Verrica Pharmaceuticals Inc. (VRCA) has amended its existing licensing agreement with Torii Pharmaceutical Co. Ltd. to jointly conduct a global Phase 3 clinical trial for YCANTH, targeting the treatment of common warts. Under this updated agreement, the companies will equally share the costs of this pivotal Phase 3 trial. Torii will cover Verrica’s portion as a credit against Torii’s future payment obligations to Verrica, which are tied to regulatory milestones and the sales of YCANTH for molluscum contagiosum and common warts in Japan. Additionally, Torii will make an $8 million milestone payment to Verrica once the first patient in the Phase 3 trial is dosed in Japan.
Back in March 2021, the original agreement granted Torii an exclusive license to develop and commercialize Verrica’s product candidates—which include YCANTH—for the treatment of molluscum contagiosum and common warts in Japan.
Verrica Pharmaceuticals has stated that this funding arrangement is expected to have a negligible impact on its cash reserves.
On Wednesday, Verrica Pharmaceuticals' shares experienced a pre-market decline of 8%.
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