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1. Company Snapshot

1.a. Company Description

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States.The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant acne; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; Ximino, an oral minocycline drug for the treatment of moderate to severe acne; and Exelderm cream and solution for topical use.It also sells doxycycline hyclate tablets, minocycline hydrocholoride capsules, and sulconazole nitrate cream and solution.


The company was formerly known as Coronado Dermatology, Inc.and changed its name to Journey Medical Corporation.Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona.

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1.b. Last Insights on DERM

Journey Medical Corporation's recent struggles are attributed to current financial challenges and the need for additional funding. Despite the promising launch of Emrosi, a new formulation of minocycline for rosacea, the company's financial situation remains a concern. The success of Emrosi, which has shown superior efficacy over Oracea in Phase III trials, is crucial for the company's future, but dermatologists' acceptance and PBM positioning are key factors that will impact its commercial success. The upcoming conference call on February 5, 2025, will provide insight into the company's commercial launch plan for Emrosi.

1.c. Company Highlights

2. Journey Medical Corporation's Q3 2025 Earnings: A Strong Execution

Journey Medical Corporation reported a solid financial performance in Q3 2025, with total revenues reaching $17.6 million, representing a 21% year-over-year increase. The company's gross margin stood at 67.4%, slightly lower than the 69.4% recorded in the same period last year. SG&A expenses totaled $12.1 million, up approximately 6% from $11.4 million in 2024. The actual EPS came out at '-0.09', slightly missing estimates at '-0.08'.

Publication Date: Nov -26

📋 Highlights
  • Revenue Growth: Total revenue reached $17.6M in Q3 2025, reflecting a 21% year-over-year increase from $14.9M in 2024.
  • Amrozi Performance: Contributed $4.9M in Q3 revenue (75% increase from Q2) with 146% prescription growth (18,198 prescriptions vs. 7,394 in Q2).
  • Gross Margin: Maintained at 67.4% in Q3 2025, slightly down from 69.4% in the prior-year period.
  • GPO Contracts: Secured contracts with two of three major GPOs (Ascent, MSR, Zynq), with the third expected to finalize by early 2026.
  • Prescriber Expansion: Amrozi prescribers grew by 50% to over 2,700 unique dermatologists, with a 1:1 new/refill prescription ratio.

Revenue Growth Driven by Amrozi

Amrozi, a best-in-class oral treatment for rosacea, was the key driver of revenue growth, contributing $4.9 million to the top line in Q3, an increase of 75% compared to Q2. The product achieved total prescription growth of 146% with 18,198 prescriptions in Q3, up from 7,394 prescriptions in Q2. As Claude Maraoui, Co-Founder, President, and Chief Executive Officer, noted, "Physician feedback has been positive, with prescribers noting Amrozi's clinical benefits, including early onset of efficacy in as little as two weeks of therapy."

Valuation Metrics

Analyzing the company's valuation metrics, we see that the P/S Ratio stands at 3.21, while the EV/EBITDA ratio is at -156.7, indicating that the market is pricing in significant growth expectations. With analysts estimating next year's revenue growth at 54.7%, these metrics suggest that the market is expecting a substantial improvement in the company's financial performance.

Operational Highlights

The company has made significant progress in terms of operational highlights, with contracts negotiated with three major GPOs, and two of the three largest GPOs already onboard. The number of Amrozi prescribers increased by 50% to over 2,700 unique dermatology prescribers. The company's cash and cash equivalents stood at $24.9 million, and it expects to become sustainably EBITDA positive in the fourth quarter of 2025.

Future Outlook

Looking ahead, the company expects significant gains in less reliance on the co-pay program in 2026, with a focus on generating prescriptions and making incremental gains on the payer front. With a strong execution in Q3 2025, Journey Medical Corporation is well-positioned to drive growth in the coming quarters, with a focus on Amrozi and other core products.

3. NewsRoom

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Journey Medical Corporation (DERM) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Compared to Estimates, Journey Medical (DERM) Q3 Earnings: A Look at Key Metrics

Nov -13

Source: zacks.com

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Journey Medical Corporation (DERM) Reports Q3 Loss, Lags Revenue Estimates

Nov -12

Source: zacks.com

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Journey Medical Corporation Reports Third Quarter 2025 Financial Results and Recent Corporate Highlights

Nov -12

Source: globenewswire.com

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Journey Medical Corporation to Announce Third Quarter 2025 Financial Results on November 12, 2025

Nov -05

Source: globenewswire.com

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Brighton Jones LLC Lowers Stock Holdings in Journey Medical Corporation $DERM

Nov -02

Source: defenseworld.net

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Focus Partners Advisor Solutions LLC Acquires Shares of 10,000 Journey Medical Corporation $DERM

Nov -02

Source: defenseworld.net

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Journey Medical Corporation Reports Combined Emrosi™ (DFD-29) Phase 3 Clinical Trial Efficacy Data Analysis Presented at the 2025 Fall Clinical Dermatology Conference

Oct -24

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Products for the Treatment of Dermatological Conditions.

Expected Growth: 5.5%

Growing demand for dermatological treatments, increasing awareness of skin health, and advancements in topical formulations drive growth in the market for Journey Medical Corporation's products, which offer effective solutions for acne, rosacea, and skin aging.

7. Detailed Products

Luzu

A topical cream used to treat inflammatory and pruritic manifestations of atopic dermatitis in patients 3 months and older.

Exelderm

A topical cream used to treat fungal infections such as athlete's foot, jock itch, and ringworm.

Nexodyn

A topical gel used to treat acne, including blackheads, whiteheads, and inflamed pimples.

QBREXZA

A topical cloth used to treat primary axillary hyperhidrosis (excessive sweating) in adults and children 9 years and older.

Zilxi

A topical cream used to treat inflammatory lesions of rosacea in adults.

8. Journey Medical Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Journey Medical Corporation's products are moderately susceptible to substitutes, as there are alternative treatments and products available in the market.

Bargaining Power Of Customers

Journey Medical Corporation's customers have limited bargaining power due to the specialized nature of its products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Journey Medical Corporation's suppliers have moderate bargaining power due to the availability of alternative suppliers and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is high in the pharmaceutical industry, as new companies can enter the market with innovative products and technologies.

Intensity Of Rivalry

The intensity of rivalry in the pharmaceutical industry is high, with many established companies competing for market share and new entrants disrupting the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.55%
Debt Cost 7.86%
Equity Weight 53.45%
Equity Cost 7.86%
WACC 7.86%
Leverage 87.08%

11. Quality Control: Journey Medical Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Supernus Pharmaceuticals

A-Score: 5.3/10

Value: 2.6

Growth: 6.0

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 6.7

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Amphastar Pharmaceuticals

A-Score: 4.8/10

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Growth: 8.8

Quality: 8.0

Yield: 0.0

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Journey Medical

A-Score: 4.0/10

Value: 6.6

Growth: 3.3

Quality: 4.3

Yield: 0.0

Momentum: 8.0

Volatility: 2.0

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PetIQ

A-Score: 3.5/10

Value: 3.6

Growth: 7.8

Quality: 3.1

Yield: 0.0

Momentum: 5.0

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Aytu BioPharma

A-Score: 3.4/10

Value: 9.6

Growth: 4.8

Quality: 4.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

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Alimera Sciences

A-Score: 2.5/10

Value: 2.4

Growth: 4.7

Quality: 2.3

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.93$

Current Price

7.93$

Potential

-0.00%

Expected Cash-Flows