Journey Medical Corporation

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to Journey Medical's second quarter 2025 financial results and corporate update conference call. At this time, all participants are in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. 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 one hour after the end of the call for approximately 30 days. I would now like to turn the call over to Jacqueline Jaffe, the company's Senior Director of Corporate Operations. Please go ahead, Jacqueline.

Good afternoon, and thank you for participating in today's conference call. Joining me from Journey Medical's leadership team are Claude Morali, co-founder, president, and chief executive officer, and Joseph Banesh, chief financial officer. Joining for the Q&A portion of the call will be Ramzi Aloush, chief operating officer and general counsel, Dr. Srini Sidgiddi, vice president of research and development, and Louis Donati, director of market access. 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 more information about these risks, please refer to the risk factors described in Journey Medical's most recently filed periodic reports on Form 10-K and Form 10-Q, the Form 8-K files of 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, Tuesday, August 12th, 2025. 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 Morali, co-founder, president, and chief executive officer of Journey Medical.

Thank you, Jacqueline, and good afternoon to everyone on the call today. The second quarter of 2025 marks the first full quarter since we introduced Amrosi, our best-in-class oral rosacea treatment, into the market. Today, I am pleased to report that our second quarter net product revenue of $15 million included approximately $2.8 million of OMROSI sales, surpassing our prior year quarter sales and contributing to a notable improvement in the business gross profit margins. Our strategic initiatives aimed at optimizing operations and controlling our overall operating expenses further enhance progress toward our goal of becoming sustainably EVGA positive later this year. We continue to execute on the launch, with MROSI prescriptions increasing at an impressive pace as we gain additional traction with dermatology prescribers. Patients have positive experiences with the product, and we continue to expand the number of covered lives with health plan access to MROSI. As anticipated, Accutane sales were pressured due to aggressive pricing from generic competition. Sales of the product declined compared to the prior year period. However, we were pleased to see our growth brands more than offsetting the decline. While we worked to stabilize our Accutane business, we remained focused on the growth of Amrosi and Cubrexa, our number one and number two sales details, respectively. We believe that these products can drive significant revenue growth and earning power regardless of additional Accutane sales volatility if it continues. The awareness that we have created for Amrosi and the positive responses from physicians and patients thus far have become evident in the prescription trends for the product. Through the end of July, we've generated over 12,800 MROSI prescriptions based on TRX data from Symphony Health. Each month since we've launched MROSI, total prescriptions have reached a new high and on a weekly basis. Each successive week has come in higher than the prior week, with the exception of the Memorial Day and July 4th holidays. Additionally, I am pleased to report that in MROSI's third month of promotion, the product has achieved more than 10 percent share of new prescription demand among dermatology writers, which is our initial prescriber target. Supporting these strong prescription trends is the significant increase in payer access for Ambrosie, from 30 percent of commercial lives in May of this year to approximately 65 percent of commercial lives, as noted in our announcement in July. Our ability to obtain a strong base of plan access so early in the launch demonstrates the strength of our clinical package and the value proposition that Ambrosie offers to patients and payers. Additionally, on our first quarter earnings call, we announced that there were approximately 660 unique prescribers of Ambrosie at the time. Today, I am pleased to report that we have now seen over 1,800 unique prescribers for Amrosi to date. This is a testament to the effectiveness of our commercial team and the unmet need Amrosi is addressing. We are pleased with the progress that we have made in rapidly creating awareness for Amrosi and achieving the significant payer coverage, high unique prescriber count, and strong prescription ramp in a little over one quarter since promotion of the product began. As a result, we expect to build on this momentum, and the traction so far reinforces our confidence that MROSI will generate high contribution margins and provide significant leverage toward our overall profitability and growth. Importantly, our established dermatology commercial organization offers significant leverage as we grow our product sales. Our total operating expenses were mostly flat year over year, reflecting our higher gross profit margins and lower R&D costs. In addition, our cash management discipline resulted in a minimal cash use in the quarter, and as a result, we believe the company has the financial resources and is well-positioned to execute on our business plan through the end of 2025 and into the foreseeable future. During the second quarter, MROSI gained additional visibility with the product being featured in a segment on the Balancing Act on Lifetime TV. Additionally, clinical data from our Phase III program evaluating MROSI for the treatment of moderate to severe papulopustular rosacea in adults were presented at the Society of Dermatology Physician Associates, or the SDPA Summer Dermatology Conference in June. The data showed that MROSI provides consistent relief of key rosacea symptoms with no adjustments needed for patients based on body weight. Lastly, we were pleased to see Journey Medical's common stock added to the small cap Russell 2000 and broad market Russell 3000 indexes, broadening public awareness and institutional investor ownership of our shares. And just yesterday, we were honored to be in New York City to participate in the ringing of the closing bell for the NASDAQ exchange. We have achieved so much in recent months that it is hard to believe Amrosi has only been on the market a little over one quarter. Yet we believe the progress really speaks to the product's therapeutic value as the best-in-class oral rosacea treatment and its potential to become standard of care. Our dermatology folks commercial team is committed to monetizing this important asset And I believe that the execution on our launch progress so far is demonstrating our ability to take our company to new heights. I'll now turn the call over to our CFO, Joe Benesch, who will review the financial results for the second quarter.