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VRCA on Nasdaq

Verrica Pharmaceuticals Inc.

In its 2026 annual report the company says: “We are a therapeutics company developing and commercializing medications for the treatment of dermatologic diseases, including skin cancers. Our commercial product, YCANTH (VP-102), was approved by the U.S. Food and Drug Administration, or FDA, in July 2023 for the treatment of molluscum in adult and pediatric patients two years of age and older. We are currently developing YCANTH (VP-102) for a potential follow-on indication for the treatment of common warts.”4 It is headquartered in West Chester, United States.2 Its shares trade on Nasdaq under the symbol VRCA.2

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Last updated Oct 21, 2026.

Overview

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  • TickerVRCA on Nasdaq2
  • IndustryPharmaceutical Preparations2
  • HeadquartersWest Chester, United States2
  • Incorporated inDE3
  • Business address44 West Gay Street, Suite 400, West Chester, Pa3
  • Filer categoryNon-accelerated filer, Smaller reporting company3
  • Legal formCorporation2
  • LEI5493002L68H6THU5GW502
  • StatusActive2
  • LEI statusLapsed (not renewed)2
  • Registered addressC/O CORPORATION SERVICE COMPANY, 19808 Wilmington, United States2
  • Registered withDivision of Corporations, Department of State, 53615312

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We are a therapeutics company developing and commercializing medications for the treatment of dermatologic diseases, including skin cancers. Currently, our commercial product and portfolio of product candidates are clinician administered therapies in areas of high unmet need. This product portfolio consists of one product with an approved indication for molluscum contagiosum, or molluscum, with the potential for several follow-on indications, as well as additional pipeline product candidates. Our commercial product, YCANTH (VP-102), was approved by the U.S. Food and Drug Administration, or FDA, in July 2023 for the treatment of molluscum in adult and pediatric patients two years of age and older. YCANTH (VP-102) is a proprietary drug-device combination that contains a GMP-controlled formulation of cantharidin. We are currently developing YCANTH (VP-102) for a potential follow-on indicati…4 From its latest annual report

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2025

-34.2%Operating margin5
-50.3%Net margin5
370.2%Revenue growth, 20255
-72.3%Return on equity5
0.00×Debt to equity5
-$17.6MFree cash flow5

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Products and services

Collaboration revenue brought in 54% of the revenue Verrica Pharmaceuticals Inc. broke down this way in fiscal 2025.

  1. Collaboration revenue$20.3M554%up 1946% from 2024
  2. Product$15.3M540%up 133% from 2024
  3. License And Collaboration Revenue, Commercial Supply And Development$2.3M56%up 130% from 2024
Products and services by year
Products and services20242025
Collaboration revenue$992.0K$20.3M
Product$6.6M$15.3M
License And Collaboration Revenue, Commercial Supply And Development$1.0M$2.3M

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Research and development20¢$8.9M
  • Selling, general and admin80¢$35.2M

Out of $35.6M in revenue.5 The company lost money this year.

Financial statements

Revenue6785$35.6M in 2025+196% since 2021
0$10.0M$20.0M$30.0M$40.0M2021: $12.0M$12.0M20212022: $9.0M$9.0M2022−25%2023: $5.1M$5.1M2023−43%2024: $7.6M$7.6M2024+48%2025: $35.6M$35.6M2025+370%
Operating income9106785-$12.2M in 2025−59% since 2019
-$80.0M-$60.0M-$40.0M-$20.0M02019: -$30.1M-$30.1M20192020: -$40.2M-$40.2M2020+34%2021: -$30.9M-$30.9M2021−23%2022: -$21.3M-$21.3M2022−31%2023: -$65.8M-$65.8M2023+209%2024: -$65.9M-$65.9M2024+0%2025: -$12.2M-$12.2M2025−82%
Net income9106785-$17.9M in 2025−37% since 2019
-$80.0M-$60.0M-$40.0M-$20.0M02019: -$28.2M-$28.2M20192020: -$42.7M-$42.7M2020+51%2021: -$35.1M-$35.1M2021−18%2022: -$24.5M-$24.5M2022−30%2023: -$67.0M-$67.0M2023+174%2024: -$76.6M-$76.6M2024+14%2025: -$17.9M-$17.9M2025−77%

Every line of the income statement as filed: the last 2 fiscal years, latest first.5

Period ending2025-12-312024-12-31
Total revenue$35.6M$7.6M
Cost of product revenue$2.2M$1.9M
Cost of license and collaboration revenue$1.2M$887.0K
Selling, general and administrative$35.2M$58.8M
Research and development$8.9M$11.8M
Loss on disposal of equipment$246.0K$83.0K
Total operating expenses$47.8M$73.5M
Loss from operations-$12.2M-$65.9M
Interest income$929.0K$1.4M
Interest expense-$7.7M-$9.4M
Change in fair value of derivative liability$2.6M-$2.6M
Loss on extinguishment of debt-$1.5M$0
Other expense-$3.0K-$17.0K
Total other expense, net-$5.7M-$10.7M
Net loss-$17.9M-$76.6M
Net loss per share, basic (in shares)-$1.68-$14.78
Net loss per share, diluted (in shares)-$1.68-$14.78
Weighted-average common shares outstanding, basic (in dollars per share)10.7M shares5.2M shares
Weighted-average common shares outstanding, diluted (in dollars per share)10.7M shares5.2M shares

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Corporate structure

Verrica Pharmaceuticals Inc. sits at the top of its group. 1 entity, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Verrica Pharmaceuticals Inc.

  • ARMISTICE CAPITAL, LLC Filed SCHEDULE 13G/A on Verrica Pharmaceuticals Inc., latest Feb 17, 2026 (5 filings since Feb 14, 2025)
  • Affinity Asset Advisors, LLC Filed SCHEDULE 13G/A on Verrica Pharmaceuticals Inc., latest Jan 29, 2026 (2 filings since Dec 3, 2025)
  • Caligan Partners LP Filed SCHEDULE 13D/A on Verrica Pharmaceuticals Inc., latest Dec 30, 2025 (3 filings since Feb 12, 2025)
  • Paul B. Manning Filed SCHEDULE 13D/A on Verrica Pharmaceuticals Inc., latest Nov 28, 2025 (4 filings since Feb 14, 2022)
  • PERCEPTIVE ADVISORS LLC Filed SCHEDULE 13G/A on Verrica Pharmaceuticals Inc., latest May 15, 2025 (6 filings since Feb 14, 2022)
  • Avoro Capital Advisors LLC Filed SC 13G/A on Verrica Pharmaceuticals Inc., latest Nov 14, 2024 (2 filings since Feb 14, 2024)
  • ORBIMED ADVISORS LLC Filed SC 13G/A on Verrica Pharmaceuticals Inc., latest Feb 11, 2022
  • Matt Davidson Filed SC 13G/A on Verrica Pharmaceuticals Inc., latest Jan 27, 2022
  • Verrica Pharmaceuticals Inc. West Chester, Pennsylvania, United States

Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What Verrica Pharmaceuticals Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Property and equipment, before depreciation$1.3M5 Dec 31, 2025$1.8M5 Dec 31, 2024−31.8%
Accumulated depreciation$1.1M5 Dec 31, 2025$1.3M5 Dec 31, 2024−16.5%
Property and equipment, net$209.0K5 Dec 31, 2025$589.0K5 Dec 31, 2024−64.5%
Finance-lease assets$1.1M5 Dec 31, 2025$1.2M5 Dec 31, 2024−3.6%
Operating-lease assets (leased space)$540.0K5 Dec 31, 2025$836.0K5 Dec 31, 2024−35.4%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$30.1M5 Dec 31, 2025$46.3M5 Dec 31, 2024−34.9%

Inventory

ItemLatestA year beforeChange
Inventory, total$2.2M5 Dec 31, 2025$2.5M5 Dec 31, 2024−9.2%
Raw materials$974.0K5 Dec 31, 2025$1.1M5 Dec 31, 2024−10.0%
Work in process$784.0K5 Dec 31, 2025$664.0K5 Dec 31, 2024+18.1%
Finished goods$478.0K5 Dec 31, 2025$717.0K5 Dec 31, 2024−33.3%

Properties, in its own words

On July 1, 2019, we entered into a lease for 5,829 square feet of office space located in West Chester, Pennsylvania that serves as our headquarters. The initial term of the lease is seven years with one five-year renewal option and an ongoing right of first offer to lease up to approximately 5,000 square feet of additional space on the same floor of the building. On March 12, 2020, we entered into an amendment to that lease agreement. The amendment expands the original premises to include 5,372 square feet of additional office space increasing the total rentable premise to 11,201 square feet of space. The commencement date for the lease was September 1, 2020.

We believe that our existing facilities are suitable and adequate to meet our current needs. We will evaluate the need to add new facilities or expand existing facilities as we add employees, and believe suitable additional or substitute space will be available as needed to accommodate any such expansion of our operations.

Item 2 of the 10-K filed Mar 11, 2026.4

Leadership

Who has led Verrica Pharmaceuticals Inc., and when. Pick a name to see everywhere that person has worked.

Chief executive

  1. Jayson Rieger2024–now

President

  1. Jayson Rieger2024–now

Chief financial officer

  1. Chris Degnan2018–2019
  2. A. Brian Davis2019–2021
  3. Terry Kohler2021–2025
  4. John J. Kirby2024–now

Chief operating officer

  1. Linda Palczuk2018–2019
  2. David Zawitz2024–now
20202025
Board members and other officers (16)

Timeline

  1. Aug 6, 20268-K Results of operations35
  2. Jun 9, 20268-K Executive or director change; Shareholder vote36
  3. May 12, 20268-K Results of operations37
  4. Mar 11, 20268-K Results of operations38
  5. Dec 30, 20258-K Executive or director change39
  6. Nov 24, 20258-K Entered a material agreement; Unregistered sale of shares; Other events40
  7. Nov 14, 20258-K Results of operations41
  8. Aug 12, 20258-K Results of operations; Other events42
  9. Jul 30, 20258-K Listing notice or transfer43
  10. Jul 23, 20258-K Change to shareholders' rights44
  11. Jul 1, 20258-K Entered a material agreement; Regulation FD disclosure45
  12. Jun 12, 20258-K Entered a material agreement46
  13. Nov 6, 2024New chief executive Jayson Rieger becomes CEO13
  14. Jul 3, 2013Founded Verrica Pharmaceuticals Inc. is founded2

Calendar

Coming up

  1. Nov 13, 2026Reports results for the quarter ending Sep/2026 A year earlier it reported $0.05 a share, on Nov 14, 2025.47

When it reported results

  1. Aug 6, 2026Reported quarterly or annual results35
  2. May 12, 2026Reported quarterly or annual results37
  3. Mar 11, 2026Reported quarterly or annual results38
  4. Nov 14, 2025Reported quarterly or annual results41
  5. Aug 12, 2025Reported quarterly or annual results42
  6. May 13, 2025Reported quarterly or annual results48
  7. Mar 11, 2025Reported quarterly or annual results49
  8. Nov 4, 2024Reported quarterly or annual results50

Drug trials and FDA: coming up

  1. Apr 2027Phase 2 trial readout expected Phase 2 trial of VP-102 in Common Warts: primary completion expected Apr 2027 (ClinicalTrials.gov NCT07881952).51
  2. May 2027Phase 3 trial readout expected Phase 3 trial of VP-102 (US) / TO-208 (Japan) and Vehicle (US) / Vehicle (Japan) in Common Warts: primary completion expected May 2027 (ClinicalTrials.gov NCT07637734).52
  3. Jun 2027Phase 3 trial readout expected Phase 3 trial of VP-102 and Vehicle in Common Warts: primary completion expected Jun 2027 (ClinicalTrials.gov NCT07246590).53

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). Trials from ClinicalTrials.gov, as the sponsor registered them (expected dates are the sponsor's own and often move); approvals and advisory committee meetings from the FDA. The FDA does not publish its decision (PDUFA) dates. The full markets calendar

Filings

282 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 62 major events, 111 insider forms, 24 large holders, 1 private raises, 64 other. The latest 20:

  1. Aug 18, 20264 EDGAR
  2. Aug 18, 20264 EDGAR
  3. Aug 18, 20264 EDGAR
  4. Aug 18, 20264 EDGAR
  5. Aug 6, 202610-Q EDGAR
  6. Aug 6, 20268-K EDGAR
  7. Jun 9, 20264 EDGAR
  8. Jun 9, 20264 EDGAR
  9. Jun 9, 20264 EDGAR
  10. Jun 9, 20264 EDGAR
  11. Jun 9, 20264 EDGAR
  12. Jun 9, 20264 EDGAR
  13. Jun 9, 20264 EDGAR
  14. Jun 9, 20268-K EDGAR
  15. May 12, 202610-Q EDGAR
  16. May 12, 2026S-8 EDGAR
  17. May 12, 20268-K EDGAR
  18. Apr 20, 2026ARS EDGAR
  19. Apr 20, 2026DEFA14A EDGAR
  20. Apr 20, 2026DEF 14A EDGAR

The 282 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

67 open-market trades by officers, directors and large owners since October 2021: 34 buys and 33 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Aug 18, 2026Rosenberg Noah L.CMOBuy2,030$4.92$10.0KForm 4
Aug 18, 2026Kirby John J.Interim CFOBuy5,000$4.93$24.6KForm 4
Aug 17, 2026Zawitz DavidChief Operating OfficerBuy6,000$4.98$29.9KForm 4
Aug 17, 2026Rieger JaysonCEO and PresidentBuy5,000$4.91$24.6KForm 4
Aug 17, 2026Rosenberg Noah L.CMOBuy4,200$4.91$20.6KForm 4
Aug 14, 2026Rieger JaysonCEO and PresidentBuy20,000$5.06$101.2KForm 4
Nov 25, 2025Zawitz DavidChief Operating OfficerBuy10,000$4.24$42.4KForm 4
Nov 25, 2025Rieger JaysonCEO and PresidentBuy94,311$4.24$399.9KForm 4
Nov 25, 2025Rosenberg Noah L.CMOBuy2,357$4.24$10.0KForm 4
Nov 25, 2025Kirby John J.Interim CFOBuy3,536$4.24$15.0KForm 4
Nov 25, 2025Manning Paul BDirectorBuy4,126,142$4.24$17.5MForm 4
Mar 17, 2025Hayes Christopher G.CHIEF LEGAL OFFICERSale4,315$0.65$2.8KForm 4
Nov 22, 2024Rieger JaysonCEO and PresidentBuy280,898Form 4
Nov 22, 2024Stalfort John A IIIDirectorBuy1,123,595Form 4
Nov 22, 2024Manning Paul BDirectorBuy22,921,348Form 4
Aug 27, 2024Hayes Christopher G.CHIEF LEGAL OFFICERSale9,530$2.46$23.4KForm 4
Aug 27, 2024Goldenberg GaryChief Medical OfficerSale3,601$2.46$8.9KForm 4
Aug 27, 2024Bonaccorso JoeCHIEF COMMERCIAL OFFICERSale8,993$2.46$22.1KForm 4
Aug 27, 2024Kohler TerryCHIEF FINANCIAL OFFICERSale7,899$2.46$19.4KForm 4
Aug 27, 2024White TedPRESIDENT AND CEOSale9,021$2.46$22.2KForm 4

All 67 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2025Christopher G. Hayes$155.3K$747.6K62
2025Jayson Rieger$300.0K$741.4K62
2025John J. Kirby$480.0K$614.6K62
2025Gary Goldenberg$79.1K$363.1K62
2025Noah Rosenberg$173.9K$347.6K62
2024President and Chief Executive Officer$47.7K$1.2M62
2024Former Chief Legal Officer$466.0K$1.0M62
2024Former Chief Medical Officer$462.8K$973.3K62
2024Interim Chief Financial Officer$73.3K$114.6K62

Funding

Where the company's money came from, by calendar year: private offerings filed with the SEC, federal grants, loans, contracts and other assistance from USAspending.gov, and PPP loans from the SBA. Each bar links to the records below.

Money received by year$50.0M 2025–2025
Money received by yearMoney received by year, 2025–2025: $50.0M in all. Private raises (Form D) $50.0M.$0$20M$40M$60M2025 · Private raises (Form D): $50.0M2025
Figures by year
YearPrivate raises (Form D)Total
2025$50.0M$50.0M

Private raises

Private offerings the company reported to the SEC on Form D. The amount is what the latest filing says was sold so far, charted in the year of the first sale. Covers filings since Oct 1, 2021.

  1. Nov 25, 2025Raised $50 million in a private offering of equity63 Form D: 21 investors so far Form D

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 43. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
Caligan Partners LP923,910$5.7M0.3%No change
Cannell Capital LLC783,923$4.8M3.3%+98,800
Affinity Asset Advisors, LLC707,338$4.3M0.2%No change
Velan Capital Investment Management LP471,559$2.9M1.8%No change
Armistice Capital, LLC426,304$2.6M0.1%−91,877
Boothbay Fund Management, LLC280,734$1.7M0.0%No change
Vanguard Capital Management LLC279,310$1.7M0.0%+90,552
Mariner, LLC207,230$1.3M0.0%+182,686
Geode Capital Management, LLC138,160$845.7K0.0%−757
BlackRock, Inc.74,344$455.0K0.0%+35,791
Vanguard Fiduciary Trust Co70,173$429.5K0.0%+5,072
Two Sigma Investments, LP40,825$249.8K0.0%−9,837
State Street Corp28,916$177.0K0.0%No change
Northern Trust Corp26,996$165.2K0.0%−4,584
DAFNA Capital Management LLC23,750$145.3K0.0%−129,962
Jane Street Group, LLC23,654$144.8K0.0%−25,557
Verdad Advisers, LP23,069$141.2K0.1%+10,971
Renaissance Technologies LLC21,769$133.2K0.0%−10,591
Legacy Trust16,584$101.5K0.0%−650
Fifth Third Bancorp14,000$85.7K0.0%New
Dimensional Fund Advisors LP13,888$85.0K0.0%New
XTX Topco Ltd13,723$84.0K0.0%New
Two Sigma Securities, LLC13,045$79.8K0.0%New
Beck Mack & Oliver LLC12,000$73.4K0.0%No change
UBS Group AG6,071$37.2K0.0%+1,801

13F reports cover disclosed long positions in U.S. stocks only.

SEC filer profile

How Verrica Pharmaceuticals Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARVerrica Pharmaceuticals Inc.1
  • CIK0001660334
  • Employer ID (EIN)46-31379004
  • Filer statusNon-accelerated filer not an emerging growth company; a smaller reporting company; not a shell company4
  • Incorporated inDelaware4
  • Fiscal year endsDecember 311
  • Industry code (SIC)2834 Pharmaceutical Preparations1
  • SEC reviewing officeOffice of Life Sciences, Division of Corporation Finance1
  • Business address44 West Gay Street, Suite 400, West Chester, PA1
  • Phone484-453-33001
  • Shares outstanding17,178,786 as of Jul 31, 202612
  • Public float$27.3M as of Jun 30, 20254
  • AuditorKPMG LLP, Philadelphia, PA PCAOB ID 185; no auditor attestation of internal control over financial reporting4
  • On EDGAR sinceDec 17, 20151
  • Filings534 in all: 4 (215), 8-K (110), 3 (26), 10-Q (25), 144 (18), SC 13G/A (16), S-8 (11), 4/A (10)1
    All 42 form types

    CORRESP (9), 10-K (8), 424B5 (8), DEF 14A (8), DEFA14A (8), SCHEDULE 13G/A (7), UPLOAD (7), EFFECT (5), SC 13G (5), ARS (4), D (4), S-3 (4), SCHEDULE 13G (3), SCHEDULE 13D/A (2), SEC STAFF LETTER (2), 144/A (1), 3/A (1), 424B3 (1), 424B4 (1), 5 (1), 8-A12B (1), CERT (1), CT ORDER (1), DEFR14A (1), DRS (1), DRS/A (1), DRSLTR (1), FWP (1), PRE 14A (1), S-1 (1), S-1/A (1), SC 13D (1), SC 13D/A (1), SCHEDULE 13D (1)

  • Latest filingsAnnual report (10-K) Mar 11, 2026
    Quarterly report (10-Q) Aug 6, 2026
    Proxy statement (DEF 14A) Apr 20, 2026
    Latest 8-K (8-K) Aug 6, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, $0.0001 par valueVRCAThe Nasdaq Stock Market, LLC

From the cover page of the 10-K filed Mar 11, 2026 (Section 12(b) of the Exchange Act).4

Risk factors and legal proceedings

The risks Verrica Pharmaceuticals Inc. names in Item 1A of its 10-K filed Mar 11, 2026: 68 risks under these headings, as written.4

  • Risks Related to Our Financial Position and Capital Needs
  • Risks Related to the Development of Our Product Candidates
  • Risks Related to the Commercialization of Our Product and Other Product Candidates
  • Risks Related to Our Dependence on Third Parties
  • Risks Related to Our Intellectual Property
  • Risks Related to Ownership of Our Common Stock and Our Status as a Public Company
  • We have incurred significant losses since our inception. We expect to incur losses until revenue from YCANTH (VP-102) is sufficient to fund our operations, if ever, and may never achieve or maintain profitability.
  • We will need substantial additional funding to meet our financial obligations and to pursue our business objectives, including the continued commercialization of YCANTH (VP-102) for the treatment of molluscum as well as the development of YCANTH (VP-102) for the treatment of common warts and VP-315 for the treatment of BCC. If we are unable to raise capital when needed, we could be forced to curtail our planned operations and the pursuit of our growth strategy, which could impact our ability to continue as a going concern.
  • Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product candidates.
  • SEC regulations limit the amount of funds we can raise during any 12-month period pursuant to our shelf registration statement on Form S-3.
  • We have a limited operating history and limited history of commercialization, which may make it difficult for you to evaluate the success of our business to date and to assess our future viability.
  • While our financial statements have been prepared assuming that we will continue as a going concern, we do not currently have sufficient working capital to fund our planned operations for the next twelve months and substantial doubt exists as to our ability to continue as a going concern.
The other 62 risks
  • If we are unable to successfully develop, receive regulatory approval for and commercialize any product candidates, or experience significant delays in doing so, our business will be harmed.
  • Clinical product development involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of our product candidates.
  • If we experience delays or difficulties in the enrollment and/or maintenance of patients in clinical trials, our receipt of necessary regulatory approvals could be delayed or prevented.
  • Success in preclinical studies or earlier clinical trials may not be indicative of results in future clinical trials.
  • Interim "top-line" and preliminary results from our clinical trials that we announce or publish from time to time may change as more patient data become available and are subject to audit and verification procedures that could result in material changes in the final data.
  • Our clinical trials may fail to demonstrate the safety and efficacy of our product candidates, or serious adverse or unacceptable side effects may be identified during the development of our product candidates, which could prevent or delay regulatory approval and commercialization, increase our costs or necessitate the abandonment or limitation of the development of some of our product candidates.
  • Changes in methods of product candidate manufacturing or formulation may result in additional costs or delay.
  • We may not be successful in our efforts to increase our pipeline of product candidates, including by pursuing additional indications for YCANTH (VP-102) and VP-315 or in-licensing or acquiring additional product candidates for other dermatological indications.
  • We may expend our limited resources to pursue a particular product candidate or indication and fail to capitalize on product candidates or indications that may be more profitable or for which there is a greater likelihood of success.
  • The regulatory approval processes of the FDA and comparable foreign authorities are lengthy, time consuming and inherently unpredictable. If we are not able to obtain required regulatory approval for our product candidates, our business will be substantially harmed.
  • Risks Related to the Commercialization of Our Product and Product Candidates
  • YCANTH (VP-102) for the treatment of molluscum and any of our product candidates that receive marketing approval, may fail to achieve the degree of market acceptance by physicians, patients, third-party payors and others in the medical community necessary for commercial success.
  • If we are unable to maintain sales, marketing and distribution capabilities for YCANTH (VP-102) for the treatment of molluscum or any product candidate that may receive regulatory approval, we may not be successful in commercializing YCANTH (VP-102) for the treatment of molluscum or our product candidates if and when they are approved.
  • We face substantial competition, which may result in a smaller than expected commercial opportunity and/or others discovering, developing or commercializing products before or more successfully than we do.
  • NCE exclusivity for future product candidates may be unsuccessful.
  • The success of YCANTH (VP-102) for the treatment of molluscum and our product candidates will depend significantly on coverage and adequate reimbursement or the willingness of patients to pay for these procedures.
  • The market for YCANTH (VP-102) for the treatment of molluscum and our product candidates may not be as large as we expect.
  • Product liability lawsuits against us could cause us to incur substantial liabilities and to limit commercialization of any products that we may develop.
  • Our business activities involve the use of hazardous materials, which require compliance with environmental and occupational safety laws regulating the use of such materials. If we or our vendors violate these laws, we could be subject to significant fines, liabilities or other adverse consequences.
  • We will rely on third parties to conduct our future clinical trials for product candidates, and those third parties may not perform satisfactorily, including failing to meet deadlines for the completion of such trials.
  • We currently rely on third parties to supply our raw material and applicator components used for YCANTH (VP-102), and if we encounter any extended difficulties in procuring, or creating an alternative for, our raw material or applicator
  • components for YCANTH (VP-102) or any of our product candidates we may develop, our business operations would be impaired.
  • We contract with third parties for the manufacture of YCANTH (VP-102) for preclinical, clinical testing and for commercial product. This reliance on third parties increases the risk that we will not have sufficient quantities of YCANTH (VP-102) or such quantities at an acceptable cost, which could negatively impact our development and/or commercialization efforts.
  • We have entered into, and may seek additional, collaborations with third parties for the development or commercialization of our product candidates. If those collaborations are not successful, we may not be able to capitalize on the market potential of these product candidates.
  • If we are not able to establish additional collaborations, we may have to alter our development and commercialization plans.
  • If we are unable to obtain or protect intellectual property rights related to any of our product candidates, we may not be able to compete effectively in our market.
  • We may enjoy only limited geographical protection with respect to certain patents and we may not be able to protect our intellectual property rights throughout the world.
  • Patent reform legislation could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of our patents.
  • Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment, and other requirements imposed by government patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.
  • The patent applications that we have covering YCANTH (VP-102) and our cantharidin-based product candidates are limited to specific formulations, preparations, and devices, and methods of use and manufacturing processes, and our market opportunity for YCANTH (VP-102) and our cantharidin-based product candidates may be limited by the lack of patent protection for the active ingredient itself and by competition from other formulations and manufacturing processes, as well as administration methods that may be developed by competitors.
  • We may be involved in lawsuits to protect or enforce our patents, which could be expensive, time consuming and unsuccessful.
  • Third parties may initiate legal proceedings alleging that we are infringing their intellectual property rights, the outcome of which would be uncertain.
  • We may be subject to claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties.
  • We may be subject to claims challenging the inventorship or ownership of our patents and other intellectual property.
  • Reliance on third parties requires us to share our trade secrets, which increases the possibility that a competitor will discover them, or that our trade secrets will be misappropriated or disclosed.
  • Intellectual property rights do not necessarily address all potential threats to our competitive advantage.
  • Risks Related to Legal and Regulatory Compliance Matters
  • Our relationships with customers, physicians, and third-party payors may be subject, directly or indirectly, to federal and state healthcare fraud and abuse laws, false claims laws, health information privacy and security laws, and other healthcare laws and regulations. If we are unable to comply, or have not fully complied, with such laws, we could face substantial penalties.
  • The FDA and other regulatory agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses.
  • We have obtained regulatory approval for YCANTH (VP-102) for the treatment of molluscum; however, YCANTH (VP-102) for the treatment of molluscum and any future product candidates that are approved will remain subject to ongoing regulatory oversight.
  • Healthcare legislative or regulatory reform measures may have a negative impact on our business and results of operations.
  • Our business activities may be subject to the Foreign Corrupt Practices Act, or FCPA, and similar anti-bribery and anti-corruption laws.
  • We are subject to governmental export and import controls that could impair our ability to compete in international markets due to licensing requirements and subject us to liability if we are not in compliance with applicable laws. Compliance with these legal requirements could limit our ability to compete in foreign markets and subject us to liability if we violate them.
  • Risks Related to Employee Matters and Managing Our Growth
  • Our future success depends on our ability to retain key executives and to attract, retain and motivate qualified personnel.
  • Our employees, independent contractors, consultants, commercial collaborators, principal investigators, CROs, suppliers and vendors may engage in misconduct or other improper activities, including non-compliance with regulatory standards and requirements.
  • The trading price of the shares of our common stock may be volatile, and purchasers of our common stock could incur substantial losses.
  • We have a substantial number of warrants outstanding. The exercise of our outstanding warrants will dilute existing stockholders and could adversely affect the trading price of our common stock.
  • Sales of a substantial number of shares of our common stock in the public market could cause the market price of our common stock to decline significantly, even if our business is doing well.
  • Provisions in our corporate charter documents and under Delaware law may prevent or frustrate attempts by our stockholders to change our management and hinder efforts to acquire a controlling interest in us, and the market price of our common stock may be lower as a result.
  • Concentration of ownership of our common stock among our existing executive officers, directors and principal stockholders may prevent our other stockholders from influencing significant corporate decisions.
  • We are a "smaller reporting company" and, as a result of the reduced disclosure and governance requirements applicable to smaller reporting companies, our common stock may be less attractive to investors.
  • If we fail to maintain proper and effective internal control over our financial reporting, our ability to produce accurate financial statements on a timely basis could be impaired.
  • We might not be able to utilize a significant portion of our net operating loss carryforwards.
  • We do not anticipate paying any cash dividends on our common stock in the foreseeable future.
  • We incur increased costs and demands upon management as a result of being a public company.
  • Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware and, to the extent enforceable, the federal district courts of the United States of America will be the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
  • We completed a reverse stock split of our shares of common stock, which may reduce and may limit the market trading liquidity of the shares due to the reduced number of shares outstanding and may potentially have an anti-takeover effect.
  • If we fail to meet all applicable requirements of Nasdaq and Nasdaq determines to delist our common stock, the delisting could adversely affect the market liquidity of our common stock and the market price of our common stock could decrease.
  • General Risk Factors
  • We are subject to legal proceedings and claims from time to time that may seek material damages or otherwise may have a material adverse effect on our business. The costs we incur in defending ourselves or associated with settling any of these proceedings, as well as a material final judgment or decree against us, could materially adversely affect our financial condition.
  • If our information technology systems or those third parties upon which we rely or our data, are or were compromised or were to encounter computer system failures, we could experience adverse consequences, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; and other adverse consequences.
  • Unfavorable conditions, including inflationary pressure, in the global economy could negatively affect our operating results.
  • An active trading market for our common stock may not continue to develop or be sustained.
  • If equity research analysts do not publish research or reports, or publish unfavorable research or reports, about us, our business or our market, our stock price and trading volume could decline.
  • Our effective tax rate may fluctuate, and we may incur obligations in tax jurisdictions in excess of accrued amounts.

Legal proceedings

On June 6, 2022, plaintiff Kranthi Gorlamari, or Plaintiff, filed a putative class action complaint captioned Gorlamari v. Verrica Pharmaceuticals Inc., et al., in the U.S. District Court for the Eastern District of Pennsylvania against

us and certain of our current and former officers and directors, or Defendants. On January 12, 2023, the Plaintiff filed an amended complaint alleging that Defendants violated federal securities laws by, among other things, failing to disclose certain manufacturing deficiencies at the facility where our contract manufacturer produced bulk solution for the YCANTH (VP-102) drug device and that such deficiencies posed a risk to the prospects for regulatory approval of YCANTH (VP-102) for the treatment of molluscum. The amended complaint seeks unspecified compensatory damages and other relief on behalf of Plaintiff and all other persons and entities which purchased or otherwise acquired our securities between May 19, 2021 and May 24, 2022, or the Putative Class Period.

The opening of Item 3, Legal Proceedings.4

Sources

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