, compared to $18.6 million net loss nine months into 2022.

“Following the U.S Food and Drug Administration approval of Ycanth for the treatment of molluscum in July, we continue to build momentum across our commercial operations,” Ted White, President and CEO of Verrica, said in a press release. “As the only FDA-approved product for the treatment of molluscum, we are seeing broad awareness and interest in prescribing Ycanth across dermatology and pediatric practices.”

More than 112 million patients have accessed Tcanth through commercial insurance or managed Medicaid plans, he continued, and fee-for-service Medicaid coverage has been accepted for the treatment in Connecticut, Arkansas, New Jersey and Nevada.