We are investigating Verrica Pharmaceuticals Inc. (VRCA) (“Verrica” or the “Company”) for potential violations of the federal securities laws.
On June 29, 2020, Verrica announced receipt of a letter from the U.S. Food and Drug Administration (“FDA”) as part of the FDA’s ongoing review of the Company’s New Drug Application (“NDA”) for VP-102 (cantharidin 0.7% topical solution), Verrica’s lead product candidate for the treatment of molluscum contagiosum. According to the Company, the letter cited deficiencies that precluded discussion of labeling and post-marketing requirements/commitments at that time. Following this announcement, Verrica’s stock price fell $3.06 per share, or 21.75%, to close at $11.01 per share on June 30, 2020. Then, on July 14, 2020, Verrica announced receipt of a Complete Response Letter (“CRL”) from the FDA regarding the NDA for VP-102, advising Verrica that “the FDA is seeking additional information regarding certain aspects of the CMC (Chemistry, Manufacturing, and Controls) process for the drug/device combination, as well as Human Factors validation.” Following Verrica’s disclosure of the CRL, the Company’s stock price fell sharply during intraday trading on July 14, 2020, damaging investors.