West Chester-based Verrica Pharmaceuticals has secured $50 million from a private stock sale, which will allow the company to retire its $35 million OrbiMed debt and finance future business activities, writes John George for the Philadelphia Business Journal.
The dermatology therapeutics company is issuing 6.5 million shares of common stock with warrants to purchase an additional 5.3 million shares at a combined price of $4.24 per share. The announcement drove the stock up more than 12 percent on Monday to $4.72 per share.
“The significant capital provided by this financing will solidify our balance sheet, completely eliminate our debt facility, and provide an extended cash runway into mid-2027,” said Verrica CEO Jayson Rieger.
He explained that settling the OrbiMed debt will end the “burden of interest and principal payments” and enable the company to focus its resources, including its $21.1 million cash reserve, on promoting its flagship drug Ycanth and continuing pipeline development.
Ycanth, which received FDA approval in 2023 for treating molluscum contagiosum, recorded $6.6 million in sales in 2024 and topped $11.5 million in the first three quarters of this year.
Read more about Verrica Pharmaceuticals flushing its $35 million OrbiMed debt in the Philadelphia Business Journal.
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