West Chester-based Verrica Pharmaceuticals expects to raise $42 million in a public stock offering, following staff reductions and the appointment of a new CEO, writes John George for the Philadelphia Business Journal. 

The dermatology therapeutics company is offering 44.9 million shares of its common stock, along with pre-funded warrants for an additional 2.2 million shares, both priced at 89 cents per share. The amount of the offering could grow by an additional $6.3 million if underwriters exercise their option in full to buy another 7.08 million shares to cover over-allotments. 

The company plans on using the proceeds from the public stock offering, along with its $23 million in cash and cash equivalents, for capital and general corporate purposes, including the continued commercialization of its flagship product, Ycanth. 

Last year, the Food and Drug Administration approved Ycanth as a treatment for molluscum contagiosum, a common and highly contagious skin disease. During the first three quarters of this year, Ycanth generated sales of $6.3 million. 

Verrica also said it may use part of the proceeds to invest in or acquire complementary businesses or technologies. 

Read more about Verrica Pharmaceuticals’ public stock offering in the Philadelphia Business Journal. 

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