DERM Latest Report

Journey Medical's Financial Performance

Journey Medical (stock code: DERM) reported a total operating revenue of USD13,620,000 as of December 31, 2024, a 10.69% YoY decrease from USD15,257,000 as of December 31, 2023. This change reflects the company's poor sales performance in 2024, which may affect investors' expectations of its future profitability.

Key Financial Data

1. Journey Medical's total operating revenue decreased from USD15,257,000 in 2023 to USD13,620,000 in 2024, a YoY decrease of 10.69%. This change indicates a significant decline in the company's sales performance in 2024 compared to the previous year, which may affect its overall profitability and market confidence.

2. The reasons for the revenue decline include the transfer of part of the subsidiaries' equity, which no longer includes related revenue in the consolidated range, industry policy impacts, especially in the in vitro diagnostic business, where contract expiration without renewal led to a significant decrease in sales revenue.

3. The control of medical insurance expenses and the reduction of product prices further affected sales revenue and overall profit levels.

4. Although R&D expenses decreased significantly in 2024, this may affect the launch of new products and market promotion, thus affecting revenue.

5. Economic environment changes, such as economic slowdown or reduced consumer spending, also negatively affected the company's sales.

Peer Comparison

1. Industry-wide analysis: The overall trend of the medical industry is affected by policies, market demand, and competitive environment. If other companies in the industry also face similar revenue declines, it may reflect the industry's overall weakness; conversely, if other companies perform well, it may indicate that Journey Medical's challenges are specific to itself.

2. Peer evaluation analysis: Journey Medical's revenue decline is significant, which may indicate its disadvantage in the market competition. If other companies in the industry maintain revenue growth, it means that Journey Medical's market strategy needs to be reevaluated and adjusted.

Conclusion

Journey Medical's operating revenue in 2024 significantly decreased, mainly due to the combined effects of intensified market competition, policy impacts, and internal sales issues. The company's poor market performance may lead to investors' concerns about its future profitability, and in this context, adjusting market strategies and strengthening product promotion are particularly important.

Opportunities

1. With the launch of new product Emrosi™, Journey Medical has the opportunity to re-activate market demand through innovative products.

2. Under the policy support of innovative drugs, Journey Medical can consider strengthening new drug R&D to seize market share.

3. The trend of population aging drives the demand for chronic disease treatment, and Journey Medical can enhance its market competitiveness through targeted products.

Risks

1. Intensified competition may lead to price wars, further compressing the company's profit margins.

2. Policy changes may continue to affect medical insurance reimbursement and product pricing, increasing the company's financial pressure.

3. Uncertainty in the macroeconomic environment may limit consumer spending and affect the company's sales growth.