Verrica Pharmaceuticals (NASDAQ:VRCA) used its fourth quarter and year-end 2025 corporate update call to highlight what management described as a “fundamental” business transformation driven by sharper commercial execution, pipeline progress, and a strengthened balance sheet.
YCANTH commercial traction and access initiatives
President and CEO Jayson Rieger said the company focused in 2025 on establishing YCANTH as a “new standard of care” for molluscum contagiosum by stabilizing the commercial organization and investing in patient access. He reported YCANTH revenue grew by more than 130% in 2025 versus 2024, while selling, general and administrative (SG&A) expenses declined by more than 40% year-over-year over the same period.
Dispensed applicator units—a metric the company uses to describe demand—were 13,654 in Q4 2025, up 58% from Q4 2024 but down about 3% from Q3 2025. Rieger attributed some of the sequential softness to commercial execution factors and later said January 2026 was likely affected by significant winter weather on the East Coast. He noted that February dispensed applicator units per selling day rebounded to a record monthly high since launch.
For the full year 2025, Verrica reported 51,196 dispensed YCANTH applicator units, nearly doubling from 25,773 in 2024 (up 99%).
Management said the company continues to invest in co-pay assistance to support affordability, which has affected gross-to-net estimates. In Q4, Verrica launched YcanthRx, a non-dispensing pharmacy intended to provide prescribers “a single place to write all YCANTH prescriptions” and route prescriptions through a contracted dispensing pharmacy within the company’s network based on a patient’s insurance. Rieger said the company hopes these efforts collectively will improve gross-to-net trends throughout 2026.
Chief Commercial Officer Chris Chapman, who joined in Q4, said priorities include simplifying product acquisition for patients and physicians and ensuring that once a diagnosis is made, a prescription is written. He reiterated that “watchful waiting” remains the largest competitive alternative in molluscum, though management also said the presence of a competitor (ZELSUVMI, mentioned during Q&A) validates demand for active treatment.
Sales force build and targeting priorities
Verrica said it made additions to commercial leadership and field teams in Q4 and into early 2026. Rieger said the gradual sales force expansion that began in the second half of 2025 is expected to continue, with the company still planning to reach approximately 50 representatives in 2026.
During Q&A, Chapman said dermatology remains a “key pillar” for growth given higher velocity and earlier adoption, while pediatricians represent an expansion lever to broaden category growth. He added that he plans to revisit targeting and segmentation to ensure the team is calling on the right physician mix.
On reimbursement, Chief Operating Officer David Zawitz said coverage enhancements cited for 2025 and 2026 included wins across both Medicaid and commercial channels, adding that the company continues to look for additional opportunities to expand coverage.
Europe and Japan expansion efforts
Rieger said Verrica made progress toward bringing YCANTH to the European Union. He cited October feedback from the EMA’s Committee for Medicinal Products for Human Use (CHMP) indicating that, based on phase III data generated in both the U.S. and Japan, no additional phase III studies would be required to proceed toward a marketing authorization application for molluscum. Rieger said the company is working through the required steps and that an EU submission “may occur within the next 12 months,” which could help catalyze regional commercialization partnership opportunities.
When asked about prospective EU partnerships, management said it does not comment on the nature of business development activities, but added it is exploring options with partners that can help bring the product to patients and caregivers.
Rieger also noted that Japanese partner Torii Pharmaceutical—now part of Shionogi—launched YCANTH in Japan in February after receiving PMDA approval last year, and said Verrica is supporting the commercial effort.
Pipeline: phase III common warts program and VP-315 in basal cell carcinoma
Rieger outlined two phase III-stage programs: a label expansion effort for YCANTH in common warts and development of VP-315 in basal cell carcinoma.
For common warts, Verrica launched a global phase III program with Torii after renegotiating an amended collaboration and license agreement. Rieger said Verrica received $18 million in milestone payments in Q3 2025, and Torii will fund the first $40 million of program costs, representing about 90% of the current budget. The companies will split costs 50/50, with Verrica’s share effectively offset against future milestones and royalties owed from Japan. Verrica retains full commercial rights for YCANTH indications outside Japan.
The company said the first patient was dosed in December 2025 and expects to initiate a second phase III study in the U.S. and Japan with Torii in the coming months. Management did not provide detailed enrollment timelines or top-line data timing, but said it expects to offer a more granular update on key milestones later in 2026 and noted filings could be staggered depending on enrollment cadence and follow-up requirements.
For VP-315, Rieger referenced previously presented phase II data at the Society for Immunotherapy of Cancer (SITC) meeting, including a 97% objective response rate and an 86% reduction in overall tumor size. He also highlighted ongoing evaluation of possible abscopal-like effects in 14 non-injected lesions, reporting three of 14 lesions (21%) had complete histological clearance and there was a 67% overall reduction in tumor size across the 14 lesions. Management said it aligned with the FDA on an “efficient” phase III plan consisting of two placebo-controlled phase III studies of approximately 100 subjects each, with a primary endpoint of complete clearance at week 14, and long-term follow-up deferred to post-approval commitments. Verrica said it is evaluating funding opportunities and initiating clinical and CMC preparation activities, but did not disclose estimated program costs.
Financial results and balance sheet actions
Interim CFO John Kirby reported total revenue of $5.1 million for Q4 2025, compared with $0.3 million in Q4 2024. Q4 2025 revenue included $3.7 million in net YCANTH revenue and $1.4 million in Torii collaboration revenue.
For full-year 2025, total revenue was $35.6 million versus $7.6 million in 2024. The 2025 figure included $15.3 million in net YCANTH revenue and $20.3 million in Torii milestone and collaboration revenue.
Gross product margin was 85.7% for the full year 2025 versus 71.8% in 2024, while Q4 2025 gross product margin was 81.9%. Kirby said 2024 cost of product included $0.9 million of obsolete inventory charges.
R&D expense was $2.5 million in Q4 2025, rising year-over-year (excluding stock-based compensation) primarily due to common warts phase III costs and compensation. Full-year 2025 R&D expense was $8.9 million, down year-over-year, which Kirby said was primarily driven by decreased clinical costs for VP-315 (excluding stock-based compensation).
SG&A expense was $8.1 million in Q4 2025 and $35.2 million for full-year 2025, with the company attributing the reductions to a more focused commercial strategy and cost cuts across compensation, travel, and other commercial and administrative categories.
In November 2025, Verrica completed a $50 million PIPE and used proceeds to retire debt. Kirby said the company paid $35 million to settle obligations under its OrbiMed credit agreement, representing savings of approximately $7 million versus the amount owed at settlement. Verrica reported a Q4 2025 GAAP net loss of $8.1 million ($0.57 per share) and a full-year 2025 GAAP net loss of $17.9 million ($1.68 per share). As of Dec. 31, 2025, the company had $30.1 million in cash and cash equivalents, which it expects will fund operations into 2027.
About Verrica Pharmaceuticals (NASDAQ:VRCA)
Verrica Pharmaceuticals Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of topical therapies for dermatological conditions. Its lead investigational product, VP-102, is a standardized formulation of cantharidin in a pre-measured applicator designed to treat molluscum contagiosum and common warts. Verrica’s approach emphasizes consistency of dosing and patient convenience, aiming to improve upon off‐label use of existing treatments.
Beyond VP-102, Verrica is advancing VP-103, a next‐generation topical candidate intended to optimize tolerability while maintaining efficacy against viral skin lesions.
