Veradermics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Cash, cash equivalents, and marketable securities totaled $798.4 million as of September 30, 2026, compared to $141.9 million as of December 31, 2025.
• Research and development (R&D) expenses were $16.1 million for the quarter ended September 30, 2026, a decrease from $18.1 million in the same period in 2025.
• General and administrative (G&A) expenses were $12.7 million for the quarter ended September 30, 2026, an increase from $2.3 million in the same period in 2025.
• Net loss was $21.0 million for the third quarter of 2026, compared to a net loss of $20.1 million for the third quarter of 2025.
• Total operating expenses were $28.8 million for the quarter ended September 30, 2026, compared to $20.3 million in the prior year period.
• Interest income was $5.1 million for the quarter ended September 30, 2026, compared to $0.1 million in the same period in 2025.
• Total other income was $7.8 million for the quarter ended September 30, 2026, compared to $0.2 million in the same period in 2025.
• Total assets were $807.2 million as of September 30, 2026, compared to $152.6 million as of December 31, 2025.
• Total liabilities were $10.7 million as of September 30, 2026, compared to $9.2 million as of December 31, 2025.

Guidance and Future Outlook:

• The company expects to fund operations into 2030 through multiple Phase 3 readouts and a potential commercial launch of VDPHL01.
• Topline data from Phase 2/3 Study '306' evaluating VDPHL01 in female pattern hair loss is on track for the first half of 2027.
• The company aims to establish VDPHL01 as a foundational treatment for pattern hair loss if approved.
• The earliest expiring patent term for VDPHL01 is 2043.

Business Segments and Product Lines:

• VDPHL01 is an investigational, oral, extended-release, non-hormonal drug in Phase 3 development for pattern hair loss in men and women.
• Phase 2/3 Study '302' (12-month data): Participants receiving VDPHL01 8.5 mg BID achieved a mean increase in non-vellus target area hair count (TAHC) of 43.9 hairs/cm² at Month 12; those receiving QD achieved 29.7 hairs/cm².
• In Study '302' Part B, 89.1% of participants in the BID dose arm and 79.8% in the QD dose arm reported visible improvement in hair coverage on the AAIRS at Month 12.
• Phase 3 Study '304': Participants receiving VDPHL01 8.5 mg BID achieved a mean increase in non-vellus TAHC of 36.4 hairs/cm² at Month 6; those receiving QD achieved 28.6 hairs/cm².
• In Study '304', 68.7% of participants in the BID dose arm and 55.7% in the QD dose arm achieved 'improved' or 'much improved' hair coverage on the AAIRS at Month 6.
• Phase 2 Study '207' (Female): Positive topline results demonstrated rapid onset of activity and consistent hair growth in women with mild-to-moderate pattern hair loss.
• Enrollment for registration-directed Phase 2/3 Study '306' in women with pattern hair loss was completed in August 2026.
• VDPHL01 has been generally well tolerated with no treatment-related serious adverse events (SAEs) or adverse events of special interest (AESIs) of cardiac origin observed across studies.

Market and Competitive Landscape:

• VDPHL01 has the potential to become the first FDA-approved oral treatment for pattern hair loss in nearly 30 years.
• If approved, VDPHL01 would be the only FDA-approved oral non-hormonal treatment for pattern hair loss in both male and female patients.
• The company is positioned to address a significant unmet need in pattern hair loss for both men and women.

Risks and Challenges:

• The company has a limited operating history with no products approved for commercial sale.
• The company has incurred substantial losses since inception and anticipates incurring substantial and increasing losses for the foreseeable future.
• Success depends on the approval and successful commercialization of VDPHL01; failure to obtain regulatory approval or successfully commercialize the product would materially harm the business.
• Risks include adverse events or undesirable side effects from product candidates, competition from other companies, and the need for substantial additional financing.
• Actual results may differ materially from forward-looking statements due to various risks and uncertainties, including clinical trial outcomes and regulatory approval timelines.

Management Commentary and Tone:

• CEO Reid Waldman, M.D., described the year as "defining" for Veradermics, highlighting the advancement of VDPHL01 in both men and women.
• Management noted that positive topline results from Studies '302' and '304' collectively enrolled more than 1,000 male participants and demonstrated early, consistent, and robust hair growth.
• Management stated the company remains well capitalized to continue development and advance preparations for a potential commercial launch.

Other Key Points:

• Veradermics is a dermatologist-founded, late-stage biopharmaceutical company focused on innovative therapeutics for pattern hair loss.
• VDPHL01 utilizes a proprietary extended-release gel matrix technology designed to deliver long-lasting, steady release of minoxidil.
• The company is protected by a broad library of patents and patent applications related to VDPHL01.
• The company is preparing for a potential commercial launch of VDPHL01.