Verrica Pharmaceuticals Inc. (NASDAQ: VRCA) completed a private investment in public equity (PIPE) transaction that will raise $50 million in gross proceeds, with closing scheduled for November 25 2025. The proceeds will be used to retire a $50 million loan facility with OrbiMed and to fund working‑capital and general corporate purposes.
The $50 million loan is part of a $125 million facility that Verrica secured in July 2023; $50 million was borrowed at closing. By allocating $35 million of the net proceeds to repay that loan, Verrica will eliminate the debt‑related interest and principal obligations and remove the covenants that have constrained its financial flexibility. The transaction also ends the liquidity test that required the company to maintain a minimum of $10 million in cash, thereby strengthening its balance‑sheet resilience.
With the current cash balance of $21.1 million as of September 30 2025, the PIPE will extend Verrica’s cash runway into the middle of 2027. The additional liquidity also removes the “going‑concern” qualification that the company had previously secured a waiver for, giving management greater operational flexibility through the end of 2025 and beyond.
The company plans to allocate the remaining $15 million of net proceeds to working capital, supporting the commercial rollout of YCANTH, its first FDA‑approved product for molluscum contagiosum. The funds will also accelerate the development of VP‑315, a basal cell carcinoma candidate, and the common warts program, which is slated to enroll its first U.S. patient before the end of 2025.
CEO Jayson Rieger said the financing “will solidify our balance sheet, eliminate our debt facility and its restrictive covenants, and provide an extended cash runway into mid‑2027, enabling us to advance our robust pipeline.” He added that the additional runway will allow the company to pursue the commercial launch of YCANTH and the global Phase 3 program for common warts, which he described as a “billion‑dollar market opportunity.”
The transaction also grants Caligan Partners LP the right to appoint a new member to Verrica’s board of directors, reflecting the strategic partnership that underpins the company’s growth strategy.
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