Company: VRCA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001660334-25-000006
Chunk: 72

Company: Verrica Pharmaceuticals Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 72
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 Total other expense, net(1,901)(2,156)255 Net loss$(274)$(22,860)$22,586 

Product Revenue, Net

Product revenue, net was $3.6 million for the three months ended September 30, 2025, compared to $(1.9) million for the three months ended September 30, 2024. The increase in product revenue, net was primarily related to an increase in deliveries of YCANTH to our distribution partners. Negative revenue for the three months ended September 30, 2024 was primarily due to an increase in our returns reserve of $1.7 million for estimated returns from certain distributors. 

License and Collaboration Revenue

License and collaboration revenue was $10.7 million for the three months ended September 30, 2025, compared to $0.1 million for the three months ended September 30, 2024. License and collaboration revenue for the three months ended September 30, 2025 consisted of a $10.0 million development milestone payment from Torii as well as commercial supply and development activity. Collaboration revenue for the three months ended September 30, 2024 consisted of supplies and development activity with Torii.

Cost of Product Revenue

Cost of product revenue for the three months ended September 30, 2025 and 2024 was $0.8 million and $0.4 million, respectively, consisting primarily of product costs related to the sale of YCANTH (VP-102).

Cost of Collaboration Revenue

Cost of collaboration revenue was $0.4 million and $0.1 million for the three months ended September 30, 2025 and 2024. Cost of collaboration revenue consisted of commercial product and supplies and development activity with Torii.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $9.4 million for the three months ended September 30, 2025, compared to $16.1 million for the three months ended September 30, 2024. Excluding the impact of stock-based compensation, the decrease of $5.6 million was primarily due to lower expenses related to commercial activities for YCANTH (VP-102), including decreases in compensation, benefits and travel due to reduced sales force of $3.5 million, decreased commercial costs of $1.2 million and decreased marketing and sponsorship costs of $0.8 million.

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Research and Development Expenses

Research and development