Verrica Pharmaceuticals initiated with a Buy at Jefferies

Jefferies analyst Glen Santangelo initiated coverage of Verrica Pharmaceuticals with a Buy rating and $10 price target. The analyst expects VP-102 could become the first FDA-approved treatment for molluscum, opening up a total addressable market of 6M patients. After a string of regulatory setbacks, Verrica’s "strong" clinical data, new product manufacturer and recent new drug application filing position the company for approval around mid-year, the analyst tells investors in a research note. Given the economic benefit associated with Ycanth and lack of other approved therapies, the firm expects solid uptake by dermatologists.