Q1 2025 Journey Medical Corp Earnings Call
Ladies and gentlemen, thank you for standing by good afternoon, and welcome to journey Medicals first quarter 2025 financial results and corporate update conference call. At this time all participants are in a listen only mode should you need assistance. Please signal a conference specialist by pressing the Starkey followed by <unk>.
Operator: Ladies and gentlemen, thank you for standing by.
Operator: Good afternoon and welcome to Journey Medical's first quarter 2025 financial results and corporate update conference call. At this time, all participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
Here at all.
Operator: Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes.
Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes.
Operator: A webcast replay of this call will be available approximately one hour after the end of the call for approximately 30 days.
A webcast replay of this call will be available approximately one hour. After the end of the call for approximately 30 days.
Jaclyn Jaffe: I would now like to turn the call over to Jaclyn Jaffe, the company's Senior Director of Corporate Operations. Please go ahead, Jaclyn.
Speaker Change: I would now like to turn the call over to Jacqueline Jaffe, the company's senior director of corporate operations. Please go ahead Jacqueline.
Jaclyn Jaffe: Good afternoon, and thank you for participating in today's conference call.
Jacqueline Jaffe: Good afternoon, and thank you for participating in today's conference call. Joining me from journey Medicals leadership team, our Quad Murali co founder President and Chief Executive Officer, and Joseph <unk>, Chief Financial Officer, joining for the Q&A portion of the call will be Ramsey Elish, Chief operating officer in January.
Jaclyn Jaffe: Joining me from Journey Medical's leadership team are Claude Maraoui, co-founder, president and chief executive officer, and Joseph Benesch, chief financial officer.
Jaclyn Jaffe: Joining for the Q&A portion of the call will be Ramzi Alloosh, chief operating officer and general counsel, Dr. Srinivas Sidgiddi, vice president of research and development, and Louis Donati, director of market access.
Speaker Change: Counsel, Dr Shree needs to Getty, Vice President of research and development.
Speaker Change: Lois tenacity director of market access during the call management will be making forward looking statements, including statements that address among other thing journey medical's expectations for future performance operational results financial condition, and the receipt of regulatory approvals.
Jaclyn Jaffe: During this call, management will be making forward-looking statements, including statements that address, among other things, Journey Medical's expectations for future performance, operational results, financial condition, and the receipt of regulatory approvals. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.
Speaker Change: Forward looking statements involve risks and other factors that may cause actual results to differ materially from those statements for more information about these risks. Please refer to the risk factors described in journey medical.
Jaclyn Jaffe: For more information about these risks, please refer to the risk factors described in Journey Medical's most recently filed periodic reports on Form 10-K and Form 10-Q, the Form 8-K files with the SEC today, and the company's press release that accompanies this call, particularly the cautionary statements in it.
Speaker Change: Most recently filed periodic reports on Form 10-K, and Form 10-Q, the form 8-K filed with the SEC today and the company's press release that accompanies this call, particularly the cautionary statements in it.
Jaclyn Jaffe: Today's conference call includes non-GAAP financial measures that Journey Medical believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure to Net Loss, its most directly comparable GAAP financial measure, please see the reconciliation table located in the company's earnings press release.
Speaker Change: Today's conference call includes non-GAAP financial measures. The journey medical believes can be useful in evaluating its performance you should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP for a reconciliation of this non-GAAP financial measure to net loss its most directly can.
Speaker Change: Horrible GAAP financial measure please see the reconciliation table located in the company's earnings press release.
Jaclyn Jaffe: The content of this call contains time-sensitive information that is accurate only as of today, Wednesday, May 14th, 2025.
Speaker Change: Content of this call contains time sensitive information that is accurate only as of today Wednesday may 14th 2025, except as required by law journey medical disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur. After this call.
Jaclyn Jaffe: Except as required by law, Journey Medical disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.
Claude Maraoui: It is now my pleasure to turn the call over to Claude Maraoui, co-founder, president, and chief executive officer of Journey Medical. Thank you, Jaclyn, and good afternoon to everyone on the call today. The first quarter of 2025 represented a major milestone for Journey Medical as we introduced MROSI, our best-in-class oral rosacea treatment, into the market. Today, I am pleased to report that our first quarter 2025 net product sales of $13.1 million included approximately $2 million of initial Ambrosi revenue. And the launch is off to a great start. Additionally, our in-line products continue to perform and remain contribution positive, providing a strong foundation as Amrosi gains market traction.
Speaker Change: It is now my pleasure to turn the call over to climb rally co founder President and Chief Executive Officer of drainage.
Speaker Change: Thank you Jaclyn and good afternoon to everyone on the call today.
Speaker Change: The first quarter of 2025 represented a major milestone for journey medical as we introduce them Rowsey, our best in class oral rosacea treatment into the market.
Speaker Change: I am pleased to report that our first quarter 2025, net product sales of $13 $1 million.
Speaker Change: Alluded approximately $2 million of initial <unk> revenue.
Speaker Change: And the launch is off to a great start. Additionally.
Speaker Change: Additionally, our inline products continue to perform and remain contribution positive providing a strong foundation as ambrosi gains market traction.
Claude Maraoui: We believe that the positive initial response that we are seeing with Ambrosi's market introduction gives us even more confidence that Ambrosi will become our flagship product and enable us to become sustainably EBITDA positive later this year. Ahead of the launch, we showcased MROSI at the 2025 American Academy of Dermatology Annual Meeting, or the AAD, which attracts over 20,000 attendees, including top dermatology KOLs and high prescribing physicians, nurse practitioners, and physician assistants. We hosted a productive exhibit booth at the conference, educating attendees about Ambrosy Superior head-to-head phase three results against Oratia, as well as the product's favorable safety and tolerability profile.
Speaker Change: We believe that the positive initial response that we're seeing with <unk> market introduction gives us even more confidence that <unk> will become our flagship product and enable us to become sustainably EBIT positive later this year.
Speaker Change: Ahead of the launch we showcased <unk> at the 2025 American Academy of Dermatology annual meeting or the AAD, which attracts over 20000 attendees, including top dermatology Kols and high prescribing physicians nurse practitioners.
Speaker Change: And physician assistance.
Speaker Change: We hosted a productive exhibit booth at the conference educating attendees about Bruce you superior head to head.
Speaker Change: <unk> phase III results against a ratio as well as the products favorable safety and Tolerability profile.
Attendees were especially drawn to a before and after photos from our clinical trials illustrating the efficacy of <unk> unique 40 milligram modified release formulation, which is comprised of 10 milligram immediate release 30 milligram extended release tremendous cycling.
Claude Maraoui: Attendees were especially drawn to before and after photos from our clinical trials illustrating the efficacy of OMEROSI's unique 40 mg modified release formulation, which is comprised of 10 mg immediate release and 30 mg extended release minocyte. We believe that the AAD meeting helped prime the market for the EMROSI launch, showcasing the product's superior clinical profile and key benefits. On March 5th, we announced that the Phase 3 clinical trial results for MROSI in the treatment of rosacea were published in the Journal of the American Medical Association, or JAMA Dermatology. The publication featured data from our two phase three clinical trials, which demonstrated statistical superiority of AMROSI over Oratia and placebo for the two co-primary endpoints in the study.
Speaker Change: We believe that the AAD meeting helped to prime the market for the <unk> launch showcasing the products superior clinical profile and keep benefits.
Speaker Change: On March 5th we announced that the phase III clinical trial results firm row seat in the treatment of Rosacea were published in the journal of the American Medical Association or Jama dermatology.
Speaker Change: The publication featured data from our two phase III clinical trials, which demonstrated statistical superiority of from Roche sheet overall ratio and placebo for the two co primary endpoints in our studies.
Claude Maraoui: IGA treatment success and total lesion count reduction. The article also noted positive and statistically significant results on secondary endpoints, such as the reduction in erythema compared to placebo in both studies. JAMA dermatology has a high impact factor among dermatologists and we are very pleased that our strong phase three results were peer-reviewed and published in this prestigious journal. We also welcome the March update from the National Rosacea Society, which revised its clinical treatment algorithms to include Ambrosia. These updated guidelines were distributed to approximately 7,500 dermatology professionals across the U.S. and mark an important step toward broad clinical adoption.
Speaker Change: Treatment success in total lesion count reduction.
Speaker Change: The article also noted positive and statistically significant results on secondary endpoints, such as the reduction in erythema compared to placebo in both studies.
Speaker Change: Jim on Dermatology has a high impact factor among dermatologists and we are very pleased that our strong phase III results or peer reviewed and published in this prestigious journal.
Speaker Change: We also welcomed the March update from the National Rosacea Society, which revised its clinical treatment algorithms to include roshi.
Speaker Change: These updated guidelines were distributed to approximately 7500 dermatology professionals across the U S and mark an important step toward broad clinical adoption.
Claude Maraoui: We view this as a strong signal of confidence from the dermatology community and a catalyst for increased market uptake. As we discussed on our MROSI commercial launch plan conference call in February, we actively call on approximately 83 percent of dermatology offices that prescribe oral rosacea treatment. In addition, the vast majority of prescriptions written for oral rosacea treatments come from dermatology offices that already prescribe Journey Medical products. This high reach and strong brand equity have accelerated Ambrosy's penetration and we will expect this trend to continue. Ambrosi represents a strategic fit into our product portfolio. We are already demonstrating strong uptake based on the initial script volumes.
Speaker Change: We view this as a strong signal of confidence from the dermatology community and the catalyst for increased market uptake.
Speaker Change: As we discussed on our <unk> commercial launch plan conference call in February we actively call on approximately 83% of dermatology offices, the prescribed oral rosacea treatments.
Speaker Change: In addition, the vast majority of prescriptions written for oral rosacea treatments come from dermatology offices that already prescribed journey medical products.
Speaker Change: Hi, reach and strong brand equity have accelerated <unk> penetration and we will expect this trend to continue.
Speaker Change: <unk> represents a strategic fit into our product portfolio, we are already demonstrating strong uptake based on the initial script volumes.
Speaker Change: As we work to generate strong brand awareness and positive prescription trends firm rosy.
Claude Maraoui: As we work to generate strong brand awareness and positive prescription trends for Ambrosia. It is equally important to ensure that payer coverage is also expanding so that we can translate prescribing momentum into product sales. On our fourth quarter 2024 earnings call in March, we noted that approximately 20% of the 188 million lives in the commercial payers segment had access to MROC through their health insurance plan. Today, I am pleased to report that approximately 30% of covered commercial insured lives now have access to Ambrosia. As we build demand, we are also making steady progress in securing market access as we recently contracted with one of the largest commercial GPOs to include access to MROSI for the multi-millions of members through its customer health plans, which will begin July 1st.
Speaker Change: Is equally important to ensure that payer coverage is also expanding so that we can translate prescribing momentum into product sales.
Speaker Change: On our fourth quarter 2024 earnings call in March we noted that approximately 20% of the 188 million lives in the commercial payers segment had access to <unk> through their health insurance plans.
Speaker Change: Today I am pleased to report that approximately 30% of covered commercial insured lives now have access to them roshi.
Speaker Change: As we build demand we are also making steady progress in securing market access as we recently contracted with one of the largest commercial G. P. O's to include access to Rosie for the multi millions of members through its customer health plans, which will begin to.
Speaker Change: <unk> first.
Claude Maraoui: Additional payer agreements are expected in the coming months, further advancing our market access strategy.
Speaker Change: Additional payer agreements are expected in the coming months further advancing our market access strategy.
Joseph Benesch: And with that, I will now turn the call over to our CFO. Joe Benesch to review our financial results for the first quarter. Thank you, Claude, and good afternoon to everyone on the call. Our net revenue for the first quarter of 2025 was $13.1 million. compared to $13 million for the first quarter of 2024. First quarter of 2025 includes $2 million of incremental net product revenue related to the U.S. commercial launch of Enron. Our gross margin increase is 64% for the first quarter of 2025 and 54% in the prior period. due to lower overall product cost of goods mainly related to product sales mix and non-recurring charges in the prior year.
Speaker Change: And with that I will now turn the call over to our CFO.
Speaker Change: Ill finish to review our financial results for the first quarter.
Speaker Change: Thank you Claude and good afternoon to everyone on the call.
Speaker Change: Net revenue for the first quarter of 2025 was $31 million compared to $13 million for the first quarter of 2024.
Speaker Change: First quarter of 2025 includes $2 million in incremental net product revenue related to the U S commercial launch if and rosy.
Speaker Change: Our gross margin increased to 64% for the first quarter of 2025 and 54% in the prior period.
Speaker Change: It's a lower overall product cost of goods, mainly related to product sales mix and nonrecurring charges in the prior year.
Joseph Benesch: R&D costs were nil in the first quarter of 2025 compared to $7.9 million in the first quarter of 2024. First quarter of 2024 includes enrossee-related pre-approval and milestone payment.
Speaker Change: R&D costs were nil in the first quarter of 2025 compared to $7 $9 million in the first quarter of 2024.
Speaker Change: First quarter of 2024 includes in grocery related pre approval and milestone payments.
Joseph Benesch: Looking now to our SG&A expense. SG&A increased by $2.1 million to $10.6 million for the first quarter of 2025. $8.4 million for the first quarter of 2024. The increase primarily reflects investments in incremental commercial infrastructure to support the AMBROSI launch.
Speaker Change: Looking now to our SG&A expenses.
Speaker Change: SG&A increased by $2 $1 million to $10 $6 million for the first quarter of 2025.
Speaker Change: $8 $4 million for the first quarter of 2024.
Speaker Change: The increase primarily reflects investments and incremental commercial infrastructure to support the ambrosi launch.
Joseph Benesch: Continuing to our net loss for the period. Net loss to Comcast shareholders was $4.1 million for $0.18 per share basic and diluted for the first quarter of 2025. This compares to a net loss to common shareholders of $10.4 million, or $0.53 per share basically diluted for the first quarter of 2024. We ended the first quarter of 2025 with $21.1 million in cash compared to $20.3 million at December 31, 2024. Thank you very much.
Speaker Change: Continuing with our net loss for the periods.
Speaker Change: Net loss to common shareholders was $4 $1 million or <unk> 18 per share basic and diluted for the first quarter of 2025.
Speaker Change: This compares to a net loss to common shareholders of $10 $4 million or <unk> 53 cents per share basic and diluted for the first quarter of 2024.
Speaker Change: We ended the first quarter of 2025 with $21 $1 million in cash compared to $20 3 million at December 31, 2024.
Speaker Change: Thank you very much I will now turn the call back to Claude.
Claude Maraoui: I will now turn the call back to Claude. Thank you, Joe. The first quarter marked the launch of Amrosi, in addition to several momentum building activities to support adoption of the product. such as our exhibit booth at the AAD conference, the JAMA Dermatology publication of Ambrosy's phase three clinical trial results. Inclusion of MROSI in the National Rosacea Society's Treatment Algorithms and Establishment of Payer Coverage for a Significant Percentage of Commercial Lives, all less than two months until MROSI's launch. Our dermatology-focused sales force has been fully trained and is in the field building the Ambrosy's brand and prescription demand with existing and new customers, in addition to continuing to generate demand with the other prescription dermatology products.
Speaker Change: Thank you Joe the first quarter marked the launch of a rosy. In addition to several momentum building activities to support adoption of the product such as our exhibit booths at the AAD conference. The Jama dermatology publication of <unk> Phase III clinical trial results.
Speaker Change: Inclusion of them rosy in the National Rosacea Society treatment algorithms.
Speaker Change: And establishment of payer coverage for a significant percentage of commercial lives.
Speaker Change: All less than two months until most of these launch.
Speaker Change: Our dermatology focused sales force has been fully trained and is in the field building the <unk> brand in prescription demand with existing and new customers. In addition to continuing to generate demand with the other prescription dermatology products.
Claude Maraoui: Early indicators are encouraged. with over 660 unique healthcare providers writing prescriptions for MROSI to date. This is a testament to the effectiveness of our team and the unmet need AMROSI is addressing. We are confident the launch will continue to build momentum throughout the year. With strong initial revenue, improving margins, and a solid cash position, we are on track to accelerate our path to profitability. Looking ahead, we are focused on expanding access, growing prescription volume, and publishing additional peer-reviewed data that further supports MROSI's clinical value.
Speaker Change: Early indicators are encouraging with over 660 unique health care providers, writing prescriptions for them Roche seat to date.
Speaker Change: This is a testament to the effectiveness of our team and the unmet need Ambrosi is address it.
Speaker Change: We are confident the launch will continue to build momentum throughout the year.
Speaker Change: With strong initial revenue improving margins and a solid cash position, we are on track to accelerate our path to profitability.
Speaker Change: Looking ahead, we are focused on expanding access growing prescription volume and publishing additional peer reviewed data that further supports some row seats clinical value.
Claude Maraoui: We remain committed to creating long-term value for patients, providers, and shareholders, and we believe 2025 is shaping up to be a transformational year for Journey Medical. Thank you.
Speaker Change: We remain committed to creating long term value for patients providers and shareholders and we believe 2025 shaping up to be a transformational year for journey medical.
Speaker Change: Thank you operator, we are now ready to open the lines for Q&A.
Operator: Operator, we are now ready to open the lines for Q&A. Thank you. We will now begin the question and answer session.
Speaker Change: Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
Operator: To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before. To withdraw your question, you may press star, then two.
Speaker Change: If you're using a speakerphone please pick up your handset before.
Speaker Change: So withdraw your question you May Press Star then two.
Operator: At this time, we will pause momentarily to assemble our roster.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Scott Henry: Today's first question comes from Scott Henry with a G. P. Please go ahead.
Scott Henry: Today's first question comes from Scott Henry with AGP. Please go ahead. Thank you, and good afternoon. Certainly a lot going on. I guess first, it sounds like the Q1 revenues for M-ROSI was largely stocking. Going forward, would you expect revenues to reflect demand? And any thoughts how we should think about 2Q, you know, if there'll be a lag at all, or, you know, just trying to get a sense of how we should expect revenues to be reported. Thanks, Scott.
Speaker Change: Thank you and good afternoon are certainly a lot going on I guess first it sounds like the Q1 revenues for M. Rowsey was largely stocking.
Speaker Change: Going forward would you expect revenues to reflect demand.
Speaker Change: And any thoughts how we should think about two Q.
Speaker Change: There'll be a lag at all or you just trying to get a sense of how we should expect our revenues to be reported.
Claude I.: Yeah. Thanks, Scott. This is Claude I. Appreciate the question. Yeah. We are we wanted to make sure that we had ample supplies to stock our distribution channel and that's what we really did in that last week and a half of March and we wanted to make sure that the.
Claude Maraoui: This is Claude. Appreciate the question. Yeah, we wanted to make sure that we had ample supplies to stock our distribution channel. And that's what we really did in that last week and a half of March. And we wanted to make sure that the dermatology offices that we call on have sufficient supplies into the pharmacies that they typically utilize with our patients. So we were able to do that. And that's the $2 million that you're referencing there. So they're stocked. Our national sales meeting with our team, our sales force, took place. And their first official day of really launching the brand started on April 7.
Claude I.: Dermatology offices that we call on have sufficient supplies into the pharmacies that they typically utilized with their patients. So we were able to do that and that's the $2 million.
Claude I.: That you are referencing there so they're stocked our national sales meeting with our.
Speaker Change: Team our sales force.
Speaker Change: Took place and their first official day of really launching the brand started on April 7th.
Claude Maraoui: So from that point on, Scott, they are certainly pulling product through the distribution channel. And of course, we expect additional revenues in Q2 to come from that as well. We just have not decided to give any particular expectations as to what revenues could look like in Q2, for example. We're in our fourth, fifth week of launch. We love the way things are going.
Speaker Change: From that point on Scott they are certainly pulling product through the distribution channel and of course, we expect additional revenues in Q2 to come from that as well.
Speaker Change: We just have not decided to give any particular expectations as to what revenues could look like in Q2 for example, where in art.
Speaker Change: Fourth fifth week of launch we loved the way things are going.
Scott Henry: And we look forward to giving some, hopefully, very good news at the end of Q2 regarding Ambrosia. Okay, great.
Speaker Change: And we look forward to giving some hopefully very good news at the end of Q2 recording and Brushy.
Speaker Change: Okay, Great and then one question on the legacy business.
Scott Henry: And then one question on the legacy business. If I pull out the two million, it looks like the legacy business was down about, you know, 10 to 15%. Do you think that was a quarterly, perhaps some noise in the first quarter? Or is that more of a trend?
Speaker Change: If I pull out the $2 million it looks like the legacy business was down about 10% to 15% I do you think that was a quarterly perhaps some noise in the first quarter or is that more of a trend and you know really can you. Just you had talked to keep Brexit in acute pain as the biggest drivers there.
Claude Maraoui: And, you know, really, can you just, you know, talk to Qbrexit and Accutane as the biggest drivers? Yeah, sure. First of all, the legacy business, what we qualify that as, are old brands that do have generic competition. They include Targetox, they include Exelderm, and there's been a reduction almost on a quarterly basis for that. We would expect some of that to continue with the legacy brands.
Speaker Change: Yeah sure.
Speaker Change: First of all the legacy business, what we qualify that as are our old branch that you have generic competition. They include Targa docs. They include actual derm and there is there's been a reduction almost on a quarterly basis for that and we we would expect some of that.
Speaker Change: To continue with the legacy brands.
Claude Maraoui: In reference to Q-BREXA, we are extremely pleased with how the product performance continues to be. As you're well aware, a competitor came out to Q-BREXA called Softra. They started their launch back in January of this year. They have a full sales force, and they're working on their telemedicine platform. We are looking at prescriptions all the way through March, and we actually just got prescriptions of April as of today. And what we're seeing is exactly what we had expected. Softra and Botanics is bringing more awareness to the disease state of primary axillary hyperhidrosis and we are benefiting, I believe, from that including what our marketing and commercial team is doing.
Speaker Change: And in reference to Cube, Russia.
Speaker Change: We are extremely pleased with how the product performance continues to be.
Speaker Change: As you're well aware.
Speaker Change: Competitor came out <unk> show called softer.
Speaker Change: They started their launch back in January of this year, they have a full sales force.
Speaker Change: And they're working on their tele medicine plot.
Speaker Change: Platform.
Speaker Change: We are looking at prescription all the way through March and we actually just got prescriptions of April as of today.
Speaker Change: And what we're seeing is exactly what we had expected.
Speaker Change: Software in Bhutan X is bringing more awareness to the disease state of primary axillary hyperhidrosis and we are benefiting I believe from that including what our marketing and commercial team is doing so for example in March we were 15 <unk>.
Claude Maraoui: So for example, in March we were 15 percent above in prescriptions compared to last year, 2024 March. And I'm pleased to say in April, again hot off the presses, we continue to see a 15 percent growth month over month when you look at April 2025 versus April 2024. So it's really continuing to ramp up for us. I think patient compliance is a key factor and people are looking for something that's highly efficacious. So even with a competitor out there, we're seeing some solid growth from the brand.
Speaker Change: <unk> above in prescriptions compared to last year 2020 for March and I'm pleased to say in April again hot off the presses, we continue to see a 15% growth.
Speaker Change: Month over month, when you look at April 2025 versus April 2024, So it's really continuing to ramp up for US I think patient compliance is a key factor.
Speaker Change: And you know.
Speaker Change: People are looking for something that's highly efficacious, so even with a competitor out there we're seeing some solid growth from the brand.
And I think lastly, you mentioned Accutane last year.
Claude Maraoui: And I think lastly, you mentioned Accutane. Last year, I mentioned several times that there were two new competitors that fell into the isotretinoin market, which is where Accutane is, and that was Maine and another company called Zytus. They came in hot and fast, and they were working on pricings, and they really hit pricing low to gain market share as quickly as possible. So just as a quick reminder, last year in Q1, we did about 93,000 prescriptions of Accutane. And this year, same quarter, Q1 of 2025, we came in at about 66,000 prescriptions. So there was definitely a hit from that incredible first quarter and last quarter from last year.
Speaker Change: I mentioned several times that there were two new competitors that fell into the isotretinoin market, which is where accutane is.
Speaker Change: And that was our main and another company called Zaidis. They came in a hot and fast and they were they were working on pricing and <unk>.
Speaker Change: They really hit pricing low to gain market share as quickly as possible.
Speaker Change: So just as a quick reminder, last year in Q1, we did about 93000 prescriptions of Accutane and this year same quarter Q1 of 2025, we came in at about 66000 prescriptions. So there was.
Speaker Change: Definitely a hit from that.
Speaker Change: Incredible first quarter and last quarter from last year, but when you look at Q4 of 24 versus Q1 of 'twenty five we've actually grown accutane by about 10%.
Claude Maraoui: But when you look at Q4 of 24 versus Q1 of 25, we've actually grown Accutane by about 10%. And we like and feel that we have stabilized it and that we're starting to grow the brand again. I will let you know that in Q2 last year, again, very solid quarter, about 93, 94,000 prescriptions. So we're not gonna be at that level with Accutane in Q2. But when Q3 and Q4 come around, I think you'll see that we're gonna be stable there with the revenues of Accutane, as well as perhaps growing. in the second half. Okay, great.
Speaker Change: And we we like and feel that we have stabilized it and that we're starting to grow the brand again I will let you know that in Q2 last year.
Speaker Change: Very solid quarter about 90, 394000 prescriptions, so we're not going to be at that level with accutane in Q2, but when Q3 Q4 come around I think you'll see that we're gonna be stable there with the revenues of Accutane as well as perhaps grow.
Speaker Change: Doing that in the second half of the year.
Speaker Change: Okay, great. Thank you for taking those questions I'll jump back into the queue.
Scott Henry: Thank you for taking those questions.
Operator: I'll jump back into the queue. Thanks again. Thank you. As a reminder, to ask a question, you may press star, then one on your telephone keypad.
Speaker Change: Thanks again.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: As a reminder to ask a question you May Press Star then one on your telephone keypad.
Kalpit Patel: The next question comes from Kalpit Patel with B. Reilly Securities. Please go ahead. Hey, good afternoon, and thanks for taking the questions. I had one more on the inventory part of this, you know, until the end of March, can you comment on what the day supply is in the distribution channel? And how you anticipate that, you know, changing? Is it two weeks right now? Do you expect it to go to four weeks?
Speaker Change: The next question comes from Calvert Vitale with B Riley Securities. Please go ahead.
Calvert Vitale: Hey, good afternoon, and thanks for taking my questions.
Calvert Vitale: I had one more on the inventory part of this.
Calvert Vitale:
Calvert Vitale: Until the end of March can you comment on what the day supply is in the distribution channel and how you anticipate that changing in two weeks right. Now do you expect it to about four weeks or what exactly are you looking to keep them.
Claude Maraoui: Or what exactly are you looking to keep in that in the Okay, so yeah, going back to the distribution in March, Kalpit. Absolutely. You know, we have a number of pharmacies that are our customers that dermatologists utilize on a consistent basis. We focused on that group of pharmacies. We call them specialty pharmacies. In terms of the amount of inventory with a brand new launch, that's a particularly difficult answer to give back with a concrete position. But I think your estimation of two weeks, maybe a little bit longer, again, depending on how the ramp up goes.
Calvert Vitale: Yeah.
Calvert Vitale: Okay, So yeah going back to the distribution in March.
Calvert Vitale: Absolutely.
Calvert Vitale: We have a number of pharmacies that are our customers that dermatologist.
Calvert Vitale: Utilized on a consistent basis, we focused on that group of.
Calvert Vitale: Pharmacies, we call them specialty pharmacies.
Calvert Vitale: In terms of the amount of inventory with a brand new launch that's a particularly difficult answer to give back it with a concrete position, but I think your estimation of two weeks, maybe a little bit longer again, depending on.
Calvert Vitale: How the ramp up goes but I would tell you that it's typically between.
Claude Maraoui: But I would tell you that it's typically between two to four weeks is what you see out there typically in a launch. Because it's brand new, there's an unknown to it, so it's hard to come up with a specific core number for that.
Calvert Vitale: Two to four weeks.
Calvert Vitale: What you see out there typically in <unk>.
Calvert Vitale: Lunch, because it's brand new there's an unknown to it. So it is hard to come up with a specific core number for that.
Speaker Change: Okay, and then do you have any early.
Kalpit Patel: Okay, and then do you have any early real-world feedback from the prescribers that are using it? I think you mentioned 660 unique doctors. Any feedback from those doctors?
Speaker Change: Real world feedback from.
Speaker Change: Prescribers that are using it I think you mentioned, Switzerland.
Speaker Change: 16 unique doctors.
Speaker Change: Any feedback from those Doctor again.
Claude Maraoui: And then as a follow-up, is there a good proportion of patients, you know, is it fragmented or is it a certain group of doctors that are prescribing most of the prescriptions that you've seen? Sure. I mean, you know, going back to the product profile, MROSI's product profile, the phase three clinical trial results, you know, we've done numerous advisory boards, the feedback from the field, myself and my colleagues on this call could attest really tremendous positive feedback in terms of how well the product did compared to the current standard of care or ratio. You're talking about 60%, almost a 60% greater improvement in IGA success, as well as approximately 30% greater lesion reduction.
Speaker Change: One is a follow up is there.
Speaker Change: A good proportion of patients.
Speaker Change: Is it fragmented or is it.
Speaker Change: Certain group of doctors that are prescribing most of it.
Speaker Change: Sure.
Speaker Change: I mean, you know.
Speaker Change: Don going back to the product profile of <unk> product profile.
Speaker Change: The phase III clinical trial results.
Speaker Change: We've done numerous advisory boards, the feedback from the field myself and my colleagues on this call could test really tremendous positive feedback in terms of how well the product did compared to the current standard of care.
Our ratio Youre talking about 60% almost 60% greater improvement in Iga success, as well as approximately 30% greater lesion reduction and when our sales team is introducing that data that really makes them.
Claude Maraoui: And when our sales team is introducing that data, that really makes them pause. So I don't want to take anything away from that. That is really critical and meaningful to these HCPs. and the tolerability profile that's equal to placebo, I think that whole proposition value really makes doctors pause. Now, they have been. consistently using Oration now for almost two decades. Here we are coming out and introducing this new product, new formulation, lowest strength minocycline out on the market. We have a unique proprietary 10 milligram of immediate release, 30 milligram extended release. There's a lot there, and I think that's really eye-catching.
Speaker Change: So I don't want to take anything away from that that is really critical and meaningful to these H C piece.
Speaker Change:
Speaker Change: And.
Speaker Change: You know the Tolerability profile, that's equal to placebo I think that whole proposition value really makes doctors pause now they have been.
Speaker Change: Consistently using operation now for almost two decades sure we are coming out and introducing this new product new formulation lowest strength minutes cycling out on the market, we have a new unique proprietary 10 milligram.
Speaker Change: Mediate released 30 milligram extended release, there is a lot there and I think that's really eye catching about two days ago.
Claude Maraoui: About two days ago, a dermatologist from New Jersey sent me before and after pictures. I couldn't see who the patient name or anything private about the patient, but they showed me when they walked into their practice, certainly were designated for rosacea treatment, and the four weeks later when he saw this patient back, Do this. Remarkable. And it certainly has reinforced him in particular to continue to prescribe AMROSI moving forward. So really fast pickup. I love watching because we have incredible before and after pictures from the phase three clinical trials. But when someone shares a real clinical practice office here post our launch, it's dramatic.
Speaker Change: Our mythology.
Speaker Change: Dermatologist from New Jersey sent me before and after pictures.
Speaker Change: Couldnt see who the patient name or anything private about the patient, but they showed me when they walked into their practice certainly were designated for rosacea treatment and four weeks later when he saw this patient back.
Speaker Change: It is remarkable and it.
Speaker Change: It certainly has reinforced him in particular to continue to prescribe ambrosi moving forward, so really fast pickup I love watching because we have incredible before and after pictures from the phase III clinical trials, but when someone shares.
Speaker Change: A real clinical practice off this year post our launch it's dramatic.
Ramzi Alloosh: Ramsey, did you want to add anything to that? Yeah, I think just in terms of launch trajectory, we're really excited. We look at a few DERM analogs that have taken place more recently, and we're trending ahead. It's very early. It's hard to tell certainly where we'll be at week eight, week 12, so on and so forth, but we're really pleased at the trajectory in terms of the ramp. We expect that to continue to grow, but to Claude's point, we've received a lot of positive feedback from different advisory board meetings and from feedback from the field, from the commercial team in general, so all good news.
Ramsey: Ramsey did you want to add anything to that.
Speaker Change: Okay.
Yeah, I think just in terms of in terms of launch trajectory I mean, we're really excited we looked at a few Durham analogs that have taken place more recently.
Speaker Change: And we're trending ahead, it's very early.
Speaker Change: Hard to tell certainly where we'll be at week eight week 12, so on and so forth, but we're really pleased that the trajectory in terms of the ramp up we expect that to continue to grow but the clubs point.
Speaker Change: We've received a lot of positive feedback.
Speaker Change: From different advisory board meetings and from from feedback from the field from the commercial team in general So all good news its just an execution game on our part and.
Ramzi Alloosh: It's just an execution game on our part, and market access, right? So making sure the coverage is there. Claude mentioned 30%. We're pleased with that number. We expect it to continue to grow. So the demand is being driven. We're making sure on the other side, the coverage is there as well. So thanks. Okay, got it.
Speaker Change: Market access right, so making sure the coverage is there Claude mentioned, 30%. We're pleased with that number we expect it to continue to grow so the demand is being driven we're making sure on the other side. The coverage is there as well so thanks.
Speaker Change: Thanks.
Speaker Change: Okay got it and one last if I may.
Kalpit Patel: And one last, if I may.
Well it might be early for this but do you have a sense of who these patients are the LD ratio switchers are they totally new rosacea patients or do you have any metrics that you can give us in the first two months of launch.
Kalpit Patel: It might be early for this, but do you have a sense of who these patients are? Are they Auratia switchers, or are they totally new rosacea patients? Or do you have any metrics that you can give us in the first two months of launch? Yeah, I could tell you my understanding of it. It's not an exact science. I don't have hardcore numbers. But from being in the field, talking to physicians, getting their feedback, right now, for my opinion, is that this is looking right now as phase one, trying to get dermatologists and PAs. start prescribing it for their new patients coming in.
Speaker Change: Yeah, I could tell you my understanding of it it's not a it's not an exact science I don't have hard core numbers, but from.
Speaker Change: Being in the field talking to physicians getting their feedback.
Speaker Change: Right now for my opinion is that this is looking right now as phase one trying to get dermatologists and P A's to start.
Speaker Change: Prescribing it for their new patients coming in.
Claude Maraoui: And then once they get comfortable with that, once they see their patients back.
Speaker Change: And then once they get comfortable with that once they see their patients back again.
Claude Maraoui: Again, typically it takes anywhere, Kalpit, from three calls to up to seven calls to really start to switch a dermatologist prescribing habit that they've been used to for many, many years, like I said, almost two decades. So I think the new patients are the first phase, and then as they get comfortable, week you'll start to see some switching happening from existing oratia patients.
Speaker Change: Again, typically it takes anywhere from the recalls to up to seven calls to really start to switch.
Speaker Change: Matala, just prescribing habit that they've been used to.
Speaker Change: For many many years like I said almost two decades. So I think the new patients are the first phase and then as they get comfortable week four week eight week 12, one they see all these patients coming back.
Speaker Change: Then youll start to see some switching happening from existing <unk> patients, but that's the way I would I would probably paint the picture for you at this time.
Claude Maraoui: But that's the way I would probably paint the picture for you. And Kalpit, just two other quick points, I think, which is very important in terms of messaging from a patient as well as a provider perspective is the early onset of efficacy of MROSy, right? Two weeks, right? You can see results in as little as two weeks, and derms love that their patients are able to see results as quick as that. And then if you look at the different time points of the two studies, 16 weeks, at week eight, I mean, when they come back for that visit.
Speaker Change: But just two other quick points I think which is very important in terms of messaging from a patient as well as a provider perspective is the early onset of efficacy.
Speaker Change: <unk> right.
Two weeks right you can see results in as little as two weeks in terms of love, but their patients were able to see results as quick as that and then if you look at the different time points of the two studies 16 weeks.
Speaker Change: We gate I mean, when they come back for that visit.
Claude Maraoui: They're going to achieve efficacy results that surpass Oratia in 16 weeks, so they're going to be very pleased with those early results, and we think that's, you know, that is proof in the pudding for them to continue right away.
Speaker Change: They're going to achieve efficacy results that surpassed our ratio in 16 weeks, so they're going to be very pleased with the early results and we think that you know.
Speaker Change: That is proof in the pudding for them. They continue writing the drug.
Speaker Change: Okay. That's very helpful. Thanks for taking my question.
Kalpit Patel: Okay, that's very helpful. Thanks for taking the question.
Speaker Change: Okay.
Speaker Change: Thank you. The next question comes from Thomas Flaten with Lake Street capital markets.
Thomas Flaten: The next question comes from Thomas Flaten with Lake Street Capital Markets. Please go ahead. Hey guys, appreciate you taking the questions. Congrats on a good quarter. Claude or Ramsey, any feedback from the docs specifically around erythema? I know it didn't end up in the label and you're being careful about how you promote it. But I'm just curious if there were any spontaneous...was there any spontaneous commentary from docs about erythema? Yeah, it's funny that you say that. Again, this is anecdotal, and we're not focused on that with our core message value that we're bringing to the physicians.
Speaker Change: Please go ahead.
Hey, guys I appreciate you taking the questions congrats on a good quarter.
Speaker Change: Claude or Ramsey any.
Speaker Change: Any feedback from the docs, specifically around erythema I know it didn't end up in the label and you're being careful how you promote it but I'm just curious if there were any spontaneous.
Speaker Change: Was there any spontaneous commentary from talks about erythema.
Speaker Change: Yes, it's funny that you say that again this is anecdotal and we're we're not focused on that with our core message value that we're bringing to the physicians, but this doctor that I spoke about earlier was extremely impressed with how the receipt.
Claude Maraoui: But this doctor that I spoke about earlier was extremely impressed with how the erythema reduction took place in that four-week period of time. And I've heard that a few different times, and especially when you're looking at our before and after pictures. Some dermatologists are mentioning that back to us, and we're taking it in, and we're pleased that they're proactively coming to us with that type of message. Got it.
Speaker Change: A reduction took place in that four week period of time, and I've heard that a few different times, and especially when youre looking at or before and after pictures.
Speaker Change: You know some dermatologists are mentioning that back to us and we're taking it in and we're pleased that they are proactively coming to us.
Speaker Change: That type of messaging.
Speaker Change: Got it and do you have a strategy over time for.
Claude Maraoui: And do you have a strategy over time for how to work that data set into the overall messaging, whether it be via MSL or sales rep?
Speaker Change: How to work that dataset into the overall messaging, whether it be via MSL or sales rep.
Srinivasan: Well, yeah, I'm going to I'm going to ask Dr. <unk> Srinivasan should get easier to jump in.
Srinivas Sidgiddi: Well, yeah, I'm going to ask Dr. Srinivas Sidgiddi here to jump in and perhaps talk about the JAMA Dermatology publication that happened and what it included and how medical affairs is handled. Thank you, Claude. Yes, Thomas. So as Claude mentioned, the JAMA DERM publication does speak about the data that we have from the phase three studies, which shows that MROSI has significant superiority over placebo in terms of erythema improvement. That is one data point. The second data point also is that the treatment algorithms that have come out from the National Rosacea Society, they speak of using MROSI for severe persistent erythema.
Srinivasan: And perhaps talk about the Jama dermatology publication that happened and what is included in <unk>.
Srinivasan: Our medical affairs is handling some of that.
Claude I.: Thank you Claude.
Thomas: Yes Thomas.
Thomas: So as Claude mentioned, the Jama publication does speak about the data that we have from the phase III studies.
Thomas: It shows that.
Speaker Change: And Ross he has significant superiority over placebo.
Speaker Change: In terms of demand improvement that is one data point. The second data point also is that the treatment algorithms that have come out from the National Rosacea Society. They speak of using M. Rossi for severe persistent EDA demob.
Srinivas Sidgiddi: So there is significant amount of data out there already that talks about the significant impact that MROSI has on erythema. So that, I think we will be building on that going forward and we should be able to make the providers aware of the kind of impact that MROSI has on erythema. Super helpful. Thank you.
Speaker Change: There is significant amount of data out there already.
Speaker Change: That talks about the significant impact that.
Speaker Change: Ross he has on editing them up so that I think we'll be building on that going forward and.
Speaker Change: They should be able to.
Speaker Change: Make the providers of the kind of impact that endless he has on it anymore.
Speaker Change: Super helpful. Thank you and then one final one among the 660 writers that you mentioned Claude any of those guys repeat writers.
Thomas Flaten: And then one final one.
Claude Maraoui: Among the 660 writers that you mentioned, Claude, any of those guys repeat writers? Absolutely. So it's all over the board right now. We've got, you know, obviously the most that we have are the onesies. We've got people that have written it two times, five times, or, you know, we've got some writers now that are over 25 times. So it's all over the board. Got it.
Speaker Change: Absolutely absolutely. So it's all over the board right now we've got you know.
Speaker Change: Obviously, the most that we have or the Onesies. We've got people that have written at two times five times or we've got some writers now that are over 25 times. So it's all over the board.
Thomas Flaten: Thank you very much.
Speaker Change: Got it thank you very much.
Speaker Change: Thank you. This concludes our question and answer session I would like to turn the call back over to management for closing remarks.
Operator: Thank you.
Operator: This concludes our question and answer session.
Claude Maraoui: I would like to turn the call back over to management for closing remarks. Yeah, no, we thank everyone for coming to the call. We're very pleased and appreciate the hard work that our commercial team, our R&D, getting this fabulous product out into the market now. And it's all about execution, being laser focused, and being very determined to succeed. I'm looking forward to seeing consistent incremental gains on this, and then we'll really start to see momentum over time.
Speaker Change: Yeah, no we thank everyone for coming to the call, we're very pleased and.
Speaker Change: Appreciate the hard work that our commercial team our R&D getting this fabulous product out into the market now and it's all about execution being laser focused and being very determined to succeed I'm looking forward to seeing consistent.
Speaker Change: The incremental gains on this and then we'll really start to see momentum over time.
Claude Maraoui: Thank you, and we'll talk later.
Speaker Change: Thank you and.
Speaker Change: We'll talk later.
Speaker Change: The conference has now concluded. Thank you for your participation you may now disconnect your lines.
Operator: The conference is now concluded. Thank you for your participation.
Operator: You may now disconnect your line.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].