Verrica Pharmaceuticals Inc (NASDAQ:VRCA) shares rose 3.1% on Monday following an announcement that its partner, Torii Pharmaceutical, has begun marketing YCANTH in Japan for the treatment of molluscum contagiosum.
The Japanese launch represents a key step in Verrica's efforts to commercialize YCANTH internationally. Torii Pharmaceutical, which is a wholly-owned subsidiary of Shionogi & Co., secured approval from the Japanese Ministry of Health, Labour and Welfare in September 2025, clearing the way for the product's introduction to the market.
Commenting on the launch, Jayson Rieger, President and CEO of Verrica Pharmaceuticals, said: "With few treatments currently available in Japan, the launch of YCANTH will enable access to a therapy which addresses this significant unmet need." The company framed the debut as a response to limited therapeutic options available in the country.
The approval in Japan was supported by positive findings from a confirmatory Phase 3 trial. That study showed statistically significant efficacy for YCANTH versus placebo. The trial tested YCANTH administered by a healthcare professional once every 21 days, for up to four applications, in patients with molluscum.
Under terms of an amended collaboration agreement established in July 2025, Verrica will initially receive a transfer price for YCANTH applicators manufactured by its partners. The companies have indicated plans to carry out a manufacturing transfer to Torii; following that transfer, Verrica is scheduled to begin collecting royalties on net sales in Japan.
YCANTH is notable within Verrica's portfolio as the first FDA-approved, healthcare professional-administered product for molluscum contagiosum. The condition is a highly contagious skin disease that is estimated to affect six million people in the United States. The product is a drug-device combination that incorporates a controlled formulation of cantharidin delivered through a single-use applicator.
The market move in Verrica's stock reflected investor reaction to the commercial advancement in Japan and the revenue mechanics outlined in the amended agreement. The launch in Japan and the transition from transfer pricing to royalty receipts are central elements for how Verrica expects to realize financial benefit from the product in that market.