- Verrica Pharmaceuticals (NASDAQ:VRCA) stock is sinking over 50% in morning trading
- The FDA declined to approve its treatment for “a viral skin disease”
- According to Verrica, the agency declined to approve the drug solely because of issues at a facility that’s supposed to manufacture the treatment
Verrica Pharmaceuticals (NASDAQ:VRCA) stock is tumbling over 50% in morning trading after the U.S. Food and Drug Administration decided not to approve its treatment for “a viral skin disease” called molluscum contagiosum.
According to the Centers for Disease Control and Prevention, “molluscum contagiosum is an infection caused by a poxvirus” which triggers “a benign, mild skin disease characterized by lesions (growths) that may appear anywhere on the body.” The lesions typically disappear within a year without scarring, but they could remain intact for up to several years. The FDA has not yet approved any treatments for the virus.
Manufacturing Issues Tank VRCA Stock
In a letter to Verrica, the FDA explained that it had elected not to approve the company’s drug solely due to problems found at a facility operated by Sterling Pharmaceuticals Services. The latter company is supposed to manufacture Verrica’s drug, VP-102.
According to Verrica’s CEO, Ted White, “none of the issues identified by FDA during the reinspection were specific to the manufacturing of VP-102.” The CEO added that “we believe our NDA meets the statutory standards for approval and that any issues at Sterling do not impact the manufacturing, quality, efficacy, or safety of VP-102.”
Before trading began today, VRCA stock had already tumbled 39% so far in 2022.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
