SAN DIEGO & WEST CHESTER, Pa.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Verrica Pharmaceuticals Inc. (NASDAQ: VRCA) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between September 16, 2019 and June 29, 2020. Verrica is a clinical stage medical dermatology company that develops and commercializes dermatological treatments. VP-102 is the Company's lead product candidate for the treatment of molluscum contagiosum, a common, highly contagious skin disease.
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Verrica Pharmaceuticals Inc. (VRCA) Accused of Misleading Shareholders
According to the complaint, on September 16, 2019, Verrica announced it had submitted its New Drug Application ("NDA") for VP-102 with the U.S. Food & Drug Administration ("FDA") after "positive results from two double-blind Phase 3 trials (CAMP-1 and CAMP-2) that evaluated the safety and efficacy of VP-102." Then in March 2020, the Company touted in its annual report on Form 10-K that Verrica "anticipate[d] that VP-102 will be regulated as a drug, and that the FDA will permit a single regulatory submission seeking approval of VP-102 with the applicator in each indication for which we seek approval." Despite Verrica's confidence, on June 29, 2020, Verrica disclosed that on June 24, 2020, the Company received a letter from the FDA stating "that there [were] deficiencies that preclude discussion of labeling and post-marketing requirements/commitments at this time." Verrica then noted that the FDA requested information "related to a potential safety issue with the applicator that could arise if the instructions for use were not properly followed." On this news, Verrica's share price fell nearly 22% to close at $11.01 per share. The stock has since continued to decline.
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