Journey Medical Q2 2025 Earnings Report

Journey Medical EPS Results

• Actual EPS: -$0.16
• Consensus EPS: -$0.07
• Beat/Miss: Missed by -$0.09
• One Year Ago EPS: N/A

Journey Medical Revenue Results

• Actual Revenue: $15.01 million
• Expected Revenue: $14.93 million
• Beat/Miss: Beat by +$76.00 thousand
• YoY Revenue Growth: N/A

Journey Medical Announcement Details

• Quarter: Q2 2025
• Date: 8/12/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, August 12, 2025
• Conference Call Time: 4:30PM ET

Journey Medical (NASDAQ:DERM) focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.

Journey Medical Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: The Amrozi launch contributed $2.8 million in Q2 net product revenue and drove strong prescription growth, with over 12,800 cumulative TRx through July and record month-over-month and week-over-week increases.
• Positive Sentiment: Payer access for Amrozi expanded from 30% to approximately 65% of commercial lives, underscoring its value proposition and facilitating future revenue conversion.
• Negative Sentiment: Sales of legacy Accutane declined by $2.3 million year-over-year due to aggressive generic competition, though growth in new brands offset this decrease.
• Positive Sentiment: Overall gross margin improved to 67% from 61% as product mix shifted towards lower-cost Amrozi, enhancing profitability potential.
• Neutral Sentiment: Net loss widened slightly to $3.8 million ($0.16 per share) in Q2, but minimal cash burn left a cash balance of $20.3 million, supporting ongoing operations.

Presentation

[Operator]

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to Journey Medical's Second Quarter twenty twenty five Financial Results and Corporate Update Conference Call. At this time, all participants are in listen only mode. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of this call will be available approximately one hour after the end of the call for approximately thirty days.

[Operator]

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, 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 Claude Morawi, 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 Sidgiti, Vice President of Research and Development and Luis 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, 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 Journey 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, 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, Tuesday, 08/12/2025. 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 Morale, Co Founder, President and Chief Executive Officer of Journey Medical.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Thank you, Jacqueline, and good afternoon to everyone on the call today. The 2025 marks the first full quarter since we introduced Amrosi, our best in class oral rosacea treatment into the market. Today, I am pleased to report that our second quarter net product revenue of $15,000,000 included approximately $2,800,000 of Amrozi sales, surpassing our prior year quarter sales and contributing to a notable improvement in the business gross profit margins. Our strategic initiatives aimed at optimizing operations and controlling our overall operating expenses have further enhanced progress toward our goal of becoming sustainably EBITDA positive later this year. We continue to execute on the launch with Amrozi prescriptions increasing at an impressive pace as we gain additional traction with dermatology prescribers.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Patients have positive experiences with the product, and we continue to expand the number of covered lives with health plan access to AMROCI. As anticipated, Accutane sales were pressured due to aggressive pricing from generic competition. Sales of the product declined compared to the prior year period. However, we were pleased to see our growth brands more than offsetting the decline. While we work to stabilize our Accutane business, we remain focused on the growth of Amrosi and QBREXZA, our number one and number two sales details respectively.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

We believe that these products can drive significant revenue growth and earning power regardless of additional Accutane sales volatility if it continues. The awareness that we have created for Amrocy and the positive responses from physicians and patients thus far have become evident in the prescription trends for the product. Through the July, we have generated over 12,800 Amrozi prescriptions based on TRx data from Symphony Health. Each month since we've launched Amrozi, total prescriptions have reached a new high and on a weekly basis. Each successive week has come in higher than the prior week, with the exception of the Memorial Day and July 4 holidays.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Additionally, I am pleased to report that in Amrocy's third month of promotion, the product has achieved more than 10% share of new prescription demand among dermatology writers, which is our initial prescriber target. Supporting these strong prescription trends is the significant increase in payer access for Amrozi. From thirty percent of commercial lives in May to approximately sixty five percent of commercial lives, as noted in our announcement in July. Our ability to obtain a strong base of planned access so early in the launch demonstrates the strength of our clinical package and the value proposition that Amrozi offers to patients and payers. Additionally, on our first quarter earnings call, we announced that there were approximately six sixty unique prescribers of at the time.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Today, I am pleased to report that we have now seen over 1,800 unique prescribers for to date. This is a testament to the effectiveness of our commercial team and the unmet need Amrozi is addressing. We are pleased with the progress that we have made in rapidly creating awareness from ROSI and achieving the significant payer coverage, high unique prescriber count and strong prescription ramp in a little over one quarter since promotion of the product began. As a result, we expect to build on this momentum and the traction so far reinforces our confidence that Ambrosi will generate high contribution margins and provide significant leverage toward our overall profitability and growth. Importantly, our established dermatology commercial organization offers significant leverage as we grow our product sales.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Our total operating expenses were mostly flat year over year, reflecting our higher gross profit margins and lower R and D costs. In addition, our cash management discipline resulted in a minimal cash use in the quarter. And as a result, we believe the company has the financial resources and is well positioned to execute on our business plan through the 2025 and into the foreseeable future. During the second quarter, AMROCI gained additional visibility with the product being featured in a segment on the balancing act on Lifetime TV. Additionally, clinical data from our Phase III program evaluating AMROCI for the treatment of moderate to severe papulopustular rosacea in adults were presented at the Society of Dermatology Physician Associates or the SCPA Summer Dermatology Conference in June.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

The data showed that Amrozi provides consistent relief of key rosacea symptoms with no adjustments needed from patients based on body weight. Lastly, we were pleased to see Journey Medical's common stock added to the small cap Russell two thousand and broad market Russell three thousand indexes, broadening public awareness and institutional investor ownership of our shares. And just yesterday, we were honored to be in New York City to participate in the ringing of the closing bell for the NASDAQ exchange. We have achieved so much in recent months that it is hard to believe Amrozi has only been on the market a little over one quarter. Yet we believe the progress really speaks to the product's therapeutic value as the best in class oral rosacea treatment and its potential to become standard of care.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Our dermatology focused commercial team is committed to monetizing this important asset, and I believe that the execution on our launch progress so far is demonstrating our ability to take our company to new heights. I'll now turn the call over to our CFO, Joe Binesh, who will review the financial results for the second quarter.

[Joseph Benesch, CFO at Journey Medical Corp]

Thank you, Claude, and good afternoon to everyone on the call. The total net revenue for the 2025 was $15,000,000 compared to $14,900,000 for the 2024. 2025 includes $2,800,000 of incremental net product revenue related to The U. S. Commercial launch of Amrozi.

[Joseph Benesch, CFO at Journey Medical Corp]

This was offset by a decrease in Accutane revenue of $2,300,000 driven by generic competition. Our gross margin increased to 67% for the 2025 and sixty one percent in the prior period. The lower overall product cost of goods mainly related to product sales mix, notably Mimrosi and Accutane. R and D costs were nil in the 2025 compared to $900,000 in the 2024. The 2024 include Emrose pre approval project expenses. Looking now to our SG and A expenses. SG and A increased by $1,600,000 to $11,900,000 for the 2025 and $10,300,000 for the 2024.

[Joseph Benesch, CFO at Journey Medical Corp]

The increase is mainly due to the incremental operational activities related to the launch and commercialization of Mimrosi. Continuing to our net loss for the periods. Net loss to common shareholders was $3,800,000 or $0.16 per share basic and diluted for the 2025 compared to a net loss to common shareholders of $3,400,000 or $0.17 per share based and diluted for the 2024. 2024 includes INROCE pre approval project expenses. We ended the 2025 with $20,300,000 in cash compared to the same $20,300,000 at 12/31/2024, which reflects minimal cash burn for the year to date period. Thank you very much. I will now turn the call back over to Clive.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Thank you, Joe. We delivered solid performance in the second quarter with AMROCI leading the way. While it is still in the early days of the launch, prescription volumes have shown strong initial uptake and are expected to continue on this this path. We continue to educate physicians on Amrozi's best in class product profile through our marketing efforts, conference attendance and data presentations. We are also continuing to leverage the favorable peer reviewed article in JAMA Dermatology, highlighting the positive Phase III clinical results of Amrozi as well as the updated treatment algorithms from the National Rosacea Society, citing Nimrosi's utility in the treatment of rosacea, both of which were published earlier this year.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

These efforts are showing tangible results with the number of unique prescribers nearly tripling since May. Importantly, our strong early ramp in payer coverage, our patient assistance program and the availability in the vast majority of dermatologists' preferred pharmacies also demonstrate our ability to execute on key launch tactics and ensure that patients receiving the prescription of Amrozi are able to get that prescription filled. Given our execution thus far and the initial traction we are seeing, we believe that we are on pace to achieve our launch objectives and facilitate Ambrosi in becoming the standard of care in the treatment of rosacea. For the second half of the year, we remain focused on expanding the base of Ambrosi prescribers, growing prescription volume, expanding payer access and converting more of the prescription volume into revenue. We are confident that the prescription ramp for Amrozi will continue to build momentum and enable us to generate strong revenue growth going forward.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

This will enable us to further leverage our established dermatology infrastructure and our fixed costs, increase our margins and accelerate our path to profitability. In closing, I believe that we are well positioned to achieve our core objectives, which are to improve the lives of patients, offer healthcare providers innovative treatment options and create long term value for our shareholders. Thank you. 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. The first question comes from the line of Flaten with Lake Street Capital Markets. Please go ahead.

[Thomas Flaten, Senior Research Analyst at Lake Street Capital Markets]

Good afternoon. I appreciate taking the questions and congrats on a solid and ROCE performance. Claude, you mentioned coverage being 65% or so. What is your goal for the end of the year?

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

So thanks, Tom. It's good to talk to you. The managed care and the payer percentage, I'm going to pass that along to Ramzi Alouch, our CEO to answer that.

[Ramsey Alloush, COO & General Counsel at Journey Medical Corp]

Hey, Thomas. Thanks for the question. So in terms of coverage, yes, we did disclose that we're at 100 plus million lives about that 65% or so. We haven't publicly disclosed what that target is going to be. We are continuing to grow that.

[Ramsey Alloush, COO & General Counsel at Journey Medical Corp]

What I can tell you is that's the quantity side. So we're building out the framework. It covers again over 100,000,000 lives. So that's access to the MROSI drug. We're also working on the quality.

[Ramsey Alloush, COO & General Counsel at Journey Medical Corp]

So that's getting it on formularies, getting that implementation that takes a bit more time as well, right. So it's a two pronged approach. They run parallel. So we'll continue to increase the quantity coverage as the year goes on, but it's also equally as important to get the quality so we can convert that into revenue.

[Thomas Flaten, Senior Research Analyst at Lake Street Capital Markets]

Awesome. Thank you for that. And then maybe one for Joe. You had a nice step up in gross margins. Can you just give us a sense of how you see that evolving over the course of the year?

[Thomas Flaten, Senior Research Analyst at Lake Street Capital Markets]

Should we assume incremental improvements in gross margin over the second half of the year?

[Joseph Benesch, CFO at Journey Medical Corp]

Yes. Thanks, Thomas. So product mix is really the driver of the gross margin. MROSA is a very low cost product. So we expect this to continue.

[Joseph Benesch, CFO at Journey Medical Corp]

We believe it represents a reasonable baseline going forward. So as M. Rose becomes a larger percent of our margins, with the sales mix, we expect the margins to improve.

[Thomas Flaten, Senior Research Analyst at Lake Street Capital Markets]

Got it. And then just one quick final one for me. What do you need to see or at what point do you think you'll be comfortable giving guidance for the year and then looking into next year certainly?

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Yes. Thomas, as you're aware, we just finished our first quarter right now and it's really early in the start of a brand new launch. So we're going to wait a few more quarters before we give hard guidance in that. So it's real early and it's going to just take a little bit more time.

[Thomas Flaten, Senior Research Analyst at Lake Street Capital Markets]

Got it. Appreciate it. Thank you, guys.

[Operator]

Thank you. Next question comes from the line of Scott Henry with AGB. Please go ahead.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Thank you. Good afternoon and congratulations on a great start for Amrocy. It's been impressive. A couple of questions. First, if we just take the revenue for the quarter and divide it by the prescriptions, that generates a revenue per script of around $375 depending exactly what numbers you use.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

I think the expectation would be around perhaps $300 net revenue per script. Just curious but there's a lot of noise in the early quarters. Just curious your thoughts on what we could expect for a net revenue per script, given some of the data that you've seen over the past quarter?

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Yes. Hi, Scott. I would tell you that I wouldn't recommend just doing that simple math on volume and the reported sales. We still have a significant proportion of scripts utilizing our patient assistance program and coupons and there could be significant delays in reimbursement from payers. So at this point, we're not going to give guidance to that ASP.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Okay. No, that's I mean, makes sense. There'll be a lot of noise certainly in these first couple of quarters. One of the other trends I wanted to get your thoughts on was how we should think about the summer seasonality for the rosacea market. I mean, typically, derms see less patients in the summer.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

They're out in the sun. Their skin is drier. Do you think that is correct and perhaps that bodes well going into the fall months?

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

I think the market has been stable. There is some seasonality with it to your point there. But overall, I would expect right now we are at a good pace. Our ramp is moving along nicely week over week, month over month. We're seeing some really good growth because it is a brand new launch with Amrozi.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

So I don't think the seasonality is going to come into play much at all at this point. And I think as the product matures well into year two, three, I think that would become more of a factor.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Yes. I was thinking more that it could be a tailwind coming out of the summer, meaning you've got a good launch going in one of the tougher seasons. So that could be a nice tailwind when we get into the fall. But I appreciate your comments. No, I agree with Yes.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Great. And then final question, just could we get Joe, maybe you could give us a number for QBREXZA. I mean, looks like it was around 6,300,000

[Joseph Benesch, CFO at Journey Medical Corp]

For what, the year or the quarter?

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

For the quarter.

[Joseph Benesch, CFO at Journey Medical Corp]

Right. 6,900,000.0 for the quarter.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Okay, great. Thank you for taking the questions.

[Joseph Benesch, CFO at Journey Medical Corp]

You're welcome.

[Operator]

Thank you. Next question comes from the line of Mayank Mamtani with B. Riley Securities. Please go ahead.

[Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities]

Yes. Good afternoon, team. Thanks for taking our questions and congrats on the strong start to Embossi launch. Also a follow-up to a prior question. The impressive NRx volume growth that we are seeing, trying to reconcile that with the sales you have here, 2,800,000.0 and then the $2,100,000 stocking you had in 1Q.

[Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities]

Can you maybe just give a little bit more color on the how the payer payer rebating and also maybe any stocking dynamics we should be aware of? And then I have a follow-up.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Yes. I mean, I'll take one part of that. Early when we first got all of our inventory needed to launch the product successfully, we did do stocking of the channel, if you will, in Q1 late March of this year. And now you're just seeing the ramp picking up and just moving along in its cycle and internal expectations that we've expected. In terms of the payer and the co pay assistance program, that dynamic is going to change over the next several quarters and evolve.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

We expect as more managed care and the different plans sign up, we're going to have less utilization of the co pay assistance program and more coming in through the managed care program. So that's evolving right now. And as we pick up volume with prescriptions, again, as we're seeing from month to month to month, that dynamic will change as well.

[Ramsey Alloush, COO & General Counsel at Journey Medical Corp]

Just to add to that, the demand that's getting driven right now is really assisting us in our negotiations with managed care. We did announce, I think in July that we signed up with one of the largest GPOs and we are in late stage discussions with the other two. But it does take time, right, for implementation with the plans, with the pharmacies to start to see that covered prescription volume go up. So we're monitoring that. We're working the channels top to bottom with the plans, right.

[Ramsey Alloush, COO & General Counsel at Journey Medical Corp]

There are a number of number plans, so many. And we're being diligent with all of that. So again, it will all convert to dollars. It just it does take time. We launched, I think April 7.

[Ramsey Alloush, COO & General Counsel at Journey Medical Corp]

And so we're pleased with the progress that we've accomplished to date.

[Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities]

Great. And then on the 10% market share that you report among high volume dermatologists target initial segments, what's the is there like a year end goal that you have? And are you able to share any early refill kind of adherence trends for Amrocy and maybe put in context what we may have seen with the ratio when they launched? Thanks for taking my questions.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

Yes. So, I'm going to speak in generalities here because we just haven't given guidance. And again, the launch is off to a great start, right? We're three, four months into it now. So the 10% NRxs in June is fantastic.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

We see that continuing to grow. In terms of NRx to TRx refills, we're seeing a strong uptake. And again, that is growing as well from month to month. Not going to give specific ratios quite yet on that. And then the NRx and TRx expectations, if we continue going the way we are, we'll certainly meet all of our goals that we want and that Amrocy is delivering.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

I think the key is to take away. One, we went from six sixty unique prescribers to well over 1,800 prescribers. These are prescribers that we targeted. There was about 3,200 that we've looked at and have gone after. So we've done a great job in getting access to them and getting them to give trial to the product in ROSI.

[Claude Maraoui, Co-Founder, President, CEO & Director at Journey Medical Corp]

We're getting exceptional feedback in terms of how patients are responding when they come back in. And I think another dynamic that's important is that right now we are getting EMROCI filled for the most part with new patients coming in with rosacea. So that's really been what's been bringing this good strong uptake. I think once they get really comfortable with that, we're hoping and expect to start seeing conversion from Oratia over to MRSI. And lastly, Mayank, the launch of Oratio was twenty years ago. So it's very difficult for us, especially with the whole landscape of payers and managed care to really look at that on the same playing field. So we're not looking at that as a strong analog to consider.

[Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities]

Fantastic. I'll hop back in the queue. Thank you.

[Operator]

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Jaclyn Jaffe, Senior Director of Corporate Operations
• Claude Maraoui, Co-Founder, President, CEO & Director
• Joseph Benesch, CFO
• Ramsey Alloush, COO & General Counsel

Analysts

• Thomas Flaten, Senior Research Analyst at Lake Street Capital Markets
• Scott Henry, MD & Senior Research Analyst at Alliance Global Partners
• Mayank Mamtani, Senior MD & Group Head - Healthcare at B. Riley Securities