Verrica Pharmaceuticals, a West Chester, Pennsylvania-based company developing and commercializing dermatology treatments, now has access to an additional $15 million in debt funding, the company announced on October 22, 2026. Verrica reached the revenue, growth, and operational milestones needed to raise its credit facility to the full $27.5 million. The lender is an entity controlled by Paul B. Manning, Chairman and Chief Executive Officer of PBM Capital and Chairman of Verrica’s Board of Directors.
“Verrica’s achievement of these milestones resulted directly from the momentum our team has built with YCANTH,” said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. “We committed to clear revenue, growth and operational goals when we closed this facility in August, and we delivered on them.”
How the Facility Works
The first $12.5 million was funded in September. Verrica can borrow the remaining amount at its option. Because the funding is debt rather than stock, it is non-dilutive, meaning it doesn’t reduce existing shareholders’ ownership.
Borrowings carry interest at the one-month secured overnight financing rate (SOFR) plus 8.00% per year, with a SOFR floor of 4.50%. Interest is paid in kind, meaning it is added to the loan balance rather than paid in cash, as long as Verrica isn’t in default. The loans mature on December 31, 2030, and are secured by substantially all of Verrica’s assets. The agreement also requires prepayments from certain transactions and quarterly payments if operating cash flow exceeds a set level.
“Under the facility, we have no obligation to make scheduled principal or interest cash payments during the term of the facility, and the favorable covenant package allows us to fully utilize our cash to support our growth,” Rieger said.
Manning said the company’s recent performance backs his investment: “Verrica’s execution over the past several months reinforces my confidence in the team and in YCANTH. I am pleased to continue supporting the Company as it builds on this progress.”
What the Capital Funds
Verrica will use the funding to grow its YCANTH® (VP-102) business and to complete its global Phase 3 program in common warts.
YCANTH is a drug-device combination that delivers a controlled formulation of cantharidin through a single-use applicator for targeted topical treatment. The U.S. Food and Drug Administration (FDA) has approved it for adults and children ages 2 and older with molluscum contagiosum, a contagious viral skin infection. According to Verrica, it is the only FDA-approved treatment for the condition that is administered by a healthcare professional. The company estimates that molluscum affects about 6 million people in the U.S., mostly children. YCANTH is also approved for molluscum in Japan.
The common warts program includes two pivotal studies in the U.S. and Japan. The use of YCANTH for common warts is investigational.
“Importantly, the capital now available to Verrica by this facility allows us to complete our two pivotal studies in the common warts program, with readouts from the studies expected in the first quarter and in mid-2027, respectively,” Rieger said.
About Verrica Pharmaceuticals
Verrica develops and commercializes treatments for dermatological diseases, including skin cancers, with a focus on patients who have had few treatment options. Under a worldwide license agreement with Lytix Biopharma ASA, it is developing VP-315 (ruxotemitide) for non-melanoma skin cancers, including basal cell carcinoma and squamous cell carcinoma. In July 2026, Verrica signed an exclusive agreement with Medomie Pharma to commercialize YCANTH for molluscum contagiosum in Israel.
