Q4 2024 Verrica Pharmaceuticals Inc Earnings Call
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Operator: Standby, your program is about. need assistance during your conference today, please press star Good evening, ladies and gentlemen, and welcome to the Verica Pharmaceuticals fourth quarter and full year 2024 corporate update.
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Speaker Change: Good evening, ladies and gentlemen, and welcome to the Verica Pharmaceuticals fourth quarter and full year 2020 for corporate update conference call.
Operator: At this time, all participants are in a listen only After the speaker's remarks, there will be a question.
At this time all participants are in a listen only mode.
Speaker Change: After the Speakers' remarks, there will be a question and answer session.
John Francis: As a reminder, this conference is being I would now like to turn the call over to your host, John Francis of Lifestyle Advising. Thank you, Operator.
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Speaker Change: Thank you operator, Hello, everyone and welcome to <unk> Pharmaceuticals fourth quarter and full year 2024, corporate update conference call.
Jason Rieger: Hello, everyone, and welcome to Verrica Pharmaceuticals' fourth quarter and full year 2024 Corporate Update Conference Call.
Jason Rieger: With me on the line this evening are Jason Rieger, President and Chief Executive Officer of Verrica Pharmaceuticals, John Kirby, Interim Chief Financial Officer, David Zawitz, Chief Operating Officer, Chris Hayes, Verrica's Chief Legal Officer, and Aaron Hullett, Chief of Commercial.
Jason Rieger: With me on the line this evening or Jason Rieger, President and Chief Executive Officer of American Pharmaceuticals, John Kirby Interim Chief Financial Officer, David <unk>, Chief Operating Officer, Chris Hayes, Derek as Chief Legal Officer, and Eric <unk> Chief of commercial as.
Jason Rieger: As a reminder, during today's call, management will make four looking statements. These statements may include expectations related to the commercialization of YKAM, the treatment of molluscum contagiosum in the United States, regulatory developments, the development of Verrica's product candidates, company's expected cash runway and its ability to obtain funding for future operations, and Verrica's overall business strategy and planned operations. These forward-looking statements are based on the company's current expectations and involve inherent risks and uncertainties, and based on those risks and uncertainties, Verrica's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements.
Jason Rieger: As a reminder, during today's call management will make forward looking statements. These.
Jason Rieger: These statements may include expectations related to the commercialization of why can't the treatment of molluscum contagiosum in the United States regulatory developments the development of <unk> product candidates.
Jason Rieger: As expected cash runway and its ability to obtain funding for future operations and <unk> overall business strategy and planned operations.
Jason Rieger: These forward-looking statements are based on the company's current expectations and involve inherent risks and uncertainties, and based on those risks and uncertainties, America's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements.
Jason Rieger: Please see Verrica's SEC filings for important risk factors. Verrica cautions you not to place undue reliance on forward-looking statements and undertakes no duty or obligation to update any forward-looking statements as a result of new information, future events, or changes in expectations.
Jason Rieger: In addition, during today's call, management will discuss certain non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their closest GAAP equivalent.
Jason Rieger: The earnings released at the company issued today includes GAAP to non-GAAP reconciliations for these measures and is also available on the Investor Relations section of Verrica's website.
Jason Rieger: I'll now turn the call over to Verrica's President and CEO, Jason Rieger. Thank you, John. Good evening, everyone. And thank you for joining us for our fourth quarter and full year 2024 corporate update call. As most of you are aware, in the fourth quarter of 2024, we began a transition period at Verrica, including a significant change to our commercial organization, a leadership transition, and a significant capital raise in November. We are executing on our turnaround plan with a more focused commercialization strategy for YCAMP, while substantially reducing costs across the organization. In a few moments, I'll describe in more detail the progress we have made and continue to make on this plan, and why I believe we are now on a trajectory toward sustainability in the company with a clear focus on maximizing YCAMP utilization for the treatment of muscle contagiosum and advancing our late-stage pipeline program.
Jason Rieger: Now I'll turn the call over to <unk>, President and CEO, Jason Rieger.
Speaker Change: Thank you John and good evening, everyone and thank you for joining us for our fourth quarter and full year 2020 for corporate update call.
Speaker Change: As most of you are aware the fourth quarter of 2024, we began a transition period America, including a significant change to our commercial organization, our leadership transition and a significant capital raise in November we.
Speaker Change: We are executing on our turnaround plan with a more focused commercialization strategy for whitecap, while substantially reducing costs across the organization.
Speaker Change: A few moments I will describe in more detail. The progress we have made and continue to make on this plan and why I believe we are now on a trajectory towards sustainability as a company with a clear focus on maximizing why can't utilization for the treatment of Muslims T. G O Sim and advancing our late stage pipeline programs, we continue to support our.
Jason Rieger: We continue to support our development partner, Story Pharmaceutical, in their effort to obtain approval from Japanese regulators for TO-208, referred to as WICANF in the United States, and we were happy to see their filing of a new drug application in Japan for TO-208 during the fourth quarter of 2024. We are also excited to continue to work with Lytx Biopharma in advancing our basal cell carcinoma asset, BP-315. At our update at the end of Q3 last fall, we indicated a belief that it could be into the first quarter of this year before we saw business stabilization and the signs of working through channel inventory.
Speaker Change: Development partner, <unk> pharmaceuticals, and their effort to obtain approval from Japanese regulators for T. O to O. Eight referred to is why can't in the United States and we were happy to see their filing of a new drug application in Japan for T 0208 during the fourth quarter of 2024.
We are also excited to continue to work with Linux Biopharma.
Speaker Change: Advancing our basal cell carcinoma asset V. P 315.
Speaker Change: At our update at the end of Q3 last fall, we indicated a belief that it could be into the first quarter of this year before we saw business stabilization and the signs of working through channel inventory I am pleased to report that we have already seen new purchases from our distributors in the fourth quarter to replace depleted inventory level.
Jason Rieger: I am pleased to report that we have already seen new purchases from our distributors in the fourth quarter to replace depleted inventory levels ahead of what we had previously anticipated. We look forward to updating you with more details regarding Q1 2025 dispense units in the near future. We are making significant progress in advancing our clinical stage pipeline, which includes pursuing Y-cams for common warts as an additional indication, as well as our novel oncolytic peptide, BP315, the treatment of basal cell carcinoma. Each of these programs represent potential key value drivers for our company and, in my view, remain underappreciated assets, given each program's potential to become first-in-class treatments in two large dermatological conditions, with significant unmet medical need.
Speaker Change: <unk> ahead of what we had previously anticipated.
Speaker Change: Look forward to updating you with more details regarding Q1 2025 <unk> units in the near future.
Speaker Change: We are making significant progress in advancing our clinical stage pipeline, which includes pursuing why can't for common words as an additional indication as well as our novel uncle Lytic peptide <unk> $3 15 for the treatment of basal cell carcinoma.
Speaker Change: Each of these programs represent potential key value drivers for our company and in my view remained underappreciated assets given each program's potential to become first in class treatments in two large dermatological conditions, which with significant unmet medical need.
Jason Rieger: We are in a unique development position where we believe we will be able to advance our commonware program through Phase 3 in collaboration with TORI and also achieve key data and regulatory feedback for our basal cell program with minimal additional cash outlay for Verrica.
Speaker Change: We are in a unique development position, where we believe we will be able to advance our common wart program through phase III in collaboration with Tori and also achieve key data and regulatory feedback for our basal cell program with minimal additional cash outlay for Barracuda.
Jason Rieger: We also made significant progress with respect to our financial position, raising approximately $42 million in an equity follow-on offering in November and subsequent to the end of the quarter, obtaining a waiver of going concern covenant for the quarter and year ended December 31, 2024, and the first quarter of 2025 from our lending partner, Orbitment.
Speaker Change: We also made significant progress with respect to our financial position raising approximately $42 million in an equity follow on offering in November and subsequent to the end of the quarter, obtaining a waiver of going concern covenant for the quarter and year ended December 31, 2024, and the first quarter of 2025.
Speaker Change: From our lending partner corvette.
Jason Rieger: I will now provide an update on our commercial activities for WICAMP and related results from the quarter. In November, we announced a new commercialization strategy focused on driving demand for YCAMP in territories with high prevalence of molluscum and established strong insurance coverage for YCAMP. This focus was also intended to make Verrica become a leaner and more efficient company in the process. I am pleased to say that over the last several months, that is exactly what has happened. As announced in our business update in December, we've reduced our operating expense burn rate by approximately 50% while not only maintaining our prior sales levels, but also achieving positive growth in dispense applicator units in the fourth quarter compared to the prior quarter.
Speaker Change: I will now provide an update.
And our commercial activities for why can't it related results from the quarter.
Speaker Change: In November we announced a new commercialization strategy focused on driving demand for why can't in territories with high prevalence of molluscum and established strong insurance coverage for whitecap.
Speaker Change: This focus was also intended to make verica become a leaner and more efficient company and the process I am pleased to say that over the last several months that is exactly what has happened as announced in our business update in December we have reduced our operating expense burn rate by approximately 50% will not only maintaining our prior sales levels.
Speaker Change: But also achieving positive growth and dispense applicator units in the fourth quarter compared to the prior quarter.
Jason Rieger: Our sales representatives have substantially increased their productivity, measured as an average of sales per selling day, and we are now seeing the results of their effort. Our fourth quarter operating results do reflect the beginning of this success, and we expect to see further reflection of this strategy in the results for the first quarter of 2025 and beyond. In the fourth quarter, we reported YCAMP dispensed applicator units of 8,654 versus the prior quarter units of 7,706, which represents sequential quarterly growth of 12.3 percent. And when compared to the second quarter of 2024 of 5,955 units, the YCAMP applicator unit growth increased by 44.8 percent.
Speaker Change: Our sales representatives have substantially increased their productivity measured as an average of sales per selling day and we are now seeing the results of their efforts.
Speaker Change: Our fourth quarter operating results do reflect the beginning of this success and we expect to see further reflection of the strategy and the results for the first quarter of 2025 and beyond.
Speaker Change: In the fourth quarter, we reported why can't dispense applicator units of 8654 versus the prior quarter units of 7706, which represents sequential quarterly growth of 12, 3% and when compared to the second quarter of 2024.
Speaker Change: 5985 units, so why can't the applicator unit growth increased by 44, 8%.
Jason Rieger: Another important dimension of our commercial realignment was to make it easier for physicians to order and acquire Y-CAMP on a buy-and-build basis. We therefore introduced a new single applicator configuration for Y-CAMP, or the One Count, which became commercially available this quarter. We believe the One Count will reduce acquisition costs for physician practices in certain channels and potentially expand distribution and patient access to Y-CAMP. Furthermore, we have made great strides in increasing access to the pharmacy benefit route by adding local specialty pharmacies to our strong relationship with NuFactor, our nationwide specialty pharmacy. With respect to YCAMP inventory, we believe we have now fully reserved for distributor inventory reasonably expected to be returned to a lower than anticipated pull-through and observed a significant reduction in distributor inventory levels from our active distributors exiting the fourth quarter.
Speaker Change: Another important dimension of our commercial realignment was to make it easier for physicians to order and acquire why cant on a buy and bill basis. We therefore introduced a new single applicator configuration for why can't or the one count which became commercially available. This quarter. We believe the one count will reduce acquisition cost for the physician.
Speaker Change: This is in certain channels and potentially expand distribution and patient access to why can't. Furthermore, we have made great strides in increasing access to the pharmacy benefit route by adding local farms specialty pharmacies to our strong relationship with new factor our nationwide specialty pharmacy.
Speaker Change: With respect to why can't inventory, we believe we have now fully reserved for a distributor inventory reasonably expected to be return due to lower than anticipated pull through and observed a significant reduction in distributor in distributor inventory levels from our active distributors exiting the fourth quarter based on our latest data we believe.
Jason Rieger: Based on our latest data, we believe that inventory has now reached a stable, normalized level where demand for YCAMP applicator units will translate into new demand-driven revenue regularly going into or going forward into 2025.
Speaker Change: That inventory has now reached a stable normalized level, where demand for whitecap applicator units will translate into new demand driven revenue regular regularly going into or going forward into 2025.
Jason Rieger: I'd now like to discuss our plans to develop YCAN for the treatment of common warts. Recall that earlier last year, we amended our licensing agreement with our development and commercialization partner, Torrey Pharmaceuticals, which enabled us to equally split the cost of a new planned global phase three clinical program in Commonwealth. TORI previously agreed to fund Verrica's portion of the cost as an offset to TORI's future payment obligations to Verrica for meeting regulatory milestones and royalties, the sales of Y-Kemp for molluscum contagiosum, and common works in Japan. As we noted in December, TORI filed a new drug application in Japan seeking approval of Y-Kemp, called TO-208 in Japan, for the treatment of molluscum, and we look forward to helping TORI reach an estimated 1.6 million molluscum patients in Japan after they obtain regulatory approval.
Speaker Change: And now I'd like to discuss our plans to develop why can't the treatment of common warts.
Speaker Change: Recall that earlier last year, we amended our licensing agreement with our development and commercialization partner Torii pharmaceutical, which enabled us to equally split the cost of a new play in global Phase III clinical program in common words towards.
Speaker Change: So a previously agreed to fund <unk> portion of the cost as an offset to towards future payment obligations to Erika for meeting regulatory milestones and royalties sales of why can't for molluscum Contagiosum in common warts in Japan.
Speaker Change: As we noted in December we filed a new drug application in Japan seeking approval of why can't called T 0208 in Japan for the treatment of Molluscum and we look forward to helping Tory reached an estimated one 6 million molluscum patients in Japan. After the obtained regulatory approval for.
Jason Rieger: Furthermore, TORI will make a milestone payment of $8 million to Verrica upon initiation of a Phase III clinical trial, with initiation of a global program potentially starting as early as mid-2025. Considering the fact that there are approximately 22 million patients in the U.S. alone with CommonWorx and no FDA-approved therapies, this makes CommonWorx the single largest unmet need in all of dermatology.
Are there more towards making milestone payment of $8 million to verica upon initiation of a phase III clinical trial with initiation of the global program potentially starting as early as mid 2025.
Speaker Change: Considering the fact that there are approximately 22 million patients in the U S alone with common words and no FDA approved therapies. This makes common words, the single largest unmet need in all of dermatology.
Jason Rieger: Under our amended funding structure with TORI, the capital required for Verrica to fund this large Phase III program is expected to have almost no impact on our cash position, which in my view is fairly remarkable considering that this is a global registrational trial where we will still retain 100% of commercial rights to WICAN in the U.S. and elsewhere around the world other than Japan.
Speaker Change: Under our amended funding structure with Tory the capital required for <unk> to fund. This large phase III program is expected to have almost no impact on our cash position, which in my view is fairly remarkable considering that this is a global registrational trial, where we will still retain 100% of commercial rights to why cant in the U S.
Speaker Change: S and elsewhere around the world other than Japan.
Jason Rieger: I'd now like to focus the recent progress we have made in advancing our late-stage clinical oncology asset, BP315.
Speaker Change: I'd now like to focus the recent progress we have made in advancing our late stage clinical oncology asset <unk> $3 15.
Jason Rieger: In October 2024, we presented two posters at the 2024 Fall Clinical Dermatology Conference, featuring positive preliminary top-line results of VT315 for the treatment of basal cell carcinoma. The posters include safety and histologic clearance data from 82 patients with up to two target basal cell carcinoma tumors in Part 2 of the Phase 2 study. As a reminder, Part 2 of the Phase 2 study was designed to explore dosing regimens to help us identify the recommended regimen for a Phase 3 study program. We identified 8 milligrams as the optimal dose in Part 1 of the study. Preliminary top-line results showed that approximately 51% of tumors treated with BP315 achieved complete histological clearance, while those patients with a residual tumor achieved, on average, approximately 71% reduction in tumor size.
Speaker Change: In October 2024, we presented two posters at the 2020 for fall clinical Dermatology conference featuring positive preliminary topline results of $3 15 for the treatment of basal cell carcinoma.
Speaker Change: The posters include safety and histologic clearance data from 82 patients with up to two target basal cell carcinoma tumors in part two of the phase II study.
Speaker Change: As a reminder, part two of the Phase II study was designed to explore dosing regimens to help us identify the recommended regimen for a phase III study program.
Speaker Change: As we identified eight milligrams as the optimal dose in part one of the study.
Speaker Change: Preliminary topline results showed that approximately 51% of tumors treated with VB $3 15 achieved complete histological clearance for those patients with a residual tumor achieved on average approximately 71% reduction in tumor size <unk>.
Jason Rieger: BP315 was well tolerated. No treatment-related serious events were reported in the study, and most treatment-related adverse events were mild to moderate.
Speaker Change: <unk> hundred 15 was well tolerated.
Speaker Change: No treatment related serious events were reported in the study and most treatment related adverse events for mild to moderate.
Jason Rieger: Most recently, we presented the results from a post-hoc analysis of the data from Part 2 of the study at the 2025 Winter Clinical Dermatology Conference, which demonstrate that treatment with VP315 led to a calculated objective response rate, or ORR, of 97%, which is defined as the percentage of study subjects who do not demonstrate disease progression and who experience at least 30% reduction in tumor size along with partial or complete response following treatment. This is quite a compelling observation, as it suggests that nearly every subject of the study obtained benefit from VP315 treatment.
Speaker Change: Most recently, we presented the results from a post hoc analysis of the data from part two of the study at the 2025 winter clinical Dermatology conference, which demonstrate that treatment with BP $3 15, let's we calculated objective response rate or <unk> of 97%, which is defined as <unk>.
Speaker Change: The percentage of study subjects, who did not demonstrate disease progression and who experienced at least 30% reduction in tumor size, along with partial or complete response following treatment.
Speaker Change: This is quite a compelling observation as it suggests that nearly every subject to this study obtained benefit from <unk> hundred 15 treatment.
Jason Rieger: We still expect to report genomic and immune response data for this trial in the coming months and to receive minutes from an end of Phase 2 meeting in the first half of 2025, which will be critical for gaining alignment for the advancement of the program into Phase 3 trials. We are highly encouraged by these positive preliminary top line results, which we believe demonstrates the potential for VP315 to change treatment paradigm for patients with basal cell carcinoma, the most common form of skin cancer.
Speaker Change: We still expect to report genomic and immune response data from this trial in the coming months and to receive minutes from an end of phase two meeting in the first half of 2025, which will be critical for gaining alignment to the advancement of the program into phase III trials. We are highly encouraged by these positive preliminary top line results, which we believe demonstrate.
Speaker Change: The potential for V. P $3 15 to change treatment paradigm for patients with basal cell carcinoma. The most common form of skin cancer.
Jason Rieger: Over the last several months, I've had the opportunity to speak with many investors about Verrica, and without question, I believe our Common Awards program and basal cell carcinoma programs are two significantly underappreciated assets. To that end, we will continue to provide updates on the progress of these pipeline programs, while the majority of the organization remains laser-focused on the YCAMP for molluscum commercial efforts.
Speaker Change: Over the last several months I've had the opportunity to speak with many investors about Erica and without a question I believe our common warts program and basal cell carcinoma programs are to significantly underappreciated assets to that end. We will continue to provide updates on the progress of these pipeline programs. While the majority of the organization remains laser focused.
Speaker Change: On the why Kim for Molluscum commercial efforts.
John Kirby: I'll now turn the call over to our Interim Chief Financial Officer, John Kirby, to discuss our recent financing activities and to review our fourth quarter and full year of 2024 financing. Thanks, Jason. I'd like to start by covering our recent financing activities, which have enabled us to strengthen our balance sheet. In November, we raised $42 million in a public offering of common stock, pre-funded warrants, and accompanying Series A and B warrants. As you will recall, in July 2023, Verrica entered into a debt financing with Orvimed, and upon closing of the agreement, we borrowed $50 million from the facility.
Speaker Change: I'll now turn the call over to our interim Chief Financial Officer, John Kirby to discuss our recent financing activities and to review, our fourth quarter and full year 2020 for refinances.
John Kirby: Thanks, Jason I'd like to start by covering our recent financing activities, which have enabled us to strengthen our balance sheet in November we raised $42 million in a public offering of common stock pre funded warrants and <unk>.
Speaker Change: The series, a and B warrants.
Speaker Change: As you will recall in July 2023 America entered into a debt financing with <unk>.
Speaker Change: On closing of the agreement, we borrowed $50 million from the facility.
John Kirby: In February of this year, we negotiated with Orvimed a waiver of certain covenants under our credit agreement, including the requirement that there be no going concern qualification with respect to the financial statements for the periods ended December 31, 2024, and March 31, 2025.
Speaker Change: February of this year, we negotiated with forming that a waiver of certain covenants under our credit agreement, including the requirement that there'll be no going concern qualification with respect to the financial statements for the periods ended December 31, 2024, and March 31 2025.
John Kirby: Turning to the financial results, for the fourth quarter and full year of 2024, we reported total revenues of $0.3 million, which was substantially all YCANF revenue. Net YCANF revenue reflects shipments to our distributor partners offset by standard gross to net adjustments, including actual or anticipated product returns, off invoice discounts and distribution fees, and expenses. For the full year 2024, we reported total revenue of $7.6 million versus $5.1 million in the prior year. Total revenue for 2024 included net product revenue of $6.6 million versus net product revenue of $4.7 million in the prior year. As a reminder, YCANs became available for commercial sale and shipment to patients in August of 2023.
Speaker Change: Turning to the financial results for the fourth quarter and full year of 2024, we reported total revenues of zero point $3 million, which was substantially all why can't revenue net why can't revenue reflects shipments to our distributor partners offset by standard gross to net.
Speaker Change: <unk>, including actual or anticipated product returns.
Speaker Change: Invoice discounts and distribution fees and expenses.
Speaker Change: For the full year 2024, we reported total revenue of $7 $6 million versus $5 $1 million in the prior year.
Speaker Change: Revenue for 2024 included net product revenue of $6 $6 million.
Speaker Change: <unk> net product revenue of $4 7 million in the prior year as a reminder, why can't became available for commercial sale of shipments to patients in August of 2023, and so we did not recognize any product revenue prior to that point.
John Kirby: And so we did not recognize any product revenue prior to that point. Collaboration revenues of $29,000 in the fourth quarter of 2024 related to our supply of applicators to TORI in connection with their development and commercialization activities. For the full year 2024, collaboration revenue was $1 million, compared to half a million dollars for the year end of December 31, 2023. Similarly to the fourth quarter, collaboration revenue for the full year 2024 and 2023 was related to supplies and development activity provided to TORI as needed support to the clinical supply agreement. Gross product margins for the full year 2024 were 72 percent.
Speaker Change: Collaboration revenues of $29000 in the fourth quarter of 2024 related to our supply of applicators to Tori in connection with their development and commercialization activities.
Speaker Change: For the full year 2020 for collaboration revenue was $1 million compared to half a million dollars for the year ended December 31 2023.
Speaker Change: Similarly to the fourth quarter collaboration revenue for the full year 2024, and 2023 was it related to Spice and development activity provided detore as needed support to the clinical supply agreement.
Speaker Change: Gross product margins for the full year 2024 or 72%.
John Kirby: Cost of product revenue of $1.9 million included $0.9 million of obsolete inventory costs. Research and development expenses of $1.2 million in the fourth quarter of 2024 decreased versus the fourth quarter of 2023 by $4.2 million. Primarily driven by a $2.1 million decrease of clinical trial costs related to VP315 as well as costs related to increased headcount of $1.2 million and a decrease in regulatory costs of $0.7 million.
Speaker Change: Product revenue of $1 9 million included zero point $9 million of obsolete inventory costs.
Speaker Change: Research and development expenses of $1 $2 million in the fourth quarter of 2024 decreased versus the fourth quarter of 2023 by $4 $2 million.
Speaker Change: Primarily driven by a $2 $1 million decrease of clinical trial costs related to VP $3 15, as well as costs related to increased head count of $1 $2 million and a decrease in regulatory cost of zero point $7 million.
John Kirby: For the full year 2024, research and development expenses were $11.8 million, compared to $20.3 million for the year ended December 31, 2023. The decrease of $8.5 million was primarily attributable to reductions of costs related to WICAMP, pre-approval activity of $3.8 million, and decreased clinical costs for VP315 of $3.1 million. Selling general and administrative expenses of $10 million in the fourth quarter of 2024 decreased versus the fourth quarter of 2023 by $6.8 million. reflecting our commercial realignment activity and realization of cost savings. For the full year 2024, selling general and administrative expenses were $58.8 million, compared to $47.3 million for the year ended December 31, 2023.
Speaker Change: For the full year 2020 for research and development expenses were $11 $8 million compared to $23 million for the year ended December 31 2023.
Speaker Change: A decrease of $8 $5 million was primarily attributable to reductions of costs related to why can't preapproval activity of $3 $8 million and decreased clinical cost per BP $3 15 up three.
Speaker Change: $3 $1 million.
Speaker Change: Selling general and administrative expenses of $10 million in the fourth quarter of 2024 decreased versus the fourth quarter of 2020 spray by $6 $8 million.
Speaker Change: Reflecting our commercial realignment activity and realization of cost savings.
Speaker Change: For the full year 2020 for selling general and administrative expenses were $58 $8 million compared to $47 3 million.
Speaker Change: For the year ended December 31, 2000 Twenty's frame.
John Kirby: The increase of $11.5 million was primarily a result of higher expenses related to commercial activities for WICAMP for the treatment of molluscum, including increased compensation, recruiting fees, benefits, and travel due to ramp up of sales force of $8.5 million, as well as increased commercial related costs of $5.1 million.
Speaker Change: The increase of $11 5 million was primarily a result of higher expenses related to commercial activities for <unk> for the treatment of molluscum, including increased compensation recruiting fees benefits and travel due to ramp up a sales force of $8 $5 million.
Speaker Change: Well as increased commercial related costs of $5 1 million.
John Kirby: Gap net loss was $16.2 million, or $0.24 per share for the fourth quarter of 2024, compared to a gap net loss of $24.6 million, or $0.53 per share for the fourth quarter of 2023. Gap net loss was $76.8 million or $1.48 per share for the full year 2024 compared to a gap net loss of $67 million or $1.48 per share for the prior year. On a non-GAAP basis, which excludes stock-based compensation, non-cash interest expense, and change in fair value of embedded derivatives for the full year 2024, net loss was $64.6 million, or $1.25 per share, compared to a net loss of $51.8 million, or $1.14 per share in the full year 2023.
Speaker Change: GAAP net loss was $16 $2 million.
Speaker Change: <unk> 24 per share for the fourth quarter of 2024 compared to a GAAP net loss of $24 $6 million or <unk> 53 per share for the fourth quarter of 2023.
Speaker Change: GAAP net loss was $76 $8 million or $1 48 per share for the full year 2024, compared to a GAAP net loss of $67 million or $1 48 per share.
Speaker Change: Prior year.
Speaker Change: On a non-GAAP basis, which excludes stock based compensation non cash interest expense and change in fair value of embedded derivatives for the full year 2024, net loss was $64 $6 million or $1 25 per share.
Speaker Change: So a net loss of $51 $8 million or $1 14 per share in the full year 2023.
John Kirby: And finally, as of December 31, 2024, Verrica had aggregate cash and cash equivalents of $46.3 million. Under GAAP, the cash-in-cash equivalence as of December 31st, 2024, would not be sufficient to fund operations for the one-year period following the release of our financial statements. However, should Verrica receive the $8 million milestone payment from TORI triggered by the initiation of the Phase 3 clinical trial in Japan for Common Awards, or receive a portion of the $25 million in proceeds from the exercise of Series A warrants issued as part of our November 2024 equity financing, which expire in November of 2025, we could have sufficient cash to fund our operations for such periods.
Speaker Change: And finally as of December 31, 2024.
Speaker Change: Erika had aggregate cash and cash equivalents of $46 $3 million.
Speaker Change: Under GAAP to cash and cash equivalents as of December 31, 2024 will not be sufficient to fund operations for a one year period. Following the release of our financial statements. However.
Speaker Change: Barak I received the $8 million milestone payment from Tory triggered by the initiation of the phase III clinical trial in Japan for common warts or receive a portion of the $25 million and proceeds from the exercise of series a warrants issued as part of our November 2020.
Speaker Change: For equity financing, which expire in November 2025, we could have sufficient cash to fund our operations for such period.
John Kirby: Nonetheless, we will continue to prudently use our cash and explore opportunities to further bolster the strength of our balance sheet.
Speaker Change: Nonetheless, we will continue to prudently.
Speaker Change: Prudently use our cash and explore opportunities to further bolster the strength of our balance sheet.
John Kirby: Before turning the call back over to Jason, I'd like to provide some additional details which relate to partitioning of our debt into current and long-term liabilities and the increase in valuation of embedded derivatives related to our OrviMed agreement.
Speaker Change: Before turning the call back over to Jason I'd like to provide some additional details which relate to partitioning of our debt into current and long term liabilities and the increase in valuation of embedded derivatives related to our already Mad agreement.
John Kirby: Verrica did not meet thresholds specified in the Orviet Med debt agreement as of December 31, 2024, thus triggering the initiation of principal payments beginning in 2025. As principal payments have begun in 2025. Verrica was required to reclassify the debt balance previously classified as all long-term debt to have both a current and long-term component on the balance sheet.
Speaker Change: And did not meet threshold specified in the rvs that degree.
Speaker Change: As of December 31, 2024.
Speaker Change: Australia, and the initiation of principal payments beginning in 2025.
Speaker Change: <unk> payments have you got in 2025.
Speaker Change: <unk> was required to reclassify the debt balance previously classified as all long term debt to have both the current and long term component on the balance sheet.
John Kirby: Finally, I'd like to address embedded derivatives in the structure of the OrbiMed debt facility and its impact of their valuation on our financials. Since inception of this debt, the repayment of the debt prior to the balloon payment was deemed to not be probable, and therefore, the derivatives were valued at zero. However, since we are now required to make monthly principal repayments, the embedded derivatives, which include the exit fee and repayment fee, were deemed to have value. For the fourth quarter, the change in fair value of the embedded derivatives resulted in a non-cash expense of $2.6 million in our statement of operation.
Speaker Change: Finally, I'd like to address embedded derivatives and the structure of the European bad debt facility and its impact on their valuation on our financials.
Speaker Change: This inception of this debt repayment on the debt prior to the balloon payment was deemed to not be profitable probable and therefore, the derivatives were valued at zero.
Speaker Change: Since we are now required to make monthly principal repayments embedded derivatives, which include the exit fee and repayment be.
Speaker Change: Were deemed to have value for.
Speaker Change: For the fourth quarter the change in fair value of the embedded derivatives resulted in a noncash expense of $2 $6 million in our statement of operations.
Jason Rieger: I'll now turn the call back to Jason for closing remarks. Thanks, John. Although I arrived at Verica just a few months ago, I can tell you that we have made an extraordinary amount of progress over a very short period of time. We are faithfully executing on our new strategic initiatives across every area of our company, and I believe we are now on a pathway towards strong and sustainable growth for YCAMP and our development program. We have cut non-essential spending as we execute on our strategy. Core to our commercial strategy is an emphasis on fostering an environment that will lead to more solid, long-term relationships with the physicians and the patients that we serve.
Jason Rieger: I'll now turn the call back to Jason for closing remarks.
Jason Rieger: Thanks, John.
Speaker Change: Although he arrived at America, just a few months ago I can tell you that we have made an extraordinary amount of progress over a very short period of time.
Speaker Change: Faithfully executing on our new strategic initiatives across every area of our company and I believe we are now on a pathway towards strong and sustainable growth for why can't and our development programs.
Speaker Change: We have cut nonessential spending as we execute on our strategy.
Speaker Change: Core to our commercial strategy is an emphasis on fostering an environment that will lead to more solid long term relationships with the physicians and the patients that we serve.
Jason Rieger: As I mentioned earlier, we are also excited about the outstanding progress we are making in our clinical stage pipeline. As these programs continue to advance. We believe investors will see the massive potential of these programs, each of which could become the new standard of care and their respective indication.
Speaker Change: As I mentioned earlier, we are also excited about the outstanding progress we are making in our clinical stage pipeline.
Speaker Change: And these as these programs continue to advance.
Speaker Change: We believe investors will see the massive potential of these programs each of which could become the new standard of care in their respective indications.
Jason Rieger: In summary, the Verrica team is executed with a true sense of purpose and urgency in the few short months since I joined in November. As a commercial stage company with a robust pipeline, we are excited about the future of Verrica. We are seeing the fruits of the efforts over the last few months take hold as reflected by increased ease of access to WICAMP by HGPs, increased dispensed units, reduction in channel inventory, and advancement of our pipeline programs, all at a pace ahead of our initial thoughts late last year. In Wycant, we not only have a commercial product.
Speaker Change: In summary, the Barrick team has executed with a true sense of purpose and urgency in the few short months since I joined in November as a commercial stage company with a robust pipeline. We are excited about the future of Erika we are seeing the fruits of the efforts over the last few months take hold as reflected by increased ease of access to.
Speaker Change: I can't buy Hcp's increased defense units reduction in channel inventory and advancement of our pipeline programs.
Speaker Change: All at a pace ahead of our initial thoughts late last year.
Speaker Change: And why can't we not only have a commercial product.
Jason Rieger: For the treatment of molluscum that is already back on a positive growth trajectory, but we also are uniquely positioned to address the largest and most underserved population and all of dermatology in common works as well as perhaps change the paradigm in which treat basal cell carcinoma through BP 315.
Speaker Change: The treatment of molluscum that is already back on a positive growth trajectory, but we also are uniquely positioned to address the largest and most underserved population and olive dermatology and common works as well as perhaps change the paradigm in which hcp's treat basal cell carcinoma through BP $3 15.
Jason Rieger: I would like to thank all of my Verica teammates, both in the field and in our corporate organization. Going through a turnaround is difficult and requires substantial additional efforts to properly execute. And the way that I am seeing our team respond to tough situations has strengthened my resolve that we can be successful and achieve positive outcomes for our physician customers and their patients. We believe we will emerge from this transition as a much stronger and capable team, one working in close alignment to ensure that Verrica achieves its potential and becomes one of the most innovative, high-growth companies in dermatology drug development.
Speaker Change: I would like to thank all of my <unk> teammates in the field and our corporate organization.
Speaker Change: Going through a turnaround is difficult and requires substantial additional efforts to properly execute and the way that I am seeing our team respond to tough situations.
Speaker Change: And my resolve that we can be successful and achieve positive outcome for our physician customers and their patients.
We believe we will emerge from this transition as a much stronger and capable team when working in close alignment to ensure that verica cheez its potential it becomes one of the most innovative high growth companies in dermatology drug development with that we'd be now happy to take your questions operator.
Jason Rieger: With that, we'll be now happy to take your questions.
Operator: Operator? Thank you.
Speaker Change: Thank you at this time, if you would like to ask a question. Please press star one on your telephone keypad.
Operator: At this time, if you would like to ask a question, please press Star 1. You may remove yourself from the queue at any time by pressing star. Once again, that is star one to.
Speaker Change: You may remove yourself from the queue at any time by pressing star Q.
Speaker Change: Once again that is star one to ask a question.
Operator: Operator, you are muted. We will move first.
Stacy: We will move first to Stacy <unk> with Cowen <unk>.
Speaker Change: TD Cowen.
Stacy Ku: Hey, thanks so much for taking our questions and congratulations on the progress. So, maybe a first question around maybe that patient demand. You talked about the applicators that are dispensed, but are you getting a sense around the number of patients, roughly, that are being treated with Lycan? Maybe from average dosing, maybe talk about the feedback that you're getting from clinicians about whether or not it's now getting a little bit easier to access Lycan, whether they're able to. Get that infrastructure that you're trying to improve. So that's the first question.
Speaker Change: Hey, thanks, so much for taking our questions and congratulations on the progress.
Speaker Change: Maybe first question around maybe that patient demand you talked about the applicators that are just banks, but are you getting a sense around the number of patients roughly that are being made.
Speaker Change: From average dosing maybe talk about that.
Speaker Change: <unk> that youre getting from clinicians about whether or not it's now getting a little bit easier to access whitecap until they are able to kind of.
Speaker Change: Get that infrastructure that youre trying to improve so that's the first question.
Stacy Ku: And then obviously, in the second, the second question is, is looking to 25, can you comment what you're seeing early in the year in terms of why can't adoption now that we're in March, understand that you're trying to stay high level, but how's the new single applicator doing? How's broadening? Any type of maybe high level commentary about early 25 would be appreciated as you're trying to strategy. And then maybe the last comment is going to be around your expectations on sales for 25 consensus is around 15 million.
Speaker Change: And then obviously in the second and the second question is looking to 'twenty five.
Speaker Change: Can you comment what youre seeing early in the year in terms of why can't adoption now that we're in March I understand you're trying to stay high level, but how is the new.
Speaker Change: Single applicator doing has broadened ADP attrition any type of maybe high level commentary about early 'twenty five but I appreciate that you're trying to kind of change the strategy and then maybe the last comment is going to be around your expectations on sales for 25.
Speaker Change: Consensus is around $15 million, so maybe discuss your thoughts.
Jason Rieger: So maybe discuss your thoughts on where sell side is versus some of the Salesforce investment and potential R&D investment as it relates to your guidance to be cash positive monthly operating results by year end. Thank you. Thank you, Stacy. This is Jason. I appreciate all those questions. I'll try and tackle them in order. If I leave something out, please feel free to follow up. In general, we're seeing very good adoption and interest in the use of Y cans for the treatment of molluscum, both across the pediatrician market, but also our core dermatology market as well.
Speaker Change: Sell side is versus some of the sales force investments potential R&D investment as it relates to your guidance to be cash positive monthly operating result by yearend. Thank you so much.
Speaker Change: Thank you Stacy this is Jason I appreciate all those questions I'll try and tackle them in order if I leave something out please feel free to follow up.
Speaker Change: In general we're seeing very good adoption and interest in the use of why can't the treatment of molluscum, both across the pediatrician market, but also our core dermatology market as well.
Jason Rieger: The patients you are seeking, the dermatologists and the pediatricians are getting treated. Obviously, we published our clinical results, and the efficacy and safety of Y-Kemp has been disclosed and has been well accepted by the medical professionals, and we're seeing the continued use of the product. Depending on the pediatrician or the dermatologist, we'll see them using, obviously, several applicators or sometimes one, depending on the need of that patient. We still encourage treatment to clearance, as we did in our clinical study, and as the FDA helped us in designing that program. The mixture of those, you know, treating with YCAMP continues to be a blend of all healthcare providers as we continue to roll out the program.
Speaker Change: The patients you are seeking the dermatologist in the nutrition and are getting treated.
Speaker Change: Obviously, we published our clinical results and the efficacy and safety.
Speaker Change: Why cant theres been disclosed and has been well accepted by the medical professionals and we're seeing the continued use of the product.
Speaker Change: Depending on the pediatrician or the dermatologist youll see them using obviously, several applicators or sometimes one depending on the needs of that patient well, we still encourage treatment to clearance as we did in our clear in our clinical study and as the FDA help us in designing that program.
Speaker Change: The mixture of those.
Speaker Change: Treating with why can't continues to be a blend of all health care providers as we continue to roll out the program.
Jason Rieger: In terms of 2025, you know, I think we're continuing to see good momentum that we saw going into the end of last year, as we discussed in the past, you know, we expected this to be a turnaround, and would take into the first quarter to realize, and we're starting to see that traction, you know, even ahead of our original schedule, we're still being cautiously optimistic, but remain optimistic, and confident we'll continue to see, you know, growth in the business. And, you know, that wrapping up the quarter, and we'll be closing, you know, updates on that, obviously, you know, in the next few months, as the quarter comes to a close.
Speaker Change: In terms of 2025.
Speaker Change: I think we're continuing to see good momentum that we saw going into the end of last year as we discussed in the past we expected this to be a turnaround it would take into the first quarter to realize and we're starting to see that traction even ahead of our original schedule, we're still being cautiously optimistic but remain optimistic.
Speaker Change: And confident we'll continue to see growth in the business and that we're wrapping up the quarter and we will be disclosing your updates on that obviously in the next few months as the quarter comes to a close.
Stacy Ku: In terms of guidance and consensus, at this point, we're going to just leave guidance where the analysts have left it so far, and as we gain momentum in the year and have better clarity on that, we may have further conversations, but at this point, our policy is not to provide revenue guidance. Thank you. Thank you, Stacy.
Speaker Change: In terms of guidance and consensus at this point, we're going to just leave guidance.
Speaker Change: Analysts have left it so far and as we gain momentum in the year and have better clarity on that we may have further conversations but at this point our policy is not to provide revenue guidance.
Speaker Change: Okay. Okay very helpful. Thank you. Thank you Stacey.
Speaker Change: We will go next to Gregory <unk> with RBC capital markets.
Gregory Renza: And we'll go next to Gregory Renza with the RBCI. Great, great. Hey, good afternoon, Jason and team. Congrats. Progress. Jason, maybe just building on your commentary as you're focusing. Page 1 Page 2 Page 3 Page 4 Page 6 generation.
Gregory: Great Great Hey, good afternoon, Jason and team congrats on.
Gregory: On the progress that schedule and thanks for taking my question.
Speaker Change: Jason maybe just maybe just building on your commentary.
Gregory: Focusing.
Jason Rieger: Our field force and your efforts in <unk>.
Speaker Change: Really geared towards that that demand generation I'm just curious if you could comment on maybe some of those.
Gregory Renza: I'm just curious.
Jason Rieger: I may be... And do you have the air? No problem. So, I would say that we've been establishing this business, you know, to be poised for, you know, both changes in seasonality if they are to occur. Often there is commentary that as the weather warms up and, you know, kids are more active outside that could continue to support the growth. And we're building our sales force and our team to be prepared for, you know, both the seasonality should it occur, going into, you know, the second quarter and third quarter beyond this year as the weather warms up.
Speaker Change: Seasonal tailwind or even some sort of that periodic headwinds that can occur throughout the year.
Speaker Change: Certainly.
Speaker Change: We entered the warmer months the spring and the summer and you have do you have any views on what you're hearing as far as potential lifts or momentum that you could get at the convergence with the demand generation Youre working on thanks, so much.
Speaker Change: No problem, so I would say that we've been establishing this business.
Speaker Change: To be poised for both changes in seasonality if they were to occur.
Speaker Change: Often there is commentary that as the weather warms up.
Speaker Change: Kids are more active outside that could continue to support the growth and where we are building our sales force and our team to be prepared for both the seasonality should it occur.
Speaker Change: Going into <unk>.
Speaker Change: The second quarter and third quarter beyond this year as the weather warms up Fortunately beautiful weather up today I think spring is rapidly approaching and we will see that obviously there was some rough winter weather this year and we've been very very optimistic by what we've seen so far given the weather.
Jason Rieger: You know, fortunately, you know, it's beautiful weather out today. I think, you know, spring is rapidly approaching and we'll see that. Obviously, there was some rough winter weather this year and we've been very, very optimistic by what we've seen so far, you know, given the weather, the time of year, the deductible season, et cetera. And so, we remain cautiously optimistic about what this quarter and the, you know, upcoming quarters will look like.
Speaker Change: Time of year, the deductible season et cetera, and so we remain cautiously optimistic about what this.
Speaker Change: And the upcoming quarters will look like.
Jason Rieger: And maybe just a longer-term question, maybe just remind us of how you're framing up the barriers to generic entry. You know, we actually have a very robust, you know, IP portfolio that, you know, takes us, you know, well, you know, into the future. And in terms of, you know, generics, you know, obviously, that's a long way off, you know.
Speaker Change: That's helpful and maybe just a longer longer term question, maybe just remind us of how you're framing up the the barriers to generic entry in the <unk>.
MIT.
Speaker Change: IP protection that you see with respect to why can't.
Speaker Change: We actually have a very robust.
Speaker Change: Portfolio that takes us well into the future.
Speaker Change: And in terms of generics, obviously, that's a long way off historically.
Jason Rieger: Historically, the compounders have been the predominant concern, and we're working through both any challenges from them, but also, you know, just going to where the market is. And we're finding, well, good adoption to our product. They have historically, you know, removed the 503B, you know, compounders from the market, predominantly from Canada. That settlement was announced last year. And, you know, we're moving forward with our program and finding good adoption.
Speaker Change: Compound or has it been.
Speaker Change: Predominant concern and we're working through both any challenges from them, but also just going to where the market is and we're finding good adoption to our product.
Speaker Change: Have historically moved removed by what would be your compound from the market predominantly from Canada that settlement was announced last year and we're moving forward with our program and finding good adoption.
Speaker Change: Yes.
Gregory Renza: Thanks again. I'll hop back in the queue.
Speaker Change: Thanks, Ken I'll hop back in the queue.
Unknown Attendee: Thanks, Greg. You can go next to Serge Belanger.
Speaker Change: Thanks, Greg.
Speaker Change: We will go next to Serge Belanger with Needham <unk> company.
Jason Rieger: This is John on for Serge today. Thanks for taking our questions. So first on why can't you previously spoken on looking to expand usage beyond dermatologists. I just wanted to gauge what sort of impact you've had on this front thus far and what you aim to achieve in terms of distribution between pediatrics and dermatology. So, to that front, I would say that we are focusing, you know, on where the patients are going, and we've seen a growth in the pediatric market, you know, the product did start in the derms, and I would say the derms have been, you know, a customer base that's both loyal to us, and we continue to both focus on and support, and we have found in some cases, you know, our pediatric derms, other derms, have worked with us to expand access to their pediatric colleagues in the same community, at this moment, I would say the majority of our customers are still dermatologists, you know, who see the patients, but we're seeing a very large growing percentage of the pediatricians treating with Y-cams. So, I would expect over time, you know, that mix is probably going to waffle back and forth between 60-40, 40-60, depending on how this product rolls out, but, you know, we're rapidly approaching sort of that equilibrium.
Speaker Change: This is John on for search today, Thanks for taking our questions. So first on why cant you previously spoken on looking to expand usage beyond dermatologists and to the pediatric setting.
Speaker Change: Just wanted to gauge what sort of impact you've had on this front itself, thus far and what you aim to achieve achieve in terms of <unk>.
Speaker Change: Distribution between pediatrics and dermatologist in the future.
Speaker Change: So to that front I would say that we are focusing on.
Speaker Change: Where the patients are going and we've seen a growth in the pediatric market. The product did start in the <unk> and I would say the terms have been a customer base that has both been loyal to us and we continue to both focus on and support.
Speaker Change: And we have found in some cases, our pediatric terms other terms have worked with us to expand access to their pediatric colleagues in the same community.
Speaker Change: At this moment I would say the majority of our customers are still dermatologist, who see the patients, but we're seeing a very large growing percentage of the pediatric or the pediatrician.
Speaker Change: <unk> with <unk>.
Speaker Change: I would expect over time that mix is probably going to pull back and forth between 60, 40, 40 60, depending on how this product rolls out, but we're rapidly approaching sort of that equilibrium now.
Unknown Attendee: Okay, that's great.
Speaker Change: Okay. That's great. Thank you and then real quick on the CPE 315.
Unknown Attendee: Thank you.
Jason Rieger: And real quick on the VP315. Obviously, we will see some additional data and FDA minutes in the first half here. But considering your new cost structure, I was just curious what your plans are in terms of timing to move this program into phase three. Yeah, so, you know, as we were, as we've indicated before, we're, we're very fortunate that all the, the majority of the expense for that program was spent in the prior year, and the remaining, you know, data that's being collected in the regulatory interactions are de minimis in cost. Once we have that data in hand and that full package, we'll evaluate the program.
Speaker Change: Obviously, we'll see some additional data and FDA minutes in the first half here.
Speaker Change: Considering your new cost structure I was just curious what your plans are in terms of.
Speaker Change: Timing to move this program into phase III.
Speaker Change: Yes.
Speaker Change: As we were as we've indicated before we're very fortunate that all of the the majority of the expense for that program was spent in the prior year and the remaining.
Speaker Change: Data that's being collected in the regulatory interactions are de Minimis and cost once we have that data in hand, and that full package will evaluate the program. It will also help us determine what the cost of that development program might look like and we can then explore the best way to advance the program with all options available.
Jason Rieger: It'll also help us determine what the cost of that development program might look like, and we can then explore the best way to advance the program, you know, with all options available to us. The company does currently own the full rights to the program, so we have lots of opportunity for developing and advancing it, and we'll make a disclosure on what we may or may, what we may do to advance it once we have definitive FDA feedback and can confirm on what a development program might look like.
Speaker Change: To us the company does currently own full rights to the program. So we have lots of opportunity.
Speaker Change: For developing and advancing it and we'll make a disclosure on what we may or May we may do to advance. It once we have definitive FDA feedback and can confirm on what our development plan looks like.
Kemp Dolliver: Great, thank you. We'll go next to Kemp Dolliver with... Great, thanks. You're seeing a sequential uptick in And we'll continue to make some progress.
Speaker Change: Great. Thank you.
Speaker Change: Yes.
Speaker Change: We'll go next to Ken <unk> with Brookline capital markets.
Speaker Change: Great. Thanks.
Speaker Change: You're seeing.
Speaker Change: The sequential uptick in demand for applicators.
Speaker Change: And.
Speaker Change: Continuing to make some progress.
Jason Rieger: What do you think you need to do to achieve what I think you've described as a hockey stick? Improvement in demand. Sure, so I think, you know, growth in any business requires two things, acquisition of new customers, as well as, you know, continued use, utilization and growth of existing You know, fortunately, we're seeing both in this business as we've, you know, done the turnaround and are moving forward. You know, our sales reps are very, very active in the field in, you know, dealing with, you know, customer needs. Our reimbursement teams are there to help. We have an expanded access through telesales, you know, to cover white space and additional support.
Speaker Change: What do you think you need to do to achieve.
Speaker Change: Well I think you've described as a hockey stick.
Speaker Change: Improvement in demand.
Speaker Change: At some point.
Speaker Change: Sure. So I think growth in any business requires two things acquisition of new customers as well as continued use utilization and growth of existing customers.
Speaker Change: We're seeing both.
Speaker Change: In this business as we've done the turnaround and are moving forward. Our sales reps are very very active in the field.
Speaker Change: You're dealing with customer needs. Our reimbursement teams are there to help we havent expanded access.
Speaker Change: Through telesales to cover white space and additional support and ultimately it's going to require you advancing into larger larger markets.
Jason Rieger: And ultimately, it's going to require, you know, advancing into larger markets. And so we have historically worked with and are engaging with some of the larger practices, both that exist in the pediatric and the dermatology community, you know, as well as expanding with the independent pharmacies and our pharma distribution partner, NuFactor. I think those are ways we can provide product in a scalable way to customers and start seeing, you know, extra reach. So I think those are some of the key areas we'll see expansion and growth in the market. Thank you.
Speaker Change: And so we have historically worked with and are engaging with some of the larger practices both that exist in the pediatric and the dermatology community as well as expanding with the independent pharmacies and our pharma distribution partner New factor I think those are ways that we can provide product in a scalable way.
Speaker Change: Two customers and start seeing extra reach.
Speaker Change: So I think thats, one of those or some of the key areas, we will see expansion and growth of the market.
Speaker Change: Okay.
Speaker Change: Thank you.
Operator: It appears we have no further questions. Thank you for your time.
Speaker Change: And it appears we have no further questions at this time I will turn the conference back to Mr. Reger for any additional or closing comments.
Jason Rieger: I will turn the conference back to Mr. Rieger for any additional questions. Thank you, Operator.
Yes. Thank you operator I'd like to thank you all for joining this evening and we look forward to providing updates on our progress throughout 2025. Thank you very much.
Jason Rieger: I'd like to thank you all for joining this evening, and we look forward to providing updates on our progress throughout 2025. Thank you very much.
Speaker Change: Thank you, ladies and gentlemen that will conclude today's call. We thank you for your participation you may disconnect at this time.
Operator: And ladies and gentlemen, that will conclude today's call.
Speaker Change: [music].
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Unknown Executive: © BF-WATCH TV 2021 © The Ultimate Parody Site! © The Bulletproof Executive 2013 © The Ultimate Parody Site! © The Bulletproof Executive 2013
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