Journey Medical Corporation Reports First Quarter 2025 Financial Results and Recent Corporate Highlights

Revenue for the First Quarter Ended March 31, 2025 was $13.1 million

Emrosi$(TM)$ (40 mg Minocycline Hydrochloride Modified-Release Capsules) Commercial Launch Off to a Strong Start, Initial Prescriptions Filled in Late March 2025

Phase 3 Clinical Trial Results for Emrosi Published in JAMA Dermatology

Emrosi Now Included in Updated National Rosacea Society Treatment Algorithms

Company to Hold Conference Call Today at 4:30 p.m. ET

SCOTTSDALE, Ariz., May 14, 2025 (GLOBE NEWSWIRE) -- Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical" or "the Company", "we", or "our"), a commercial-stage pharmaceutical company that primarily focuses on selling and marketing U.S. Food and Drug Administration ("FDA") approved prescription pharmaceutical products for the treatment of dermatological conditions, today announced financial results and recent corporate highlights for the first quarter ended March 31, 2025.

"The first quarter of 2025 was highly productive, as our in-line dermatology products continue to perform and the launch of Emrosi(TM), our best-in-class oral rosacea treatment, is off to a strong start," said Claude Maraoui, Journey Medical's Co-Founder, President and Chief Executive Officer. "The Emrosi launch is enjoying high visibility among dermatology prescribers with momentum from our exhibition booth at the American Academy of Dermatology (AAD) conference in late March, the recent publication of Emrosi's statistically superior Phase 3 clinical trial results over Oracea$(R)$ and placebo in JAMA Dermatology, and the promotional efforts from our experienced and highly effective dermatology salesforce. Emrosi was also recently incorporated into the National Rosacea Society's Rosacea Treatment Algorithms, and payer coverage of the product continues to increase."

Mr. Maraoui continued, "Financially, we remain in a strong position with $21.1 million in cash as of March 31, an improvement in our gross margin, and overall operating spend down year-over-year. We believe that our first quarter financial results and launch progress with Emrosi demonstrate that we are executing on our strategic objectives, and that 2025 will be a transformational year for the Company as we drive the business to sustainable positive EBITDA and profitability."

Financial Results:

   -- Total net product revenues of $13.1 million for the first quarter of 2025 
      were consistent with $13.0 million of net product revenues for the first 
      quarter of 2024. The first quarter of 2025 includes $2.1 million of 
      incremental net product revenue related to the U.S. commercial launch of 
      Emrosi. 
 
   -- The Company's gross margin(1) increased to 64% for the first quarter of 
      2025, from 54% in the prior period due to lower overall product cost of 
      goods related to product sales mix and non-recurring charges in the prior 
      year. 
 
   -- Research and development costs were nil in the first quarter of 2025, 
      compared to $7.9 million in the first quarter of 2024. The first quarter 
      of 2024 includes Emrosi pre-approval project expenses, milestones and 
      fees. 
 
   -- Selling, general and administrative expenses increased by $2.1 million 
      for the three-month period ended March 31, 2025, from $8.4 million for 
      the three-month period ended March 31, 2024. The increase is primarily 
      due to the incremental operational activities related to the launch and 
      commercialization of Emrosi. 
 
   -- The Company's net loss was $4.1 million, or $(0.18) per share basic and 
      diluted, for the first quarter of 2025, compared to a net loss of $10.4 
      million, or $(0.53) per share basic and diluted, for the first quarter of 
      2024. 
 
   -- At March 31, 2025, the Company had $21.1 million in cash and cash 
      equivalents as compared to $20.3 million in cash and cash equivalents at 
      December 31, 2024. 

Recent Corporate Highlights:

   -- In April 2025, Journey Medical appointed Ramsey Alloush as its Chief 
      Operating Officer. Mr. Alloush joined the Company as General Counsel in 
      2020. 
 
   -- At the end of March 2025, Journey Medical announced initial distribution 
      to pharmacies and first prescriptions filled. Full commercial launch 
      began on April 7, 2025. 
 
   -- In March 2025, the Journal of the American Medical Association - 
      Dermatology published the Phase 3 clinical trial results of Emrosi for 
      the treatment of rosacea, highlighting that Emrosi achieved the 
      co-primary and all secondary endpoints in two Phase 3 trials and 
      demonstrated statistical superiority against both Oracea(2) and placebo 
      with no significant safety issues when administered once daily for 16 
      weeks. 
 
   -- In March 2025, the National Rosacea Society published its updated Rosacea 
      Treatment Algorithms to include low-dose oral minocycline (referenced in 
      the brand index as Emrosi(TM)). The Updated Treatment Algorithms can be 
      accessed at 
      https://www.rosacea.org/physicians/rosacea-treatment-algorithms. 
      Information on such website is not a part of this release. 
 
   -- In February 2025, Journey Medical hosted a conference call and webcast to 
      discuss its U.S. commercial launch plan for Emrosi (40 mg Minocycline 
      Hydrochloride Modified-Release Capsules) for the treatment of rosacea. A 
      replay of the webcast is available on the IR calendar page of the Journey 
      Medical website, and can be accessed at 
      https://ir.journeymedicalcorp.com/new-events/ir-calendar. 
      Information on such website is not a part of this release. 

Conference Call and Webcast Information

Journey Medical management will conduct a conference call and audio webcast on May 14, 2025, at 4:30 p.m. ET.

To listen to the conference call, interested parties within the U.S. should dial 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Journey Medical conference call. Participants can register for the conference here: https://dpregister.com/sreg/10199519/ff117b0a70. Please note that registered participants will receive their dial-in number upon registration.

A live audio webcast can be accessed on the News and Events page of the Investors section of Journey Medical's website, www.journeymedicalcorp.com, and will remain available for replay for approximately 30 days after the meeting.

(1) We define gross margin as net product revenue less cost of goods sold divided by net product revenue.

(2) Oracea(R) is a registered trademark of Galderma Holdings, S.A. Société Anonyme.

About Journey Medical Corporation

Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical") is a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions through its efficient sales and marketing model. The Company currently markets eight branded FDA-approved prescription drugs that help treat and heal common skin conditions. The Journey Medical team comprises industry experts with extensive experience in developing and commercializing some of dermatology's most successful prescription brands. Journey Medical is located in Scottsdale, Arizona and was founded by Fortress Biotech, Inc. (Nasdaq: FBIO). Journey Medical's common stock is registered under the Securities Exchange Act of 1934, as amended, and it files periodic reports with the U.S. Securities and Exchange Commission ("SEC"). For additional information about Journey Medical, visit www.journeymedicalcorp.com.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words "the Company", "we", "us" and "our" may refer to Journey Medical. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. The words "anticipate," "believe," "estimate," "may," "expect," "will," "could," "project," "intend," "potential" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include: the fact that our products and product candidates are subject to time and cost intensive regulation and clinical testing and as a result, may never be successfully developed or commercialized; a substantial portion of our sales derive from products that may become subject to third-party generic competition, the introduction of new competitor products, or an increase in market share of existing competitor products, any of which could have a significant adverse impact on our operating income; we operate in a heavily regulated industry, and we cannot predict the impact that any future legislation or administrative or executive action may have on our operations; our revenue is dependent mainly upon sales of our dermatology products and any setback relating to the sale of such products could impair our operating results; competition could limit our products' commercial opportunity and profitability, including competition from manufacturers of generic versions of our products; the risk that our products do not achieve broad market acceptance, including by government and third-party payors; our reliance third parties for several aspects of our

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