Journey Medical Corporation

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to Journey Medical's first quarter 2026 financial results and corporate update conference call. At this time, all participants are in the 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 broadcasted 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 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 Morawi, Co-Founder, President and Chief Executive Officer, Joseph Benesch, 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 medicals, 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 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 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, May 13th, 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 Morawi, co-founder, president, and chief executive officer of Journey Medical.

Thank you, Jacqueline. And good afternoon to everyone on the call today. We made solid progress in the first quarter of 2026, marking a strong start to what we believe will be a breakout year for Ambrosie and Journey Medical. We delivered Ambrosie revenues of 6.3 million in Q1, up significantly year over year, and sequentially from the fourth quarter. As prescription volumes continue to grow and payer reimbursement improves, we are pleased with this performance, especially given the severe winter weather that occurred on the East Coast in the U.S. during Q1. Our total net product revenues for the first quarter increased by 21% year over year, while operating expenses rose by just 6% compared to the first quarter of last year. With Ambrosie still early in its launch trajectory, steady revenue contributions anticipated from our other dermatology brands, and ongoing disciplined investment in our commercial organization, we expect that operating leverage for our business will continue to increase as the year progresses. We also delivered another quarter of positive adjusted EBITDA, and we added to our cash balance during the first quarter solidifying our strong financial position. Ambrosie prescriptions totaled approximately 30,000 in the first quarter, up from about 27,000 prescriptions in the fourth quarter of last year. This represents approximately 11% sequential prescription volume growth for the product, despite the typical seasonality that occurs in the beginning of each calendar year. Notably, MROSI revenues increased by approximately 26% from Q4 to Q1, as revenue per prescription increased sequentially. We remain focused on the twin objectives of growing MROSI prescription volumes and increasing the mix of scripts reimbursed by health plans in order to accelerate revenue growth over the next several quarters. Recognition of Amrosi and its benefits continues to increase as we work toward establishing the brand as standard of care in the treatment of rosacea. Promotion of Amrosi reached its one-year anniversary in early April, and currently, over 3,700 unique dermatology prescribers have written a prescription for the product. This compares to approximately 3,200 prescribers that were writing for Amrosi at the end of 2025 and demonstrates the effectiveness of our sales organization and prescribing momentum building behind the brand. The superior head-to-head efficacy results demonstrated in our Phase III clinical trials comparing Amrosi to the only other branded oral rosacea treatment, Oratia, are becoming widely known throughout the dermatology community. And with the product on the market now for a little over a year, Ambrosie's placebo-like safety and tolerability profile is providing to be durable, which is another important factor in recruiting new prescription writers. From the patient perspective, Ambrosie's rapid onset of action and superior skin-clearing effects compared to Aresha are creating loyal users of the product. The ratio to refills to new prescriptions is now approaching 1.5 to 1, an increase from the 1 to 1 ratio observed at the end of 2025. We believe this metric is a good indicator of new patient satisfaction with the product, and we expect the refill to new prescription ratio to continue to increase going forward. With a significant number of dermatology practices and patients gaining experience with Ambrosie in its first year on the market, we believe that critical mass is being established and that the product is on track to become a significant brand in the dermatology space. The solid one-year efficacy and safety track record with Ambrosie, as well as the critical mass elements that we are generating, in terms of strong prescription volumes and the high number of dermatology writers are also important to the payer community. As a result, we believe that we are making good progress in our efforts to ramp reimbursement for Amrosi. In April, we announced that we entered into an agreement with the third of the three largest PBM-owned or affiliated group purchasing organizations in the United States. The three GPOs known as Zinc Health Services, MSR Pharma Services, and the Ascent Health Services collectively negotiate prescription drug pricing for approximately 85% of commercial lives in the United States. With the big three contracts in place for Amrosi, over 169 million of the 192 million commercial lives in the nation now have access to MROSI. Importantly, these GPO agreements serve as a framework for broader downstream payer adoption as many individual health plans conduct their own internal review and P&T evaluations before including MROSI on their formularies. As mentioned on our fourth quarter earnings call, we are actively engaged with downstream health plans on both national and regional level to broaden formulary inclusion for MROSI this year. Not only are we focused on the breadth of coverage, but also on the quality of coverage, including tier positioning, step edit requirements, and prior authorization criteria to ensure that the value of MROSI's differentiated clinical profile is recognized. We believe that MROSI's rapid onset of action, placebo-like safety and tolerability, and superior lesion reduction profile position it well for broad formulary inclusions. Our discussions with the downstream plans are also supported by the published Phase III Efficacy and Safety Results for MROSI in JAMA Dermatology, as well as the updated treatment algorithms published by the National Rosacea Society, which also cites MROSI's benefits as a safe, effective, and convenient oral treatment for the condition. These third-party validations and MROSI's strong clinical results are meaningful to plans that are assessing the clinical differentiation and long-term health economic impact of prescribing MROSI. We expect to announce up to three new journal publications on MROSI this year, and we also believe that MROSI has potential to be incorporated into the consensus treatment guidelines for rosacea, which should further support market and health plan adoption. In addition, we remain active at key dermatology medical congresses as well as managed care conferences across the United States to expand awareness and reimbursement for MROSI. In late April, we attended the Assembia Summit, a premier industry conference focused on the specialty pharmaceutical ecosystem, including pharmaceutical distribution, patient access, reimbursement dynamics, and commercialization strategies. With MROSI now on the market for over a year, The conference was timely and enabled us to have productive discussions with payer representatives to broaden Amrosti's formulary adoption. Operationally, we plan to add up to five new sales professionals to our commercial team this year with the goal of having these representatives trained and in the field in early Q3. We believe the additional resources will increase our productivity, in areas such as the promotion of our broad dermatology portfolio, the potential launch of up to two new niche dermatology products later this year, and importantly, the establishment of MROSI as standard of care in the treatment of rosacea. And with that, I'll now turn the call over to our CFO, Joe Banesh, to review our first quarter financial results.