Q1 2026 Journey Medical Corp Earnings Call

May 13, 2026

Operator 2: Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to Journey Medical's Q1 2026 Financial Results and Corporate Update Conference Call. At this time, all participants are on the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. Participants of this call are advised that the audio of this conference call is being broadcasted live over the internet and is also being recorded for playback purposes. A webcast replay of this call will be available approximately 1 hour after the end of the call for approximately 30 days. I would now like to turn the call over to Jaclyn Jaffe, the company's Senior Director of Corporate Operations. Please go ahead, Jaclyn.

Operator: Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to Journey Medical's Q1 2026 Financial Results and Corporate Update Conference Call. At this time, all participants are on the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. Participants of this call are advised that the audio of this conference call is being broadcasted live over the internet and is also being recorded for playback purposes. A webcast replay of this call will be available approximately 1 hour after the end of the call for approximately 30 days. 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 #2: At this time, all participants on the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0.

Speaker #2: 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.

Speaker #2: A webcast replay of this call will be available approximately one hour after the end of the call for approximately 30 days. 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 #2: Good afternoon and thank you for participating in today's conference call. Joining me from Journey Medical's leadership team are Claude Maraoui, co-founder, president, and chief executive officer Joseph Benesch, chief financial officer, and Ramsey Alouch, chief operating officer and general counsel.

Jaclyn Jaffe: Good afternoon. Thank you for participating in today's conference call. Joining me from Journey Medical's leadership team are Claude Maraoui, Co-founder, President, and Chief Executive Officer, Joseph Benesch, Chief Financial Officer, and Ramsey Alloush, Chief Operating Officer and General Counsel. 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. 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 filed with the SEC today, and the company's press release that accompanies this call, particularly the cautionary statements in it.

Jaclyn Jaffe: Good afternoon. Thank you for participating in today's conference call. Joining me from Journey Medical's leadership team are Claude Maraoui, Co-Founder, President, and Chief Executive Officer, Joseph Benesch, Chief Financial Officer, and Ramsey Alloush, Chief Operating Officer and General Counsel. 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. 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 filed with the SEC today, and the company's press release that accompanies this call, particularly the cautionary statements in it.

Speaker #2: 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.

Speaker #2: 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's 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.

Speaker #2: 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.

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. The content of this call contains time-sensitive information that is accurate only as of today, Wednesday, 13 May 2026. 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. It is now my pleasure to turn the call over to Claude Maraoui, Co-founder, President, and Chief Executive Officer of Journey Medical.

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. The content of this call contains time-sensitive information that is accurate only as of today, Wednesday, 13 May 2026. 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. It is now my pleasure to turn the call over to Claude Maraoui, Co-Founder, President, and Chief Executive Officer of Journey Medical.

Speaker #2: For 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 #2: The content of this call contains time-sensitive information that is accurate only as of today, Wednesday, May 13th, 2026. 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.

Speaker #2: It is now my pleasure to turn the call over to Claude Maraoui, co-founder, president, and chief executive officer of Journey Medical.

Speaker #1: Thank you, Jaclyn, and good afternoon to everyone on the call today. We made solid progress in the first quarter of 2026, marking a strong start to what we believe will be a breakout year for Ambrose and Journey Medical.

Claude Maraoui: Thank you, Jaclyn, good afternoon to everyone on the call today. We made solid progress in Q1 of 2026, marking a strong start to what we believe will be a breakout year for Emrosi and Journey Medical. We delivered Emrosi revenues of $6.3 million in Q1, up significantly year-over-year and sequentially from Q4 as prescription volumes continue to grow and payer reimbursement improves. We are pleased with this performance, especially given the severe winter weather that occurred on the East Coast in the US during Q1. Our total net product revenues for Q1 increased by 21% year-over-year, while operating expenses rose by just 6% compared to Q1 of last year.

Speaker #1: We delivered Ambrose revenues of $6.3 million in Q1, up significantly year over year, and sequentially from the fourth quarter. As prescription volumes continue to grow and payer reimbursement improves, we are pleased with this performance, especially given the severe winter weather that occurred on the East Coast in the US during Q1.

Speaker #1: Our total net product revenues for the first quarter increased by $21% year over year, while operating expenses rose by just 6% compared to the first quarter of last year.

Speaker #1: With Ambrose still early in its launch trajectory, steady revenue contributions anticipated from our other dermatology brands, and ongoing disciplined investment in our commercial organization, we expect that operating leverage for our business will continue to increase as the year progresses.

Claude Maraoui: With Emrosi still early in its launch trajectory, steady revenue contributions anticipated from our other dermatology brands, and ongoing disciplined investment in our commercial organization, we expect that operating leverage for our business will continue to increase as the year progresses. We also delivered another quarter of positive adjusted EBITDA, and we added to our cash balance during Q1, solidifying our strong financial position. Emrosi prescriptions totaled approximately 30,000 in Q1, up from about 27,000 prescriptions in Q4 of last year. This represents approximately 11% sequential prescription volume growth for the product despite the typical seasonality that occurs in the beginning of each calendar year. Notably, Emrosi revenues increased by approximately 26% from Q4 to Q1 as revenue per prescription increased sequentially.

Speaker #1: We also delivered another quarter of positive adjusted EBITDA, and we added to our cash balance during the first quarter, solidifying our strong financial position.

Speaker #1: Ambrose prescriptions totaled approximately $30,000 in the first quarter, up from about $27,000 prescriptions in the fourth quarter of last year. This represents approximately 11% sequential prescription volume growth for the product despite the typical seasonality that occurs in the beginning of each calendar year.

Speaker #1: Notably, Ambrose revenues increased by approximately $26% from Q4 to Q1. As revenue per prescription increased sequentially, we remain focused on the twin objectives of growing Ambrose prescription volumes and increasing the mix of scripts reimbursed by health plans in order to accelerate revenue growth over the next several quarters.

Claude Maraoui: We remain focused on the twin objectives of growing Emrosi prescription volumes and increasing the mix of scripts reimbursed by health plans in order to accelerate revenue growth over the next several quarters. Recognition of Emrosi and its benefits continues to increase as we work toward establishing the brand as standard of care in the treatment of rosacea. Promotion of Emrosi reached its 1-year anniversary in early April, and currently over 3,700 unique dermatology prescribers have written a prescription for the product. This compares to approximately 3,200 prescribers that were writing for Emrosi at the end of 2025 and demonstrates the effectiveness of our sales organization and prescribing momentum building behind the brand. The superior head-to-head efficacy results demonstrated in our phase III clinical trials comparing Emrosi to the only other branded oral rosacea treatment, Oracea, are becoming widely known throughout the dermatology community.

Speaker #1: Recognition of Ambrose and its benefits continues to increase. As we work toward establishing the brand as standard of care in the treatment of rosacea, promotion of Ambrose reached its one-year anniversary in early April, and currently over 3,700 unique dermatology prescribers have written a prescription for the product.

Speaker #1: This compares to approximately 3,200 prescribers that were writing for Ambrose at the end of 2025 and demonstrates the effectiveness of our sales organization and prescribing momentum building behind the brand.

Speaker #1: The superior head-to-head efficacy results demonstrated in our phase three clinical trials comparing Ambrose to the only other branded oral rosacea treatment, Oracia, are becoming widely known throughout the dermatology community.

Speaker #1: And with the product on the market now for a little over a year, Ambrose's placebo-like safety and tolerability profile is proving to be durable, which is another important factor in recruiting new prescription writers.

Claude Maraoui: With the product on the market now for a little over a year, Emrosi's placebo-like safety and tolerability profile is providing to be durable, which is another important factor in recruiting new prescription writers. From the patient perspective, Emrosi's rapid onset of action and superior skin clearing effects compared to Oracea are creating loyal users of the product. The ratio to refills to new prescriptions is now approaching 1.5 to 1, an increase from the 1-to-1 ratio observed at the end of 2025. We believe this metric is a good indicator of new patient satisfaction with the product, and we expect the refill to new prescription ratio to continue to increase going forward.

Speaker #1: From the patient perspective, Ambrose's rapid onset of action and superior skin clearing effects compared to Oracia are creating loyal users of the product. The ratio to refills to new prescriptions is now approaching 1.5 to 1, an increase from the 1 to 1 ratio observed at the end of 2025.

Speaker #1: We believe this metric is a good indicator of new patient satisfaction with the product and we expect the refill to new prescription ratio to continue to increase going forward.

Speaker #1: With a significant number of dermatology practices and patients gaining experience with Ambrose in its first year on the market, we believe that critical mass is being established and that the product is on track to become a significant brand in the dermatology space.

Claude Maraoui: With a significant number of dermatology practices and patients gaining experience with Emrosi in its first year on the market, we believe that critical mass is being established and that the product is on track to become a significant brand in the dermatology space. The solid 1-year efficacy and safety track record with Emrosi, as well as the critical mass elements that we are generating in terms of strong prescription volumes and the high number of dermatology writers, are also important to the payer community. As a result, we believe that we are making good progress in our efforts to ramp reimbursement for Emrosi. In April, we announced that we entered into an agreement with the third of the three largest PBM-owned or affiliated Group Purchasing Organizations in the United States.

Speaker #1: The solid one-year efficacy and safety track record with Ambrose, as well as the critical generating in terms of strong prescription volumes and the high number of dermatology writers, are also important to the payer community.

Speaker #1: As a result, we believe that we are making good progress in our efforts to ramp reimbursement for Ambrose. In April, we announced that we entered into an agreement with the third of the three largest PBM-owned or affiliated group purchasing organizations in the United States.

Speaker #1: The three GPOs, known as Zinc Health Services, MSR Pharma Services, and the Ascent Health Services, collectively negotiate prescription drug pricing for approximately $85% of commercial lives in the United States.

Claude Maraoui: The three GPOs, known as Zinc Health Services, Emisar Pharma Services, and the Ascent Health Services, collectively negotiate prescription drug pricing for approximately 85% of commercial lives in the United States. With the big three contracts in place for Emrosi, over 169 million of the 192 million commercial lives in the nation now have access to Emrosi. Importantly, these GPO agreements serve as a framework for broader downstream payer adoption, as many individual health plans conduct their own internal review and P&T evaluations before including Emrosi on their formularies. As mentioned on our Q4 earnings call, we are actively engaged with downstream health plans on both national and regional level to broaden formulary inclusion for Emrosi this year.

Speaker #1: With the big three contracts in place for Ambrose, over 169 million of the 192 million commercial lives in the nation now have access to Ambrose.

Speaker #1: Importantly, these GPO agreements serve as a framework for broader downstream payer adoption as many individual health plans conduct their own internal review and P&T evaluations before including Ambrose on their formularies.

Speaker #1: As mentioned on our fourth quarter earnings call, we are actively engaged with downstream health plans on both national and regional levels to broaden formulary inclusion for Ambrose this year.

Speaker #1: Not only are we focused on the breadth of coverage, but also on the quality of coverage. Including tier positioning, step edit requirements, and prior authorization criteria to ensure that the value of Ambrose's differentiated clinical profile is recognized.

Claude Maraoui: Not only are we focused on the breadth of coverage, but also on the quality of coverage, including tier positioning, step edit requirements, and prior authorization criteria to ensure that the value of Emrosi's differentiated clinical profile is recognized. We believe that Emrosi's rapid onset of action, placebo-like safety and tolerability, and superior lesion reduction profile position it well for broad formulary inclusions. Our discussions with the downstream plans are also supported by the published phase III efficacy and safety results for Emrosi in JAMA Dermatology, as well as the updated treatment algorithms published by the National Rosacea Society, which also cites Emrosi's benefits as a safe, effective, and convenient oral treatment for the condition. These third-party validations and Emrosi's strong clinical results are meaningful to plans that are assessing the clinical differentiation and long-term health economic impact of prescribing Emrosi.

Speaker #1: We believe that Ambrose's rapid onset of action placebo-like safety and tolerability and superior lesion reduction profile position it well for broad formulary inclusions. Our discussions with the downstream plans are also supported by the published phase three efficacy and safety results for Ambrose and JAMA Dermatology as well as the updated treatment algorithms published by the National Rosacea Society, which also cites Ambrose's benefits as a safe, effective, and convenient oral treatment for the condition.

Speaker #1: These third-party validations and Ambrose's strong clinical results are meaningful to plans that are assessing the clinical differentiation and long-term health economic impact of prescribing announce up to three new journal publications on Ambrose this year and we also believe that Ambrose has potential to be incorporated into the consensus treatment guidelines for rosacea.

Claude Maraoui: We expect to announce up to 3 new journal publications on Emrosi this year. We also believe that Emrosi has potential to be incorporated into the consensus treatment guidelines for rosacea, which should further support market and health plan adoption. In addition, we remain active at key dermatology medical congresses as well as managed care conferences across the United States to expand awareness and reimbursement for Emrosi. In late April, we attended the Asembia Summit, a premier industry conference focused on the specialty pharmaceutical ecosystem, including pharmaceutical distribution, patient access, reimbursement dynamics, and commercialization strategies. With Emrosi now on the market for over a year, the conference was timely and enabled us to have productive discussions with payer representatives to broaden Emrosi's formulary adoption.

Speaker #1: Which should further support market and health plan adoption. In addition, we remain active at key dermatology medical congresses as well as managed care conferences across the United States to expand awareness and reimbursement for Ambrose.

Speaker #1: In late April, we attended the Assembia Summit, a premier industry conference focused on the specialty pharmaceutical ecosystem including pharmaceutical distribution, patient access, reimbursement dynamics, and commercialization strategies.

Speaker #1: With Ambrose, now on the market for over a year, the conference was timely and enabled us to have productive discussions with payer representatives to broaden Ambrose's formulary adoption.

Speaker #1: Operationally, we plan to add up to five new sales professionals to our commercial team this year with the goal of having these representatives trained and in the field in early Q3.

Claude Maraoui: Operationally, we plan to add up to 5 new sales professionals to our commercial team this year, with the goal of having these representatives trained and in the field in early Q3. We believe the additional resources will increase our productivity in areas such as the promotion of our broad dermatology portfolio, the potential launch of up to 2 new niche dermatology products later this year, and importantly, the establishment of Emrosi as standard of care in the treatment of rosacea. With that, I'll now turn the call over to our CFO, Joseph Benesch, to review our Q1 financial results.

Speaker #1: We believe the additional resources will increase our productivity in areas such as the promotion of our broad dermatology portfolio, the potential launch of up to two new niche dermatology products later this year, and importantly, the establishment of Ambrose as standard of care in the treatment of rosacea.

Speaker #1: And with that, I'll now turn the call over to our CFO, Joe Banesh, to review our first quarter financial results.

Speaker #2: Thank you, Claude. And good afternoon to everyone on the call. I will now review our financial results for the first quarter of 2026. Total revenue for the quarter was $16 million.

Joseph Benesch: Thank you, Claude, and good afternoon to everyone on the call. I will now review our financial results for Q1 2026. Total revenue for the quarter was $16 million, representing a 21% increase compared to $13.1 million in Q1 2025. This growth was primarily driven by continued strength in Emrosi, which generated $6.3 million in net revenue, up from $2.1 million in the prior year period. These results reflect sustained demand and reinforce Emrosi's role as a key driver of our growth. Turning to gross margin, we reported a 61% margin for Q1 2026 compared to 63.5% in the prior year period.

Speaker #2: Representing a 21% increase compared to $13.1 million in the first quarter of 2025. This growth was primarily driven by continued strength in Ambrose, which generated $6.3 million in net revenue, up from $2.1 million in the prior year period.

Speaker #2: These results reflect sustained demand and reinforce Ambrose's role as a key driver of our growth. Turning to gross margin. We reported a 61% margin for the first quarter of 2026 compared to 63.5% in the prior year period.

Speaker #2: The decreased resulted from a 1.3 million non-cash charge to cost of sales related to a write-down of API inventory associated with the 2021 QBREX acquisition.

Joseph Benesch: The decrease resulted from a $1.3 million non-cash charge to cost of sales related to a write-down of API inventory associated with the 2021 QBREXZA acquisition. Including this one-time non-cash item, the gross margin would have been approximately 69%, reflecting a favorable product mix and continued sequential and year-over-year improvement. SG&A expenses were $10.1 million for the quarter, compared to $10.6 million in Q1 2025. The decrease was driven primarily by lower Emrosi launch-related expenses as we transition from our initial launch investment to ongoing commercial execution. We reported a GAAP net loss of $2.2 million, or $0.08 per share basic and diluted, compared to a net loss of $4.1 million, $0.18 per share basic and diluted in the prior year period.

Speaker #2: Including this one-time non-cash item, the gross margin would have been approximately 69% reflecting a favorable product mix and continued sequential end-year-over-year improvement. SG&A expenses were $10.1 million for the quarter.

Speaker #2: Compared to $10.6 million in the first quarter of 2025, the decrease was driven primarily by lower Ambrose launch-related expenses as we transitioned from our initial launch investment to ongoing commercial execution.

Speaker #2: We reported a gap net loss of $2.2 million or 8 cents per share basic and diluted compared to a net loss of $4.1 million or 18 cents per share basic and diluted in the prior year period.

Speaker #2: This improvement reflects higher revenues and continued expense discipline. On a non-gap basis, adjusted EBITDA was positive $600,000 with 2 cents per share. Compared to negative adjusted EBITDA of $900,000 or 4 cents per share in the first quarter of 2025.

Joseph Benesch: This improvement reflects higher revenues and continued expense discipline. On a non-GAAP basis, adjusted EBITDA was +$600,000 or $0.02 per share, compared to negative adjusted EBITDA of -$900,000 or $0.04 per share in Q1 2025. This improvement highlights the operating leverage in the business as Emrosi continues to scale. We ended the quarter with $27.2 million in cash compared to $24.1 million as of 31 December 2025, providing solid liquidity position to support our commercial and operational priorities. In summary, our Q1 results demonstrate strong revenue growth, improving profitability, and disciplined execution. We remain focused on expanding Emrosi's commercial reach, optimizing our cost structure, and progressing towards sustainable profitability in the coming quarters. Thank you very much. I will now turn the call back over to Claude.

Speaker #2: This improvement highlights the operating leverage in the business as Ambrose continues to scale. We ended the quarter with 27.2 million in cash. Compared to 24.1 million as of December 31, 2025.

Speaker #2: Providing solid liquidity position to support our commercial and operational priorities. In summary, our first quarter results demonstrate strong revenue growth, improving profitability and disciplined execution.

Speaker #2: We remain focused on expanding Ambrose's commercial reach, optimizing our cost structure, and progressing towards sustainable profitability in the coming quarters. Thank you very much.

Speaker #2: I will now turn the call back over to Claude.

Speaker #1: Thank you, Joe. Our first quarter results demonstrate continued execution on our business plan and position us well for a year of strong financial performance.

Claude Maraoui: Thank you, Joe. Our Q1 results demonstrate continued execution on our business plan and position us well for a year of strong financial performance. Our total net product sales grew significantly faster than our expenses during the quarter, and we expect that this trend will continue. Based on the quarterly results and the opportunities ahead, we believe that operating leverage for the company is now starting to come through in a meaningful way. Additionally, our cash position increased to approximately $27 million at the end of Q1, up from roughly $24 million at the end of last year. As a result, we believe that the company is well-positioned to grow sales and profitability with the resources that we have in place.

Speaker #1: Our total net product sales grew significantly faster than our expenses during the quarter, and we expect that this trend will continue. Based on the quarterly results and the opportunities ahead, we believe that operating leverage for the company is now starting to come through in a meaningful way.

Speaker #1: Additionally, our cash position increased to approximately $27 million at the end of the first quarter up from roughly $24 million at the end of last year.

Speaker #1: As a result, we believe that the company is well positioned to gross sales and profitability with the resources that we have in place. While we plan to offer detailed financial guidance later this year, we are confident that the business will not only deliver positive adjusted EBITDA but will also generate positive EBITDA for the remainder of this year and for the foreseeable future.

Claude Maraoui: While we plan to offer detailed financial guidance later this year, we are confident that the business will not only deliver +adjusted EBITDA, but will also generate +EBITDA for the remainder of this year and for the foreseeable future. Importantly, Emrosi continues to gain market share in the rosacea treatment segment, with revenue per prescription improving as we make progress on our payer reimbursement initiatives. We now have pricing agreements with all of the major PBM-led Group Purchasing Organizations in the United States, and we are working to leverage these contracts to increase downstream health plan formulary access for Emrosi throughout the year. As our payer strategy gains additional traction, we expect a meaningful inflection in revenue conversion relative to the growing prescription demand. The ratio of Emrosi refills to new prescriptions continues to increase in addition to the number of unique prescribers writing for the product.

Speaker #1: Importantly, Ambrose continues to gain market share in the rosacea treatment segment, with revenue per prescription improving as we make progress on our payer reimbursement initiatives.

Speaker #1: We now have pricing agreements with all of the major PBM-led group purchasing organizations in the United States and we are working to leverage these contracts to increase downstream health plan formulary access for Ambrose throughout the year.

Speaker #1: As our payer strategy gains additional traction, we expect a meaningful inflection in revenue conversion relative to the growing prescription demand. The ratio of Ambrose refills to new prescriptions continues to increase in addition to the number of unique prescribers writing for the product.

Speaker #1: We believe that these key metrics demonstrate the brand's continued momentum in the market. Our decision to add headcount in our commercial organization underscores the opportunity that we see to grow product sales and our operating cash flow and is also well timed given our plans to launch up to two new niche dermatology products later this year.

Claude Maraoui: We believe that these key metrics demonstrate the brand's continued momentum in the market. Our decision to add headcount in our commercial organization underscores the opportunity that we see to grow product sales and our operating cash flow, and is also well-timed given our plans to launch up to 2 new niche dermatology products later this year. With regard to business development activities, we continue to explore out-licensing opportunities for the commercial rights to our patented products in non-US territories, in addition to the potential to in-license assets to expand our dermatology product offering and to increase shareholder value. As we continue to execute on our strategic plan, we believe that 2026 will be a breakout year for Journey Medical, enabling us to deliver significant value for patients, our physician customers, and our shareholders. Thank you. Operator, we are now ready to open the lines for Q&A.

Speaker #1: With regard to business development activities, we continue to explore outlicensing opportunities for the commercial rights to our patented products in non-U.S. territories, in addition to the potential to enlicense assets to expand our dermatology product offering and to increase shareholder value.

Speaker #1: As we continue to execute on our strategic plan, we believe that 2026 will be a breakout year for Journey Medical, enabling us to deliver significant value for patients, our physician customers, and our shareholders.

Speaker #1: Thank you. Operator, we are now ready to open the lines for Q&A.

Speaker #3: Thank you. We will now begin the question and answer session. Participants who wish to ask a question may press star and one on your touch-tone telephone.

Operator 2: Thank you. We will now begin the question and answer session. Participants who wish to ask a question may press star and one on your touchtone telephone. If you're using a speakerphone, 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 and then two. At this time, we will pause momentarily to assemble our roster. We have the first question on the line of Nelson Cox from Lake Street Capital. Please go ahead.

Operator: Thank you. We will now begin the question and answer session. Participants who wish to ask a question may press star and one on your touchtone telephone. If you're using a speakerphone, 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 and then two. At this time, we will pause momentarily to assemble our roster. We have the first question on the line of Nelson Cox from Lake Street Capital. Please go ahead.

Speaker #3: If you're using a speakerphone, 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 and then two.

Speaker #3: At this time, we will pause momentarily to assemble our roster. We have the first question on the line of Nelson Cox from Lakestreet Capital.

Speaker #3: Please go ahead.

Speaker #4: Hey, yeah, this is Nelson on for Thomas. Congrats on all the progress. Maybe just want to start in understanding you're not providing more detailed formal guidance, so maybe later in the year, but maybe directionally as we look across the portfolio and for the balance of the year, can you help frame just how to think about that trajectory both for Ambrose as coverage matures and for kind of the legacy products?

Nelson Cox: Hey. Yeah, this is Nelson on for Thomas. Congrats on all the progress. Maybe just wanna start and understand you're not providing more detailed formal guidance till maybe later in the year, but maybe directionally as we look across the portfolio and for the balance of the year, can you help frame just how to think about that trajectory, both for Emrosi as coverage matures and for kind of the legacy products?

Speaker #1: Sure. Hi, Nelson. Yeah. First, let's talk about our base business. So our base business really is everything outside of Ambrose. We see that as very steady and consistent in 2026.

Claude Maraoui: Sure. Hi, Nelson. You know, first let's talk about our base business. Our base business really is everything outside of Emrosi. We see that as very steady and consistent in 2026. We also believe that adding up to 2 new niche products this year will add incremental value in terms of revenue. We feel very good about that. Even though we have had to take, for example, QBREXZA from the P1 position and putting it in P2, we've done a really good job from a commercial organization of keeping on track with our expectations. The real key driver and what, you know, the majority of our time and efforts and the resources are going in behind Emrosi. I would continue to take a look at Emrosi moving forward.

Speaker #1: We also believe that adding up to two new niche products this year will add incremental value in terms of revenue. So we feel very good about that.

Speaker #1: Even though we have had to take, for example, Qbrexa, from the P1 position and putting it in P2, we've done a really good job from a commercial organization of keeping on track with our expectations.

Speaker #1: The real key driver and what the majority of our time and efforts and the resources are going in behind Ambrose. So I would continue to take a look at Ambrose moving forward.

Claude Maraoui: You know, we did $61 million-plus in revenues last year, and obviously we'll go north of that. That's about as far as I can tell you at this point.

Speaker #1: We did 61 million-plus in revenues last year, and obviously, we'll go north of that. But that's about as far as I can tell you at this point.

Speaker #4: All right. Thank you for the color there. And then maybe just an update on insurance coverage specifically, how the conversation from access to quality coverage is progressing and where you stand on tier positioning, step edits, prior auths.

Nelson Cox: All right. Thank you for the color there. Maybe just, you know, an update on insurance coverage, specifically how the conversation from access to quality coverage is progressing and where you stand on tier positioning, step edits, prior auths, and criteria with major plans.

Speaker #4: And criteria with major plans.

Speaker #1: Sure. We're just really thrilled that in the one year of launch—it was just a year in April that we finished our one-year anniversary.

Claude Maraoui: Sure. You know, we're just really thrilled that in the 1 year of launch, it was just a year in April that we finished our 1-year anniversary. We were very successful in completing all 3 GPOs, which now really allows us the full gamut of going out and reaching to the downstream healthcare companies. I'm gonna have Ramsey give you some more color behind that. Ramsey?

Speaker #1: We were very successful in completing all three GPOs, which now really allows us the full gamut of going out and reaching to the downstream healthcare companies.

Speaker #1: I'm going to have Ramsey give you some more color behind that. Ramsey?

Speaker #3: Yeah, yeah. Thanks, Claude, and thanks, Nelson, for the question. So just to kind of look back a little bit, first year, we launched in April.

Ramsey Alloush: Yeah. Yeah. Thanks, Claude, and thanks, Nelson, for the question. Just to kind of look back a little bit. 1st year we launched in April. We really focused on GPO contracting. As you mentioned, that's really just getting access to the brand, not necessarily converting into coverage. We've now passed that 1 year new-to-market block. We've signed all 3 GPOs. We just signed the 3rd one 1 April 2026. We did see an incremental bump in our coverage numbers, that was positive. You know, you'll have auto adopters in terms of some of the plans, then you'll have more of the custom plans, those are the large national formularies. Now that we have contracts in place to pull from, we're able to have those deeper discussions.

Speaker #3: We really focused on GPO contracting. And as you mentioned, that's really just getting access to the brand. Not necessarily converting into coverage. So we've now passed that one-year new-to-market block.

Speaker #3: We've signed all three GPOs. We just signed the third one April 1st of 2026. We did see an incremental bump. In our coverage numbers, so that was positive, but you'll have auto adopters in terms of some of the plans, and then you'll have more of the custom plans.

Speaker #3: And those are the large national formularies, and now that we have contracts in place to pull from, we're able to have those deeper discussions.

Speaker #3: And so from a clinical perspective, when you look at our drug versus our ratio and any of the other oral therapies, the comparable oral therapies, the doxy 40s on the market, you can see that we have the superior efficacy we have solid safety.

Ramsey Alloush: you know, from a clinical perspective, when you look at our drug versus Oracea and any of the other, oral therapies, the comparable oral therapies, the doxy forties on the market, you can see that we have the superior efficacy, we have solid safety. From a clinical standpoint, it makes a lot of sense, and we work in about as half the time. From a financial perspective, you know, we've provided all of the financial detail in terms of their modeling and what net price needs to look like, to get that quality coverage up. When we talk about quality coverage in terms of prior auth criteria, step edit criteria, and any utilization management control, we look at a benchmark of about a single step edit through any oral or topical agent, with a look back of 1 year or greater.

Ramsey Alloush: You know, from a clinical perspective, when you look at our drug versus Oracea and any of the other, oral therapies, the comparable oral therapies, the doxy forties on the market, you can see that we have the superior efficacy, we have solid safety. From a clinical standpoint, it makes a lot of sense, and we work in about as half the time. From a financial perspective, you know, we've provided all of the financial detail in terms of their modeling and what net price needs to look like, to get that quality coverage up. When we talk about quality coverage in terms of prior auth criteria, step edit criteria, and any utilization management control, we look at a benchmark of about a single step edit through any oral or topical agent, with a look back of 1 year or greater.

Speaker #3: So from a clinical standpoint, it makes a lot of sense. And we work in about half the time. So from a financial perspective, we've provided all of the financial detail in terms of their modeling and what net price needs to look like.

Speaker #3: To get that quality coverage up. And when we talk about quality coverage in terms of prior auth criteria, step edit criteria, and any utilization management control, we look at a benchmark of about a single step edit through any oral or topical agent.

Speaker #3: With a look back of one year or greater. And so we think that's the right place for us to be in terms of positioning and we've been pretty successful in having those discussions.

Ramsey Alloush: We think that's the right place for us to be in terms of positioning. We've been pretty successful in having those discussions. We're, you know, not ready to announce anything yet, but we're in very deep discussions and far along in discussions with some of the national formularies. We expect to have some good news throughout 2027 that's really gonna help improve our coverage with respect to Emrozi. From a quality perspective, we talk about 160 million, 170 million lives that Claude mentioned that have access to Emrozi. When you look at that single step or better, no step, we're looking at about 34% of the 190 million commercial lives.

Speaker #3: We're not ready to announce anything yet, but we're in very deep discussions and far along in discussions with some of the national formularies. So we expect to have some good news throughout 2027.

Speaker #3: That's really going to help improve our coverage with respect to Ambrose. So from a quality perspective, we talk about 160, 170 million lives that Claude mentioned that have access to Ambrose.

Speaker #3: But when you look at that single step or better, no step, we're looking at about 34% of the 190 million commercial lives. So about 60 million or so have access to Ambrose.

Ramsey Alloush: About 60 million or so have access to Emrosi, coverage for Emrosi with a single step or better.

Speaker #3: Coverage for Ambrose with a single step or better.

Speaker #4: All right. Appreciate the color. Thank you, guys.

Nelson Cox: All right. Appreciate the color. Thank you, guys.

Speaker #3: Of course.

Ramsey Alloush: Of course.

Speaker #5: Thank you. We have the next question on the line of Mike Montani from B Riley Securities. Please go ahead.

Operator 2: Thank you. We have the next question with line of Mayank Mamtani from B. Riley Securities. Please go ahead.

Operator: Thank you. We have the next question with line of Mayank Mamtani from B. Riley Securities. Please go ahead.

Mayank Mamtani: Yes. Good afternoon, team. Thanks for taking our questions and congrats on a very strong quarter here. On the Emrosi revenue growth accelerating faster than the script volume growth, you know, that you talked about, and especially during the otherwise seasonally challenged Q1. Would be great to hear, you know, on a go-forward basis as you think about both volume and net price step up and, you know, factoring in the prior comments on, you know, formulary dynamic on prior auth being more important than, you know, just having covered lives high level. Are you able to comment on how, you know, quarter date in Q2 you're seeing trends on refills?

Speaker #6: Yes. Good afternoon, team. Thanks for taking our questions and congrats on a very strong quarter here. So on the Ambrose revenue growth accelerating faster than the script volume growth, that you talked about and especially during the otherwise seasonally challenged one Q, so would be great to hear on a go-forward basis as you think about both volume and net price step up and factoring in the prior comments on formulary dynamic on prior auth being more important than just having covered lives high level.

Mayank Mamtani (B. Riley Securit: Yes. Good afternoon, team. Thanks for taking our questions and congrats on a very strong quarter here. On the Emrosi revenue growth accelerating faster than the script volume growth, you know, that you talked about, and especially during the otherwise seasonally challenged Q1. Would be great to hear, you know, on a go-forward basis as you think about both volume and net price step up and, you know, factoring in the prior comments on, you know, formulary dynamic on prior auth being more important than, you know, just having covered lives high level. Are you able to comment on how, you know, quarter date in Q2 you're seeing trends on refills?

Speaker #6: Are you able to comment on how quarter-to-date and second quarter, you're seeing trends on refill? For example, when you think about volume and then this net price—kind of work back where you were in Q3, and there was a step down in Q4—what level are you trying to get at maybe at the end of the year, if you could comment on that.

Mayank Mamtani: For example, when you think about volume and then, you know, this net price kind of work back, you know, where you were in Q3 and there was a step down in Q4, you know, what level you're trying to get at, maybe at the end of the year, if you could comment on that.

Mayank Mamtani (B. Riley Securit: For example, when you think about volume and then, you know, this net price kind of work back, you know, where you were in Q3 and there was a step down in Q4, you know, what level you're trying to get at, maybe at the end of the year, if you could comment on that.

Claude Maraoui: Yeah. Sure, Mayank. Thank you for the question. You know, we're pleased, and we're meeting our internal expectations in terms of NRX to total prescriptions. When you take a look at 2025, we ended the year with 52,000 total prescriptions. Our new prescriptions were at 26,000, and that's again in 2025. Pretty much a 1-to-1 ratio. When you take a look at Q1, for example, we ended up getting to a ratio of 1 new script and 1.4 refills. We like how we're trending and how we're moving that accordingly, and we do expect that to increase from quarter to quarter as we continue to gain more momentum with the brand, more prescribers, and so forth. We think that's doing extremely well for us.

Speaker #1: Yeah, sure. Mike, thank you for the question. We're pleased, and we're meeting our internal expectations in terms of NRX to total prescriptions. When you take a look at 2025, we ended the year with 52,000 total prescriptions.

Speaker #1: Our new prescriptions were at 26,000. And that's, again, in 2025. So pretty much a one-to-one ratio. When you take a look at Q1, for example, we ended up getting to a ratio of one new script and 1.4 refills.

Speaker #1: So we like how we're trending and how we're moving that accordingly. And we do expect that to increase from quarter to quarter as we continue to gain more momentum, with the brand more prescribers and so forth.

Speaker #1: So we think that's doing extremely well for us. Oratia at the same time, if you take a look at their ratio for Q1, they have about one new prescription to 1.9 refills.

Claude Maraoui: Oracea, at the same time, if you take a look at their ratio for Q1, they have about 1 new prescription to 1.9 refills. Now, with our messaging and our 16-week clinical trials, we do see many dermatologists not just writing for 1 prescription, but they're also writing for the refills. And we're seeing anywhere between 2 refills, 3 refills, 4 refills, and in some cases more than that. We do believe that that will continue to grow. Switching to, you know, our gains in the managed care coverage and the quality coverage, you know, we do expect that to continue to grow incrementally from quarter to quarter. When that happens, of course, we'll get more reimbursement on prescriptions that will be profitable for the company. There will be less reliance on our co-pay bridging program.

Speaker #1: Now, with our messaging and our 16-week clinical trials, we do see many dermatologists not just writing for one prescription, but they're also writing for the refills.

Speaker #1: And we're seeing anywhere between two refills, three refills, four refills, and in some cases, more than that. So we do believe that that will continue to grow.

Speaker #1: Switching to our gains in the managed care coverage and the quality coverage, we do expect that to continue to grow incrementally from quarter to quarter.

Speaker #1: And when that happens, of course, we'll get more reimbursement on prescriptions that will be profitable for the company. There will be less reliance on our copay bridging program.

Speaker #1: And we believe that that has the capability to enhance our ASPs. I think when you take a look from Q4 to Q1, Q4 of '25 to Q1 of 2026, you'll see a nice growth rate already, with the average ASP that you see with Ambrose and we think that that will continue.

Claude Maraoui: We believe that that has the capability to enhance our ASPs. I think when you take a look from Q4 to Q1, Q4 of 2025 to Q1 of 2026, you'll see a nice growth rate already with the average ASP that you see with Emrosi, and we think that that will continue. Again, without giving any guidance, I think we're showing a great step forward here in Q1. Prescriptions are growing. We went from 27,000 prescriptions to 30,000 prescriptions. I'd like to also add that, you know, I think we're making the right strategic decisions. We're gonna be increasing our sales force. We're gonna be moving from 35 to 40 salespeople across the United States.

Speaker #1: So again, without giving any guidance, I think we're showing a great step forward here in Q1. Prescriptions are growing. We went from 27,000 prescriptions to 30,000 prescriptions.

Speaker #1: I'd like to also add that I think we're making the right strategic decisions. We're going to be increasing our sales force. We're going to be moving from 35 to 40 salespeople across the United States.

Speaker #1: Our reach will be better. Our frequency will be better. And I think that will also complement our goal to continue to grow Ambrose and become the standard of care.

Claude Maraoui: Our reach will be better, our frequency will be better, and I think that will also complement our goal to continue to grow Emrosi and become the standard of care.

Mayank Mamtani: Very comprehensive answer. Thank you. On the guidance comment you had, you know, for H2, is that too fair to assume that, you know, you'd have both on top line and also, you know, on the bottom line? Because you clearly have a profitability goal here. Was just curious how you think about, you know, adding, I think you've talked about 1 to 2 products, how that fits in versus maybe also, you know, some of the sales ads, some of the costs that you'll have on the G&A. Is that more a H1 loaded where, you know, you could have the benefit on driving more script volume for H2?

Mayank Mamtani (B. Riley Securit: Very comprehensive answer. Thank you. On the guidance comment you had, you know, for H2, is that too fair to assume that, you know, you'd have both on top line and also, you know, on the bottom line? Because you clearly have a profitability goal here. Was just curious how you think about, you know, adding, I think you've talked about 1 to 2 products, how that fits in versus maybe also, you know, some of the sales ads, some of the costs that you'll have on the G&A. Is that more a H1 loaded where, you know, you could have the benefit on driving more script volume for H2? Could you just maybe, you know, fine-tune a little bit of how you're thinking about guidance top and bottom line? Thanks for taking the question.

Speaker #6: Very comprehensive answer. Thank you. And on the guidance comment you had, for the back half of the year, is that fair to assume that you'd have both on top line and also on the bottom line?

Speaker #6: Because you clearly have a profitability goal here. And was this curious how you think about adding I think you've talked about one to two products, how that fits in versus maybe also some of the sales ads some of the costs that you'll have on the GNA and is that more a first half loaded where you can have the benefit on driving more script volume for the back half of the year?

Speaker #6: Could you just maybe fine-tune a little bit how you're thinking about guidance, top and bottom line? Thanks for taking the question.

Mayank Mamtani: Could you just maybe, you know, fine-tune a little bit of how you're thinking about guidance top and bottom line? Thanks for taking the question.

Speaker #1: Yeah. Sure. In due time, we'll come out with that. We're already seeing some variability with ASPs, for example, with Ambrose. I think honestly, I think we'll see a good range from launch about 18 to 24 months.

Claude Maraoui: Yeah, sure. You know, in due time we'll come out with that. We're already seeing some variability with ASPs, for example, with Emrosi. You know, I think honestly, I think we'll see a good range, you know, from launch about 18 to 24 months. We'll get into a pretty consistent range being stable. We will continue to increase the profitability as the year progresses. You know, the salespeople, the additional headcount, they're actually due to get trained in June, and then they'll be out in the field in July. The expenses are more on a H2 of the year basis. We've also put some really fantastic tactical programs in place.

Speaker #1: So what we'll get into a pretty consistent range being stable. But we will continue to increase the profitability as the year progresses. The salespeople for the additional headcount, they're actually due to get trained in June and then they'll be out in the field in July.

Speaker #1: So the expenses are more year basis. We've also put some really fantastic tactical programs in place. One of them MyAnc just really started this past week where we're focused and targeting direct messages via cell as well as emails directly to Oratia patients.

Claude Maraoui: One of them, Mayank just really started this past week, where we're focused in targeting direct messages via cell as well as emails directly to Oracea patients, and including Oracea generic patients. There's resource allocations and expenses that are, you know, committed to that, and you'll see that continue throughout the year. Again, more heavily weighted in the H2 of this year, in 2026. We have other unique programs that are also kicking off in the later half of Q2 into Q3, where we have a switching trial program where we've had some dermatologists who haven't jumped on to the Emrosi brand right away. We'll be giving them free trades to put a certain amount of patients when they come in for refills or when they see them.

Speaker #1: And including Oratia generic patients. So there's resource allocations and expenses that are committed to that. And you'll see that continue throughout the year. Again, more heavily weighted in the second half of this year in 2026.

Speaker #1: We have other unique programs that are also kicking off in the later half of Q2 into Q3, where we have a switching trial program where we've had some dermatologists who haven't jumped on to the Ambrose brand right away.

Speaker #1: We'll be giving them free trades to put a certain amount of patients when they come in for refills or when they see them. And we've got a really nifty program where we'll be able to get great patient feedback.

Claude Maraoui: We've got a really nifty program where we'll be able to get great patient feedback. All of those types of programs certainly do add to our SG&A, and we think the allocation is wise in how we're doing it. We also have these 5 additional reps coming on board as our managed care coverage is better. We think we did that in a timely manner as well. Hopefully, that gives you some good information.

Speaker #1: So all of those types of programs certainly do add to our SGNA. And we think the allocation is wise in how we're doing it.

Speaker #1: We also have these five additional reps coming on board as our managed care coverage is better. So we think we did that in a timely manner as well.

Speaker #1: Hopefully, that gives you some good information.

Speaker #6: Very helpful. Thank you, Claude.

Mayank Mamtani: Very helpful. Thank you, Claude Maraoui.

Mayank Mamtani (B. Riley Securit: Very helpful. Thank you, Claude.

Speaker #7: Thank you. We have the next question from the line of Brandon Foulkes from HC Wainwright. Please go ahead.

Operator 2: Thank you. We have the next question from the line of Brandon Folkes from H.C. Wainwright. Please go ahead.

Operator: Thank you. We have the next question from the line of Brandon Folkes from H.C. Wainwright. Please go ahead.

Speaker #8: Hi. Thanks for taking my question and congrats on the progress. Can you just talk about adding these two additional products into the rep's bag, potentially this year while Ambrose is still in the growth phase?

Brandon Folkes: Hi. Thanks for taking my question, congrats on the progress. Can you just talk about, you know, adding these two additional products into the reps bag potentially this year while Emrosi is still in the growth phase? You know, just any color in terms of how promotion sensitive those products may be, and in terms of the share of voice that they may require during the Emrosi launch. Thank you.

Speaker #8: Just any color in terms of how promotion-sensitive those products may be. And in terms of the share of voice that they may require during the Ambrose launch.

Speaker #8: Thank you.

Speaker #1: Sure. Absolutely. Look, these are good additional niche type of products. First and foremost, our focus is on Ambrose. Our second brand Qubrexa. And we will pulse these products into the third position as the year continues.

Claude Maraoui: Sure. Absolutely. Look, these are, these are good additional, you know, niche type of products. First and foremost, our focus is on Emrosi. Our second brand will continue to be QBREXZA, and we will pulse these products into the third position as the year continues. No, no time will be taken away, no emphasis in terms of how the sales representatives will be compensated will not change to move their behavior away from those top two products. We do believe that these two additional products will definitely launch one. We're hoping to launch both, are really incremental value that will be into our base business. That third position product, sometimes it could be Accutane once another time it could be one of the niche products, but we've got a really good market plan for them.

Speaker #1: So no time will be taken away. No emphasis in terms of how the sales representatives will be compensated will not change to move their behavior away from those top two products.

Speaker #1: We do believe that these two additional products will definitely launch one. We're hoping to launch both. Our really incremental value that will be into our base business.

Speaker #1: And that third position product sometimes it could be Accutane, another time it could be one of the niche products. But we've got a really good market plan for them.

Speaker #1: We've got good expectations. And we believe there's going to be good demand for them, a good need in the dermatology community for these types of products.

Claude Maraoui: We've got good expectations, and we believe there's gonna be good demand for them, a good need in the dermatology community for these types of products. I will tell you one is again in the anti-itch, antipruritic products, and that's always needed, and they're always looking for something. That will be a very positive welcome, I believe, by the dermatology community. The second product is really a strong life cycle management with one of our existing brands that we think will enhance and grow our base business nicely. No real distraction from our focus of EMROZI and secondarily from QBREXZA. Thanks, Brad.

Speaker #1: I will tell you, one is again in the anti-itch anti-pruritic products. And that's always needed. And they're always looking for something. So that will be a very positive welcome, I believe, by the dermatology community.

Speaker #1: And the second product is really a strong life cycle management with one of our existing brands that we think will enhance and grow our base business nicely.

Speaker #1: So no real distraction from our focus of Ambrose and secondarily from Qubrexa. Thanks, Brandon.

Speaker #7: Thank you. We have the next question from the line of Scott Henry from AGP. Please go ahead.

Operator 2: Thank you. We have the next question from the line of Scott Henry from AGP. Please go ahead.

Operator: Thank you. We have the next question from the line of Scott Henry from A.G.P.. Please go ahead.

Speaker #8: Thank you. And good afternoon. I'm going to start with kind of a specific metrics question. Just to get your sense, it's really drilling down on the revenue per script.

Scott Henry: Thank you and good afternoon. I'm gonna start with kind of a specific metrics question, just to get your sense. You know, really drilling down on the revenue per script. If we go back Q3, it was about $271. Then we had the surprise in Q4, it dropped down to $188. In Q1 of this year, it bounced back. We expected it to bounce back, but all the way to $202, depending, you know, everyone's numbers may be a little different, but they should be similar. My question is, do you think $202, you know, is that all the way back, or do you think that number can grow higher? Sometimes inventory changes can impact that number as well.

Speaker #8: If we go back Q3, it was about $271. Then we had the surprise in Q4. It dropped down to $188. In the first quarter of this year, it bounced back.

Speaker #8: We expected it to bounce expected it to bounce back. But all the way to $202, depending everyone's numbers may be a little different, but they should be similar.

Speaker #8: My question is, do you think 202 is that all the way back? Or do you think that number can grow higher? And sometimes inventory changes can impact that number as well.

Scott Henry: Was inventory pretty consistent in Q1? Thank you.

Speaker #8: Was inventory pretty consistent in first quarter? Thank you.

Speaker #1: Yeah. So that's definitely one of the variables. And that's why we've been really holding back from giving more specific guidance, Scott. We definitely had a nice bump from Q4 to Q1, as you just mentioned.

Claude Maraoui: That's definitely one of the variables, and that's why we've been really, you know, holding back from giving more specific guidance, Scott. We definitely had a nice bump from Q4 to Q1, as you just mentioned. We believe with the third GPO that we've gotten contracted as well as what Ramsey was mentioning, lots of serious negotiations where we believe we're gonna have some good wins that will help incrementally put quality coverage regarding Emrosi on a national and regional level. That being the case, this certainly has significantly more upside. You know, we believe in the dermatology realm, you know, 20% to 40%.

Speaker #1: And we believe with the third GPO that we've gotten contracted, as well as what Ramsey was mentioning, lots of serious negotiations where we believe we're going to have some good wins that will help incrementally put quality coverage regarding Ambrose on a national and regional level.

Speaker #1: So that being the case, this certainly has significantly more upside and we believe in the dermatology realm, 20 to 40 percent. It's a wide range, I'm giving, but 20 to 40 percent net is the range that we would expect once it's stable for Ambrose to be over time.

Claude Maraoui: It's a wide range I'm giving, but 20% to 40% net is the range that we would expect once it's stable for Emrosi to be over time.

Speaker #8: Okay. And I think that's an interesting point you make. So when you add the third GPO, I think we always think of it adding covered lives, which ultimately drives scripts.

Scott Henry: Okay. I think that's an interesting point you make. When you add the third GPO, I think we always think of it adding covered lives, which ultimately drives scripts. It sounds like as well, it can make those scripts you already write potentially more profitable, because they have less discounting because they are now covered. Is that a fair statement?

Speaker #8: But it sounds like as well, it can make those scripts you already write potentially more profitable because they have less discounting because they are now covered.

Speaker #8: Is that a fair statement?

Claude Maraoui: Absolutely. We've really tried to make the path of least resistance for the dermatologist as well as the patient. Once they decide and get a prescription for EMROZI, we want them to get it. Our co-pay bridging program, where it's not covered, really fills that and makes it an easy transition. Once coverage comes along, those patients, because this is a chronic condition, whenever they come back for a relapse or an episode and they've had a great experience with EMROZI, they'll be back to get more, hopefully, from their physicians. Hopefully that coverage now is there, where prior it was getting picked up by the co-pay. Exactly to your point, Scott.

Speaker #1: Absolutely. We've really tried to make the path of least resistance for the dermatologist as well as the patient. Once they decide and get a prescription for Ambrose, we want them to get it.

Speaker #1: And our copay bridging program, where it's not covered, really fills that and makes it an easy transition. Once coverage comes along, those patients, because this is a chronic condition, whenever they come back for a relapse or an episode and they've had a great experience with Ambrose, they'll be back to get more hopefully from their physicians and then hopefully that coverage now is there where prior it was getting picked up by the copay.

Speaker #1: So exactly to your point, Scott.

Speaker #8: Okay. And so you've got some really nice underlying trends. What about seasonality? As it gets warmer out, people are outside, they're in the sun, maybe it clears it up a little bit, they see their dermatologist a little less in the summer.

Scott Henry: Okay. You've got some really nice underlying trends. What about seasonality? You know, as it gets warmer out, people are outside, they're in the sun. Maybe it clears it up a little bit. They see their dermatologist a little less in the summer. You know, how big of a factor is that in the rosacea category?

Speaker #8: How big of a factor is that in the rosacea category?

Claude Maraoui: You know, there is some seasonality. There's no doubt about it. It's not significant in terms of being too specific in what quarter can we see that. Looking historically over the last 8 quarters, we see it going up and down, but it's really not that significant for me to point to 1 specific time. It's not only the warmer months, it's the colder months as well. It's alcohol consumption, spicy foods. There's a number of different factors, and I think that's why it evens out over time, and every patient is different. You know, we do expect, you know, prescriptions to continue to grow. We just received Symphony April numbers. I'm glad to let you know that it's an all-time high. We just hit 11,400 plus prescriptions.

Speaker #1: There is some seasonality. There's no doubt about it. It's not significant in terms of being too specific in what quarter can we see that.

Speaker #1: Looking historically, over the last eight quarters, we see it going up and down, but it's really not that significant for me to point to one specific time.

Speaker #1: It's not only the warmer months. It's the colder months as well. And it's alcohol consumption. It's spicy foods. There's a number of different factors.

Speaker #1: And I think that's why it evens out over time. And every patient is different. So we do expect prescriptions to continue, to grow. We just received Symphony April numbers - I'm glad to let you know that it's an all-time high - we just hit 11,400-plus prescriptions.

Speaker #1: And we're seeing strong redemption weeks as we are getting deeper into May. So momentum is picking up. Perhaps it's the warmer months that you're talking about right now, but it's also I think the basis of just a highly efficacious product.

Claude Maraoui: You know, we're seeing strong redemption weeks, as we are getting deeper into May. Momentum is picking up. Perhaps it's the warmer months that you're talking about right now. It's also, I think, the basis of just a highly efficacious product. It's the best product that they have now orally to treat rosacea. I think, you know, we're up to 3,700 prescribers, right? Unique prescribers. When I look at, for example, the month of March, we had over 2,500 prescribers just in that month alone. As they start to pick up and as those numbers continue to grow, it's gonna be more meaningful for the product. You'll see some good momentum build.

Speaker #1: It's the best product that they have now orally to treat rosacea. And I think we're up to 3,700 prescribers - right? - unique prescribers in when I look at, for example, the month of March, we had over 2,500 prescribers just in that month alone.

Speaker #1: So as they start to pick up and as those numbers continue to grow, it's going to be more meaningful for the product. You'll see some good momentum build.

Speaker #8: Okay. Great. Congratulations on the progress. I know you guys have been working hard at it. And thank you for taking the questions.

Scott Henry: Okay, great. Congratulations on the progress. I know you guys have been working hard at it. Thank you for taking the questions.

Speaker #1: You're welcome. Thank you.

Claude Maraoui: You're welcome. Thank you.

Operator 2: Thank you. Ladies and gentlemen, that was the last question. The conference has now concluded. Thank you for joining in. You may now disconnect.

Operator: Thank you. Ladies and gentlemen, that was the last question. The conference has now concluded. Thank you for joining in. You may now disconnect.