Journey Medical Corporation

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to Journey Medical's full-year 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. As 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 conference 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, Joseph Binesh, Chief Financial Officer, and Ramzi Aloush, Chief Operating Officer and General Counsel. 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 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, March 25th, 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 Morali, co-founder, president, and chief executive officer of Journey Medical.

Thank you, Jacqueline, and good afternoon to everyone on the call today. 2025 was a milestone year for Journey Medical, as we successfully launched MROSI, our internally developed, best-in-class oral treatment for the inflammatory lesions of rosacea. MROSI was made available to pharmacies in late March of last year, and our promotional activities began in early April. I am pleased to report that during the three quarters of 2025 in which Amrosi was commercially available, the product achieved 14.7 million in net sales. With regard to our full year 2025 performance, we delivered total net product revenue growth of 11%, and we improved our gross margin by nearly 3.5 percentage points compared to the 2024 period. Importantly, our business was able to make solid financial progress despite pressure on our Accutane franchise and other legacy products due to generic competition. With regards to our focus on improving profitability of the business, I am pleased to report that we generated positive adjusted EBITDA as well as positive EBITDA in the fourth quarter of 2025. Given our expectation for continued sales growth and additional leverage from our established commercial sales organization, we expect to remain adjusted EBITDA positive in 2026 and the foreseeable future. With our solid cash position of approximately $24 million, I believe that Journey is well positioned to execute on our business plan and grow sales and profitability with the resources that we have in place. One of the key highlights for 2025 is the strong prescription volume that we generated with Ambrosie. Total Ambrosie prescriptions were approximately 53,000 since promotion began in April of last year, which we believe is a very strong start. In the fourth quarter alone, Total prescription volume for MROSI grew nearly 50% sequentially compared to the third quarter last year, and growth is continuing in Q1 of this year. Our sales organization continues to promote the superior efficacy of MROSI compared to the only other branded oral rosacea treatment, Oracea, in addition to MROSI's placebo-like safety and tolerability profile. Notably, the extremely positive head-to-head results against aurasia and placebo in Ambrosie's Phase III clinical trials are playing out in the real world. Physician feedback continues to be very positive, and the rising refill rate for Ambrosie continues to demonstrate that patients are pleased with the results. Ambrosie's superior efficacy and rapid onset of action compared to aurasia with effects seen in as little as two weeks, are key benefits that we believe are supporting the demand and patient refill behavior. Along with the high satisfaction rate that we are seeing with our current customers, we continue to expand adoption of MROSI in more dermatology practices. We ended 2025 with approximately 3,200 unique prescribers of MROSI, reaching our initial goal of prescribers in the top deciles that routinely write for a ratio and similar products. While we were able to meet our initial prescriber target quite rapidly, we continue to increase this number, and today we are disclosing that over 3,500 unique dermatology prescribers have now written at least one script for Amrosi. I'll now provide some additional color on our managed care and market access progress firm, ROSI, as this is an important component of the value inflection that we expect in 2026. Prescription demand continues to track ahead of reported revenue. That dynamic is primarily driven by the timing of downstream health plan coverage decisions and formulary implementation cycles. which are progressing as expected for a newly launched branded dermatology product. At present, approximately 100 million commercial covered lives have access to MROSI. This includes contracts in place with two of the top three group purchasing organizations in the United States. These agreements provide the framework for broader downstream payer adoption as individual health plans complete their internal review and P&T processes. As we mentioned on our third quarter earnings call, we anticipate contracting with the third major GPO by late Q1 or early Q2 of this year, and we remain on track to meet this objective. Importantly, We are not solely focused on breadth of coverage, but also the quality of coverage, including tier positioning, step edit requirements, and prior authorization criteria to ensure that the value of OMROSI's differentiated clinical profile is appropriately recognized. As coverage expands and formulary policies mature throughout 2026, we expect to see improved reimbursement rates, reduced reliance on our co-pay bridging program, and an increase in Ambrosie sales and overall operating margin expansion. Our sales professionals continue to focus on building new prescription demand for Ambrosie, as we believe it is important to broadly develop positive physician and patient experiences with the brand. In addition, critical mass and prescription volume also factors into the evaluation of reimbursement and pricing policies with the downstream health plans. Along with the strong prescription demand, our market access discussions are supported by several important clinical and publication milestones. These are MROSI's head-to-head superiority data versus Oratia, the publication of MROSI's Phase III efficacy and safety results in JAMA dermatology, and the updated treatment algorithms from the National Rosacea Society. These third-party validations are meaningful in payer evaluations, particularly as plans assess clinical differentiation and long-term health economic impact. We believe that MROSI's rapid onset of action placebo-like tolerability, and superior facial clearing and lesion reduction profile position it well for continued formulary inclusions. As these initiatives materialize, we expect a meaningful inflection in revenue conversion relative to prescription demand. While we have commented on our expectations for positive EBITDA this year, We plan to offer more detailed financial guidance later in the year once we have better clarity on the downstream health plan adoption of MROSI. I mentioned earlier that MROSI's positive phase three clinical trial results were published in JAMA Dermatology and that the National Rosacea Society updated their treatment algorithms, highlighting MROSI's position as an effective therapy for rosacea treatment. Both of these publications were issued in the first half of 2025 and support Ambrosie's superior clinical efficacy in treating rosacea, its favorable safety profile, and the product's convenient once-daily oral dosing. This year, we expect to announce up to three new journal publications on Ambrosie. We also believe that MROSI has potential to be incorporated into the consensus treatment guidelines for rosacea, which should support further market and health plan adoption. In addition, we remain active at key dermatology medical conferences across the United States to build awareness and momentum behind the MROSI brand. Last year, we presented clinical data at two medical conferences. the Society of Dermatology Physicians Associates Summer Conference in June, and the 2025 Fall Clinical Dermatology Conference in October. We plan to attend an exhibit at this year's American Academy of Dermatology meeting at the end of this month, where we kicked off from ROSI's launch last year. Given the market penetration that we have achieved so far with rosacea prescribers, We believe that this large-scale conference will help us further increase brand awareness and prescriber adoption of MROSI. Additionally, we expect to exhibit and potentially present a clinical data later this year at other dermatology conferences. With regard to our broader product offering, we plan to launch one or two additional incremental dermatology products later this year. We believe that the launch of these products can also benefit from our dermatology conference presence in addition to direct promotion by our sales organization. And with that, I'll turn the call over to our CFO, Joe Benesch, to review our 2025 financial results.