Needham upgrades Verrica Pharmaceuticals to Buy on Ycanth opportunity

As previously reported, Needham upgraded Verrica Pharmaceuticals to Buy from Hold with a $10 price target. The analyst cites the announced approval of Ycanth, which represents the return of cantharidin – a well-known blistering agent widely used for wart conditions but only available via compounding pharmacies – into dermatology offices as an FDA-approved product. The current valuation underappreciates Ycanth’s opportunity to become standard-of-care for molluscum and its potential for wider use in other types of warts, the firm tells investors in a research note.