Shares of Verrica Pharmaceuticals (NASDAQ:VRCA) jumped 27% on Friday after the biotech said its partner Torii Pharmaceutical secured marketing authorization in Japan for YCANTH (TO-208), a treatment for Molluscum Contagiosum.
The green light from Japan’s Ministry of Health, Labour and Welfare also unlocks a $10 million milestone payment to Verrica. The company said it expects to receive the non-dilutive cash soon, which will help reinforce its balance sheet and back the commercial rollout of YCANTH in the U.S.
“We are excited to announce that our development partner, Torii, has received regulatory approval for YCANTH in Japan, enabling individuals who contract molluscum in Japan access to a safe and effective therapy,” said Jayson Rieger, PhD, MBA, President and CEO of Verrica Pharmaceuticals.
Torii, a subsidiary of Shionogi & Co. since September 1, had submitted the New Drug Application for TO-208 in December 2024. The approval came after results from a confirmatory Phase 3 trial in Japan showed the therapy delivered statistically significant clearance rates compared with placebo.
While Verrica retains global rights to YCANTH outside Japan, the two firms are also working together on a global Phase 3 trial to test the treatment in common warts. The first U.S. patient in that program is expected to be enrolled by the end of 2025.
Molluscum Contagiosum is a contagious skin condition that affects both children and adults, and Japanese patients currently have few approved treatment options.
Verrica Pharmaceuticals stock price
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