Journey Medical (NASDAQ:DERM) Issues Earnings Results

Journey Medical (NASDAQ:DERM) released its earnings results on Wednesday. The company reported ($0.08) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.01), FiscalAI reports. The firm had revenue of $15.96 million for the quarter, compared to analyst estimates of $15.47 million. Journey Medical had a negative net margin of 18.48% and a negative return on equity of 46.40%.

Here are the key takeaways from Journey Medical’s conference call:

• EMROSI was the clear growth driver, with Q1 revenue of $6.3 million and prescriptions rising to about 30,000, while the company said uptake improved sequentially despite typical early-year seasonality.
• Journey Medical said it now has pricing agreements with the three largest PBM-linked GPOs, giving EMROSI access to more than 169 million of 192 million commercial lives and supporting broader formulary adoption.
• The company highlighted improving product economics, with revenue per prescription rising sequentially and the refill-to-new prescription ratio moving to about 1.5:1, which management views as evidence of growing patient satisfaction and payer progress.
• First-quarter financials showed 21% revenue growth to $16 million, a reduced GAAP net loss of $2.2 million, and positive adjusted EBITDA of $600,000, underscoring improving operating leverage.
• Management plans to add up to five sales representatives and potentially launch up to two new niche dermatology products later this year, while also pursuing additional publications and payer discussions for EMROSI.

Journey Medical Trading Up 3.0%

Shares of DERM stock traded up $0.15 during trading hours on Wednesday, hitting $5.16. 499,065 shares of the company were exchanged, compared to its average volume of 195,900. The firm has a market cap of $141.02 million, a P/E ratio of -10.98 and a beta of 1.03. Journey Medical has a fifty-two week low of $4.31 and a fifty-two week high of $9.56. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.53 and a current ratio of 1.79. The company has a 50 day simple moving average of $5.93 and a two-hundred day simple moving average of $7.33.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on DERM. HC Wainwright reissued a “buy” rating and set a $13.00 target price on shares of Journey Medical in a research report on Thursday, March 26th. Weiss Ratings reissued a “sell (d-)” rating on shares of Journey Medical in a research report on Monday, April 20th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Journey Medical has an average rating of “Hold” and a consensus price target of $13.00.

Institutional Trading of Journey Medical

Several large investors have recently modified their holdings of the stock. Invesco Ltd. acquired a new stake in shares of Journey Medical during the 4th quarter worth approximately $127,000. XTX Topco Ltd acquired a new stake in shares of Journey Medical during the 4th quarter worth approximately $126,000. Ikarian Capital LLC acquired a new stake in shares of Journey Medical during the 4th quarter worth approximately $1,939,000. Occudo Quantitative Strategies LP grew its position in shares of Journey Medical by 22.3% during the 4th quarter. Occudo Quantitative Strategies LP now owns 18,913 shares of the company’s stock worth $146,000 after buying an additional 3,443 shares during the period. Finally, Opaleye Management Inc. grew its position in shares of Journey Medical by 0.4% during the 4th quarter. Opaleye Management Inc. now owns 975,000 shares of the company’s stock worth $7,517,000 after buying an additional 3,936 shares during the period. Institutional investors and hedge funds own 7.25% of the company’s stock.

Journey Medical Company Profile

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.