VRCA - Earnings call 3 2023 | Verrica Pharmaceuticals Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Verrica Pharmaceuticals Third Quarter 2023 Corporate Update and Earnings Conference Call.

As a reminder, this conference is being recorded.I will now turn the call over to our host, Kevin Gardner of LifeSci Advisors.

You may begin your conference.

Kevin Gardner

Thank you, operator. Hello, everyone, and welcome to Verrica Pharmaceuticals Third Quarter 2023 Corporate Update and Earnings Conference Call. Financial line Officer are Bonaccorso, of Officer; Kohler, the and White, Chief on Terry Executive Chief Verrica Chief me this Ted morning President Commercial With Dr. Officer; Pharmaceuticals; Joe Officer.As Chief Verrica's management Chris Chief today's Officer; Gary a forward-looking Goldenberg, during statements. Medical reminder, make Hayes, and Verrica's Legal will call, and States, well expectations programs and development include may commercialization as statements clinical business to the of candidates, Verrica's as planned YCANTH These related in overall strategy the operations. United product based are inherent statements These company's involve the forward-looking expectations and on risks current and uncertainties. and on those from Verrica's based forward-looking the And and in timing anticipated events risks statements. materially uncertainties, differ actual could results such of those Please see factors. risk filings important Verrica's SEC for or result you statements place Verrica not will obligation during new forward-looking of measures. undue update to non-GAAP statements we call, any addition, future discuss in as expectations.In on certain changes forward-looking financial events no today's or a cautions reliance to information, duty and undertakes These superior and non-GAAP accordance financial measures substitute prepared measures with financial to for in GAAP. to performance a not of are in addition or of a use related number limitations financial closest non-GAAP equivalents. to of versus the are GAAP measures There their these

on of these call that Our non-GAAP Investor for includes also Verrica's issued President measures to over our White. section the available and Ted GAAP we reconciliations Relations Ted? website.I'll now is the to today earnings release turn CEO, and

Ted White

Commercial States. and call our morning, begin Officer, progress detailed a the launch thank Corporate then provide general for review you activities YCANTH on Chief and United joining today's of the good update providing Joe our like our in everyone, Earnings Update and XXXX the Kevin, of third Conference a for made call second and will since quarter Thank we've I'll Call. to you, more us turn I'd quarter. by Bonaccorso, commercial to the who over

be of third FDA In Officer, our results. the quarter period X We'll to take adult July, will the for third treatment contagiosum then Terry a questions.The Following Chief review older. your molluscum call molluscum age to proved patients Joe's Kohler for our in up the momentous open and remarks, of pediatric company. or Financial years of our approved YCANTH XXXX and quarter financial

ever who at in from contagious patients viral this FDA-approved X infection. The treating the product the first aimed suffer million skin U.S. highly

including high we've their We we from and patients are to are addition with Based molluscum ability in to time initial of and the date, is this received administration receiving confident very for therapy to FDA-approved waited precise disease. long applicator address Physicians safe allows pleased received to a and each disease, of to the communities. and dermatologists the by YCANTH's the pediatric distribution who feedback reception and lesion.In we've treat well been reception suffer YCANTH. that itself have YCANTH, this our positive the the model feedback have a effective design for on to awareness

As physicians a primary can obtain ways. in X YCANTH reminder,

partner, first is our bag white Nufactor. pharmacy service specialty The a with

is resonating will The believe our directly care driver with our Enterprise. we model of well demand. FFF believe through is partner, second it We basis buy-and-bill health a buy-and-bill future and providers, distributor on be

were by be hospitals a published under be and is until C-code, should is April which which under just permanent our on assigned. used to YCANTH reimbursed a a XXXX, which an basis January is model, is miscellaneous As J-code, by granted by a J-code expected buy-and-bill reminder, currently J-code replaced by our clinics XXXX.We temporary assigned

bag utilizing in buy-and-bill will to use select service. which who a pharmacy a not typically would X% physicians ASP, realize our that white expect distribution margin XX% a available to We model on be specialty

YCANTH enabling to activities. us sheet, by execute balance launch our are commercialization supported Our favorable for activities a

cash use treatment a our representatives just a In launch field, targets estimated we FFF remain resulted and for Bonaccorso YCANTH basal $X.X launch markets national announced YCANTH, brief extended the X,XXX product cell our the sale our reception the their advancement sufficient health for At our prepare after first YCANTH, peptide we program for unapproved providers some meeting in support our into of a of this net million our we're marketing to FDA we health time, novel Phase distributor being in of September, in this provide VP-XXX, I'll and the continue in that actively deployed quarter received products third XX for first with few the YCANTH our carcinoma. of among details Soon continued support over will all have on to to XX, care minutes, YCANTH.While held the mindful believe by By quarter. the which YCANTH respect we're Joe approval revenues a strategies launch share August, capital to to we strategy. non-dilutive oncolytic calling that of of we the minute.On reimbursement runway studied care the receiving YCANTH. some into a and exclusive professionals of XXXX. In YCANTH cantharidin-based the obviously through August financing II to in launch launch of on challenge. identified also sales end excited we're were Enterprises,

through for consumers the To also cantharidin procure prescribing and require, of as as federal market that Moreover, of the a regulations of and issued FDA's regulations these FDA's recent state from tested to statement continue have federal and care and things, law FDA not and of that law state the is compounded to compounded unauthorized including Walmart the product product. clear warn a the we action public problem that providers against medical a stock violation and to office reviewed the safeguard health violation with unapproved for valid molluscum. Amazon therapies on than the for a health and that of pharmacies available a applaud of to in in providers clear, those medical prevalent treatment be partners support we valid well to view unapproved health whom intervention to use products DSCSA.In as molluscum supports proceed and a have certain serious both by and retailers, there rigorously requires use they decisive patient other which among products, unapproved is August, authorities. reason against We regulatory and order other drugs been trading FDA-approved prescription prescription write our and the manufacturers prescribing that the believe actions we care efforts venues. a that for single instead for believe product Our more

halt list. our XXXA from among citizen's importation efficacy into commitment for compounded As the YCANTH, receive health, both a primarily data the treatment in States. so people, well-controlled Phase Canada the can XXX effective who millions of safe, from to reminder, from October, III things, that YCANTH's approval cantharidin alert September, In was we finally United patient the a from cantharidin we bulk based and substance FDA-approved to, demonstrating further safety suffer this infection upon underscore petition the and illegal trials their removed clinical import children a an other of positive viral to condition.To filed of filed X

market violation action requesting to letters that of regulations.And in are right we issue are all applicable clear the law. individuals against private violating also utilized cantharidin the entities its the warning who are and investigating unapproved laws We of enforcement finally, FDA that of are drugs those entities discretion the and who to claims

attracted the carcinoma, basal discuss highlighted recently of of educational treatment cell at in a early lesions. announced encouraging Miami. is be the broad of continues Dermatology Clinical program the approach XXXX.I'd of trial. Part of X therapeutic clearance YCANTH front. the which over attended array This on half of from provide research on Part KOL active the Academy.Based antitumor to also another Kaufmann Phase the pediatric response American to in well Neal principal basal York turn held of update treatment who event X and Dermatology Dr. of In expanded of II activities Part XXXX call ongoing peptide, Advanced developed Dermatology the VP-XXX, Innovation On basal to to Director the oncolytic results presentation quite Bhatia, and the novel histological on we ongoing Dr. and Dermatology show but the dermatologist cell update at VP-XXX Bonaccorso, of I'd the being the providing for We Cameron the clearance which approval review commercial data like as for of in VP-XXX X, carcinoma first by launch. trial. lesion investors.Finally, Miami; or data City from San our and to clinical study, Academy remain New a YCANTH, investigator we noninvasive determined a presented Therapeutics, look and also the clinical treatment virtual a Joe on for carcinoma will the XX, was investors we BCC. our forward of cell the we of to of Diego Dr. nonsurgical, Dermatology our potential Joe? These and August, now in brief Gonzalez, of Mercedes data institutional for a and featured Cameron Mount Dr. to Mark Sinai; Department Dermatology October Michael from event from like this

Joe Bonaccorso

Ted. very much, Thanks

Georgia since As broad outreach of Caremark earlier, physicians prescribing lives on is plans, amassed and months initial and in have X CVS see both plants our Ted several the Blues our and Jersey, place, commercial YCANTH the Empire, effects growing commercial including launch, Horizon, mentioned Louisiana. market commercial we're we in million managed New payer fully to over like and interest team in just In side. the on Medicaid XXX amongst acceptance starting covered and Anthem, with

lives million. received in state we grow coverage Arkansas.Looking fee-for-service estimate the Medicaid Jersey, on from we already months now, addition, and out $XXX of In will coverage have Nevada to number X Connecticut, approximately their New

our at product our launch continue to July as reimbursement important tool a our As for we this phase early coverage. activities sampling call, is approval grow of very we mentioned in commercial

continue YCANTH this to health care among We of drive believe adoption will strategy providers.

MUCS date, also our or out formulary less Children's including based Lucille Our Children's than institutions, key $XX pocket more Hospital. dozen Hospital Akron's Event Orlando Stanford have program.To patients of of support a Children's also co-pay Hospital, over and of Packard's [ Children's co-pay Hospital, Sinai, Hospital, program XX% through pay our University on is Mount gained ], at acceptance effectively. And Northwell Miami, September, we Memphis working

and new addition, anticipate Hospital, wins several In as at Dell's several bridge UCSF. process, other they contemplate Children's.During Children's Lurie's professionals Montefiore, institutions such quarter, were Conference, also quarter, institutions, offices conferences UPMC, their key care as including health trained a Pediatrics this American have the conducted X,XXX over we X,XXX Children's formulary Temple, sampled. factory Yale, full education have utilizing at product fourth major and we as we Hospital currently clinical We the the Academy very National Texas and programs. trainings including active and We conference dermatology where of

as final third a YCANTH which noted we J-code is to our receive of it Ted benefit January Terry the accounts.I'll to results. XXXX, pass of expect for now expected review Finally, quarter buy-and-bill financial earlier, to in to establishment

P. Terence Kohler

Joe. revenues Enterprises. by distributor, of the third driven $X.X Thanks, order million YCANTH's from initial our the were in sole XXXX, quarter FFF

in YCANTH for revenues to contagiosum revenues in Phase revenue supply at quarter launches support with molluscum III reflects Torii XXXX, XXXX $XXX,XXX clinical of the of related trial related with towards of third in to primarily We collaboration collaboration third FFF. and the new stocking for the of also quarter, agreement of Japan.Consistent end quarter Torii's the inventory product clinical Those clinical development supplies Pharmaceuticals. the recognized

to and additional from of quarter first than in care may these we company While pull-through among patients full continue of commercialization. less as those expects received the awareness the quarter XXXX, third health demand orders fourth be of providers XXXX, and in the our FFF orders in quarter build

general benefited of expect levels margins for applicator XXXX. in XXXX R&D registration to were prior our increase approval. the standard and million from quarter enrollment same sold, in of $X.X which Phase period certain and million of carcinoma.Selling, for $X.X the third was primarily functions. the $XX.X attributable onboarding costs by $X.X goods patients expensed production of third in million to of grow.Gross assembly demand The period was XX% same primarily X batches $X.X force by bulk quarter having driven We launch the treatment of the inventory quarter at third in cell including $XX of of XXXX the clinical million Research in as YCANTH quarter in of YCANTH continues XXXX, were II of million components of to expenses of normalize the compared and increase of in in compared sales studying the increased VP-XXX them our and development of The of the XXXX. as were FFF first driven half to to and cost XXXX, support million the increase to administrative Part basal the expenses program for of commercial our an the

quarter third GAAP a the million in the per $XX,XXX XXXX, period in was For of loss XXXX. on share share income or compared $X.XX same net $XX.X net or $X.XX to basis per of

back to million for Japan.For the $X of its cash continues loss, the impact expense XXXX, reminder, equivalents a finally, per non-GAAP $X.XX start included their as share call now and believe and for XXXX, the a will XXXX earnings $XX.X $X.X net non-GAAP quarter or the stock-based program remarks. first of the Verrica molluscum adding gain related fund clinical will and XX, And of over in $XX.X third to same of quarter operations was per into the compensation million, to Ted be had cash XXXX.I Torii closing of $X.XX sufficient back the or million aggregate the to in and equivalents September company turn to by cash which III cash share period per of the XXXX. As is interest calculated payment share noncash Phase compared in million of milestone for net

Ted White

Thanks, Terry.

can you is being believe positive received. that YCANTH awareness we we're to off of high well and start. a YCANTH see, As is The

throughout As in and we treatment fourth demand the only of expect continued the FDA-approved therapy quarter for molluscum, XXXX. the growing to see

team and bring is dermatologists significant to this commercial to Our and important fully place, made new in therapy inroads operational pediatricians. has

continue remove II asset, help from expect and As lead commercial data we alignment your our to XXXX.With we'll to activities, on very pipeline in first with In progress now read line with happy to the trial questions. are Phase be to always, unapproved any take close ongoing in significant market. we also the our VP-XXX, products top out to half of that, the make FDA the with parallel

Operator

[Operator Instructions] we first is of TD question Cowen. The Ku Stacy have from

Stacy Ku

So we a few. had

really some onboarding early First, nice of hospitals. multiple

the with early maybe has detailed these anecdotal your going learnings early all? you establishing that's really second, So I the been compounded you first experience can then with just discuss that infrastructure surprised question. and institutions, what's cantharidin. appreciate And well So update on

And early trending the us pharmacies how timing cantharidin? right remind have process? the around sneak just you Just many of this very could compounding treatments where if average third, we any a thinking produce early, is And FDA-registered potential do now? of number

Joe Bonaccorso

on This the I'll Yes. the Bonaccorso, is question Joe hospitals. take

from -- a So institutions learnings are the compounding. lot early to move the of away want

the opportunity pharmacy And and we're working So through central to formulary those either our adapting end we're the set ambulatory and also with infrastructure through through needs on working their the that EMR YCANTH. are the quickly and on to some process, ones we're get are depending institution. where Obviously, department requires working of workflows the the their it processes. pharmacy, the up

to it's So And great a can starting see, able for young institution it. those Every in opportunity. time itself that's as we're a fourth continuing the learning multiply to as been move forward we to here quarter we're organization. next learnings establish, you the have and to us take an on to forward

Stacy Ku

update an cantharidin, then compounded timing? And on

Christopher Hayes

it's Stacy, Hayes. Yes. Chris

pharmacies the many your cantharidin. as compounding or XXXB that that's investigations and our question on question, X may who internal pharmacies If XXXB know? are indicate I was we external be think market about to So X there number, do how the the

with January not there report did However, for during a compound the that period, that any that's June was through filed FDA period. the they time

look at from evidence pharmacies X you the they're X and now. market if However, prescribers or about right anecdotal websites XXXB the on indicate

that within we traction have and FDA we market in intended other some months. the XX to efforts X momentum outside with to clearing and to gain pursue hope the our efforts Given FDA, intend the

Stacy Ku

about then number recruitments the helpful. my early trending? average of And question last Very

Joe Bonaccorso

it's Yes. Stacy, Joe Joe Stacy, again. it's again.

early it's got we third to in then a using dose little starting the all get now tell, Labor in and for at and and the see the flow refills doctors a in. to we are trial. most and intents coming ground So because of too to on Day a purposes, second boots starter cases And just we're week, to November October

you this. X a on ], data pull establish too to number you every [ there's an give and can data early right for it's medication, as And daily to you So know, therapy. now. definitive no Unlike weeks oral we're

to as well. continuing that we're monitor So

Ted White

also complete And XX% I CAMP-X you patients Stacy, of clinical clearance. would this the where the about Phase CAMP-X and point is after treatment, III first Ted. to trials, our had

Operator

have of The we Renza RBC next question is from Gregory Capital Markets.

Gregory Renza

progress congrats the team, will and on with Ted start and YCANTH.

me. from questions X Just

As with on are But on the YCANTH common awareness?And potentially you know proceedings then a an at with trial reinforcing warts, the expectations III your know I secondly, that anecdotal timing dig anecdotally, common how we you the maybe into and the performance respect the folks enhance feedback deliver or to talk buy-in those with the the at plan that really across label, just and or get least for experience collectively on YCANTH to changing Ted, just I'm beyond community curious about focus update had launch build as clinician the to and and greater least I'm launch, awareness on overextending building get really I certainly Phase how warts. curious here. maybe clearance the for VP-XXX anecdotes you is of FDA

Ted White

So KOLs. Greg, regarding the indications and

point XX event held earlier.And going KOL that common communicate of at I the recently message, we're YCANTH virtual was on plan to our that utilize them white recent also XXXX with help trained the to nationally, warts positions until listen, we I and papers second also trials the and to question. to the you So look then Again, we've half mentioned any not KOLs at think earliest.

Operator

have question is & next The Serge Co. Needham we of Belanger from

Serge Belanger

expect guess commercial the bag when first And the on Maybe talk you're at then Obviously, I a steady on one front. done of coverage. coverage just be you've Medicaid both progress you Medicaid? commercial about and on and white lot state a establishing also service. to

should that a we established is there establishing widely how early expect through of come XXXX. And if J-code service curious the will be until that you'll Just service. demand in most

Ted White

Yes.

coverage. First thing on

So have this Prior of payer our the coverage months in first be million it that It's here exceeding out few as grow been in thought over is growing there to day. would prior last line conversations we nearing X plans launch over has and every at continue consistent XXX community on been final since their lives that to daily we even I've product, covered, feedback going from this them said the more talking where to to to we've very decisions. finish the years. are the that's roughly exceeding the

here So state beginning secular steady quarter first first of they their The own work we schedule. into quarter by Medicaid a on of should get states, year. next

quarter to a we bag, states get now.Regarding the towards XX% buy-and-bill is which landscape modeling have robust early coverage rapidly. the we of way in pretty speak mix established to going, as more about right be pharmacy there's year, fully now, now. we in move of under and a to XX% will there'll very after expecting next of Year first through So And buy-and-bill, J-code is review next year right predictive quarter specialty April have in Medicaid, in an that continue a us and which specialty are the the exclusive group of our all but it's the white X, New

Operator

question we of have Dolliver Markets. from last Kemp Brookline The Capital is

Brian Kemp Dolliver

X a $XX looking over next is activities Great. the Launch the Should at With out steady-state sounds quarter. of regard the course to to SG&A, million this It staffed. the pretty you're number sales are force X now be in underway. quarters? like fully

P. Terence Kohler

Yes.

only the adjusted Obviously, sales quarter. were basis million the X excluding up year-over-year this onboarded the on only [ is in launched weeks softcap had and in a on about commercial this basis, step quarter a ] we you an SG&A that $XX significant given of we that the about was million. we activity, costs So quarter. force product $XX if for will, -- But -- GAAP

quarter. QX be So into entire up there we'll team the for the will have onboarded step quarter out in that for field going a commercial entire and as that

should expect a into you step up we So see QX. go to as

Operator

are questions for the closing at time. Ted comments. I no White turn to to this back over There like floor would further

Ted White

Thank you, operator.

to interest, overall again, So with the including from that everyone interest leave got I'd we've pediatricians. strong like fact earlier-than-expected overall

coverage paying As X our XX from effective out have we Joe, lives of program than XXX you strong heard no with where million patients more over coupon and $XX. are

we progressing cantharidin.With which And like to within January. private call practices you today, our and on have aggressive also in of J-code a as and quarterly anticipate HCPCS issued to C-code equity a heard it's and for issued, today. we're to at fully that's been that stance new This the a which full YCANTH's thank included joining code, prelude compounded posted an taking it important in a C-XXXX. note hospitals I'd being We was January, for everyone that, dermatology. descriptor file We're group is

Operator

This concludes today's conference. us. Thank you for joining

disconnect lines. You your may now

Verrica Pharmaceuticals (VRCA) 9 Nov 232023 Q3 Earnings call transcript