WEST CHESTER, Pa. - Verrica Pharmaceuticals Inc. (NASDAQ:VRCA), a company specializing in dermatology treatments with a current market capitalization of $96 million, has announced that its partner, Torii Pharmaceutical (TADAWUL:2070) Co. Ltd., has submitted a New Drug Application (NDA) in Japan for TO-208, known as VP-102 and marketed as YCANTH® in the U.S., for the treatment of Molluscum Contagiosum. The submission by Torii marks a significant step in making the first therapeutic for this skin condition available in Japan. Despite challenging market conditions, InvestingPro data shows the company achieved impressive revenue growth of 187% in the last twelve months.
Molluscum Contagiosum is a viral infection that causes skin lesions, affecting approximately 1.6 million individuals in Japan. The NDA submission follows a successful Phase 3 clinical trial in Japan, where TO-208 showed superior efficacy compared to a control and had a safety profile consistent with previous studies in the United States. According to InvestingPro analysis, while the company's stock has experienced significant volatility, trading at $1.06, their Fair Value assessment suggests the stock may be undervalued at current levels.
TO-208, which contains cantharidin as its active ingredient, is dispensed via a single-use applicator, ensuring precise dosing and targeted administration. In the United States, YCANTH® has been approved by the FDA for treating molluscum contagiosum in patients two years and older, with an estimated six million people affected, predominantly children. The drug is commercially available in the U.S. and covered by insurance for eligible patients, with additional financial assistance for those in need.
Verrica and Torii entered into an exclusive license agreement in March 2021 for the development and commercialization of TO-208 in Japan. Verrica's portfolio also includes VP-103 for plantar warts and VP-315 for non-melanoma skin cancers, under development in partnership with Lytix Biopharma AS.
This announcement contains forward-looking statements regarding the clinical development and potential commercialization of TO-208 in Japan. These statements are based on Verrica's current expectations and involve risks and uncertainties that could cause actual results to differ materially. The company has provided no obligation to update any forward-looking statements. For deeper insights into Verrica's financial health and growth prospects, investors can access comprehensive analysis and 10 additional ProTips through InvestingPro's detailed research reports, available for over 1,400 US stocks.
The information in this article is based on a press release statement from Verrica Pharmaceuticals Inc.
In other recent news, Verrica Pharmaceuticals reported strong growth in the second quarter of 2024, with net product revenue reaching $4.9 million, primarily driven by increased demand for YCANTH. Total (EPA:TTEF) revenues for the quarter stood at $5.2 million. However, the company also reported a GAAP net loss of $17.2 million. Verrica has undergone significant operational changes, including a strategic restructuring plan that reduced operational costs by about 50% and decreased sales territories from 80 to 35. This restructuring resulted in a workforce reduction of 47 employees, leading to approximately $1.0 million in total expenses. In the wake of these changes, TD Cowen revised its outlook on Verrica, reducing the price target to $10.00 from the previous $15.00, but maintaining a Buy rating. Needham downgraded the company's stock from Buy to Hold, while RBC Capital maintained an Outperform rating, albeit reducing the stock's price target to $13 from $14. Lastly, Verrica reported positive preliminary open-label phase II data from VP-315 for the treatment of basal cell carcinoma, with complete clearance in 51% of treated lesions.
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