Q3 2025 Journey Medical Corp Earnings Call
I am pleased to report that I'm Rosie. Our best-in-class, oral treatment for the inflammatory lesions of rosacea contributed, 4.9 million, to our Top Line, in Q3 an increase of 75% compared to Q2.
Our Legacy and core products, including Cuba Accutane and AMZ. And silky were essentially flat sequentially compared to the second quarter of 2025.
On a year-over-year basis, revenue for this product group in the aggregate declined 16%, mainly due to the impact from Accutane generic competition.
overall, we grew our product revenues by more than 16% compared to the same period last year while our operating expenses Rose just 9%,
This highlights The Leverage that we are beginning to generate with the launch of um Rosie and our established Dermatology commercial infrastructure.
We believe that this leverage will continue to increase as a mercy. Sales ramp has significant growth potential, and our operating expenses are expected to remain relatively consistent.
IBA continues to improve and we continue to expect that Journey will become sustainably ibida positive in the fourth quarter.
Amosi achieved third quarter, total prescription growth of approximately 146 with 18,198 prescriptions in. Q3 compared to the second quarter of this year with 7,394 prescriptions in Q2 as we have shown strong execution on our commercial plan.
As is typical with pharmaceutical product, launches contracts are initially. Negotiated, broadly, with the 3, major gpos Ascent, MSR and zinc, and we have been very successful in the first phase of our payer strategy.
As we previously announced in July over 100 million of the 187 million commercial lives. Currently have access to um, Rosie.
A market access team has successfully contracted with 2 of the 3 largest gpos. And as we continue to pursue our strategy, to broaden access further, we believe that Contracting with the remaining GPO firm. Rosie will be completed early next year.
We are very pleased with our GPO Contracting progress. So far, however, Downstream Health Plan, formulary adoption. And implementation takes time up to 3/4 on average, once contracts are secured, which is standard for most drug launches.
While some plans have immediately begun covering and Rosie prescriptions, many will take time to implement coverage and formulary adoption.
In the interim, our patient co-pay assistance, program is Bridging, the Gap.
As time, progresses. And as drug coverage increases, we expect Reliance on our co-pay assistance program to decrease.
Physician feedback, which has been a key driver in ROI's strong initial launch, continues to be very positive, with prescribers noting that their patients are doing exceptionally well on treatment.
The feedback emphasizes Rosy's clinical benefits.
Notably that amos's early onset of efficacy in as little, as 2 weeks of therapy.
In line with this feedback initial refill rates for emosi have come in strong during the third quarter. Refills and um, Rosie prescriptions were tracking at a 1:1 ratio
We believe that this metric indicates both prescriber and patient willingness, not only to try and Rosie, but also to continue on therapy, Beyond an initial prescription.
In addition to anticipated growth and new prescriptions, we expect that the ratio of refills to new prescriptions will also increase, which should help accelerate total prescription growth.
Unique. Dermatology, prescribers.
On our last earnings call we noted that approximately 1800 prescribers. Had written a prescription from Rosie out of the 3200 Orel rosacea treatment writers that we are targeting during the first phase of the launch.
Today.
I am pleased to report that the number has increased by approximately 50% to over 2700 unique. Amosi prescribers, demonstrating substantial progress toward this subjective and a key driver of initial product adoption.
As our commercial team continues to recruit new Rosie writers, we have now begun to focus on developing the base of prescribers that have already written an MROI prescription and to consistent writers.
In addition to our activities in the field, we remain active at Chi, Dermatology medical conferences across the United States, to build awareness and momentum behind the amroc brand.
To illustrate, we present the data from mroi Space 3, clinical trials at the sdpa.
2025 summer dermatology conference in June of this year.
These data highlighted that amosi provides consistent relief of key, rosacea symptoms with no adjustments needed for patients based on body weight.
Additionally amaurosis proprietary formulation of a modified, release 40, milligram dose, comprised of 10 milligram immediate release and 30 milligram extended release.
Which is the lowest strength oral minino, approved by the FDA, which we believe contributes directly to the safety efficacy, and tolerability making them Roi a best-in-class rosacea therapy.
And more recently, we presented pulled phase 3 data in a Podium presentation at the 2025 fall clinical dermatology conference in Las Vegas.
Showcasing a Rosies, favorable safety, profile results, and Superior efficacy compared to oasia the most widely prescribed oral rosacea treatment.
our pulled results feature data from a robust study population of 653 patients was impressive and our statistically significant superiority to a ratio was well received
The fall clinical meeting was well attended this year with over 1800 prescribers at the conference.
As key opinion, leaders and dermatologists focused on what's new in dermatology treatment. We believe that ambrosus Podium presentation gained significant visibility at the conference
Reflecting on the year so far, Rosie is off to a great start, and our focused dermatology commercial team is executing at the highest level.
As a result, we believe that the ground is prepared for a row seat, to become a standard of care in the treatment of rosacea and for the product to generate significant revenue and cash flow for the company.
And with that, I'll now turn the call over to our Chief Financial Officer. Joe benesh, who will review the financial results of the third quarter?
Thank you, Claude and good afternoon to everyone.
I'll now take you through our financial performance for the third quarter of 2025.
Total revenues for the quarter were $17.6 million.
Representing a 21% increase compared to 1 4. 9 2 4.
growth reflects incremental, net product, Revenue related to successful us commercial launch of emosi
which has continued to meet our expectations since its introduction.
Turning to margins.
Gross margin was 67.4% in the third quarter.
Compared to 69.4% in the same period last year.
The decrease from quarter to quarter, primarily reflects the favorable non-operational adjustments and product mix that benefited Q3 2024.
More importantly.
We continue to see steady quarter-over-quarter gross margin improvement in 2025.
Q1.
67.1% in Q2.
and now 67.4% in Q3,
This ongoing Improvement is driven by higher revenues from MOSI and cubra both higher margin products combined with lower overall inventory. Period costs.
Sgna expenses. Total 12.1 million.
Up approximately 6% from 11.4 million in the third quarter of 2024.
This increase reflects additional operating activities, tied to the launch and commercialization of amosi.
Sgna for the quarter also includes non-cash, stock compensation, expense of 1.9 million, compared to 1.5 million in the prior year quarter.
We reported a gap, net loss of 2.3 million or 9 cents per share basic and diluted for the third quarter of 2025.
This compares to a gap, net loss of 2.4 million or 12 cents per share of basic and eluded the same period last year.
On a non-gaap basis, both Ava and adjusted Eva improved from the prior year quarter.
if it's not approved by 00000 from a loss of million dollars in the third quarter of 2024,
To a loss of dollars in the current quarter.
We achieved positive adjusted Evita of 1.7 million for the third quarter of 2025.
Compared to 300,000 dollars for the third quarter of 2024.
We ended the quarter with 24.9 million in cash and cash equivalents as compared to 20.3 million at December 31202 for
Looking ahead, we may focus on disciplined expense management in margin expansion.
As we continue to scale and Rosie's commercial footprint is strengthened our product portfolio.
With this Focus we believe we are well, positioned to deliver improved profitability and sustained Revenue growth. Over the coming quarters.
Thank you very much. I will now turn the call back over to Clyde.
Thank you. Joe, we delivered strong results in the third quarter, with ROI already making a positive impact on our business.
Total prescriptions from Rosie, more than doubled from Q2 to Q3, and the fourth quarter is already off to a strong start.
The number of them, Rosie prescription writers is now at its highest level to date, and we expect to develop the current prescriber base into consistent writers over the next several months.
With the Positive physician feedback that we have received so far.
We believe that ambrosi is starting to gain brand recognition as the preferred oral solution for the treatment for rosacea
We have executed well in terms of our early payer strategy, and the focus remains on increasing access to Um Rosie, as well as enlisting more of the downstream health plans to adopt formulary coverage for Um Rosie. In order to drive more covered prescriptions.
All of these activities are key steps in developing a Roi into the standard of care treatment for inflammatory lesions of rosacea. And we believe that we are on track to accomplish this
based on the initial strong momentum, we are seeing with them Rosies launch. We are confident that ambrosi can reach its full potential in the rosacea treatment Market.
We continue to believe that amosi can achieve Peak annual net sales of over 200 million dollars in the United States and over 300 million globally.
Meanwhile, financially ibida for the company continues to improve from quarter to quarter, and we expect to become sustainably EB d-positive in the fourth quarter of this year.
We set out to make 2025 a transformational year setting up the company for potential strong growth and cash generation. And our progress indicates that we are delivering on that promise.
As such, I believe that we are well, positioned to continue executing on our core objectives.
To improve the lives of patients offered Dermatology Health Care Providers Innovative treatment options and create long-term value. For our shareholders.
Thank you operator. We are now ready to open the lines for Q&A.
Thank you. We will now begin the question and answer session.
May press star, then 1 on your touchtone phone.
If you're using a speaker-phone, please pick up your handset before pressing the keys.
if at any time your question has been addressed and you would like to withdraw your question please press star then to
And our first question for today will come from Brandon, folks, with HC Wayne Wright. Please go ahead
Hi. Thanks for taking my questions and congratulations on all the progress.
Um,
I guess. Can you just talk about how you view the usage of your patient assistance, program on mroi at this stage of the launch? Um, and when you talked about it improving, you know, do you see an improvement in 4q or sort of in 2026? How should we think about, um,
That aspect of the emergency launch.
Sure, hi Brandon, it's Claude. Um, so, you know, first of all, I think it's important to take a look at the progress, we're making here, commercially, uh, with some Roi in particular. Uh, again, when you take a look at revenues from Q2 to Q3 we've increased that by 75%. So, we, we certainly, like how things are being directed. Um, additionally, when you take a look at the strength of the commercial organization, being able to get create demand, we've gone from approximately, uh, 70.
400 prescriptions in Q2 all the way up to about 18,200 prescriptions in Q3
So our our focus is really to drive demand um as quickly and continue to grow that month-over-month quarter over quarter and and we're successfully doing that. Now where the co-pay assistance program, uh, comes into play. You know, we've talked about the 3, major gpos. We now have 2 of these gpos on board. We certainly expect the last 1 to come on board in early 2026. So I think you're going to see um additional value for that in terms of payers reimbursing, uh for the claims as they come in our
Co-pay assistance, program will have less, uh, balance in terms of more reimbursements will come, as time continues, it takes about 2, to 3 quarters for that to adjust with each GPO and then the pbms and the downstream health plan. So we are patiently
Waiting for that time to go. It's just the way the health care system works. It works out, and we see that continuing more. So I would tell you in 2026 that I think you'll see some significant gains in less reliance on the co-pay program.
Great. Thanks very much and maybe 1 just follow up. Um yeah you touched on the growth of Roi and you know,
Uh break up prescribing has obviously grown with the unique prescribers. Uh it looks like depth of prescribing is growing quite nicely as well. So can you just talk about sort of the focus between breadth and depth of prescribers in 4 q and maybe in 2026 as well? What's going to be the focus? Where do you see the most significant growth?
For Emross in the near term, in terms of depth or breadth of prescribing.
Yeah. Okay sure. Uh well I I'll tell you I think it's it's a combination of of what you're mentioning here. Um you know we focused in on 3,200 physicians at the beginning of our launch again, brand new launch, only 2 quarters deep into it so far. As, as I mentioned, we're up to 2700 plus unique prescribers and those are brand new Physicians. Breaking, a 20-year habit of being reliant on oracea, that was the only product that was indicated, orally for, uh,
Physicians dermatologist hcps, um and so forth, are trying it on you patience right now. And as those patients come back in for their second visit to the to the Dermatology Community. They're seeing that those results from phase 3 are actually happening in their own practices with their own patients. That's going to help build reinforcement.
Take those positions that are writing maybe 1 or 2 prescriptions to doubling that and tripling that and so forth. So I think you'll see a Snowball Effect taking place there and those are really new patients. I think you're going to see the fact that as there's more confidence that's built with the Dermatology community.
Our sales organization and marketing organization will be asking for switches as well, from Oracea over to AmRossi. Again, that takes time and just a little history to start to happen, and I think that will take place. There are about 14,000 dermatologists; we're only at 2,700 right now, and we're focused on a core group. But naturally, we are calling altogether in our universe more than 5,000. So you'll see that number expand as well, and we're going to get more out of the ones that have been trying it and waiting to observe.
Serve their patients coming back in. So um the nrx to TRX ratio is going to benefit from this as well. So right now it's about 1 to 1 uh in October we're seeing about 1 to 1.2.
And we expect that to go up to hopefully uh 1 to 3 and maybe even more than that Brandon. So there's a lot of variables in play here which really gives us great potential potential for fantastic success and and becoming the standard of care in time.
Great. Thanks. Very much. Chloe and congrats on all the progress.
Thank you.
The next question will come from Scott Henry with AGP. Please go ahead.
Thank you, good afternoon and, and congratulations to the whole team on the rosie launch. Uh, it's been very impressive so far. Uh, just a couple questions. Uh and I know I asked about this a lot. Uh, Revenue per script looked like it was about 380 and 2q about 275 and the third quarter, do you think the third quarter is probably a pretty good reflection or was there any stocking or docking? That could maybe move that number around just trying to get a sense of how we should think about that, uh, that net revenue prescript.
Sure. Oh oh is a good question. Always a fair question Scott. Um
Gross connect is going to continue to vary as reimbursement for the product. It's just very early; we're only two quarters into it, and it's just dynamic at this point.
As as uh, I I mentioned, we are going to be getting, uh, a third GPO into play here, early in 2026. And I think we'll see some nice, uh, improvements with that once that takes place, um, and uh, that's just part of the system. We have to, we have to give it a little bit of time. And that's really why we aren't giving any particular guidance to gross to net at this point in time. So, um, I don't think I can, uh, give you any, uh, further, um, Precision on that than, than, what, what you're coming up with right now. But again, it's going to vary from our co-pay assistance program. It will be used less. As there's better. Uh, reimbursement for managed care companies.
Uh, Joe Ramsey would do that.
I'm sorry. Go ahead.
That's helpful. I appreciate that caller. I don't know if any of the other team members wanted did. Did you want them to mention anything or yeah, I was just going to ask Joe or Ramsey if you wanted to add anything to that.
No, I think, I think just, uh, in summary, you know, the more reimbursement we get, like you said, the less on the co-pay program. And, um, you know, we'll just—we just can't give a number right now.
Perspective. It looks like at worst. It's a consistently growing launch curve, uh, but probably more likely an accelerating launch curve. Uh, H, how do you view the launch curve? You know, based on the 4, or 5 months you've had in any, any thoughts on that?
Uh all indicators are are pointing to a very positive uh launched. Uh, we're meeting our internal expectations for sure. Um, I like what the Salesforce is doing out there. Um, again those those key indicators adding additional prescribers on board with our focus on, on 3200, uh, Physicians to start. We're we're well on our way to to attaining that I would expect that we will get there. Um, and then we'll expand from that. So um, that's just 1 part of it. And I think the ratio between uh, 1 new prescription to 1. Refill will expand as well. And in time to think about it. We're we're getting uh, 7 8 900 new prescriptions uh on a monthly basis. Now those are new patients coming into the market each and every single month coming on to the mroi brand.
And if they continue getting those refills and getting expanding more than that first refill to 2 or 3. You can see that potential momentum. Really accelerates. So uh time will tell, we're definitely moving in the right direction here.
Okay, great. Uh final question uh just quickly among the other products Accutane you mentioned the generic competition. Uh, I think it just saw the Q come up. It looks like it did about 2.8 million in the quarter. Uh, do you think that's starting to to base out or is there, you know, some more another leg down? How how should we think about that Accutane franchise?
Yeah, um, I, I would tell you that, uh, Accutane is off to a good start here in Q4. Um, I think that, uh, you know, when, when we're looking at it, uh, we're
On on a good position right now. We believe it's stable, uh, you never know what the other generic competitors do, if they really play with price again to to drive that down and uh, potentially take more market share, but all indications. We just had a nice uptick we. We received, uh,
October numbers right now it's looking like it's stabilized from our vantage point right here. Um it's got a great name to it, lots of recognition and this is a highly promotional sensitive. Um
Area here and I think with our team speaking to dermatologist about this keeping it in front of their mind. Um, I think we're in a good good spot right now. So
That's what I would say.
Okay, great. Thank you for taking the question. Sure.
Your next question will come from Thomas.
Please go ahead.
Hey, good afternoon guys, thanks for taking the questions. Um, I you may have mentioned it and I probably missed it. But did you mention at all? Claude what your retention rate has been to those 22 prescribers since launch? How many of them have continued to prescribe regularly uh, since launch?
No, we didn't, we didn't speak to the retention, uh, of the 2700 prescribers. I think, uh, you, you, you're saying. So, uh, we continue to gain. We've got, we've got it split out obviously for the ones that are riding 1 to 5 and then 5 to 10 and so forth, you know, all the way up to the 2030. 40, Etc, Scott. So, but we didn't break it down but it's it's uh, a wide array. And obviously, as we bring on new prescribers, they fall in the lower buckets and over time, they get to move on to
To the secondary and tertiary and so forth. So um no no specific guidance on that yet.
Yeah, know what I was trying to get at was, you know, for if there are those that might have triled it a couple months ago and not come back to it. I'm just curious. If there any learnings for why those doctors haven't Rewritten prescriptions, either for the same patient or for or for other new patients. If you have any learnings from that, from those Docs,
You know, a month or 2 until they get to see those patients back. You have the representatives going in uh, doing the regular call schedule, reminding the doctors, dropping off samples talking about our co-pay program or Managed Care coverage and so forth. Um, you know, like like I said that number, uh, continues to uh, evolve and we really see a lot of patient. Uh, excuse me, hcps, that are writing more than 1, but that takes about 3 months or so. And then they start to catapult to the next level. Um, physician feedback has been exceptional, they really like the way the product is is uh, is working. Um, they like the side effect profile. Um, you know, again it's really just habit breaking uh, of of oracea that they've been used to for so long.
So we haven't gotten any critical feedback on the product.
That's great. Uh, and then just 1 final 1. If, if I met uh, cue brexit was down a year over year but up sequentially but less than it was in Q3 2424 what what impact has the launch of of emroy had on how you manage around cubre? So like what's the overlap of those 3,200? With 2x Riders you know how are you trying to ensure that you brexit also maintains a good clip of growth?
Yeah, so so fortunately for us um in terms of cubra we are in a real good position. We're seeing prescription growth compared to last year, even with the new entrance, the new competition that came in early this year. Um, so prescription wise, we we are, uh, right on schedule. And we're, we're going to have good single digit growth year-over-year, uh, again with cubra. Um, the, the overlap with Rosie is is working out uh, just fine because right now you've got
Cubra in a P2 position because I'm roces here now, and that's going to be first and foremost.
We've been calling on these doctors. We've had this product, Cubra, since the middle of 2021. Um, Zily, which is part of our portfolio, um, was also um,
You know, gave us a great segue into introducing uh, amosi but those are the same doctors our called on Universe hasn't necessarily changed. So we're still reaching uh, the the Physicians with the right frequency in a way that's been targeted. Um, our our sales, uh,
Force is compensated, uh, heavily on Cuba. Um, it's uh, currently our, uh, number 1 Revenue generator, uh, for the quarter for Q3, for example, and uh, you know, that'll that'll eventually, uh, become our number 2 Revenue, uh, generator as a Roi continues forward, but we're in a good spot with it. And I think the competition has just increased, the noise level of hyperhidrosis, and, and we've benefited from that,
Got it. Appreciate it. Thanks guys.
The next question will come from mayak with B Riley Securities. Please go ahead.
Uh, yes, good afternoon, Dean. Thanks for taking your questions and, uh, congrats on a strong quarter. So on this ratio of, uh, paid scripts, uh, how do you expect this to evolve with, you know, some of the pair updates you shared today um and and I'm obviously just trying to reconcile uh sequentially Revenue growth versus the TRX growth and and it looks like in October you are month over month on TRX is about roughly 15%. So so yeah. If you could maybe just give us some color on how to think about you know sequential Revenue growth versus sequential TRX growth and then I have a follow-up.
Yeah. Um Ramsay would you like to start that off?
Sure. In terms of, as you're mentioning sort of covered claims. Look, we're, we're executing well against our Market access plan.
We are seeing some solid progress uh month over month. Cloud had mentioned um that early next year. We'll have the third of the 3 large gpos contracted with and it very much is a top down approach.
Uh, and there are multiple layers between gpos pbms and the downstream health plans, right? And each 1 operates on its own schedule.
But from our side, everything we can control is on track. You know, our Market access team. Does have the strong relationships. There is value proposition for Roi, that's resonating and payer feedback has been positive.
We'd expect at uh, at this stage of launch and as more plans and formularies adopt, you'll start to see that Revenue uh, that shift in Revenue generation as well.
Yeah, my my I just want to add, I just want to add 1 thing here. You know, our our Focus right now is to continue to generate you are asking about the prescription and and and the the payer relationship if you will, uh, we are going to continue to drive prescriptions and each and every passing day. We expect to make more incremental gains on the payer front and then early next year. I think we're going to see a larger
Access and which will mean better reimbursement for the company. So time is going to be our our friend uh, over over time here over the next few quarters. But it does take a little while.
Yep. No, I I totally hear you. And then, on the duration of therapy that you've seen so far, I know you gave this refill to nrx 1 to 1 ratio. But is there any um, a real world data you have on persistence? And uh, you know, we have this concept of long-term responders with our Asia. Uh so was this curious if you have learned anything in the real world and how, you know what the duration of therapy would would try and
It's a, it's a great question. It's a difficult question to, to give you, uh, anything with with, uh, uh, hardcore data, uh, anecdotally. What we continue to hear is that they are seeing. And appreciating the results, the patients, have the feedback from patients, has been very good. Um, in terms of getting refills we're seeing that I think I think in another 5 6 months, we'll be able to give you a more precise answer, but every indication looks like refills are going in. We're able to capture uh refill data internally with, in fact our um, co-pay program. As well as just reading the uh, the prescription numbers from um, Symphony and and iqvia. So all Trends are are positive. But uh, you know, we're we're, we're hoping to see uh, 3 to 4 re
refills at at, at least,
Through a 12-month period. You also have to take into effect, you know, rosacea uh, we we have uh, very quick, uh, effect. As little, as 2 weeks, patients are seeing very good results with with, uh, amosi and obviously it. Varies, some people will take longer, some people will be at 2 weeks, but, um, depending on how the flare ups are. How long the, uh, Ros?
IA stays calm until the next flare-up is another.
Part of this that, uh, we're learning and keeping a close eye on.
I understand. And lastly, for Joe, I'm I'm the financial, uh, piece, uh, your expectation for office growth. Next year, based on, you know, how launch is progressing. And, uh, it it does seem you, you're tracking High single digit, uh, year-over-year this year. Is that a similar Trend? You would expect next year, just thinking about operating levels. So, thanks for taking my question.
All right. Thanks. Um,
Also, really the key is leveraging, our current infrastructure.
Uh, the increase in expenses, any incremental expense should be more than offset by increases in revenue. Uh, like we said in our prepared remarks, we expect to remain relatively consistent from period to period and into 2026.
So, as revenue grows, we think the leverage in our operating results will continue to come through. Um, and any increase in revenues should support a higher revenue base. Also,
Thanks.
Got it.
And this will conclude our question and answer session as well as our conference call for today and thank you for attending today's presentation. You may now disconnect