Journey Medical (DERM) Announces Preliminary Financial Results for Third Quarter 2024

On November 4, 2024, Journey Medical Corporation (NASDAQ: DERM) released estimated unaudited revenue and selected financial outcomes for the three and nine months concluding on September 30, 2024. This information, announced in a Current Report on Form 8-K, provides insights into the company’s financial standing for the specified periods.

For the Three-Month Period Ending September 30, 2024:
– Total net product revenues amounted to $14.6 million, slightly down from $15.3 million for the same duration in 2023.
– The gross margin was reported at 63.9%, higher than the 59% recorded for the respective period in 2023.
– Research and Development (R&D) expenses were $0.8 million compared to $2.2 million in 2023.
– Selling, general, and administrative (SG&A) expenses stood at $11.4 million, up from $8.6 million in 2023 due to various factors including expansion efforts and launch activities for Emrosi (formerly DFD-29).
– The net income (loss) was reported at $(2.4) million, a decrease from the $16.8 million net income (loss) in the same period in 2023.

Nine-Month Period Ending September 30, 2024:
– Total net product revenues for this period were $42.5 million compared to $44.4 million in 2023.
– R&D expenses totaled $9.6 million and SG&A expenses were $30.4 million, showing an increase and decrease, respectively.
– The net income (loss) figure was $(16.2) million relative to $(1.7) million noted in 2023.

Furthermore, Journey Medical Corporation also reported the notification of recovering $4.4 million related to a 2021 fraud loss, expected to be received in the fourth quarter of 2024. The report emphasized that the estimated results are management’s responsibility and have not been audited by the independent registered public accounting firm of the company.

In the same filing, updated financial guidance for the year ending December 31, 2024, was provided. The company reiterated its expectations of net product revenue in the range of $55-$60 million, SG&A expenses in the range of $39-$42 million, and R&D expenses in the range of $9-$10 million.

Additionally, on November 4, 2024, Journey Medical announced the FDA’s approval of Emrosi (Minocycline Hydrochloride Extended Release Capsules, 40 mg) for the treatment of rosacea, a condition affecting millions of adults in the U.S. The approval paves the way for the planned launch of Emrosi in the U.S. either in the late first quarter or early second quarter of 2025.

The approval triggers milestone payments and draws under the Credit Agreement, setting a series of financial events in motion for Journey Medical in the upcoming quarters. The company’s efforts are aimed at commercializing Emrosi and establishing it as a key treatment option for rosacea patients in the U.S.

Disclaimer: This press release contains forward-looking statements subject to various risks and uncertainties. Actual results may differ from the expectations discussed, and the company disclaims any obligation to update these statements based on any change in factors.END

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Journey Medical’s 8K filing here.

About Journey Medical

Journey Medical Corporation 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.