Verrica Pharma closes $125 million debt financing

27 July 2023

US dermatology specialist Verrica Pharmaceuticals (Nasdaq: VRCA) announced the closing of the previously announced $125 million debt financing with OrbiMed, a leading healthcare investment firm.

The company said that the proceeds from the transaction will be used to support the commercialization of Ycanth (cantharidin) topical solution, which gained approval from the US Food and Drug Administration last week. Ycanth is the first and only US FDA-approved treatment for molluscum contagiosum, which is primarily a pediatric disease.

Under the terms of the Agreement, Verrica borrowed $50 million at the close of the transaction. In addition, if specified revenue thresholds are achieved, the company will be able to borrow an aggregate of an additional $75 million available in five tranches, which Verrica believes will be sufficient to fund ongoing operations without requiring additional equity financing. The facility is a five-year term loan that matures in July 2028.

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