Verrica Pharmaceuticals on Dec. 23 announced the resubmission of the New Drug Application (NDA) of its VP-102 used in the treatment of molluscum contagiosum to the US Food and Drug Administration (FDA).
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Verrica’s (VRCA) move follows actions taken as requested by the FDA’s Complete Response Letter (CRL) issued in July this year. Shares of the dermatology therapeutics company lost 5% at the close on Dec. 24.
Molluscum contagiosum is a highly infectious skin disease caused by a pox virus that affects around 6 million people in the US, mainly children. VP-102, is an exclusive drug-device combination for the treatment of molluscum contagiosum. It would be marketed in the US under the brand name YCANTH upon the FDA approval.
The company has successfully completed a Phase 2 study of VP-102 for the treatment of common warts and a Phase 2 study of VP-102 for the treatment of external genital warts.
In reaction to the FDA resubmission, Cowen analyst Ken Cacciatore on Dec. 24 reiterated a Buy rating on VRCA stock with a $25 price target . The price target implies 108% upside potential.
Cacciatore expects the FDA to accept the resubmission, with a potential approval by the third quarter of 2021.
The analyst is confident that VP-102 “would fulfill a large unmet need,” as it is set to become the first FDA-approved therapy for molluscum. (See VRCA stock analysis on TipRanks)
From the rest of the Street, the stock scores an analyst consensus of a Strong Buy based on 4 unanimous Buys. The average analyst price target of $19.50 implies upside potential of about 63% to current levels. Shares have dropped 24.5% year-to-date.
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