Verrica Pharmaceuticals (NASDAQ:VRCA) reported higher first-quarter revenue and record demand for its molluscum contagiosum treatment YCANTH, while outlining progress on late-stage development programs in common warts and basal cell carcinoma.
President and Chief Executive Officer Jayson Rieger said the company saw “accelerating growth in market demand for YCANTH,” with record dispensed applicator units during the quarter and in March. He added that preliminary April results showed dispensed applicator units increased again from March’s record level.
YCANTH Demand Improves After Weather-Impacted January
Rieger said demand in January was likely affected by severe winter weather across the East Coast, but accelerated in February and continued into March. He said April demand also showed further growth.
The company continues to invest in co-pay assistance, which management said is affected early in the year by annual insurance deductible resets. Verrica also launched YcanthRx, a non-dispensing pharmacy, in the fourth quarter of 2025 to simplify benefit investigations and triage prescriptions to in-network dispensing pharmacies.
Chief Operating Officer David Zawitz said during the question-and-answer portion of the call that YcanthRx has performed well in its first few months and remains optional for prescribers seeking support with benefits investigations and prior authorizations. Verrica did not disclose what percentage of prescriptions are routed through the program.
Chief Commercial Officer Chris Chapman, who joined Verrica in March, said the company’s territories currently cover about 85% of the total addressable market and that Verrica is evaluating reach and frequency across its sales organization. Chapman said the company expects to staff to approximately 50 representatives and sees opportunities to optimize deployment in several markets.
Chapman also said the presence of another molluscum product in the market could be helpful by increasing awareness and encouraging treatment, while Rieger said the market has historically been dominated by a “watch and wait” approach.
Japan Launch Begins; Europe Remains in Planning
Rieger said Torii Pharmaceutical, now a subsidiary of Shionogi, launched YCANTH in Japan in February for patients with molluscum following regulatory approval last year. He said commercial supply to Torii has begun to offset Verrica’s portion of clinical costs for the company’s common wart program.
In Europe, Rieger said the Committee for Medicinal Products for Human Use of the European Medicines Agency provided positive feedback supporting a Marketing Authorisation Application for YCANTH in molluscum, with no additional phase 3 trials required for approval. Verrica is progressing toward submission and evaluating potential commercialization partnerships in the region.
Asked about pricing and launch sequencing in Europe, Rieger said the company is still in the early stages of planning and is assessing reimbursement and pricing options on a country-by-country basis. He said Verrica expects to pursue broad access across the EU and that rollout may be consistent with traditional European launches.
Common Wart Program Advances
Verrica said enrollment in COVE-2, the first phase 3 trial of YCANTH for common warts, has surpassed 50% of the currently targeted level. The company has also begun enrolling patients in COVE-4, a long-term follow-up study, and is targeting initiation of the second phase 3 trial, COVE-3, by mid-2026.
Rieger said the COVE-3 trial will include sites in the U.S. and Japan. If successful, he said YCANTH could become the first therapy approved in the U.S. and Japan to treat common warts. Rieger said common warts affect more than 22 million people in the U.S.
Verrica and Torii will split the program costs equally, with Torii funding the first $40 million of trial costs, representing approximately 90% of the current trial budget. Verrica expects to repay its portion through offsets against future transfer payments, milestones and royalties related to YCANTH sales in Japan.
VP-315 Draws Dermatology Interest
Verrica also highlighted progress with VP-315, its phase 3-ready candidate for basal cell carcinoma. Rieger said the company has begun work to secure clinical supplies and select a contract research organization to support initiation of the phase 3 program.
In phase 2, VP-315 demonstrated a 97% objective response rate and an 86% reduction in overall tumor size, with more than half of treated lesions achieving complete histological resolution, according to Rieger. He said Verrica plans to present additional data at the 2026 Society for Investigative Dermatology annual meeting in Chicago, including observations described as abscopal-like effects.
Chief Medical Officer Noah Rosenberg said the initial phase 3 approach is focused on patients with low-risk basal cell carcinoma, including nodular and superficial forms, and primary tumors similar to those studied in phase 2. He said Verrica also sees longer-term potential for VP-315 as a neoadjuvant approach for complex and difficult-to-treat tumors.
Rieger said recent market research indicated broad potential utilization and acceptance among general dermatologists, medical oncologists, Mohs surgeons, office managers and payers. He also said patient research suggested a substantial majority of patients would elect to try VP-315 before existing therapeutic options, whether or not they had previously been treated for skin cancer.
Loss Unchanged; Cash Runway Extends Into 2027
Interim Chief Financial Officer John Kirby said gross product margin was 87.3% in the first quarter, compared with 87.6% in the prior-year period. Cost of product revenue was $0.5 million, up from $0.4 million a year earlier.
Research and development expenses were $3.9 million, increasing by $1.5 million when excluding stock-based compensation, primarily due to higher spending on the common warts program. Selling, general and administrative expenses were $10 million, increasing by $1.3 million excluding stock-based compensation, driven mainly by higher commercial spending tied to sales force expansion.
Verrica reported a GAAP net loss of $9.7 million, or $0.45 per share, for the first quarter of 2026, compared with a GAAP net loss of $9.7 million, or $1.03 per share, in the first quarter of 2025. On a non-GAAP basis, net loss was $8.8 million, or $0.41 per share, compared with $8.3 million, or $0.88 per share, a year earlier.
As of March 31, Verrica had $20.6 million in cash, which Kirby said is expected to fund operations into the first quarter of 2027.
About Verrica Pharmaceuticals (NASDAQ:VRCA)
Verrica Pharmaceuticals Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of topical therapies for dermatological conditions. Its lead investigational product, VP-102, is a standardized formulation of cantharidin in a pre-measured applicator designed to treat molluscum contagiosum and common warts. Verrica’s approach emphasizes consistency of dosing and patient convenience, aiming to improve upon off‐label use of existing treatments.
Beyond VP-102, Verrica is advancing VP-103, a next‐generation topical candidate intended to optimize tolerability while maintaining efficacy against viral skin lesions.
