Verrica Pharmaceuticals Announces Achievement of Milestones Unlocking Access to the Full $27.5 Million of Non-Dilutive Growth Capital Under Credit Facility

– Company’s achievement of pre-defined revenue, growth and operational milestones increases facility commitment by $15.0 million –

– Capital now available to support continued growth of the YCANTH® business and advancement of the Company’s global Phase 3 common warts program through topline data readouts, the first of which is expected in Q1’27 –

WEST CHESTER, Pa., Oct. 22, 2026 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. ("Verrica" or the "Company") (Nasdaq: VRCA), a therapeutics company developing and commercializing medications for the treatment of dermatological diseases, including skin cancers, today announced that it has achieved the pre-defined revenue, growth and operational milestones required to increase the maximum commitment amount under its credit facility with an entity controlled by Paul B. Manning, Chairman and Chief Executive Officer of PBM Capital and Chairman of Verrica's Board of Directors. As a result of the achievement of these milestones, the full $27.5 million of non-dilutive capital under the facility is now available to Verrica, with the first $12.5 million having been funded in September.

"Verrica’s achievement of these milestones resulted directly from the momentum our team has built with YCANTH," said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. "We committed to clear revenue, growth and operational goals when we closed this facility in August, and we delivered on them. Importantly, the capital now available to Verrica by this facility allows us to complete our two pivotal studies in the common warts program, with readouts from the studies expected in the first quarter and in mid-2027, respectively. Under the facility, we have no obligation to make scheduled principal or interest cash payments during the term of the facility, and the favorable covenant package allows us to fully utilize our cash to support our growth. On behalf of all of us at Verrica, I would like to again thank Paul Manning for his confidence in our progress and for providing this highly flexible funding to support our programs."

"Verrica's execution over the past several months reinforces my confidence in the team and in YCANTH," said Paul B. Manning, Chairman of Verrica's Board of Directors. "I am pleased to continue supporting the Company as it builds on this progress."

Terms of the Credit Agreement

Under the terms of credit agreement, Verrica may borrow up to $27.5 million from time to time, at its option. Borrowings under the facility will bear interest at the one-month secured overnight financing rate (SOFR) plus 8.00% per annum, subject to a SOFR floor of 4.50%. All interest under the facility will be payable in kind, subject to the absence of any event of default under the credit agreement (which results in interest being payable in cash and increased during the pendency of such event of default, unless otherwise elected by the lender). The term loans will mature on December 31, 2030. The credit agreement also requires mandatory prepayments with the proceeds of certain transactions and events, and quarterly payments if positive operating cash flow exceeds a specified amount. The credit facility is secured by substantially all of the assets of Verrica and certain subsidiaries.

About YCANTH® (VP-102) 

YCANTH® is a proprietary drug-device combination product that contains a GMP-controlled formulation of cantharidin delivered via a single-use applicator that allows for precise topical dosing and targeted administration for the treatment of molluscum. YCANTH is the first and only healthcare professional-administered product approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum — a common, highly contagious skin disease that affects an estimated six million people in the United States, primarily children. Approval of YCANTH was based upon the positive results from two Phase 3 clinical trials in approximately 500 patients which demonstrated that YCANTH was a safe and effective therapeutic for the treatment of molluscum.

Approximately 250 million lives are eligible to receive YCANTH covered by insurance. Commercially insured patients pay as little as $0 per YCANTH treatment visit, for up to two applicators. Other uninsured patients may be eligible to receive YCANTH at a reduced cost if certain eligibility requirements are met for patient assistance. Please visit YCANTHPro.com for additional information.

YCANTH is also approved for the treatment of molluscum contagiosum in Japan and is being studied in a global phase 3 program in the US and Japan for the treatment of common warts.

About Verrica Pharmaceuticals Inc. 

Verrica is a therapeutics company developing and commercializing medications for the treatment of dermatological diseases, including skin cancers. Verrica’s product YCANTH^® (VP-102) (cantharidin), is the first and only healthcare professional-administered treatment approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH^® (VP-102) is also in development to treat common warts, the largest remaining unmet need in medical dermatology. Verrica has also entered a worldwide license agreement with Lytix Biopharma ASA to develop and commercialize VP-315 (ruxotemitide, formerly known as LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma. For more information, visit www.verrica.com.

Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believe,” “expect,” “may,” “plan,” “potential,” “will,” and similar expressions, and are based on Verrica’s current beliefs and expectations. These forward-looking statements include statements about Verrica’s ability to borrow funds under the credit facility, the clinical development and potential benefits of Verrica’s product candidates, including YCANTH (VP-102) and VP-315, the timing of readouts from the Phase 3 common warts program and Verrica’s cash runway. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include risks and uncertainties related to market conditions, and other risks and uncertainties that are described in Verrica’s Annual Report on Form 10-K for the year ended December 31, 2025, Verrica’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 and other filings Verrica makes with the SEC. Any forward-looking statements speak only as of the date of this press release and are based on information available to Verrica as of the date of this release, and Verrica assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.

FOR MORE INFORMATION, PLEASE CONTACT:

Investors:

John J Kirby
Interim Chief Financial Officer
jkirby@verrica.com

Kevin Gardner 
LifeSci Advisors 
kgardner@lifesciadvisors.com