Journey Medical Corporation Reports Third Quarter 2024 Financial Results and Recent Corporate Highlights
U.S. FDA approved Emrosi$(TM)$ (Minocycline Hydrochloride Extended Release Capsules, 40 mg) for the treatment of inflammatory lesions of rosacea in adults; launch expected in late Q1 or early Q2 of 2025
Total revenues for the third quarter ended September 30, 2024 were $14.6 million
SCOTTSDALE, Ariz., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical" or "the Company", "we", or "our"), a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of U.S. Food and Drug Administration ("FDA")-approved prescription pharmaceutical products for the treatment of dermatological conditions, today announced financial results and recent corporate highlights for the third quarter ended September 30, 2024.
Claude Maraoui, Journey Medical's Co-Founder, President and Chief Executive Officer, said, "Given the recent FDA approval of Emrosi(TM), (Minocycline Hydrochloride Extended Release Capsules, 40 mg), formerly referred to as DFD-29, for the treatment of inflammatory lesions of rosacea in adults, we are completing manufacturing activities and deploying our experienced dermatology sales force to quickly enable patient access to this unique therapeutic solution. This approval is a transformational milestone for both Journey Medical and the dermatology community, as Emrosi has the potential to become the best-in-class oral medication and standard of care to address inflammatory lesions of rosacea."
Mr. Maraoui continued, "We also continued to commercialize our core dermatology products and experienced a solid third quarter of 2024, with $14.6 million in revenues. We look forward to continued growth with the anticipated launch of Emrosi in late first quarter or early second quarter of 2025."
Financial Results:
-- Total net product revenues were $14.6 million for the third quarter of
2024, a 4% decrease compared to the third quarter of 2023. Qbrexza net
product sales increased by $1.7 million, or 29%, from the same period in
2023, due to our focused marketing efforts and the expansion of our
access and coverage platforms for the product offset by decreases in
sales volume for the remainder of our products.
-- Cost of goods sold decreased by $1.1 million, or 18%, compared to the
third quarter of 2023, driving a 6.0% increase in our gross product
margin from 57.9% in the prior year quarter, to 63.9% for the third
quarter of 2024. The gross margin increase was mainly due to inventory
charges recorded in the prior year period and a decrease in product
royalties from the same period in 2023.
-- Research and development costs decreased by $1.4 million compared to the
prior year quarter due to lower clinical trial expenses to develop
Emrosi.
-- Selling, general and administrative expenses increased by $2.8 million
from the same period in 2023 mainly due to increases in non-cash
share-based compensation expenses and overall selling and marketing
expenses, including our pre-launch expenses for Emrosi.
-- Net income for the third quarter of 2023 includes the one-time $19.0
million upfront payment received pursuant to our license agreement with
Maruho Co., Ltd. Net loss for the third quarter of 2024 was $2.4 million,
or $(0.12) per share basic and diluted, compared to net income of $16.8
million, or $0.91 per share basic and $0.80 per share diluted, for the
third quarter of 2023.
-- Our non-GAAP results in the table below reflect Adjusted EBITDA of $0.3
million, or $0.01 per share basic and diluted, for the third quarter of
2024 compared to Adjusted EBITDA of $20.8 million, or $1.13 per share
basic and $0.99 per share diluted, for the third quarter of 2023.
Adjusted EBITDA for the third quarter of 2023 includes the one-time $19.0
million upfront payment received pursuant to our license agreement with
Maruho Co., Ltd. Adjusted EBITDA, Adjusted EBITDA per share basic and
Adjusted EBITDA per share diluted are non-GAAP financial measures, each
of which is reconciled to the most directly comparable financial measures
calculated in accordance with GAAP below under "Use of Non-GAAP
Measures."
-- At September 30, 2024, the Company had $22.5 million in cash and cash
equivalents, as compared to $23.9 million at June 30, 2024.
Recent Corporate Highlights:
-- In November 2024, the U.S. FDA approved Emrosi (Minocycline Hydrochloride
Extended Release Capsules, 40 mg) for the treatment of inflammatory
lesions of rosacea in adults.
-- In October 2024, clinical data was presented at the 44th Fall Clinical
Dermatology Conference assessing the dermal and systemic pharmacokinetics
of Emrosi versus oral Doxycycline 40 mg capsules (Oracea$(R)$) in healthy
subjects. With its extended-release formulation, Emrosi provides higher
dermal concentration than doxycycline from Day 1 onward at a similar dose,
expected to translate into a clinically meaningful impact for treating
patients with rosacea, and as demonstrated in Emrosi's Phase 3 clinical
trials.
-- In July 2024, Journey Medical appointed Michael C. Pearce to its Board of
Directors. Mr. Pearce is an accomplished executive, with substantial
strategic, business and financial experience across many industries,
including healthcare.
About Journey Medical Corporation
Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical") is a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions through its efficient sales and marketing model. The Company currently markets seven branded and two generic products that help treat and heal common skin conditions. The Journey Medical team comprises industry experts with extensive experience in developing and commercializing some of dermatology's most successful prescription brands. Journey Medical is located in Scottsdale, Arizona and was founded by Fortress Biotech, Inc. (Nasdaq: FBIO). Journey Medical's common stock is registered under the Securities Exchange Act of 1934, as amended, and it files periodic reports with the U.S. Securities and Exchange Commission ("SEC"). For additional information about Journey Medical, visit www.journeymedicalcorp.com.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words "the Company", "we", "us" and "our" may refer to Journey Medical. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. The words "anticipate," "believe," "estimate," "may," "expect," "will," "could," "project," "intend," "potential" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include: the fact that our products and product candidates are subject to time and cost intensive regulation and clinical testing and as a result, may never be successfully developed or commercialized; a substantial portion of our sales derive from products that may become subject to third-party generic competition, the introduction of new competitor products, or an increase in market share of existing competitor products, any of which could have a significant adverse impact on our operating income; we operate in a heavily regulated industry, and we cannot predict the impact that any future legislation or administrative or executive action may have on our operations; our revenue is dependent mainly upon sales of our dermatology products and any setback relating to the sale of such products could impair our operating results; competition could limit our products' commercial opportunity and profitability, including competition from manufacturers of generic versions of our products; the risk that our products do not achieve broad market acceptance, including by government and third-party payors; our reliance third parties for several aspects of our operations; our dependence on our ability to identify, develop, and acquire or in-license products and integrate them into our operations, at which we may be unsuccessful; the dependence of the success of our business, including our ability to finance our company and generate additional revenue, on the successful commercialization of our recently approved product, Emrosi(TM), and any future product candidates that we may develop, in-license or acquire; clinical drug development is very expensive, time consuming, and uncertain and our clinical trials may fail to adequately demonstrate the safety and efficacy of our current or any future product candidates; our competitors could develop and commercialize products similar or identical to ours; risks related to the protection of our intellectual property and our potential inability to maintain sufficient patent protection for our technology and products; our business and operations would suffer in the event of computer system failures, cyber-attacks, or deficiencies in our or our third parties' cybersecurity; the substantial doubt about our ability to continue as a going concern; the effects of major public health issues, epidemics or pandemics on our product revenues and
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