Verrica Pharmaceuticals Announces Restructuring of Commercial Organization
Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) has announced a significant restructuring of its commercial organization to reduce costs and expand access to YCANTH®, its treatment for molluscum contagiosum. The company plans to:
- Reduce sales territories from 80 to approximately 35
- Focus on territories with high molluscum prevalence, previous cantharidin users, and strong insurance coverage for YCANTH®
- Expand sales efforts to include pediatricians in addition to dermatologists
- Reduce headcount in certain support functions
These changes are expected to reduce the company's overall cost structure by approximately 50% while maintaining support for YCANTH® as the new standard of care for molluscum contagiosum. The restructuring will result in a one-time charge of approximately $1.0 million.
Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) ha annunciato una significativa ristrutturazione della sua organizzazione commerciale per ridurre i costi ed espandere l'accesso a YCANTH®, il suo trattamento per il mollusco contagioso. L'azienda prevede di:
- Ridurre i territori di vendita da 80 a circa 35
- Concentrarsi sui territori con alta prevalenza di mollusco, utenti precedenti di cantharidina e forte copertura assicurativa per YCANTH®
- Espandere gli sforzi di vendita per includere pediatri oltre ai dermatologi
- Ridurre il personale in alcune funzioni di supporto
Queste modifiche dovrebbero ridurre la struttura dei costi complessivi dell'azienda di circa il 50% mantenendo supporto per YCANTH® come nuovo standard di cura per il mollusco contagioso. La ristrutturazione comporterà un costo una tantum di circa 1,0 milioni di dollari.
Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) ha anunciado una reestructuración significativa de su organización comercial para reducir costos y expandir el acceso a YCANTH®, su tratamiento para el molusco contagioso. La empresa planea:
- Reducir los territorios de ventas de 80 a aproximadamente 35
- Enfocarse en territorios con alta prevalencia de molusco, usuarios anteriores de cantharidina, y una sólida cobertura de seguro para YCANTH®
- Expandir los esfuerzos de venta para incluir pediatras además de dermatólogos
- Reducir la plantilla en ciertas funciones de apoyo
Se espera que estos cambios reduzcan la estructura de costos total de la empresa en aproximadamente un 50% mientras se mantiene el apoyo a YCANTH® como el nuevo estándar de atención para el molusco contagioso. La reestructuración resultará en un cargo único de aproximadamente $1.0 millón.
Verrica Pharmaceuticals Inc. (Nasdaq: VRCA)는 비용을 줄이고 YCANTH®에 대한 접근성을 확대하기 위해 상업 조직의 중요한 구조 조정을 발표했습니다. 이 회사는 다음과 같은 계획을 세우고 있습니다:
- 판매 구역을 80개에서 약 35개로 줄이기
- 모시고 전염병의 높은 유병률, 이전의 칸타리딘 사용자, YCANTH®에 대한 강력한 보험 보장이 있는 구역에 집중하기
- 피부과 의사 외에 소아과 의사까지 판매 노력을 확대하기
- 일부 지원 기능의 인원 수를 줄이기
이러한 변화는 회사의 전체 비용 구조를 약 50% 줄일 것으로 예상됩니다 그리고 YCANTH®를 모시고 전염병에 대한 새로운 표준 치료로 유지합니다. 구조 조정은 약 100만 달러의 일회성 비용을 초래할 것입니다.
Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) a annoncé une restructuration significative de son organisation commerciale pour réduire les coûts et élargir l'accès à YCANTH®, son traitement pour le molluscum contagiosum. L'entreprise prévoit de :
- Réduire ses territoires de vente de 80 à environ 35
- Se concentrer sur les territoires avec une forte prévalence du molluscum, des utilisateurs précédents de cantharidine et une solide couverture d'assurance pour YCANTH®
- Étendre ses efforts de vente pour inclure des pédiatres en plus des dermatologues
- Réduire le personnel dans certaines fonctions de support
Ces changements devraient réduire la structure des coûts globaux de l'entreprise d'environ 50% tout en maintenant le soutien pour YCANTH® comme nouveau standard de soin pour le molluscum contagiosum. La restructuration entraînera une charge unique d'environ 1,0 million de dollars.
Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) hat eine bedeutende Umstrukturierung seiner kommerziellen Organisation angekündigt, um Kosten zu senken und den Zugang zu YCANTH®, seiner Behandlung gegen Molluscum contagiosum, zu erweitern. Das Unternehmen plant:
- Die Verkaufsgebiete von 80 auf etwa 35 zu reduzieren
- Fokus auf Gebiete mit hoher Molluscum-Prävalenz, vorherigen Cantharidin-Nutzern und starker Versicherungsdeckung für YCANTH®
- Die Verkaufsbemühungen auf Kinderärzte neben Dermatologen auszuweiten
- Die Mitarbeiterzahl in bestimmten Support-Funktionen zu reduzieren
Diese Änderungen sollen die Gesamtkostenstruktur des Unternehmens um etwa 50% senken und gleichzeitig die Unterstützung für YCANTH® als neuen Goldstandard für Molluscum contagiosum aufrechterhalten. Die Umstrukturierung wird zu einmaligen Kosten von etwa 1,0 Millionen Dollar führen.
- Expected 50% reduction in overall cost structure
- Maintained support for YCANTH® as standard of care for molluscum contagiosum
- Expanded sales focus to include pediatricians, potentially increasing market reach
- Targeted approach focusing on high-prevalence territories and strong insurance coverage
- Reduction in sales territories from 80 to approximately 35
- Headcount reduction in certain support functions
- One-time restructuring charge of approximately $1.0 million
Insights
This restructuring announcement by Verrica Pharmaceuticals is a significant move aimed at improving the company's financial health. The 50% reduction in operating expenses is substantial and should positively impact the bottom line. However, the
The shift in focus to pediatricians, while maintaining dermatology outreach, is strategically sound. It could potentially expand YCANTH®'s market reach, especially in high-prevalence molluscum areas. The reduction from 80 to 35 sales territories appears drastic but may lead to improved efficiency if properly executed.
For investors, this move signals a company taking decisive action to streamline operations and preserve cash. Given Verrica's relatively small market cap of
Verrica's restructuring strategy appears to be a calculated risk. By focusing on high-prevalence areas with strong insurance coverage, they're optimizing their market approach. The expansion to pediatricians is particularly noteworthy, as it opens up a new channel for YCANTH® distribution.
Market data suggests that molluscum contagiosum is more common in children, making pediatricians a logical target. This move could potentially increase prescription rates and market penetration. However, the success of this strategy hinges on the ability of the reduced sales force to effectively cover both dermatologists and pediatricians.
The 50% reduction in operating expenses is significant and could improve Verrica's financial metrics. However, investors should monitor closely how this affects market share and sales growth in the coming quarters. If successful, this lean approach could serve as a model for other small pharma companies looking to optimize their commercial operations.
- Company significantly reduces cost structure with a realigned sales, marketing and operational infrastructure
- Sales and marketing efforts to focus on pediatricians and expand access beyond dermatologists
WEST CHESTER, Pa., Oct. 02, 2024 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (“Verrica” or the “Company”) (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced a restructuring of its sales and operating teams to reduce costs and expand access to YCANTH® for the treatment of molluscum contagiosum.
These operational changes to Verrica’s commercial organization are expected to reduce the Company’s overall cost structure by approximately fifty percent, while maintaining sufficient resources to support YCANTH® as the new standard of care for patients with molluscum contagiosum.
Commercial Restructuring Detail:
To reduce expenses and optimize the efficiency of Verrica’s field force, the Company will reduce the number of sales territories from 80 to approximately 35, with a focus on those territories that have historically shown a high prevalence of molluscum, a critical mass of previous cantharidin users and strong insurance coverage for YCANTH®. Sales activities in each of these territories will focus on pediatricians in addition to Verrica’s established sales efforts to dermatology offices. The Company will also reduce headcount in certain support functions. Total operating expenses after the restructuring are expected to be reduced by approximately fifty percent. The Company will incur a one-time charge related to the restructuring of approximately
About YCANTH® (VP-102)
YCANTH® is a proprietary drug-device combination product that contains a GMP-controlled formulation of cantharidin delivered via a single-use applicator that allows for precise topical dosing and targeted administration for the treatment of molluscum. YCANTH® is the first and only commercially available product approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum — a common, highly contagious skin disease that affects an estimated six million people in the United States, primarily children. Approval of YCANTH® was based upon the positive results from two Phase 3 clinical trials in approximately 500 patients which demonstrated that YCANTH® was a safe and effective therapy for the treatment of molluscum. Approximately 228 million lives are eligible to receive YCANTH® covered by insurance. YCANTH® is available to all patients with and without insurance coverage for between
In addition, Verrica has successfully completed a Phase 2 study of VP-102 for the treatment of common warts and a Phase 2 study of VP-102 for the treatment of external genital warts.
YCANTH® should only be administered by a trained healthcare professional. YCANTH® is not for home use.
About Verrica Pharmaceuticals Inc.
Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica’s product YCANTH® (VP-102) (cantharidin), is the first and only commercially available treatment approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH® (VP-102) is also in development to treat common warts and external genital warts, two of the largest remaining unmet needs in medical dermatology. Verrica is developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (formerly LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma. For more information, visit www.verrica.com.
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believe,” “expect,” “may,” “plan,” “potential,” “will,” and similar expressions, and are based on Verrica’s current beliefs and expectations. These forward-looking statements include expectations regarding future financial performance, including reducing operating expenses, and the Company’s sales and marketing activities. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include uncertainties inherent in the drug development process and the regulatory approval process, Verrica’s reliance on third parties over which it may not always have full control and uncertainties that are described in Verrica’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and other filings Verrica makes with the U.S. Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and are based on information available to Verrica as of the date of this release, and Verrica assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.
FOR MORE INFORMATION, PLEASE CONTACT:
Investors:
Kevin Gardner
LifeSci Advisors
kgardner@lifesciadvisors.com
Chris Calabrese
LifeSci Advisors
ccalabrese@lifesciadvisors.com
FAQ
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