Journey Medical (DERM) Q2 2026 Earnings Call Transcript

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DATE

Wednesday, Aug. 12, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Senior Director of Corporate Operations - Jaclyn Jaffe
• Co-Founder, President and Chief Executive Officer - Claude Maraoui
• Chief Financial Officer - Joseph Benesch
• Chief Operating Officer and General Counsel - Ramsey Alloush

TAKEAWAYS

• Total Revenue -- $18.5 million, representing a 23% increase year over year driven by commercial momentum for Emrosi.
• Emrosi Net Revenue -- $8.1 million, reflecting higher prescription volume, improved payer reimbursement, and a 40% increase in unique prescribers since the end of 2025.
• GAAP Net Loss -- $0.3 million, or $0.01 per share, narrowing from a loss of $3.8 million, or $0.16 per share, in the prior-year period.
• Gross Margin -- 67%, remaining consistent with the second quarter of 2025.
• Selling, General, and Administrative Expenses -- $10.9 million, a decrease of $1 million compared to the same period last year due to lower launch-related spending.
• Emrosi Total Prescriptions -- 36,000, growing 20% sequentially from the first quarter of 2026.
• Emrosi New Prescriptions -- 5,300 in June, increasing from an average of 4,700 per month during the preceding three months.
• Unique Prescribers -- Over 4,500 dermatology providers, up from 3,200 at the end of 2025 and 3,700 at the end of the first quarter of 2026.
• High-Quality Payer Coverage -- 38% of commercial lives, representing an increase from 34% in the first quarter of 2026.
• Total Commercial Access -- 169 million lives out of 192 million total commercial lives in the United States.
• EBITDA -- $1.4 million, a positive result compared to a loss of $1.9 million in the second quarter of 2025.
• Non-GAAP Adjusted EBITDA -- $2.9 million for the quarter, compared to a loss of $0.5 million in the prior-year quarter.
• Cash Position -- $25.6 million as of June 30, 2026, compared to $24.1 million at the end of 2025.
• July Emrosi Performance -- 14,000 total prescriptions, establishing an all-time monthly high for the product.
• Qbrexza Total Prescriptions -- 14,500 in June, with July figures reaching nearly 15,000.
• Qbrexza Annual Revenue -- $25 million to $26 million, according to management estimates for the product's consistent contribution.
• Sales Force Expansion -- Five new dermatology sales professionals deployed in late July to fill new territories.
• Inventory Levels -- No significant inventory movements affected the average selling price during the quarter.
• Emrosi Average Selling Price -- Increased approximately 10% over the first quarter due to improved insurance reimbursement.
• Term Loan Obligations -- $5.0 million in short-term debt and $20.5 million in long-term debt as of June 30, 2026.

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RISKS

• Maraoui stated, "You will have some residual effects from insurance deductible resets from the beginning of the year. That leak into Q2," regarding the quarterly performance of Qbrexza.
• Alloush noted that for approximately 80 million to 90 million covered lives, access to Emrosi "might have a larger barrier" in the form of prior authorizations or double step-edits.

SUMMARY

Management at Journey Medical Corporation (NASDAQ:DERM) reported a transition to positive EBITDA and adjusted EBITDA for the second quarter of 2026, supported by 23% top-line growth. The primary driver of this performance was the continued commercial expansion of Emrosi, which saw accelerating prescription demand and a expanding base of unique dermatology prescribers. The company reported improved payer coverage and sequential increases in average selling prices, reflecting successful negotiations with major health plans. Management stated that the business is focused on leveraging its existing commercial infrastructure to drive sustainable profitability through the remainder of the year.

• Maraoui stated, "With over 15 thousand dermatologists in the United States, there is significant room for us to grow our base of prescribers."
• Management reported that a large national health plan added Emrosi to its formulary in early August 2026, which is expected to drive further volume growth.
• The company launched Urox Cream, a nonsteroidal antipruritic treatment, in July 2026 to augment its current dermatology portfolio.
• Maraoui noted that the company expects to announce new journal publications and seeks to have Emrosi incorporated into consensus treatment guidelines for rosacea.
• Alloush indicated that the company is actively exploring out-licensing opportunities for its patented products in Europe, Canada, Japan, and other international markets.
• Management confirmed that Emrosi reached a monthly high of 14,000 total prescriptions in July, demonstrating building market momentum.

INDUSTRY GLOSSARY

• Emrosi: A branded oral minocycline treatment for rosacea.
• Qbrexza: A medicated cloth used to treat primary axillary hyperhidrosis, or excessive underarm sweating.
• Urox: A 10% Crotamiton cream used as a nonsteroidal anti-itch treatment.
• Papulopustular Rosacea: A condition characterized by facial redness and inflammatory bumps or pimples.
• Step-edit: A requirement by insurance companies for patients to try specified medications before a different drug is covered.
• NRx: New prescriptions written by healthcare providers.
• TRx: Total prescriptions, which includes both new prescriptions and refills.
• ASP: Average selling price, the net price a manufacturer receives after discounts and rebates.
• GPO: Group Purchasing Organization, an entity that helps healthcare providers negotiate volume discounts from manufacturers.

Full Conference Call Transcript

Operator: Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to Journeys Medical's Second Quarter 26 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. Participants of this call are advised that the audio of this conference call is being broadcast live over the Internet and is also being recorded for playback purposes. A webcast replay of this call will be available approximately 1 hour after the end of the call for approximately 30 days. I would now like to turn the call over to Jaclyn Jaffe.

The company's Senior Director of Corporate Operations. Please go ahead, Jaclyn.

Jaclyn Jaffe: Good afternoon, and thank you for participating in today's conference call. Joining me from Journey Medical's leadership team are Claude Maraoui, Co-Founder, President and Chief Executive Officer Joseph Benesch, Chief Financial Officer and Ramsey Alloush, Chief Operating Officer and General Counsel will participate in the Q&A portion of the call. During this call, management will be making forward looking statements, including statements that address, among other things, Journey Medical's expectations for future performance, operational results, financial condition, and the receipt of regulatory approvals. Forward-looking statements involve risks and other factors, that may cause actual results to differ materially from those statements.

For information about these risks, please refer to the risk factors described in Journey Medical's most recently filed periodic reports on Form 10 and Form 10 Q. the Form 8-Ks filed with the SEC today and the company's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes non GAAP financial measures that Journey Medical believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non GAAP financial measure, to net loss, its most directly comparable GAAP financial measure, Please see the reconciliation table located in the company's earnings press release.

The content of this call contains time sensitive information that is accurate only as of today, Wednesday, 08/12/2026. Except as required by law, Journey Medical disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Claude Maraoui, Co-Founder, President, and Chief Executive Officer of Journey Medical.

Claude Maraoui: Thank you, Jaclyn. and good afternoon to everyone on the call today. We continue to make solid progress in our business in the second quarter, as we delivered strong revenue growth and improved profitability during the period. Amrozi revenues were $8.1 million in Q2, up significantly year over year and sequentially from the first quarter. On higher prescription volume improving payer reimbursement and a significant step up in the number of dermatology writers prescribing the brand. These metrics not only trended positively, but also showed acceleration, and we expect this progress to continue in the coming quarters.

Our total net product revenues for the second quarter rose by 23% year over year while operating expenses increased by less than 1% compared to Q2 of last year. We remain focused on delivering strong top line growth and leveraging our proven dermatology commercial infrastructure. We are executing on these initiatives and as a result, we generated positive EBITDA in the second quarter. With this performance, we continue to believe that 2026 will be a breakout year for Journey Medical with respect to both revenue growth and profitability. Amrozi prescriptions totaled approximately 36 thousand in the second quarter, up from about 30 thousand total prescriptions in the first quarter of this year.

This represents approximately 20% sequential quarterly growth for the product. Which is up from the 11% sequential quarterly prescription growth seen last quarter. Importantly, the growth is being driven by new prescriptions in addition to refills with successive increases in NRx on a monthly basis. In June, we saw a strong increase with over 5.3 thousand new prescriptions filled, up from an average of 4.7 thousand NRxs the preceding 3 months. This was an all time monthly high for the product. We reported last quarter that approximately 3.7 thousand unique dermatology prescribers had written a prescription for Amrozi. Today, I am pleased to report that there are now over 4.5 thousand unique prescribers writing for the brand.

This is more than a 40% increase in Amrozi prescribers from the 3.2 thousand prescribers that we had at the end of 2025. We believe that these accelerating trends are encouraging and demonstrate that as more prescribers and patients gain experience with Amrozi, product loyalty will increase and the franchise value will continue to compound. As we had planned, we hired an additional 5 dermatology sales professionals into our commercial organization during the second quarter. These experienced representatives joined the company in late July and were recently deployed into the field. The time to fill these relatively large sales territories could not be better.

And we expect that contributions from these new representatives will add to our already strong market penetration efforts. With over 15 thousand dermatologists in the United States, there is significant room for us to grow our base of prescribers. We are increasing our peer to peer marketing activities and we remain active at key dermatology medical conferences to expand awareness of Amrozi's superior clinical benefits in the treatment of rosacea. The superior head to head efficacy results demonstrated in our Phase III clinical trials comparing Amrozi to the only other branded oral rosacea treatment, Oracea, continue to be central in driving adoption throughout the dermatology community.

Amrozi's placebo-like safety and tolerability profile is proving to be durable, which is another important factor in recruiting new prescribers. From the patient perspective, Amrozi's rapid onset of action and superior skin clearing effects compared to Oracea are key and real world patient experiences are supporting a growing base of loyal end users. Helping us to further broaden awareness of Amrozi in the market, we expect to announce new journal publications for the product in the coming quarters. And we believe that Amrozi has potential to be incorporated into the consensus treatment guidelines for rosacea. The payer community is also taking note of Amrozi's early success in the market.

And we are continuing to make progress with the downstream health plans. Importantly, the calculated average selling price for Amrozi based on prescriptions increased in Q2 over Q1. After increasing previously in Q1 over Q4, as reimbursed prescriptions are becoming an increasing part of the business mix. As Amrozi's formulary status improves, we believe that our ASP will continue to rise. Earlier this year, we completed our agreements with all the top 3 GPOs in the nation bringing planned access for Amrozi to over 169 million of the 192 million covered commercial lives in The U. S. With those agreements in place, our focus is to pursue high quality formulary coverage with the downstream health plans.

Meaning a single step-edit or better. We made good progress in the second quarter as the percentage of commercial lives with high quality formulary coverage increased from 34% in Q1 to 38% currently. Supporting this positive trend, a large national health plan placed Amrozi on its formulary in early August. And we expect to see traction from that addition this quarter. And now, I will turn the call over to our CFO, Joe Benesch, to review our second quarter financial results.

Joseph Benesch: Thank you, Claude. and good afternoon to everyone on the call. I will now review our financial results for the second quarter of 26. Total revenue for the quarter was $18.5 million compared to $15 million in the second quarter of 2025. Reflecting a 23% increase from period to period. This growth was primarily driven by momentum from continued demand for Amrozi. Which generated $8.1 million in net revenue for the quarter. Turning to gross margin. We reported a 67% margin for the second quarter of 26. Consistent with the prior year quarter. SG&A expenses were $10.9 million for the quarter, compared to $11.9 million in the second quarter of 2025.

The decrease was primarily due to the impact of launch related spending for Amrozi in the prior year quarter. Our GAAP net loss narrowed to $0.3 million or $0.01 per share basic and diluted compared to a net loss of $3.8 million or $0.16 per share basic and diluted for 2Q 2025. On a non GAAP basis, both EBITDA and adjusted EBITDA were positive for the 6 month periods ended. 06/30/2026. EBITDA reflected net income of $1.4 million and $1.1 million for the second quarter and the 6 month period ended 06/30/2026, respectively. Compared to net losses, of $1.9 million and $4.1 million for the prior year quarter and the prior year to date period respectively.

Adjusted EBITDA which is generally our EBITDA number less noncash share based compensation expense, reflected net income of $2.9 million and $3.5 million for the second quarter and the 6 month period ended 06/30/2026, respectively. Depicting net losses of $0.5 million and $1.4 million for the prior year quarter and the prior year to date period, respectively. We ended the quarter with $25.6 million in cash, compared to $24.1 million as of 12/31/2025. In summary, second quarter results reflect the continued execution of our plan to become sustainably EBITDA positive. Through revenue growth, margin improvement and expense optimization. Which we intend to remain focused on. Thank you very much. I will now turn the call back over to Claude.

Claude Maraoui: Thank you, Joe. The second quarter was another productive period for Journey Medical. With clear progress made on our business objectives. We are delivering on our goal to generate positive EBITDA for the remainder of the year and with our net product sales growing significantly faster than our expenses. We are making solid progress toward becoming sustainably earnings and cash flow positive. Amrozi continues to gain market share in the rosacea treatment segment with prescription growth accelerating in Q2 our base of new prescribers increasing at an impressive rate. With total prescriptions growing by 20% sequentially, from the first quarter of this year, we believe that the promise of Amrozi is beginning to be realized broadly in the market.

Importantly, patient experiences are validating that the superior benefits in our Phase 3 clinical trials are highly clinically meaningful. We remain focused on achieving high prescriber and patient satisfaction rates as this is the cornerstone of our efforts to build a strong base and deliver compounding growth for the brand. With market momentum building, our payer coverage continues to improve as well. The trends of higher ASPs since the beginning of the year is a reflection of that progress.

Amrozi was added to the formulary of a major national health plan earlier this month and with other payer initiatives in various stages of progress, we continue to expect our ASP to improve throughout the back half of the year fueling Amrozi sales growth. With our business moving in the right direction, we believed it was the perfect time to expand our commercial organization and we did so by recently hiring and deploying 5 new sales professionals to fill new territories. We also executed on launching a niche dermatology product late in the second quarter called Urox Cream. Our new sales professionals and this new addition to our product lineup are expected to augment our efforts to grow company revenues.

With Amrozi remaining as high priority detail in the Journey portfolio. With regards to business development activities, we continue to explore out licensing opportunities for the commercial rights to our patented products in non U. S. Territories. In addition to the potential to in license assets to expand our dermatology product offering, and increase value for the company. We continue to expect that 2026 will be a breakout year for Journey Medical. And we will remain committed to delivering on our core objectives. To improve the lives of patients, offer innovative treatment options to dermatology healthcare providers, and to create long term value for our shareholders. Thank you, Operator, we are now ready to open the lines for Q&A.

Operator: The question-and-answer session. If you are using a speakerphone, please pick up your handset before pressing the keys. At this time, we will pause momentarily to assemble our roster. The first question today comes from Scott Henry with Alliance Global Partners. Please go ahead.

Scott Henry: Thank you, and good afternoon. Claude, you gave a lot of color on Amrozi, as I am just going to ask a couple of follow-up questions. So bear with me. Were there any inventory movements in the quarter that can sometimes inflate or even deflate that ASP on specific quarter?

Claude Maraoui: None. No.

Scott Henry: Okay. So I mean, oftentimes, I will see this where the ASP is drifting up, but it is not a straight line, but you sound pretty confident that we could get because this was about a 10% boost over first quarter, which is fantastic. But it sounds like you are looking for sequential gains the next couple of quarters as well. Is that correct interpretation?

Claude Maraoui: that is correct. I think you will see good progress from really, from Q4 last year, Q1, to Q2, and our expectation is that we will continue to gain better ASPs as more reimbursement from our payer strategy gets implemented and more reimbursements happening through the insurance companies.

Scott Henry: Okay. Great. And I do not know if you can speak to the seasonality. I mean, the Q2 was great. And you had some significant gains, but it is kind of plateaued for the past couple of weeks around 3 thousand a week. Is there any seasonality where we may get a boost coming out of the summer months? Any thoughts on that?

Claude Maraoui: Yeah, it is a good question. Fair question. You know, as I am looking at market data and just looking in the past 6, 7 quarters of the total market, pretty consistent throughout. You would anticipate from summer going into winter with the cold weather coming into play in the next several months that there are some changes. it is minimal, and I would not put a lot of seasonality to it. Now we have had good growth consistent throughout the whole year. You will see some weeks, Scott, that there is know, maybe several weeks that are the same level and then we get a bump up.

And that is what we have seen with this brand on a consistent basis as we have launched it here in 2026. So okay. You know, we just got Symphony numbers for example, for July. So we had about 13 thousand prescriptions for Amrozi in June and now we have approximately 14 thousand. So we have increased it in a good fashion. New prescriptions are up. The trends are very strong. We hit about 5.3 thousand new prescriptions. The last 3 months preceding that was about 4.7 thousand. So the trends are very positive. And in my opening remarks, we talked about unique prescribers I will tell you, from closing out 2025, we had about 3.2 thousand prescribers.

We moved that up to approximately 3.7 thousand prescribers. Ending Q1 and we are close to 4.5 thousand+ prescribers right now. So more physicians are jumping on, and it is really looking positive.

Scott Henry: Okay. So, yes, some great momentum going there. Just shifting gears, a couple of the other products. QBREXZA was down a little bit in the quarter. that is kind of the second product that really matters here now. How do you see that product? Is that a flattish product, or should we think about that as a declining product? Just want to hear your thoughts on the big picture long term view on QBREXZA in these next, you know, 4 to 6 quarters.

Claude Maraoui: Yeah. Sure. You know, QBREXZA is a fantastic product. Very meaningful to the company. Right now, it is second out of the bag in terms of promotion with our field sales force. Obviously, Amrozi is first out of the bag. And, you know, we have great contribution from QBREXZA very consistent over the time that we have had it. It brings in roughly about $25 million to $26 million You will see some up and down quarters with the brand. And this past 1 was a little bit light. You know, I would attribute that to probably a few things. You know, 1 is patient mix payer mix. Right?

We do not control that blend that is happening during the quarter. So that is certainly a big part of it. I think you will have some residual effects from insurance deductible resets from the beginning of the year. That leak into Q2. We are going into a very good strong season for, hyperhidrosis, the hotter summer months. And, again, we had an extremely strong month of June. We hit over 14 thousand+ prescriptions, about 14.5 thousand to be exact. As I mentioned with Amrozi, we just got the July numbers. And we are just shy of the 15 thousand mark. So demand is increasing. Patient satisfaction with the brand is extremely high.

And, you know, it is just very convenient. You can use this brand any time of the day or evening. there is no restrictions. And, you know, the simple use of it, Scott, makes it very friendly. The fact that there is no aluminum containing ingredients in the brand makes it very appealing to a lot of people. So the brand is growing and we see great contribution. So I would expect with consistent consistency that you have seen over the last couple of years with this.

Scott Henry: Okay, great. I will wrap it up there. Thank you for taking the questions.

Claude Maraoui: Thank you.

Operator: The next question comes from Mayank Mamtani with B. Riley Securities. Please go ahead.

Mayank Mamtani: Yes. Good afternoon, team. Thanks for taking my questions, and congrats on a lot of progress here. Maybe on the operating leverage, if I could start there. Your SG&A stayed unchanged, while obviously you are reporting on very strong commercial KPIs. You know, was wondering in second half with all the you know, corporate developments you talked about including niche launch, should we expect a step up in SG&A starting with 3Q? And I have a few follow-ups after that.

Claude Maraoui: Sure. Joe, would you like to take that 1?

Joseph Benesch: Yes, sure. So the answer is yes, somewhat, right? You are not going to see any surprises, but you know, we do have some marketing programs, some advertising programs. Will probably implement the third, fourth quarter. But overall, I expect to see the percentage of revenue from SG&A pretty consistent.

Mayank Mamtani: Okay. And then Claude, you talked about the major national plan added in early August. Was obviously wondering how, you know, that impacts net ASP in second half, or what you have seen already relative to, you know, this nice improvement you have seen in first and second quarter And I was also wondering on the refill rate that continues to climb up. Is there like a year end number that is in your mind, you can see kind of how trends are telling you and is there any like how your unique prescriber, you know, number also is moving? How many physicians are writing Amrozi? Is there maybe correlation between the 2 these 2 big KPIs you are tracking?

Claude Maraoui: Sure. I will start with the latter 2. Parts of your question there. Refill rates are very important. We have been very committed on being on message in terms of our Phase III clinical trials. Our commercial team is executing talking about a 4-month trial. And I think it is resonating extremely well with our prescribers. So if they are prescribing Amrozi, which again, continue to see more and more prescribers each quarter, And then depending on how they are giving the refills, if it is 1 prescription plus 3 refills, that is according to our Phase 3 clinical trials. But dermatologists are artists. Patients, come in and present their rosacea in different parts, phases, to the physician.

So they are gonna vary on how many refills they get and what they are comfortable with. So that is gonna go up and down. And as we get these new prescribers on board, once they get those patients back are going to get more and more comfortable with the brand. So refill rates are important. The month of July that just came in, again, an all-time high with 14 thousand prescriptions. Our refill rate, for that particular month for example, is at 1.5 plus the regular fill you are at about 2.5 right now if you think about it. But you can also see a surge in new prescriptions.

As I mentioned, we were averaging about 4.7 thousand new prescriptions a month. Now we moved that up to about 5.3 thousand. Prescriptions. So the refill rate, even though that is compounding now with more physicians using this and giving refills to their patients, The refill rate is important, but I think you have to look at total prescriptions and that line continues to demonstrate very strong positive growth. So I would tell you that is how I would think about it. Mayank. In terms of the new national health care plan, I am gonna ask Ramsey to jump in here and talk about that a little bit.

Ramsey Alloush: And then potential for the rest of the year. Sure. Hi, Mayank, and thanks for the thanks for the question. And I think the question was, with this new national formulary onboard, what is our sort of expectation from a improvement on ASP. Obviously, it is an upward trajectory it is a very large national plan. As you know, as of April, we had signed all 3 major GPOs So in the second quarter, we did have some number of lives come over from that third GPO. This will be in addition to that. This is a separate, you know, national formulary in which we were able to get Amrozi on formulary for. So we do expect improvement.

We talk about 38% quality of the 192 million lives having access to Amrozi with a single step therapy or better. And so, you know, adding this new national formulary is gonna increase that number Right? So from the 70+ million lives, it is going to go up from there. We think that is the least amount of friction that a patient really should have to be able to get a prescription through the adjudication process and pick up their prescription. We do have a number, and we have said this previously, a number of other sort of negotiations and presentations going on with other large national formularies.

We think the fact that we were able to be successful with a positive add with the 1 we were just recently added to, should help us in our momentum going forward. And, yeah, we expect we expect good milestones to be hit. Throughout Q3 into Q4 and obviously into 2028 as well.

Mayank Mamtani: Great. And my final question, you know, on the ex-U.S. out-licensing efforts, including for Amrozi, is there anything IP related or thoughts like that maybe also playing a role there? Or is it just you know, these things can take a little while especially, you know, ex US where our dynamics are very different. Thanks so much for taking my question.

Ramsey Alloush: Yeah. And, Claude, if you do not mind, I can I can take the outlicensing question as well? Sure. Yeah. You know, as you as you may know, Amrozi, those are our patented brands in which we acquired. We acquired Global Rights. We maintain global patent portfolio for all of those brands. QBREX is available in Japan with our partners, Maruho. And we did additional outlicensing in Korea, Taiwan, and other ASEAN countries. Amzeeq is available in China with our partners, Qdia, commercially available. They launched about a year ago. We continue to have additional conversations without licensing with those brands, but more importantly, Amrozi, right?

And in terms of, you know, ongoing negotiations, I can I what I can tell you is that they are happening, on a on a consistent basis? We do have IP, as I mentioned, globally, which includes Europe, Canada, Australia, New Zealand, Japan and other parts of Asia. So in terms of the robustness of the IP and the market opportunity, it is there. But as you kind of mentioned, it does take some time, right, to get to the meeting of the minds, to have the right structure in place. To make sure all of the right political climate is in place given, you know, certain new legislative or administer executive order actions that are kind of ongoing.

Obviously, our primary focus is you know, making Amrozi the standard of care, the gold standard in The US for rosacea. We certainly think, and we have ongoing discussions with other companies, that there is a great opportunity in those regions as well. So we will continue to update as, you know, as we go. And, obviously, once you know, something definitive is available. Very helpful.

Mayank Mamtani: Thank you, guys.

Ramsey Alloush: Sure.

Operator: The next question comes from Brandon Folkes with H. C. Wainwright. Please go ahead.

Brandon Folkes: Hi, thanks for taking my questions and congrats on the quarter. Maybe just 2 from me, staying on Amrozi. You look to be making very good progress here on the gross to net And, obviously, on volume. But maybe just, you know, where is the remaining friction in access today, including payer access? You know, especially that friction that you believe you could remove or loosen over the next 12 months. And then secondly, from me, just having a look at your 10-Q, you know, Urox I believe that is how you pronounce it. Apologies if not. Can you just give us more color on your expectations for that product? Maybe when it launched in the quarter?

And how you envision that product growing over time? Thank you.

Claude Maraoui: Yes, certainly. Brandon, we want and you nailed it. Urox is the correct name 10% Cortamiton. This is an anti-itch, antipruritic product. it is nonsteroidal, nonhistaminic and fragrance free. We worked, diligently to change this formula This is a brand that we picked up a number of years ago from another pharmaceutical company, and we really believe it is an enhanced formulation. And it will be welcomed in the dermatology community for their patients that suffer from significant itching. We trained our commercial team in June, and we launched the brand in July. So brand new, out there. When you take a look at our portfolio, this is coming in right behind QBREXZA in the third position.

So, Amrozi first, QBREXZA second and then followed by Urox right now. So it is brand new. it is just starting out. We are starting to see some traction. We are getting some positive feedback from our dermatology base of physicians. So we like what we are hearing so far. But again, it is relatively early. And, we think it is going to be, you know, a good strong contributor to our base business. Nothing in terms of giving any guidance here, but we are going to be obviously tracking prescriptions and physician counts and all the major, KPIs that you would think regarding the brand. So, that is where it is at right now.

It is in the compensation plan. For our commercial team, so there is focus and attention. And promotion happening behind it. In terms of I believe you wanted to maybe, look at more managed care and some of the points that we are having in the discussions with the various payers. Is that correct?

Brandon Folkes: Yes. Thank you.

Claude Maraoui: Okay. Yes. Ramsey, did you want to jump back in here for please?

Ramsey Alloush: Sure. Yes. And I think more specifically, Brandon, you were looking at where friction is out in the market in terms of you know, barriers, if you will, Um, and we talk again. We talk about what the quality of lives are, and that is that 72 million that 38%. We also talked about access, which is pathway to a prescription, and that is more like a 169 million lives.

So if you look at the delta between the 2, you are gonna see that, you know, the let's call it 80 to 90 more million lives, right, that potentially have access to Amrozi might have a larger barrier, right, in terms of that friction That could be, for example, a prior auth or a double step that is in place, right? So our job is identifying where those bottlenecks are, and we have been doing that on a consistent basis. And speaking with those plans to see what it takes to get Amrozi down to sort of our benchmark, which is that quality single step therapy or better. Obviously, from a clinical perspective, we have a strong value proposition.

There are other drugs obviously available to them in the market. From a rosacea, you know, treatment standpoint. And, you know, our category, again, we are saying a single step through any of those either oral or topical agents. Typically, prescribers do prescribe for a rosacea, They are using an oral, and they may also supplement with a with a topical. But again, you know, with our head-to-head data, the fact that our drug works in essentially half the time as Oracea, right, 8 weeks, we achieved the results greater than what Oracea did in our study in 16 weeks. With strong value proposition, not only from a clinical perspective, but from a financial perspective.

And this is resonating very well with the payers. But this is not a very highly managed category, right, in terms of rosacea and kind of what payers have on their plates, right, when you think of GLP ones, other oncology, rare disease, orphan drugs. So, you know, it takes a little bit more time. We are having again, we have great contacts with the important plans that we think are gonna make the difference that for example, may have a double step or a PA and why we think it is not appropriate to have sort of that in place for our drug given the data and the financial profile for it.

And so, yeah, I would say you know, the strict scripts that are going through with those, are still gonna continue to grow through, but they could go through at a higher rate, which, you know, covered, which is gonna improve our reimbursement if we are able to remove and reduce those barriers, and that is what we are gonna continue to do through Q3, Q3, Q4, and into 2028 as well.

Claude Maraoui: Yeah. Brandon, you know, in terms of negotiation, that is what our market access team is doing. I think Ramsey set it up very well here. But we are negotiating potential look backs. It could be 6 months, 12 months, a year plus. Those, you know, if they have tried a topical or if they have tried an oral, we are playing with the and or part of it here. So again, I think where we stand today at about 38% quality, 1 step-edit or less, Is a good position. We could certainly increase that number, significantly.

But we are holding to our strategy of trying to get the least resistance in to simply get the patients on what we believe to be the, best treatment for rosacea orally right now. So those are the types of things that we go back and forth with. And we think taking that time is important and it makes a lot of business sense.

Operator: As a reminder, if you would like to ask a question. The next question comes from Thomas Flaten with Lake Street. Please go ahead.

Thomas Flaten: Hey. Good afternoon, guys. Congrats on the Amrozi performance. Just a few from me. Claude, with respect to the new reps that were hired can I assume those were white space hires, or are you already territory splitting?

Claude Maraoui: So the you know, out of the 5, most of them are in white space, but we do have some areas where the number of dermatologists and penetration is better served with splitting it. So you have a little mix of both, Tom.

Thomas Flaten: Got it. And then with respect to physician utilization, have they cued in on a specific element of your efficacy, I mean time or overall resolution, erythema, that is the driving reasons for their use?

Claude Maraoui: You know, in terms of just physician feedback, it is astounding. How they are looking at the efficacy. The superiority factor that we have that the FDA gave us is resonating well with patients And when the physicians are seeing them back a month or 2 after their initial prescription, the, reinforcement from the patient and what the clearance rate is, is rather incredible. Again, we are doing the what Oracea did in half the time, and I think that is really a major part of it. Plus, you know, the other factor is you are talking about a fantastic safety profile, very tolerable.

They are not getting that pushback that they could have had for example, with acne and immediate release minocycline, they are not getting that same pushback with this proprietary formulation of Amrozi. So they like what they are getting.

Thomas Flaten: And I think they are building confidence. And then back to the physicians again, if I may. Are there specific subtypes of rosacea patients that they are primarily using it on, or are they kind of using it more broadly than having identified a subtype?

Claude Maraoui: Well, we are we are indicated for papulopustular rosacea. So certainly, you know, that severe moderate to severe We are our indication allows us to go broader, but you are talking about moderate and severe patients. I would say, are what they are putting Amrozi in that category. And I am generalizing here. But I would tell you that would be where the niche is for the brand right now.

Operator: This concludes our question-and-answer session. and concludes the conference call today. Thank you for attending today's presentation. You may now disconnect.

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