Verrica Pharmaceuticals Inc. recorded record U.S. YCANTH net product revenue of $5.7 million in the third quarter of 2026, marking an 11.9% increase over the previous quarter and a 57.9% rise year-over-year, according to markets.businessinsider.com.
Total revenue for the quarter reached $6.9 million, compared to $14.3 million in the same period of 2025. The 2025 figures included a $10.0 million one-time milestone payment from Torii Pharmaceutical Co., Ltd., the company’s Japanese development partner. U.S. YCANTH product revenue, net grew from $3.6 million in the third quarter of 2025. This increase stemmed from higher deliveries to distribution partners alongside improved yield resulting from reduced spending on the company’s co-pay assistance program.
License and collaboration revenue totaled $1.2 million for the quarter, largely driven by commercial supply for Torii’s YCANTH launch in Japan. Dispensed applicator units for YCANTH reached 19,135 during the third quarter, representing a year-over-year increase of approximately 36% compared to the third quarter of 2025. On a sequential basis, dispensed units decreased about 2.5% from the prior quarter.
Verrica progresses through Phase 3 common warts trials
Verrica completed patient enrollment in the first Phase 3 common warts trial in August after an interim analysis determined no additional patients were required to power the trial. More than 50% of the patient target is now enrolled in the second Phase 3 trial. Topline data for these trials are expected in the first quarter of 2027 and mid-2027, respectively.
“We are also executing on our label expansion strategy for YCANTH into common warts,” said Jayson Rieger, President and Chief Executive Officer of Verrica, in a statement reported by markets.businessinsider.com.
The company is also exploring the development of its oncolytic peptide, VP-315, to treat patients with Gorlin syndrome. This rare genetic disease causes the frequent emergence of basal cell carcinomas over a patient’s lifetime. Verrica plans to use foundational data from a completed Phase 2 study in sporadic basal cell carcinoma to evaluate potential clinical protocols for Gorlin syndrome patients.
Research and development expenses drive higher net loss
Research and development expenses rose to $7.6 million for the third quarter of 2026, up from $2.2 million in the same period of 2025. Excluding stock-based compensation, the increase of $5.2 million was primarily driven by $3.7 million in non-cash costs associated with the Phase 3 common warts program and $1.3 million in chemistry, manufacturing, and controls expenses.
Selling, general, and administrative expenses totaled $10.4 million, compared to $9.4 million in the third quarter of 2025. The net loss for the third quarter of 2026 reached $12.4 million, or $0.58 per share, compared to a net loss of $0.3 million, or $0.03 per share, for the same period in 2025. Non-GAAP net loss for the quarter stood at $10.5 million, or $0.49 per share.
Common Questions About Verrica’s Operations
What is the market potential for YCANTH in common warts?
Verrica estimates that securing a label expansion for YCANTH into common warts could represent a multibillion-dollar commercial opportunity if approved by the U.S. Food and Drug Administration. The condition affects approximately 22 million patients in the United States alone, and there are currently no FDA-approved prescription drug therapies available for the indication.
How are the Phase 3 common warts trials funded?
Verrica’s expense for the Phase 3 common warts program did not impact the company’s cash balance under the collaboration and license agreement. The first $40 million of payments for the program, representing about 90% of estimated study costs, are covered by Torii Pharmaceutical under an existing collaboration and license agreement.
When will Verrica host its next financial results discussion?
Verrica scheduled a conference call and live webcast for Thursday, November 12, 2026, at 4:30 pm ET to discuss third quarter 2026 financial results and provide further business updates. A replay of the webcast will remain available for one month in the Events Calendar of the Investors section on the company’s website.