Journey Medical's Q2 2025 Earnings Call: Unpacking Key Contradictions in Coverage, Launch Expectations, and Margins

Managed care coverage and payer dynamics, initial launch and revenue expectations for EMROSI, gross margin trends and expectations, launch expectations and guidance provision, managed care coverage and formulary expectations are the key contradictions discussed in Journey Medical Corporation's latest 2025Q2 earnings call.



EMROSI Launch Success:
- Journey Medical reported $2.8 million in EMROSI sales during Q2, surpassing prior year quarter sales and contributing to improved business gross profit margins.
- The successful launch is attributed to increasing prescriptions, strong prescription ramp, and significant payer access expansion.

Payer Access Growth:
- Payer access for EMROSI increased from 30% of commercial lives in May to 65% by July, covering approximately 100 million lives.
- This growth was driven by the strength of the clinical package and the value proposition EMROSI offers to both patients and payers.

Favorable Product Mix Impact on Gross Margin:
- Journey Medical's gross margin increased to 67% in Q2 2025, up from 61% in the prior year.
- The improvement is primarily due to the lower overall product cost of goods, driven by the sales mix shift towards EMROSI.

Accutane Sales Pressure:
- Accutane sales declined compared to the prior year period due to aggressive pricing from generic competition.
- Despite the pressure, growth brands like EMROSI and QBREXZA offset the decline, positioning the company for future revenue growth.