Verrica Pharmaceuticals, the West Chester, Pennsylvania-based dermatology therapeutics company, has closed a credit facility providing up to $27.5 million in non-dilutive capital, with $12.5 million available immediately and another $15 million tied to future revenue and operational milestones. The company plans to put the money toward continued commercialization of YCANTH, its FDA-approved molluscum contagiosum treatment, and a global Phase 3 trial testing YCANTH against common warts.
Who’s Actually Providing the Money
The facility doesn’t come from a bank or a traditional specialty lender, it comes from PBM Capital Finance, an entity controlled by Paul B. Manning, Verrica’s Chairman of the Board and largest shareholder . That makes this a related-party loan rather than an outside financing arrangement, though the terms disclosed publicly are straightforward: interest accrues at SOFR plus 8.00% (with a 4.50% SOFR floor), is paid in kind rather than in cash, and no principal or interest payments are scheduled until the facility matures on December 31, 2030, barring a default. The loan is secured by substantially all of Verrica’s assets. CEO Jayson Rieger framed the deal around what it lets the company avoid, issuing new equity: “This facility provides Verrica with a meaningful source of non-dilutive capital and supports the continued growth of our YCANTH business as well as the global Phase 3 program studying YCANTH for the treatment of common warts.”
What YCANTH Is and Where It’s Headed Next
YCANTH (cantharidin), also known by its development name VP-102, is the first and only FDA-approved treatment administered by a healthcare professional for molluscum contagiosum, a highly contagious viral skin infection Verrica says affects roughly 6 million people in the U.S., primarily children, in patients two years of age and older. The company is now working to extend the same drug to a far larger population: common warts, which affect an estimated 22 million people in the U.S. Rieger said Verrica expects data from the Phase 3 common warts program by mid-2027, and according to vista.today’s reporting, the company sees plenty of room to grow even within its current approved indication, with Rieger noting Verrica is “just scratching the surface of the patient universe afflicted by molluscum in the United States.”
A Chester County Drugmaker With Real Revenue Already Coming In
Unlike many clinical-stage biotechs profiled in this space, Verrica already has a commercial product generating meaningful revenue, YCANTH brought in $15.3 million in 2025 as part of $35.6 million in total company revenue that year, per vista.today’s reporting. The company says the new facility extends its operating runway into 2028, giving it room to fund both the ongoing YCANTH commercial launch and the common warts trial without going back to public markets for new equity in the near term. It’s a distinctly Chester County success story: a headquarters in downtown West Chester, a single approved product carrying real sales, and financing that, notably, came from the company’s own chairman rather than an outside lender.
