Verrica Pharmaceuticals Raised to Buy From Hold by Brookline Capital

Investing.com -- Verrica Pharmaceuticals Inc (NASDAQ:VRCA) stock rose 8.6% on Monday after the dermatology therapeutics company announced it had secured approximately $50 million in a private investment in public equity (PIPE) financing.

The company plans to use $35 million of the proceeds to fully retire its debt facility from OrbiMed, with the remainder allocated to working capital and general corporate purposes. The financing is expected to close around November 25, subject to customary conditions.

"The significant capital provided by this financing will solidify our balance sheet, completely eliminate our debt facility and the restrictive covenants associated therewith, and provide the Company with an extended expected cash runway into mid-2027," said Jayson Rieger, President and CEO of Verrica.

The PIPE financing was anchored by Caligan Partners LP and PBM Capital, along with new and existing investors. As part of the agreement, Caligan Partners will be entitled to designate a new member to Verrica’s Board of Directors.

The transaction involves the sale of 6,499,826 shares of common stock and pre-funded warrants to purchase 5,305,164 shares, along with accompanying warrants to purchase additional shares. The combined price was $4.24125 per share of common stock and accompanying warrant.

With this financing, Verrica expects to extend its cash runway into mid-2027, allowing the company to advance its commercial strategy for YCANTH, its treatment for molluscum contagiosum, and further develop its pipeline. The company also plans to continue preparation for its Phase 3 clinical program for VP-315 for basal cell carcinoma and begin enrollment in its Phase 3 trial for common warts in the U.S. before the end of 2025.

TD Cowen acted as the sole placement agent for the financing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Verrica Pharmaceuticals (NASDAQ:VRCA) stock surged 25% in after-hours trading Monday following positive feedback from European regulators regarding its molluscum contagiosum treatment YCANTH®.

The West Chester, Pennsylvania-based dermatology company announced that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has provided supportive feedback for filing a Marketing Authorization Application (MAA) in the European Union. Importantly, the EMA concluded that Verrica’s previously completed Phase 3 studies conducted in the U.S. and Japan are sufficient for regulatory submission, with no additional Phase 3 trials required.

"We are pleased to gain alignment with CHMP with respect to the safety and efficacy data requirements to support an MAA filing for YCANTH in the European Union," said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica.

The company indicated it is now initiating activities to support the regulatory submission, which could be filed as early as the fourth quarter of 2026. The positive regulatory feedback addresses several key areas, including the acceptability of previous Phase 3 study designs, the clinical safety data package, and the adequacy of nonclinical studies to support the application.

YCANTH® is being developed as a treatment for molluscum contagiosum, a common skin disease that affects millions of patients in Europe. Verrica noted that this regulatory progress provides "a key catalyst to explore a broad range of strategic opportunities" for commercializing the treatment in what it describes as a "large and underserved market."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Verrica Pharmaceuticals (NASDAQ:VRCA) stock surged 27% after the company announced that its development partner, Torii Pharmaceutical, received approval from the Japanese Ministry of Health, Labour and Welfare for YCANTH (TO-208) for the treatment of Molluscum Contagiosum.

The regulatory approval in Japan triggers a $10 million cash milestone payment to Verrica, which the company expects to receive in the coming weeks. This non-dilutive capital will strengthen Verrica’s balance sheet and support its U.S. commercial activities for YCANTH.

"We are excited to announce that our development partner, Torii, has received regulatory approval for YCANTH in Japan, enabling individuals who contract molluscum in Japan access to a safe and effective therapy," said Jayson Rieger, PhD, MBA, President and CEO of Verrica Pharmaceuticals.

Torii, which became a wholly-owned subsidiary of Shionogi & Co. on September 1, filed the New Drug Application for TO-208 in December 2024. The approval follows positive results from a confirmatory Phase 3 trial conducted in Japan, which demonstrated statistically significant efficacy compared to placebo in achieving complete clearance of molluscum lesions.

Verrica maintains ownership of global rights to YCANTH for all indications in all territories outside of Japan. The companies are also collaborating on an upcoming global Phase 3 program to study YCANTH for the treatment of common warts, with the first patient expected to be dosed in the U.S. by the end of 2025.

Molluscum Contagiosum is a common, contagious skin disease that affects both children and adults and currently has limited treatment options in Japan.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.