Verrica Pharmaceuticals lost $13.2 million last quarter even as demand for its flagship skin treatment hit an all-time high, the West Chester biotech disclosed in its earnings release on Thursday, Aug. 6.

Verrica, headquartered at 44 West Gay Street, reported record dispensing of YCANTH applicator units at 19,626 for the quarter ended June 30, up 46.1% from a year earlier. U.S. net product revenue from YCANTH rose 12.3% to $5.1 million.

But total revenue fell to $5.9 million from $12.7 million because an $8 million one-time licensing milestone from Japanese partner Torii Pharmaceutical in 2025 did not repeat.

The same day, Verrica closed a credit facility of up to $27.5 million with an entity controlled by Chairman Paul B. Manning, the company's largest shareholder and CEO of PBM Capital. Manning first invested in Verrica in 2015.

"I am proud to support Verrica's continued growth by providing access to the additional capital it needs to achieve its goals," Manning said in the announcement. "Verrica's commercial performance has clearly strengthened over the last year, and I expect continued growth into the future."

The deal gives Verrica access to $12.5 million immediately, with another $15 million available once the company hits unspecified revenue and operational milestones it aims to meet before year's end. No principal or interest payments are due until the facility matures Dec. 31, 2030, absent a default. Combined with $11.2 million in cash on hand as of June 30, Verrica said the full facility could extend its runway into 2028.

The loss widened sharply from net income of $200,000 in the second quarter of 2025. Research and development spending jumped to $6 million from $1.8 million, driven by a Phase 3 program testing YCANTH for common warts, a condition affecting roughly 22 million Americans with no FDA-approved treatment. Torii is funding the first $40 million of that trial, about 90% of the current budget, so the spending did not reduce Verrica's cash balance.

Selling and administrative costs rose to $10.3 million from $8.9 million as the company expanded its sales force. Verrica also recorded a $1.7 million expense to settle a 2022 class-action lawsuit after insurance recovery.

As we reported Aug. 5, the company had flagged the earnings date in advance. CEO Jayson Rieger pointed to the record YCANTH volume as evidence the commercial strategy is working, saying the company aims to make the treatment "the standard of care for patients suffering from molluscum."

Verrica employs an estimated 85 people at its Gay Street headquarters, according to LinkedIn data. VRCA shares fell 5.22% on Saturday, Aug. 8, the session after the credit facility announcement, on 3.5 times average daily volume.

Next up: topline data from the Phase 3 common-warts program, with results expected mid-2027.