Verrica Pharmaceuticals to reduce number of sales territories to 35 from 80

Verrica Pharmaceuticals announced a restructuring of its sales and operating teams to reduce costs and expand access to YCANTH for the treatment of molluscum contagiosum. These operational changes to Verrica’s commercial organization are expected to reduce the Company’s overall cost structure by approximately fifty percent, while maintaining sufficient resources to support YCANTH as the new standard of care for patients with molluscum contagiosum. To reduce expenses and optimize the efficiency of Verrica’s field force, the Company will reduce the number of sales territories from 80 to approximately 35, with a focus on those territories that have historically shown a high prevalence of molluscum, a critical mass of previous cantharidin users and strong insurance coverage for YCANTH. Sales activities in each of these territories will focus on pediatricians in addition to Verrica’s established sales efforts to dermatology offices. The Company will also reduce headcount in certain support functions. Total operating expenses after the restructuring are expected to be reduced by approximately fifty percent. The Company will incur a one-time charge related to the restructuring of approximately $1.0 million.