Journey Medical Corporation Announces Q2 2024 Financial Results and Corporate Highlights

Journey Medical Corporation, a commercial-stage pharmaceutical company focusing on FDA-approved dermatology treatments, released its financial results and key corporate updates for the second quarter ending June 30, 2024. The company reported total revenues of $14.9 million, a 14% sequential increase from the previous quarter’s $13.0 million.

Claude Maraoui, Journey Medical’s Co-Founder, President, and CEO, highlighted the company's performance and strategic direction. Maraoui noted the execution of their business plan, resulting in positive Adjusted EBITDA and a strategic expense reduction initiated in 2023. He emphasized that the company is well-positioned to support its core dermatology franchise and is optimistic about the upcoming DFD-29 PDUFA date, setting the stage for a productive second half of 2024.

Financially, the company experienced a 12% decline in total net product revenues compared to the same quarter in 2023. This decline was attributed to the timing of customer orders for Qbrexza®, ongoing generic competition for Targadox®, and the discontinuation of Ximino® in late 2023. However, the sequential increase from Q1 2024 was a notable achievement.

Research and development expenses were significantly reduced to $0.9 million from $1.8 million in Q2 2023, primarily due to the completion of the clinical phase for DFD-29. Selling, general, and administrative expenses also decreased to $10.3 million from $12.1 million in the same period last year, reflecting the company’s cost-saving measures implemented in 2023.

The company reported a net loss reduction to $3.4 million, or $(0.17) per share, from a net loss of $8.4 million, or $(0.46) per share, in Q2 2023. Adjusted EBITDA was positive at $0.3 million, or $0.02 per share basic and $0.01 per share diluted, compared to a negative Adjusted EBITDA of $(0.6 million) in Q2 2023. As of June 30, 2024, Journey Medical held $23.9 million in cash and cash equivalents, a slight decrease from $24.1 million at the end of March 2024.

A significant corporate milestone was the FDA’s acceptance of Journey Medical’s New Drug Application (NDA) for DFD-29 in March 2024. The FDA has set a PDUFA goal date of November 4, 2024. If approved, DFD-29 could become the only oral, systemic therapy addressing both inflammatory lesions and erythema caused by rosacea, offering a potentially best-in-class solution for patients.

Additionally, Journey Medical strengthened its leadership team with two key appointments. In April 2024, Joseph M. Benesch was named Chief Financial Officer, transitioning from his interim CFO role held since January 2023. Benesch previously served as the company’s Corporate Controller. In July 2024, Michael C. Pearce joined the Board of Directors, bringing extensive strategic, business, and financial expertise, especially in healthcare.

Journey Medical plans to discuss its financial results and business updates further in a conference call scheduled for August 12, 2024. The call will provide an opportunity for stakeholders to gain deeper insights into the company’s performance and strategic initiatives.

Journey Medical Corporation continues to focus on the commercialization of FDA-approved dermatological products. The company’s portfolio includes seven branded and two generic products aimed at treating common skin conditions. Founded by Fortress Biotech, Inc., Journey Medical leverages its team’s expertise in developing and marketing successful dermatology brands. The company is headquartered in Scottsdale, Arizona.