Journey Medical Q1 2025 Earnings Call Transcript

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Operator

Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to Journey Medical's First Quarter twenty twenty five Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen only mode. Participants of this call are advised that the audio of this conference call is being broadcast live I would now like to turn the call over to Jacqueline Jaffe, the company's Senior Director of Corporate Operations. Please go ahead, Jacqueline.

Jaclyn Jaffe
Jaclyn Jaffe
Senior Director of Corporate Operations at Journey Medical Corp

Good afternoon, and thank you for participating in today's conference call. Joining me from Journey Medical's leadership team are Klub Murawi, Co Founder, President and Chief Executive Officer and Joseph Binesh, Chief Financial Officer. Joining for the Q and A portion of the call will be Ramzi Aloosh, Chief Operating Officer and General Counsel Doctor. Srini Tibgiti, Vice President of Research and Development and Louis Donati, Director of Market Access. During this call, management will be making forward looking statements, including statements that address, among other things, Journey Medical's expectations for future performance, operational results, financial condition and the receipt of regulatory approvals.

Jaclyn Jaffe
Jaclyn Jaffe
Senior Director of Corporate Operations at Journey Medical Corp

Forward looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Jury Medical's most recently filed periodic reports on Form 10 ks and Form 10 Q, the Form eight ks filed with the SEC today and the company's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes non GAAP financial measures that Journey Medical believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non GAAP financial measure to net loss, its most directly comparable GAAP financial measure, please see the reconciliation table located in the company's earnings press release.

Jaclyn Jaffe
Jaclyn Jaffe
Senior Director of Corporate Operations at Journey Medical Corp

The content of this call contains time sensitive information that is accurate only as of today, Wednesday, 05/14/2025. Except as required by law, Journey Medical disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Claude Morawi, Co Founder, President and Chief Executive Officer of Journey Medical.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Thank you, Jacqueline, and good afternoon to everyone on the call today. The first quarter of twenty twenty five represented a major milestone for Journey Medical as we introduced Ambrosi, our best in class oral rosacea treatment into the market. Today, I am pleased to report that our first quarter twenty twenty five net product sales of $13,100,000 included approximately $2,000,000 of initial AMROCI revenue, and the launch is off to a great start. Additionally, our in line products continue to perform and remain contribution positive, providing a strong foundation as AMROCI gains market traction. We believe that the positive initial response that we are seeing with Amrozi's market introduction gives us even more confidence that Amrozi will become our flagship product and enable us to become sustainably EBITDA positive later this year.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Ahead of the launch, we showcased TYMROSA at the twenty twenty five American Academy of Dermatology Annual Meeting, or the AAD, which attracts over 20,000 attendees, including top dermatology KOLs and high prescribing physicians, nurse practitioners and physician assistants. We hosted a productive exhibit booth at the conference, educating attendees about Amrocy's superior head to head Phase III results against the Oratia as well as the product's favorable safety and tolerability profile. Attendees were especially drawn to before and after photos from our clinical trials, illustrating the efficacy of Amrozi's unique forty milligram modified release formulation, which is comprised of ten milligram immediate release and thirty milligram extended release minocycline. We believe that the AAD meeting helped prime the market for the Imroci launch, showcasing the product's superior clinical profile and key benefits. On March 5, we announced that the Phase III clinical trial results for Imroci in the treatment of rosacea were published in the Journal of the American Medical Association or JAMA Dermatology.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

The publication featured data from our two Phase III clinical trials, which demonstrated statistical superiority of AMROCI over Auratia and placebo for the two co primary endpoints in the studies, IgA treatment success and total lesion count reduction. The article also noted positive and statistically significant results on secondary endpoints, such as the reduction in erythema compared to placebo in both studies. JAMA Dermatology has a high impact factor among dermatologists, and we are very pleased that our strong Phase III results were peer reviewed and published in this prestigious journal. We also welcomed the March update from the National Rosacea Society, which revised its clinical treatment algorithms to include AMROCI. These updated guidelines were distributed to approximately 7,500 dermatology professionals across The U.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

S. And mark an important step toward broad clinical adoption. We view this as a strong signal of confidence from the dermatology community and a catalyst for increased market uptake. As we discussed on our AMROSAI commercial launch plan conference call in February, we actively call on approximately 83% of dermatology offices that prescribe oral rosacea treatments. In addition, the vast majority of prescriptions written for oral rosacea treatments come from dermatology offices that already prescribe JOURNIE medical products.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

This high reach and strong brand equity have accelerated Amrozi's penetration, and we will expect this trend to continue. Amrozi represents a strategic fit into our product portfolio. We are already demonstrating strong uptake based on the initial script volumes. As we work to generate strong brand awareness and positive prescription trends for Amrozi, it is equally important to ensure that payer coverage is also expanding so that we can translate prescribing momentum into product sales. On our fourth quarter twenty twenty four earnings call in March, we noted that approximately 20 percent of the 188,000,000 lives in the commercial payer segment had access to Amrozi through their health insurance plans.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Today, I am pleased to report that approximately 30% of covered commercial insured lives now have access to Umbroci. As we build demand, we are also making steady progress in securing market access as we recently contracted with one of the largest commercial GPOs to include access to Umrose for the multimillions of members through its customer health plans, which will begin July 1. Additional payer agreements are expected in the coming months, further advancing our market access strategy. And with that, I will now turn the call over to our CFO, Joe Dinesh, to review our financial results for the first quarter.

Joseph Benesch
Joseph Benesch
CFO at Journey Medical Corp

Thank you, Claude, and good afternoon to everyone on the call. Our net revenue for the first quarter of twenty twenty five was $13,100,000 compared to $13,000,000 for the first quarter of twenty twenty four. First quarter of '20 '20 '5 includes $2,000,000 in incremental net product revenue related to The U. S. Commercial launch of Imroci.

Joseph Benesch
Joseph Benesch
CFO at Journey Medical Corp

Our gross margin increased to 64 percent for the first quarter of twenty twenty five and fifty four percent in the prior period due to lower overall product cost of goods mainly related to product sales mix and non recurring charges in the prior year. R and D costs were nil in the first quarter of twenty twenty five compared to $7,900,000 in the first quarter of twenty twenty four. First quarter of '20 '20 '4 includes INROCE related preapproval and milestone payments. Looking now to our SG and A expenses. SG and A increased by $2,100,000 to $10,600,000 for the first quarter of twenty twenty five from $8,400,000 for the first quarter of twenty twenty four.

Joseph Benesch
Joseph Benesch
CFO at Journey Medical Corp

The increase primarily reflects investments in incremental commercial infrastructure to support the Ambrosi launch. Continuing to our net loss for the periods. Net loss to common shareholders was $4,100,000 or $0.18 per share basic and diluted for the first quarter of twenty twenty five. This compares to a net loss to common shareholders of $10,400,000 or $0.53 per share basic and diluted for the first quarter of twenty twenty four. We ended the first quarter of twenty twenty five with $21,100,000 in cash compared to $20,300,000 at 12/31/2024.

Joseph Benesch
Joseph Benesch
CFO at Journey Medical Corp

Thank you very much. I will now turn the call back to Claude.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Thank you, Joe. The first quarter marked the launch of Amrozi in addition to several momentum building activities to support adoption of the product, such as our exhibit booth at the AAD conference, the JAMA Dermatology publication of Amrozi's Phase III clinical trial results, inclusion of AMROCI in the National Rosacea Society's treatment algorithms and establishment of payer coverage for a significant percentage of commercial lives, all less than two months into Amrocy's launch. Our dermatology focused sales force has been fully trained and is in the field building the Amrocy's brand and prescription demand with existing and new customers. In addition to continuing to generate demand with the other prescription dermatology products. Early indicators are encouraging with over six sixty unique health care providers writing prescriptions for Amrozi to date.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

This is a testament to the effectiveness of our team and the unmet need Amrozi is addressing. We are confident the launch will continue to build momentum throughout the year With strong initial revenue, improving margins and a solid cash position, we are on track to accelerate our path to profitability. Looking ahead, we are focused on expanding access, growing prescription volume and publishing additional peer reviewed data that further supports Amrocy's clinical value. We remain committed to creating long term value for patients, providers and shareholders, and we believe 2025 is shaping up to be a transformational year for Journey Medical. Thank you.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Operator, we are now ready to open the lines for Q and A.

Operator

Thank you. We will now begin the question and answer session. Today's first question comes from Scott Henry with AGP.

Scott Henry
Managing Director & Senior Research Analyst at Alliance Global Partners

Certainly

Scott Henry
Managing Director & Senior Research Analyst at Alliance Global Partners

a lot going on. I guess, first, it sounds like the Q1 revenues for MROCI was largely stocking. Going forward, would you expect revenues to reflect demand? And any thoughts how we should think about 2Q, if there'll be a lag at all? Or just trying to get a sense of how we should expect revenues to be reported?

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Thanks, Scott. This is Claude. Appreciate the question. Yes, we wanted to make sure that we had ample supplies to stock our distribution channel. And that's what we really did in that last week and a half of March.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

And we wanted to make sure that the dermatology offices that we call on have sufficient supplies into the pharmacies that they typically utilize with their patients. So we were able to do that and that's the $2,000,000 that you're referencing there. So they're stocked Our national sales meeting with our team, our sales force took place and their first official day of really launching the brand started on April 7. So from that point on, Scott, they are certainly pulling product through the distribution channel. And of course, we expect additional revenues in Q2 to come from that as well.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

We just have not decided to give any particular expectations as to what revenues could look like in Q2, for example. We're in our fourth, fifth week of launch. We love the way things are going. And we look forward to giving some hopefully very good news at the end of Q2 regarding Ambrose.

Scott Henry
Managing Director & Senior Research Analyst at Alliance Global Partners

Okay, great. And then one question on the legacy business. If I pull out the $2,000,000 it looks like the legacy business was down about 10% to 15%. Do you think that was a quarterly, perhaps some noise in the first quarter? Or is that more of a trend?

Scott Henry
Managing Director & Senior Research Analyst at Alliance Global Partners

And really, can you just talk to QBREXZA and Accutane as the biggest drivers there?

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Yes, sure. First of all, the legacy business that what we qualify that as are old brands that do have generic competition. They include Targetox, they include Exilderm. And there's been a reduction almost on a quarterly basis for that. And we would expect some of that to continue with the legacy brands.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

In reference to QBREXZA, we are extremely pleased with how the product performance continues to be. As you're well aware, a competitor came out to QBREXZA called Softra. They started their launch back in January of this year. They have a full sales force and they're working on their telemedicine platform. We are looking at prescriptions all the way through March and we actually just got prescriptions of April as of today.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

And what we're seeing is exactly what we had expected. Softron and botanics is bringing more awareness to the disease state of primary axillary hyperhidrosis. And we are benefiting, I believe, from that, including what our marketing and commercial team is doing. So for example, in March, we were 15% above in prescriptions compared to last year, twenty twenty four March. And I'm pleased to say in April, again, hot off the presses, we continue to see a 15% growth month over month when you look at April 2025 versus April 2024.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

So it's really continuing to ramp up for us. I think patient compliance is a key factor and people are looking for something that's highly efficacious. So even with a competitor out there, we're seeing some solid growth from the brand. And I think lastly, you mentioned Accutane. Last year, I mentioned several times that there were two new competitors that fell into the isotretinoin market, which is where Accutane is.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

And that was Maine and another company called Zydis. They came in hot and fast and they were working on pricings. And they really hit pricing low to gain market share as quickly as possible. So just as a quick reminder, last year in Q1, we did about 93,000 prescriptions of Accutane. And this year, same quarter, Q1 of twenty twenty five, we came in at about 66,000 prescriptions.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

So there was definitely a hit from that incredible first quarter and last quarter from last year. But when you look at Q4 of twenty four versus Q1 of twenty five, we've actually grown Accutane by about 10%. And we like and feel that we have stabilized it and that we're starting to grow the brand again. I will let you know that in Q2 last year, again, solid quarter, about 93,000, 90 four thousand prescriptions. So we're not going to be at that level with Accutane in Q2.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

But when Q3 and Q4 come around, I think you'll see that we're going to be stable there with the revenues of Accutane as well as perhaps growing that in the second half of the year.

Scott Henry
Managing Director & Senior Research Analyst at Alliance Global Partners

Okay, great. Thank you for taking those questions. I'll jump back into the queue. Thanks again.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Thank you.

Operator

Thank you. The next question comes from Kalpip Patel with B. Riley Securities. Please go ahead.

Kalpit Patel
Senior Biotech Research Analyst at B.Riley Securities

Hey, good afternoon, and thanks for taking the questions. I had one more on the inventory part of this. Until the March, can you comment on what the day supply is in the distribution channel and how you anticipate that changing? Is it two weeks right now? Do you expect it to go to four weeks?

Kalpit Patel
Senior Biotech Research Analyst at B.Riley Securities

Or what exactly are you looking to keep in the channel?

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Okay. So yes, going back to the distribution in March, Calp, absolutely. We have a number of pharmacies that are our customers that dermatologists utilize on a consistent basis. We focused on that group of pharmacies, we call them specialty pharmacies. In terms of the amount of inventory with a brand new launch, that's a particularly difficult answer to give back with a concrete position.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

But I think your estimation of two weeks, maybe a little bit longer, again, depending on how the ramp up goes. But I would tell you that it's typically between two to four weeks is what you see out there typically in a launch, because it's brand new, there's an unknown to it. So it's hard to come up with a specific core number for that.

Kalpit Patel
Senior Biotech Research Analyst at B.Riley Securities

Okay. And then do you have any early, you know, real world feedback from the prescribers that are using it? I think you mentioned six sixty unique doctors. Any feedback from those doctors? Then as a follow-up, is there a good proportion of patients, know, is it fragmented or is it, you know, certain group of doctors that are prescribing most of the prescriptions that you've seen today?

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Sure. I mean, you know, going back to the product profile and ROCE's product profile, the Phase three clinical trial results, we've done numerous advisory boards, the feedback from the field, myself and my colleagues on this call could attest really tremendous positive feedback in terms of how well the product did compared to the current standard of care or ratio. You're talking about sixty percent, almost a 60% greater improvement in IGA success, as well as approximately thirty percent greater lesion reduction. And when our sales team is introducing that data, that really makes them pause. So I don't want to take anything away from that.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

That is really critical and meaningful to these HCPs. And the tolerability profile that's equal to placebo, I think that whole proposition value really makes doctors pause. Now they have been consistently using Auration now for almost two decades. Here we are coming out and introducing this new product, new formulation, lowest strength minocycline out on the market. We have a unique proprietary ten milligram immediate release, thirty milligram extended release.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

There's a lot there. And I think that's really eye catching. About two days ago, a dermatology a dermatologist from New Jersey sent me before and after pictures. I couldn't see who the patient name or anything private about the patient, but they showed me when they walked into their practice, certainly were designated for rosacea treatment. And the four weeks later when he saw this patient back, it is remarkable.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

And it certainly has reinforced him in particular to continue to prescribe Amrozi moving forward. So really fast pickup. I love watching because we have incredible before and after pictures from the Phase three clinical trials. But when someone shares a real clinical practice office here, our launch, it's dramatic. Ramsey, did you want to add anything to that?

Ramsey Alloush
Ramsey Alloush
COO & General Counsel at Journey Medical Corp

Yes. I think just in terms of launch trajectory, we're really excited. We look at a few derm analogs that have taken place more recently, and we're trending ahead. It's very early. It's hard to tell certainly where we'll be at week eight, week 12, so on and so forth, but we're really pleased at the trajectory in terms of the ramp.

Ramsey Alloush
Ramsey Alloush
COO & General Counsel at Journey Medical Corp

We expect that to continue to grow. But to Claude's point, we've received a lot of positive feedback from different advisory board meetings and from feedback from the field, from the commercial team in general. So all good news. It's just an execution game on our part and market access, right? So making sure the coverage is there.

Ramsey Alloush
Ramsey Alloush
COO & General Counsel at Journey Medical Corp

Claude mentioned 30%. We're pleased with that number. We expect it to continue to grow. So the demand is being driven. We're making sure on the other side that coverage is there as well.

Ramsey Alloush
Ramsey Alloush
COO & General Counsel at Journey Medical Corp

So thanks.

Kalpit Patel
Senior Biotech Research Analyst at B.Riley Securities

Okay. Got it. And one last, if I may. It may be early for this, but do you have a sense of who these patients are? Are they Oracea switchers?

Kalpit Patel
Senior Biotech Research Analyst at B.Riley Securities

Or are they totally new rosacea patients? Or do you have any metrics that you can give us in the first two months of launch here?

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Yes. I can tell you my understanding of it. It's not an exact science. I don't have hardcore numbers. But from being in the field, talking to physicians, getting their feedback right now for my opinion is that this is looking right now as Phase one, trying to get dermatologists and PAs to start prescribing it for their new patients coming in.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

And then once they get comfortable with that, once they see their patients back, again, typically, takes anywhere, Calpitt, from three calls to up to seven calls to really start to switch a dermatologist prescribing habit that they've been used to for many, many years, like I said, almost two decades. So I think the new patients are the first phase. And then as they get comfortable, week four, week eight, week twelve, when they see all these patients coming back, then you'll start to see some switching happening from existing Auratia patients. But that's the way I would probably paint the picture for you at this time.

Ramsey Alloush
Ramsey Alloush
COO & General Counsel at Journey Medical Corp

Talpa, just two other quick points, I think, which is very important in terms of messaging from a patient as well as a provider perspective is the early onset of efficacy of MROSI, right? Two weeks, right? You can see results in as little as two weeks. And derms love that their patients are able to see results as quick as that. And then if you look at the different time points of the two studies, sixteen weeks at week eight, I mean, when they come back for that visit, they're going to achieve efficacy results that surpass Oracia in sixteen weeks.

Ramsey Alloush
Ramsey Alloush
COO & General Counsel at Journey Medical Corp

So they're going to be very pleased with those early results. And we think that's, you know, that is proof in the pudding for them to continue writing the drug.

Kalpit Patel
Senior Biotech Research Analyst at B.Riley Securities

Okay. That's very helpful. Thanks for taking the questions.

Operator

Thank you. The next question comes from Thomas Flaten with Lake Street Capital Markets. Please go ahead.

Thomas Flaten
Senior Research Analyst at Lake Street Capital Markets, LLC

Hey, guys. Appreciate you taking the questions. Congrats on a good quarter. Claude or Ramsey, any feedback from the docs specifically around erythema? I know it didn't end up in the label and you're being careful how you promote it, but I'm just curious if there were any spontaneous there wasn't any spontaneous commentary from docs about erythema.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Yes, it's funny that you say that. Again, this is anecdotal and we're not focused on that with our core message value that we're bringing to the physicians. But this doctor that I spoke about earlier was extremely impressed with how the erythema reduction took place in that four week period of time. And I've heard that a few different times and especially when you're looking at our before and after pictures. Some dermatologists are mentioning that back to us.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

And we're taking it in, we're pleased that they're proactively coming to us with that type of messaging.

Thomas Flaten
Senior Research Analyst at Lake Street Capital Markets, LLC

Got it. And do you have a strategy over time for how to work that data set into the overall messaging, whether it be via MSL or sales rep?

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Well, yes, I'm going to ask Doctor. Srinivas Sugidi here to jump in and perhaps talk about the JAMA dermatology publication that happened and what it included and how medical affairs is handling some of that.

Srinivas Sidgiddi
Srinivas Sidgiddi
Vice President - Research & Development at Journey Medical Corp

Thank you, Claude. Yes, Thomas. So as Claude mentioned, the JAMADIMM publication does speak about the data that we have from the phase three studies, which shows that Embrosy has significant superiority or placebo in terms of erythema improvement. That is one data point. The second data point also is that the treatment algorithms that have come out from the National Rosacea Society, they speak of using mROSI for severe persistent erythema.

Srinivas Sidgiddi
Srinivas Sidgiddi
Vice President - Research & Development at Journey Medical Corp

So there is significant amount of data out there already that talks about the significant impact that MROCi has on erythema. So that I think we'll be building on that going forward, and we should be able to make the providers aware of the kind of impact that MROC has on erythema.

Thomas Flaten
Senior Research Analyst at Lake Street Capital Markets, LLC

Super helpful. Thank you. And then one final one. Among the six sixty writers that you mentioned, Claude, any of those guys repeat writers?

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Absolutely. Absolutely. So it's all over the board right now. We've got, obviously, the most that we have are the onesies. We've got people that have written it two times, five times.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Or we've got some writers now that are over 25 times. So it's all over the board.

Thomas Flaten
Senior Research Analyst at Lake Street Capital Markets, LLC

Got it. Thank you very much.

Operator

Thank you. This concludes our question and answer session. I would like to turn the call back over to management for closing remarks.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

Yes. No, we thank everyone for coming to the call. We're very pleased and appreciate the hard work that our commercial team, our R and D getting this fabulous product out into the market now. And it's all about execution, being laser focused and being very determined to succeed. I'm looking forward to seeing consistent incremental gains on this, and then we'll really start to see momentum over time.

Claude Maraoui
Claude Maraoui
Co-Founder, President and Chief Executive Officer at Journey Medical Corp

So thank you, and we'll talk later.

Operator

The conference has now concluded. Thank you for your participation. You may now disconnect your lines.

Executives
    • Jaclyn Jaffe
      Jaclyn Jaffe
      Senior Director of Corporate Operations
    • Claude Maraoui
      Claude Maraoui
      Co-Founder, President and Chief Executive Officer
    • Joseph Benesch
      Joseph Benesch
      CFO
    • Ramsey Alloush
      Ramsey Alloush
      COO & General Counsel
    • Srinivas Sidgiddi
      Srinivas Sidgiddi
      Vice President - Research & Development
Analysts
    • Scott Henry
      Managing Director & Senior Research Analyst at Alliance Global Partners
    • Kalpit Patel
      Senior Biotech Research Analyst at B.Riley Securities
    • Thomas Flaten
      Senior Research Analyst at Lake Street Capital Markets, LLC

Key Takeaways

  • Journey Medical introduced Ambrosi, its best-in-class oral rosacea treatment, generating $2 million of the $13.1 million in Q1 net product sales and positioning Ambrosi as a future flagship to achieve sustainable EBITDA positivity later this year.
  • The Ambrosi launch was bolstered by a prominent exhibit at the American Academy of Dermatology meeting, a peer-reviewed JAMA Dermatology publication showing statistical superiority over Oracea and placebo, and inclusion in the National Rosacea Society’s updated treatment guidelines.
  • Market access expanded from approximately 20% to 30% of covered commercial lives, including a new contract with a leading GPO effective July 1, with additional payer agreements expected to further support Ambrosi uptake.
  • Q1 financials featured a gross margin increase to 64% (from 54% YoY), zero R&D spend versus $7.9 million a year ago, SG&A up $2.1 million to support the launch, and net loss narrowed to $4.1 million ($0.18/share) from $10.4 million ($0.53/share).
  • Legacy dermatology products remained contribution-positive, with QBREXZA prescriptions up ~15% year-over-year and Accutane prescriptions stabilizing and growing ~10% versus Q4 2024 despite new generic competition.
AI Generated. May Contain Errors.
Earnings Conference Call
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