Inquired about recruiting progress for the COVE studies to remain on track for mid-2027 top-line data, and the opportunity size and launch timeline for the Israel distribution agreement.

Enrollment for COVE-2, COVE-3, and COVE-4 is progressing well, on track for mid-2027 top-line data. For Israel, while the population is smaller than the US, molluscum prevalence is consistent. Verrica will receive 60% of net selling price and up to $8.2 million in milestones. Madomi Pharma will prepare regulatory submission, but no specific launch timeline was given. “we're seeing your enrollment in both those trials progressing and you importantly your patients rolling into our long-term follow-up study co4 to gather your long-term safety data as well”

Asked for granularity on R&D planning for 2027-2028, particularly for VP315 and common warts, R&D quarterly expense modulation, and specific terms of the credit facility (coupon, seniority).

Common warts R&D will have minimal cash burn impact due to Torrey's $40M funding. VP315 Phase 3 prep costs are budgeted. R&D expense will ramp up, but with non-cash accounting for Torrey's contribution. The credit facility has a SOFR + 8% coupon (4.5% floor), is senior secured, has a 16% IRR catch-up, and no scheduled P&I payments until maturity in Dec 2030. Draws will be selective and strategic. “The coupon is SOFR plus eight, with a four and a half percent floor on the SOFR rate. There are two step down milestones, those are describing the test. to be the 10Q that we're selling.”

Asked about expected revenue conversion from dispensed applicators given unit growth outpacing net product revenue, and what level of efficacy would be clinically meaningful for the common warts program.

Management expects yield to continue to accrete over time, with focus now on optimizing volume and yield. For common warts, efficacy similar to Phase 2 data (which showed significant improvement) would be clinically meaningful, especially since there are no FDA-approved treatments. Enrollment efforts are strong, indicating high demand for an approved treatment. “I think that if you look at the phase two data and you look at the cohort one and cohort two, you can get a pretty good idea of how the drug will perform. We haven't disclosed our pairing assumptions, but I'll say that You know, we believe if we land somewhere around those results, we should be improving pretty good shape.”

VRCA

Verrica Pharmaceuticals (VRCA) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 6, 2026

Source: earnings call transcript

Executive summary

Verrica Pharmaceuticals Q2 FY26 — Strong YCAMP Growth and Extended Cash Runway

Verrica Pharmaceuticals reported strong commercial momentum for YCAMP in Q2 FY26, with significant growth in both net product revenue and dispensed units. The company also secured a non-dilutive financing facility, extending its cash runway into 2028, and made progress on its pipeline assets, including dosing the first patient in a pivotal Phase 3 common warts trial and advancing preparations for VP315's Phase 3 program. Global expansion efforts for YCAMP are also underway with a new distribution agreement in Israel.

Highlights

YCAMP US net product revenue increased 18.7% quarter-over-quarter to $5.1 million.
YCAMP dispensed applicator units grew over 28% quarter-over-quarter to 19,626.
Secured non-dilutive financing of up to $27.5 million, extending cash runway into 2028.
First patient dosed in COVE-3, the second pivotal Phase 3 trial for common warts.
Signed a distribution agreement with Madomi Pharma to commercialize YCAMP in Israel.

Concerns

GAAP net loss was $13.2 million, or $0.62 per share, compared to net income in the prior year.
Non-GAAP net loss was $10.2 million, or $0.48 per share, compared to net income in the prior year.
Total revenue decreased year-over-year from $12.7 million in Q2 FY25 to $5.9 million in Q2 FY26, primarily due to a one-time milestone in the prior year.
Research and development expenses increased to $6 million in Q2 FY26 from $1.8 million in Q2 FY25.
Selling, general and administrative expenses increased to $10.3 million in Q2 FY26 from $8.9 million in Q2 FY25.

Guidance & targets

Category	Target	Timeline	Confidence
Cash runway	Into 2028 high materiality	FY28	High
Common Warts Program Top-line Data	Mid-2027 high materiality	Mid-2027 · CY27	High
Achievement of additional financing tranche	$15 million medium materiality	Before end of 2026 · CY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
US YCAMP Strong growth driven by prescriber adoption and retargeting strategies. Strong growth from commercially insured patients. Net product revenue: $5.1 millionDispensed applicator units: 19,626Dispensed applicator units growth QoQ: >28%	$5.1M	—	18.7%	—
License and Collaboration Associated with partnership with Torrey Pharmaceutical.	$0.8M	—	—	—

Deals & partnerships

Madomi Pharma Exclusive distribution, marketing, and supply agreement to commercialize YCAMP for molluscum in Israel. Up to $8.2M in regulatory and commercial milestone payments

Madomi Pharma will prepare a regulatory submission for approval in Israel. This partnership aims to establish YCAMP as the new standard of care in Israel.

Torrey Pharmaceutical (subsidiary of Shinogi) Partner for YCAMP in Japan and for the Global Common Warts Program. $40M

The two companies split overall program costs on a 50-50 basis after the initial $40M. Verica's portion is expected to be paid out of future net transfer payments, milestones, and royalties from Japan sales.

Paul Manning Non-dilutive financing facility provided by an entity controlled by Verica's largest shareholder and chairman. Up to $27.5M

This facility supports the continued growth of YCAMP and the ongoing Phase 3 common warts program. It offers significant financial flexibility.

Risks & headwinds

Seasonal impact on YCAMP sales Summer months (Q3 FY26)

Impacted by vacations, lifestyle things

Mitigation:Continued focus on retargeting, segmentation, and patient access programs.

Increased R&D expenses Ongoing

$6M in Q2 FY26 vs $1.8M in Q2 FY25

Mitigation:Common Warts program largely funded by partner Torrey Pharmaceutical (first $40M).

Increased SG&A expenses Ongoing

$10.3M in Q2 FY26 vs $8.9M in Q2 FY25

Mitigation:Primarily due to increased commercial spend related to the expansion of the sales force, which is driving YCAMP growth.

Legal settlement expense Q2 FY26

$1.7M

Mitigation:Agreement in principle reached to settle legal proceedings, expense recognized net of insurance recovery.

What to watch in Q3 FY26

YCAMP Dispensed Units Growth

next quarter

Current 19,626 units (up >28% QoQ)

Target Continued growth, accounting for seasonality

Why it matters

Sustained unit growth is critical for YCAMP's commercial success and market penetration, especially considering seasonal impacts.

I certainly would expect continued growth, but I do want to be realistic, we will be impacted by the seasonal aspects that impact everybody.

Find out whether VRCA delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked about expected YCAMP prescription trends for the summer, key drivers for maximizing adoption (clinician base, access, sales force), and long-term net pricing stabilization.

Management expects continued growth for YCAMP, acknowledging seasonal impacts from summer vacations. Key drivers include retargeting and segmentation of the sales force, and enhancing patient access programs like the $0 copay for refills. They declined to comment on specific gross-to-net pricing stabilization.

“I certainly would expect continued growth, but I do want to be realistic, we will be impacted by the seasonal aspects that impact everybody.”

asked by Stacy Koo · answered by Chris Chapman

2 min read 5 chapters

Detailed narrative

YCAMP Commercial Performance and Patient Access

Verrica reported strong commercial momentum for YCAMP in Q2 FY26, with US net product revenue reaching $5.1 million, an 18.7% increase quarter-over-quarter. Dispensed applicator units grew over 28% to 19,626, reflecting increased prescriber adoption and effective retargeting strategies. The company observed strong growth from commercially insured patients and implemented a new program in July providing $0 copay for eligible commercially insured patients for refills, aiming to reduce financial burden and improve access.

Global Expansion of YCAMP

Beyond the US and Japan, Verrica is actively pursuing global expansion for YCAMP. A new exclusive distribution, marketing, and supply agreement was announced with Madomi Pharma to commercialize YCAMP in Israel. Verrica will receive 60% of the net selling price from Madomi's sales, in addition to up to $8.2 million in regulatory and commercial milestone payments.

This partnership is expected to establish YCAMP as a new standard of care for molluscum in Israel, with potential for common warts expansion.

Common Warts Pipeline Progress

The global Phase 3 program for YCAMP as a treatment for common warts is advancing, with the first US patient dosed in COVE-3 (the second pivotal trial) in June, and the first Japanese patient also dosed. Enrollment in the first pivotal study, COVE-2, and the long-term follow-up study, COVE-4, continues to progress well.

Top-line data from the program is now expected in mid-2027. Partner Torrey Pharmaceutical is funding the first $40 million of the program's cost, covering approximately 90% of the current trial budget.

VP315 for Basal Cell Carcinoma

Verrica continues to advance its Phase 3-ready oncology asset, VP315, for basal cell carcinoma. Encouraging new Phase 2 data presented in May highlighted a potential abscopal effect, showing an overall 67% reduction in size across 14 untreated non-target basal cell lesions, with three achieving complete histological clearance.

The company is preparing for a Phase 3 program, including CRO selection and manufacturing of clinical supplies, based on favorable FDA feedback.

Non-Dilutive Financing and Financial Flexibility

The company announced a new non-dilutive financing facility of up to $27.5 million from its largest investor, Paul Manning. This facility provides $12.5 million immediately, with an additional $15 million available upon achieving certain milestones by year-end 2026. The financing offers significant flexibility with no scheduled interest or principal payments until its December 2030 maturity, extending the cash runway into 2028 and allowing resources to be maximized for business and pipeline advancement.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.