Verrica Pharmaceuticals plans an underwritten public offering of common stock and warrants, subject to market conditions.
Quiver AI Summary
Verrica Pharmaceuticals Inc. announced its plans to conduct an underwritten public offering of its common stock and accompanying warrants, with all securities being sold by the company. The offering is subject to market conditions and includes a 30-day option for the underwriter to purchase additional shares. Jefferies is the sole book-running manager for this offering, which is based on a previously filed shelf registration statement. The company is noted for its product YCANTH® (VP-102), the first FDA-approved treatment for molluscum contagiosum, and is also involved in developing treatments for other skin conditions. Forward-looking statements in the release caution about the uncertainties involved in completing the offering as planned, highlighting that potential risks may affect actual outcomes.
Potential Positives
- Verrica Pharmaceuticals is initiating a public offering of its common stock, which can provide a significant influx of capital to support ongoing and future projects.
- The company retains the potential to raise additional funds through the underwriter's option to purchase up to 15% more securities, enhancing financial flexibility.
- Verrica's established product, YCANTH® (VP-102), is endorsed by the FDA and addresses a high unmet need in dermatology, indicating strong market potential and validation of its offerings.
- The engagement of Jefferies as the sole book-running manager suggests a partnership with a reputable financial institution, which may enhance investor confidence in the offering.
Potential Negatives
- The announcement of a public offering may signal to investors that the company is in need of additional capital, potentially raising concerns about its financial health.
- The uncertainty around market conditions and the lack of assurance regarding the completion or terms of the offering could indicate volatility and risk, possibly affecting investor confidence.
- The company’s reliance on securities offerings for funding may suggest insufficient internal cash flow, which could be viewed negatively by stakeholders.
FAQ
What is Verrica Pharmaceuticals planning to offer?
Verrica Pharmaceuticals intends to offer shares of its common stock and accompanying warrants in an underwritten public offering.
Who is managing the public offering for Verrica?
Jefferies is acting as the sole book-running manager for Verrica's public offering.
What is the purpose of Verrica's public offering?
The public offering aims to raise capital for the development of medications for skin diseases requiring medical interventions.
What is YCANTH® (VP-102) used for?
YCANTH® (VP-102) treats molluscum contagiosum, a contagious viral skin infection primarily affecting children.
Where can I find more information about the offering?
Further information can be found in the preliminary prospectus supplement and accompanying prospectus filed with the SEC.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VRCA Insider Trading Activity
$VRCA insiders have traded $VRCA stock on the open market 18 times in the past 6 months. Of those trades, 0 have been purchases and 18 have been sales.
Here’s a breakdown of recent trading of $VRCA stock by insiders over the last 6 months:
- CHRISTOPHER G. HAYES (CHIEF LEGAL OFFICER) has traded it 4 times. They made 0 purchases and 4 sales, selling 57,453 shares.
- GARY GOLDENBERG (Chief Medical Officer) has traded it 4 times. They made 0 purchases and 4 sales, selling 31,996 shares.
- TERRY KOHLER (CHIEF FINANCIAL OFFICER) has traded it 2 times. They made 0 purchases and 2 sales, selling 29,719 shares.
- JOE BONACCORSO (CHIEF COMMERCIAL OFFICER) has traded it 4 times. They made 0 purchases and 4 sales, selling 59,278 shares.
- TED WHITE (PRESIDENT AND CEO) has traded it 4 times. They made 0 purchases and 4 sales, selling 66,623 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$VRCA Hedge Fund Activity
We have seen 41 institutional investors add shares of $VRCA stock to their portfolio, and 38 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- AVORO CAPITAL ADVISORS LLC removed 3,999,999 shares (-100.0%) from their portfolio in Q3 2024
- FMR LLC removed 474,437 shares (-42.8%) from their portfolio in Q3 2024
- INVESCO LTD. removed 423,520 shares (-100.0%) from their portfolio in Q3 2024
- QUBE RESEARCH & TECHNOLOGIES LTD added 322,186 shares (+inf%) to their portfolio in Q3 2024
- XTX TOPCO LTD added 231,148 shares (+inf%) to their portfolio in Q3 2024
- EXODUSPOINT CAPITAL MANAGEMENT, LP added 186,132 shares (+inf%) to their portfolio in Q3 2024
- DEUTSCHE BANK AG\ removed 181,429 shares (-99.7%) from their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
WEST CHESTER, Pa., Nov. 20, 2024 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (“Verrica” or the “Company”) (Nasdaq: VRCA), a dermatology therapeutics company developing medications for skin diseases requiring medical interventions, today announced that it intends to offer and sell shares of its common stock (or pre-funded warrants to purchase its common stock in lieu thereof) and in either case, accompanying warrants to purchase shares of its common stock, in an underwritten public offering. All of the securities in the proposed offering will be sold by Verrica. Verrica intends to grant the underwriter a 30-day option to purchase additional shares of its common stock and/or accompanying warrants to purchase shares of its common stock in an amount up to 15% of the securities offered in the public offering under the same terms and conditions. The proposed offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.
Jefferies is acting as sole book-running manager for the offering.
A shelf registration statement relating to the shares of common stock, pre-funded warrants and accompanying warrants offered in the offering described above was filed with the Securities and Exchange Commission (SEC) on November 7, 2022 and declared effective by the SEC on December 19, 2022. The offering will be made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus, when available, may also be obtained by contacting Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, or by telephone at (877) 821-7388, or by email at [email protected].
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Verrica Pharmaceuticals Inc.
Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. Verrica’s product YCANTH ® (VP-102) (cantharidin), is the first and only commercially available 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 and external genital warts, two of the largest remaining unmet needs in medical dermatology. Verrica is developing VP-103, its second cantharidin-based product candidate, for the treatment of plantar warts. Verrica has also entered a worldwide license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (formerly LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma.
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 anticipated public offering, including the completion of the public offering on the anticipated terms, if at all. 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, satisfaction of customary closing conditions related to the proposed public offering and other risks and uncertainties that are described in Verrica’s Annual Report on Form 10-K for the year ended December 31, 2023, Verrica’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 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:
Kevin Gardner
LifeSci Advisors
[email protected]
Chris Calabrese
LifeSci Advisors
[email protected]