This article first appeared on GuruFocus .
Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Journey Medical Corp ( NASDAQ:DERM ) reported a 21% year-over-year increase in total net product revenues for Q1 2026.
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Omrosi revenues grew significantly, reaching $6.3 million, marking a 26% increase from Q4 2025.
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The company achieved positive adjusted EBITDA for the quarter, highlighting operational efficiency.
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Journey Medical Corp ( NASDAQ:DERM ) secured agreements with the three largest PBM-owned group purchasing organizations, expanding Omrosi's access to 169 million commercial lives.
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The refill-to-new prescription ratio for Omrosi improved, indicating strong patient satisfaction and brand loyalty.
Negative Points
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Gross margin decreased to 61% from 63.5% due to a $1.3 million non-cash charge related to inventory write-down.
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The company reported a GAAP net loss of $2.2 million for the quarter, although this was an improvement from the previous year.
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There is still a reliance on co-pay bridging programs, indicating challenges in achieving full reimbursement.
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The company faces seasonality challenges, which could impact prescription volumes during different times of the year.
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Despite progress, there is still ongoing work needed to improve Omrosi's tier positioning and quality of coverage with major health plans.
Q & A Highlights
Q: Can you provide some direction on the trajectory for MROSI and legacy products for the rest of the year? A: Unidentified_6: Our base business, excluding Imrosi, is expected to remain steady and consistent in 2026. We anticipate adding up to two new niche products this year, which should contribute incremental revenue. The main focus is on AMROSI, which is expected to drive significant growth beyond last year's $61 million in revenues.
Q: How is the conversation progressing regarding insurance coverage, and where do you stand on tier positioning and prior authorization criteria with major plans? A: Unidentified_7: We have completed contracts with all three major GPOs, allowing us to engage in deeper discussions with national formularies. We are in advanced discussions with some national formularies and expect to improve coverage for AMROSI. Currently, about 34% of the 190 million commercial lives have access to MROSI with a single step or better.
Q: Can you comment on the trends for refill rates and net price improvements for MROSI in the second quarter? A: Unidentified_6: We are meeting internal expectations with a growing refill rate, now at 1.4 refills per new prescription. We expect this to increase as brand momentum builds. Our managed care coverage improvements should enhance ASPs, and we are seeing positive growth from Q4 to Q1.
Q: How do you plan to integrate two additional products into the sales reps' portfolio while MROSI is still growing? A: Unidentified_6: The focus remains on MROSI and Kubrexa, with the new products being added as a third priority. These niche products are expected to add incremental value without distracting from the primary focus on MROSI and Kubrexa.
Q: What impact does seasonality have on rosacea prescriptions, and how are current trends? A: Unidentified_6: There is some seasonality, but it is not significant enough to pinpoint specific quarters. We continue to see prescription growth, with April numbers reaching an all-time high of over 11,400 prescriptions. The product's efficacy and increasing prescriber base are driving momentum.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
