Journey Medical Corporation Announces Q1 2024 Financial Results and Corporate Highlights

Journey Medical Corporation, a pharmaceutical company specializing in dermatological treatments, reported its financial outcomes and recent advancements for Q1 2024, ending March 31. The company's total revenues reached $13 million, a 7% rise from $12.2 million in Q1 2023. This growth was primarily driven by over 20% increases in sales of Qbrexza® and Accutane®, the company’s leading products.

Journey Medical’s CEO, Claude Maraoui, highlighted the significant progress in their development program for DFD-29 (Minocycline Hydrochloride Modified Release Capsules, 40 mg). Following successful Phase 3 trials, the FDA accepted their New Drug Application (NDA) in March 2024, setting a Prescription Drug User Fee Act (PDUFA) goal date of November 4, 2024. If approved, DFD-29 could represent a substantial commercial opportunity by addressing inflammatory lesions and erythema from rosacea, a common skin condition.

The company's Q1 2024 net product revenues of $13 million were an increase from $12.2 million in Q1 2023. This was largely due to higher revenues from Qbrexza and Accutane, despite decreased revenues from other products like Amzeeq®, Zilxi®, Targadox®, and Ximino®. The latter two faced challenges from lower sales and generic competition, leading to the discontinuation of Ximino in late 2023.

Journey Medical's cost of goods sold rose from $6.4 million in Q1 2023 to $6.8 million in Q1 2024, correlating with the increased net product revenues. Research and development expenses notably increased to $7.9 million from $2 million the previous year, driven by a $4 million FDA filing fee for DFD-29 and a $3 million milestone payment to Dr. Reddy’s Laboratories triggered by the FDA's acceptance of their NDA. Conversely, selling, general, and administrative expenses decreased significantly to $8.4 million from $13.3 million, attributed to the company’s cost-reduction efforts.

Despite increased revenue, the company reported a net loss of $10.4 million, or $(0.53) per share, compared to a net loss of $10.1 million, or $(0.57) per share, in Q1 2023. Adjusted EBITDA, a non-GAAP financial measure excluding certain expenses, improved to $11,000 from a loss of $5.3 million in Q1 2023. As of March 31, 2024, Journey Medical had $24.1 million in cash and cash equivalents, down from $27.4 million at the end of 2023.

In recent corporate developments, the FDA's acceptance of the NDA for DFD-29 is a significant milestone. If approved, DFD-29 could become the only oral, systemic therapy addressing both inflammatory lesions and erythema from rosacea, potentially positioning it as a best-in-class treatment for the millions affected by rosacea.

Journey Medical plans to hold a conference call and webcast on May 13, 2024, at 4:30 p.m. ET to discuss these financial results and provide further business updates. This event reflects the company’s commitment to transparency and investor relations, providing stakeholders with essential updates on their progress and financial health.

In summary, Journey Medical Corporation demonstrated strong financial performance in Q1 2024, marked by notable revenue growth and strategic advancements in their product development pipeline. The acceptance of the DFD-29 NDA by the FDA underscores the company's potential to expand its market share and impact on treating dermatological conditions, particularly rosacea.