Verrica Pharmaceuticals Inc. (Nasdaq: VRCA) has entered into an exclusive distribution, marketing and supply agreement with Medomie Pharma Ltd. to seek regulatory approval for and commercialize YCANTH® in Israel for the treatment of molluscum contagiosum, a contagious viral skin infection.

Under the agreement, Medomie will hold exclusive rights to obtain and maintain marketing authorizations for YCANTH in Israel. Verrica will manufacture and supply the product to Medomie and will receive 60% of the net selling price of product sold in Israel. Verrica is also eligible to receive up to $8.2 million in regulatory and commercial milestone payments.

Jayson Rieger, President and Chief Executive Officer of Verrica, said in a statement that the company looks to "establish YCANTH as the standard of care for molluscum in Israel." Rieger added that Verrica "maintains exclusive global rights to YCANTH for all indications outside of Japan and Israel."

YCANTH is a drug-device combination product containing cantharidin, delivered via a single-use applicator. It was approved by the U.S. Food and Drug Administration to treat adult and pediatric patients two years of age and older with molluscum contagiosum. YCANTH has also received approval in Japan following a Phase 3 trial of approximately 300 patients.