Update shared on17 Aug 2025
Fair value Decreased 40%A notable downward revision in forecasted revenue growth and a substantial decline in future P/E have driven analysts to lower their price target for Verrica Pharmaceuticals from $25.00 to $15.00.
What's in the News
- Verrica Pharmaceuticals was notified by Nasdaq of non-compliance with the $1.00 minimum bid price requirement and faces potential delisting; the company has requested a hearing, which stays the suspension or delisting process.
- Verrica executed a 1-for-10 reverse stock split to increase its share price and regain Nasdaq compliance; its minimum bid price has since reached $6.24, and the company intends to request a compliance determination after ten trading days.
- Verrica amended its collaboration agreement with Torii Pharmaceutical, accelerating an $8 million milestone payment for YCANTH's Phase 3 trial and securing an additional $10 million milestone to be paid in cash upon Japanese approval for molluscum.
- Torii will cover the first $40 million of global Phase 3 trial costs for YCANTH, with further costs to be repaid by Verrica through future royalty and milestone offsets; manufacturing transfer of applicators to Torii is planned for Japan, with interim transfer price payments to Verrica.
- Verrica stockholders approved amendments allowing for a reverse stock split at a ratio of 1-for-10 to 1-for-30, at the discretion of the Board of Directors.
Valuation Changes
Summary of Valuation Changes for Verrica Pharmaceuticals
- The Consensus Analyst Price Target has significantly fallen from $25.00 to $15.00.
- The Future P/E for Verrica Pharmaceuticals has significantly fallen from 9.96x to 6.62x.
- The Consensus Revenue Growth forecasts for Verrica Pharmaceuticals has fallen from 114.3% per annum to 107.1% per annum.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.