Journey Medical: Q2 Report Confirms Thesis On Track As Emrosi Launch Gains Traction

Jonathan Faison Investing Group Leader Follow Summary Journey Medical demonstrates strong Emrosi prescription growth, rebounding from Q1 lows with Q2 revenues up 23% to $18.5M and positive EBITDA. DERM’s Emrosi franchise is gaining traction, with prescribers rising over 40% quarter-over-quarter and formulary coverage improving from 34% to 38%. Cost discipline is evident as SG&A declined and operating expenses rose less than 1%, while Emrosi’s ASP and market penetration are expected to improve further. Bear thesis centers on generic competition in rosacea, base business erosion, and execution risk, but current valuation offers compelling risk/reward if Emrosi momentum persists. DERM is a Buy, with valuation at 1x conservative peak Emrosi sales while on the cusp of becoming steadily profitable. This idea was discussed in more depth with members of my private investing community, ROTY Biotech Community. Learn More » Alona Siniehina/iStock via Getty Images Shares of aspiring rosacea player Journey Medical ( DERM ) have fallen 13% year to date, yet sport a 3-year gain of over +220%. At $190M enterprise value, this Core Biotech portfolio holding has been a frustrating hold This article was written by Jonathan Faison 18.2K Followers Follow Jonathan Faison is a part-time biotech investor with over 18 years of biotech investing experience.He leads the Investing Group ROTY Biotech Community, a community of 500+ experienced biotech investors, profitable traders, industry veterans and novices. Members receive access to model portfolios, high conviction ideas and a very active, helpful Live Chat. Learn more Analyst’s Disclosure: I/we have a beneficial long position in the shares of DERM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: Commentary presented is NOT individualized investment advice. Opinions offered here are NOT personalized recommendations. Readers are expected to do their own due diligence or consult an investment professional if needed prior to making trades. Strategies discussed should not be mistaken for recommendations, and past performance may not be indicative of future results. Although I do my best to present factual research, I do not in any way guarantee the accuracy of the information I post. I reserve the right to make investment decisions on behalf of myself and affiliates regarding any security without notification except where it is required by law. Keep in mind that any opinion or position disclosed on this platform is subject to change at any moment as the thesis evolves. Investing in common stock can result in partial or total loss of capital. In other words, readers are expected to form their own trading plan, do their own research and take responsibility for their own actions. If they are not able or willing to do so, better to buy index funds or find a thoroughly vetted fee-only financial advisor to handle your account. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.