---
schema_version: "secwatch.filing_event.v1"
accession: "0001193125-23-194625"
form_type: "8-K"
ticker: "VRCA"
cik: "0001660334"
company_name: "Verrica Pharmaceuticals Inc."
filed_at: "2023-07-26T23:59:59+00:00"
generated_at: "2026-06-13T02:22:32.651185+00:00"
event_type: "debt"
sentiment: "positive"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Verrica closes $125M debt financing from OrbiMed; $50M funded, $75M tranched on revenue milestones

## Summary
- $50M borrowed at closing; up to $75M additional available in five tranches subject to YCANTH revenue thresholds.
- Five-year term loan matures July 2028; interest rate is one-month SOFR plus 8% (floor 4%).
- OrbiMed receives warrant for 518,551 shares at $6.0264 per share (10-year term).
- Proceeds support commercialization of YCANTH, FDA-approved July 21, 2023 for molluscum contagiosum.
- Cash runway extended into Q1 2025; company believes no additional equity financing needed.

## SEC filing metadata
- accession: 0001193125-23-194625
- form_type: 8-K
- ticker: VRCA
- cik: 0001660334
- company_name: Verrica Pharmaceuticals Inc.
- filed_at: 2023-07-26T23:59:59+00:00
- event_type: debt
- sentiment: positive
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1660334/000119312523194625/0001193125-23-194625-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1660334/000119312523194625/d519666d8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001193125-23-194625
- JSON: https://secwatch.observer/filing/0001193125-23-194625.json
- Plain text: https://secwatch.observer/filing/0001193125-23-194625.txt

## Key facts
- Debt Financings
  Verrica Pharmaceuticals Inc. incurred credit facility of up to $125 million with OrbiMed Royalty & Credit Opportunities IV, LP at the higher of (x) the SOFR rate and (y) 4.00% plus 8.00% maturing July 26, 2028.
  - Instrument: credit facility
  - Principal: up to $125 million
  - Counterparty: OrbiMed Royalty & Credit Opportunities IV, LP
  - Rate: the higher of (x) the SOFR rate and (y) 4.00% plus 8.00%
  - Maturity: July 26, 2028
  - Event: incurrence
  source text: The Credit Agreement provides for a five-year senior secured credit facility in an aggregate principal amount of up to $125 million
  evidence_url: https://www.sec.gov/Archives/edgar/data/1660334/000119312523194625/0001193125-23-194625-index.htm
- Material Agreements
  Verrica Pharmaceuticals Inc. entered into Credit Agreement with OrbiMed Royalty & Credit Opportunities IV, LP valued at up to $125 million (effective 2023-07-26).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: OrbiMed Royalty & Credit Opportunities IV, LP
  - Value: up to $125 million
  - Effective: 2023-07-26
  source text: On July 26, 2023 (the “ Closing Date ”), Verrica Pharmaceuticals Inc., a Delaware corporation (the “ Company ”) entered into a Credit Agreement (the “ Credit Agreement ”), by and between the Company, as borrower, and OrbiMed Royalty & Credit Opportunities IV, LP, a Delaware limited partnership (the “ Initial Lender ”), as a lender, and each other lender that may from time to time become a party thereto (each, including the Initial Lender, and together with their affiliates, successors, transferees and assignees, the “ Lenders ”), and OrbiMed Royalty & Credit Opportunities IV, LP, as administrative agent for the Lenders (in such capacity, the “ Administrative Agent ”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1660334/000119312523194625/0001193125-23-194625-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.