WEST CHESTER, PA — Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) reported a $13.2 million second-quarter loss as total revenue fell sharply from a year earlier despite record demand and higher U.S. sales of YCANTH, underscoring the impact of a prior-year licensing milestone that did not repeat in 2026.
Total revenue for the quarter ended June 30 was $5.9 million, down from $12.7 million a year earlier.
The decline was driven by license and collaboration revenue, which fell to $800,000 from $8.2 million. The 2025 period included an $8 million one-time milestone payment from Torii Pharmaceutical.
U.S. net product revenue from YCANTH rose 12.3% to $5.1 million from $4.5 million a year earlier and increased 18.7% from the first quarter.
Dispensed YCANTH applicator units reached a record 19,626 in the quarter, up 46.1% year over year and 28.3% sequentially.
“Demand for YCANTH continues to accelerate,” President and Chief Executive Officer Jayson Rieger said, pointing to the company’s highest quarterly volume since launch.
Verrica is also seeking to expand YCANTH beyond molluscum contagiosum into common warts. The company expects topline data from its global Phase 3 program in mid-2027.
The first pivotal study, COVE-2, remains in enrollment, while initial patients in the U.S. and Japan were dosed during the quarter in the second pivotal trial, COVE-3.
Research and development expenses rose to $6 million from $1.8 million a year earlier, largely because of the Phase 3 common-warts program. Verrica noted that the first $40 million of payments for that program are being funded by Torii under their collaboration agreement and therefore did not reduce the company’s cash balance.
Selling, general and administrative expenses increased to $10.3 million from $8.9 million, primarily because of higher commercial spending tied to sales-force expansion.
Verrica also recorded a $1.7 million expense related to an agreement in principle to settle a class action filed in 2022. The amount represents the company’s share after insurance recovery.
The company posted a net loss of $13.2 million, or $0.62 per share, compared with net income of $200,000, or $0.02 per share, in the second quarter of 2025.
On a non-GAAP basis, Verrica reported a $10.2 million loss, or $0.48 per share, compared with non-GAAP net income of $1.2 million, or $0.12 per share, a year earlier.
For the first six months of 2026, net product revenue increased to $9.4 million from $8 million, while license and collaboration revenue declined to $1.5 million from $8.2 million.
The company’s six-month net loss widened to $22.8 million, or $1.07 per share, from $9.5 million, or $1.01 per share, a year earlier.
Verrica also continued development of VP-315, its investigational treatment for basal cell carcinoma. Phase 2 data presented in May showed potential effects in both treated and untreated lesions, and the company is continuing Phase 3 readiness work.
Separately, Verrica entered into a credit agreement Aug. 6 for up to $27.5 million with an entity controlled by Chairman and largest shareholder Paul B. Manning. Based on its current operating plan and assuming full availability of the facility, the company expects the financing could extend its cash runway into 2028.
Verrica also signed an exclusive distribution, marketing and supply agreement in July with Medomie Pharma Ltd. covering commercial rights to YCANTH for molluscum contagiosum in Israel.
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