Journey Medical Corporation (DERM), a commercial-stage pharmaceutical company focused on selling and marketing FDA-approved prescription dermatology treatments, reported its financial results for the first quarter ended March 31, 2025.
The company's portfolio consists of dermatology-focused pharmaceutical products, and it generates revenue primarily from net product sales in the U.S. prescription market.
The company's commercial strategy includes leveraging its experienced dermatology salesforce and medical affairs team to drive product adoption across its portfolio.
In 2025, Journey launched Emrosi, an FDA-approved, once-daily, low-dose minocycline treatment for rosacea, which is expected to be a major driver of future growth.
Q1, 2025 Performance:
Journey Medical reported total net product revenues of $13.1 million for the first quarter of 2025, essentially flat compared to $13.0 million in the prior-year period.
The quarter included $2.1 million in revenue from the initial launch of Emrosi, which began commercial distribution in late March 2025.
Gross margin improved to 64 percent, up from 54 percent in the first quarter 2024, primarily due to favorable product mix and the absence of non-recurring charges recorded in the prior-year quarter.
Research and development expenses were nil in the first quarter 2025, compared to $7.9 million in the year-ago quarter, which included milestone and pre-approval expenses related to Emrosi.
Selling, general and administrative or SG&A expenses increased to $10.5 million, up from $8.4 million in the same quarter last year, due to expanded commercial operations supporting the Emrosi launch.
Net loss for the first quarter of 2025 was $4.1 million, or $0.18 per share, compared to a net loss of $10.4 million, or $0.53 per share, in the first quarter 2024.
The Road Ahead:
The company believes 2025 will be a transformational year, led by the commercial success of Emrosi.
The drug was added to the National Rosacea Society's updated treatment algorithms in March 2025 and showed statistical superiority over Oracea and placebo in Phase 3 trials published in JAMA Dermatology.
Full commercial launch of Emrosi began on April 7, 2025, supported by strong engagement from dermatologists and positive payer coverage momentum.
In April 2025, Journey Medical appointed Ramsey Alloush as Chief Operating Officer, marking a leadership expansion to support growth initiatives.
Management aims to drive the business to sustainable positive EBITDA and profitability in 2025, supported by continued execution of its Emrosi commercialization strategy and disciplined cost management.
Cash Position:
Journey Medical ended the first quarter of 2025 with $21.1 million in cash and cash equivalents, up from $20.3 million at the end of 2024.
Currently, DERM is trading at $7.23, Up by 21.11 percent on the Nasdaq.
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