Update shared on01 Aug 2025
Fair value Increased 900%The consensus analyst price target for Verrica Pharmaceuticals surged from $4.00 to $40.00, reflecting improved future valuation as evidenced by a slight decline in the forward P/E ratio.
What's in the News
- Verrica received a Nasdaq delisting notice due to failure to maintain a $1.00 minimum bid price and subsequently effected a 1-for-10 reverse stock split to regain compliance; shares have been trading above $1.00 post-split and the company plans to request cancellation of the delisting hearing upon ten days' compliance.
- The company amended its collaboration with Torii Pharmaceutical, securing earlier receipt of an $8 million milestone payment and a $10 million payment upon expected Japanese approval of YCANTH; Torii will cover the first $40 million in global Phase 3 trial costs, with costs offset against future royalties and milestones.
- Verrica plans to dose the first patient in the global Phase 3 program for YCANTH (treatment for common warts) in the US in Q4 2025 and will begin a manufacturing transfer of YCANTH applicators to Torii for the Japanese market.
- YCANTH, the only FDA-approved treatment for molluscum contagiosum in adults and children, is widely covered by insurance, with affordable co-pays for most patients.
- Stockholders approved amendments enabling the Board to conduct a reverse stock split at a ratio between 1-for-10 and 1-for-30 at its discretion, leading to the executed 1-for-10 reverse split.
Valuation Changes
Summary of Valuation Changes for Verrica Pharmaceuticals
- The Consensus Analyst Price Target has significantly risen from $4.00 to $40.00.
- The Future P/E for Verrica Pharmaceuticals has fallen slightly from 9.41x to 9.16x.
- The Net Profit Margin for Verrica Pharmaceuticals remained effectively unchanged, at 41.72%.
Disclaimer
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