Journey Medical (NASDAQ:DERM) Chief Executive Officer Claude Maraoui said the dermatology company is seeing strong early momentum from EMROSI, its recently launched rosacea treatment, while maintaining a focus on expanding its portfolio and improving reimbursement coverage.
Speaking during a fireside chat hosted by Alliance Global Partners analyst Scott Henry, Maraoui described Journey Medical as a dermatology-focused company built over the past decade through acquisitions and licensing of already-approved FDA products. The company now has eight prescription products and more than 60 full-time employees, with a 35-person sales force across the U.S.
EMROSI Launch Drives Growth
Maraoui said EMROSI, a 40 mg modified-release minocycline formulation for rosacea, is the company’s most important growth driver. The product is 25% immediate release and 75% delayed release, according to Maraoui, who said the company advanced EMROSI through Phase 3 trials and the FDA approval process.
“We launched it very strongly right out of the gates,” Maraoui said, citing market acceptance among dermatologists and clinical data showing superiority on primary and secondary endpoints.
He said EMROSI generated slightly more than 52,000 prescriptions in its first nine months and has now reached 100,000 prescriptions. The product produced approximately $15 million in revenue last year over a three-quarter period, he said.
Maraoui also pointed to growth in prescribers, saying EMROSI ended the year with 3,200 health care providers using the product and had risen to more than 3,700 following the company’s first-quarter earnings report. He added that patient feedback has helped reinforce adoption among dermatologists and physician assistants.
Coverage Remains a Key Focus
Reimbursement remains an important part of the launch strategy. Maraoui said full coverage typically takes 18 to 24 months to optimize for dermatology launches. In the meantime, Journey Medical is using a co-pay bridging program to help patients access EMROSI.
He said EMROSI currently has coverage for about 35% of patients, meaning roughly three to four out of 10 patients are covered, while others are supported through the company’s bridging program. Maraoui said Journey Medical has signed agreements with the three largest group purchasing organizations, giving it a framework to negotiate with downstream health plans.
Asked where coverage could ultimately reach, Maraoui said 100% is not realistic under the current system, but the company believes it can reach 60% to 75% coverage over time. He said improved coverage should reduce dependence on the bridging program and increase the share of more profitable reimbursed prescriptions.
Sales Force Expansion Planned
Maraoui said Journey Medical plans to add five to six sales representatives in the second half of 2026. He said the company waited to expand the sales force because it wanted stronger managed care coverage before adding new territories.
The company generated about $61 million in revenue last year with 35 sales representatives, or roughly $1.7 million to $1.8 million per representative, Maraoui said. He said the new representatives are expected to contribute more than $1 million each over time, while related expenses are already included in the company’s budget.
In addition to EMROSI, Maraoui cited Qbrexza and Accutane as products seeing strong uptake. Journey Medical’s current focus areas include rosacea, acne and hyperhidrosis, which Maraoui said are each large markets exceeding $1 billion.
Margins and Balance Sheet
Maraoui said Journey Medical’s gross margin has improved since its initial public offering, rising from the low-to-mid 50% range to the high 60% range. He said margins should continue to improve as EMROSI becomes a larger part of the portfolio, given its low cost to the company, and as Qbrexza contributes stronger margins.
On the balance sheet, Maraoui said the company ended 2025 with approximately $24 million in cash and closed the first quarter with about $27 million. He described the company as liquid and in a healthy position, supported by a firm base business and expected revenue growth from a full year of EMROSI sales.
Maraoui also said Journey Medical expects to launch at least one additional product in the second half of 2026, with the possibility of launching two.
Business Development Remains Active
Maraoui said business development remains important to Journey Medical’s strategy. He noted that EMROSI has patent protection through 2039, while Qbrexza has protection into the middle of 2030. He also said Accutane’s REMS program causes it to behave more like a branded product.
Journey Medical is continuing to evaluate late-stage development assets, including products entering Phase 3, as well as FDA-approved products that may not be core priorities for other companies, Maraoui said.
“Right now, we’re good to go for many years with our current portfolio,” Maraoui said, adding that the company still wants to “feed the engine of growth” through additional products.
About Journey Medical (NASDAQ:DERM)
Journey Medical Corp, headquartered in Fairfield, New Jersey, is a commercial dermatology company focused on acquiring, developing and marketing prescription dermatology products in the United States. Since its incorporation in 2019, the company has built a portfolio of both branded and generic topical therapies designed to address a range of skin conditions, including acne, atopic dermatitis, fungal infections and inflammatory lesions.
The company’s product lineup features antibiotic/anti-inflammatory combinations and corticosteroid-based formulations delivered through proprietary gel, cream and foam vehicles.
