UPDATE: RBC Capital Downgrades Verrica Pharmaceuticals (VRCA) to Sector Perform

RBC Capital analyst Daniel Busby downgraded Verrica Pharmaceuticals (NASDAQ: VRCA) from Outperform to Sector Perform with a price target of $4.00 (from $16.00).

The analyst comments "This evening, another CRL was hoisted on YCANTH (VP-102) as general CMO challenges continue to plague the filing, standing in the way once again of an approval. While the issues fall outside of the VP-102’s purview, per our follow-up call with management, these recurrent offenses highlight the challenges at play with a manufacturing facility that continues to gate regulatory approval. As VRCA is working with FDA and Sterling to expeditiously resolve to the deficiency as well as potentially identify a new CMO partner for the resubmission, we are moving to the sidelines on this new uncertainty and until clarity is afforded on a new path to approval, all while the attractive molluscum end-market awaits – we downgrade VRCA to Sector Perform, maintain our Speculative Risk qualifier and lower our PT to $4."

For an analyst ratings summary and ratings history on Verrica Pharmaceuticals click here. For more ratings news on Verrica Pharmaceuticals click here.

Shares of Verrica Pharmaceuticals closed at $5.56 yesterday.

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