A securities class action has been filed in the USDC, E.D.PA. against Verrica Pharmaceuticals Inc. (VRCA) on behalf of persons and entities that purchased or otherwise acquired Verrica securities between May 28, 2021 through May 24, 2022.
Verrica is a dermatology therapeutics company that develops and commercializes treatments for people with skin diseases in the United States.
On May 24, 2022, after the market closed, Verrica announced that the U.S. Food and Drug Administration (“FDA”) had issued a Complete Response Letter regarding its New Drug Application for molluscum contagiosum treatment, VP-102. Specifically, the FDA cited “deficiencies identified at a general reinspection of Sterling Pharmaceuticals Services, LLC (Sterling), the contract manufacturing organization (CMO) that manufactures Verrica’s bulk solution drug product.” On this news, the price of Verrica shares declined by $3.55 per share, or approximately 63.8%, from $5.56 per share to close at $2.01 per share on May 25, 2022.