aibioJourney Medical sets up new at-the-market program for 3,750,000 shares
Tickers DERM
Journey Medical signed an at-the-market sales agreement with B. Riley Securities, Inc. and Lake Street Capital Markets, LLC for up to 3,750,000 shares. It ended an older B. Riley program under which it had sold 4,121,318 shares.
Key facts
- Company
- Journey Medical Corporation (NASDAQ: DERM)
- News type
- Financings
- Primary source
- Journey Medical Corporation 8-K (2025-08-28)
Journey Medical Corporation (Nasdaq: DERM) said in a Form 8-K dated August 28, 2025 that it had entered into an At Market Issuance Sales Agreement on that day. The agreement lets the company offer and sell up to 3,750,000 shares of common stock, from time to time at its sole discretion, through or to two sales agents. The agents are B. Riley Securities, Inc. and Lake Street Capital Markets, LLC. An at-the-market program sells shares into the open market at prevailing prices over time rather than in one offering.
Journey will pay each agent a commission of 3.0% of the gross proceeds from shares it sells through that agent, and it will reimburse the agents for certain expenses. The company is not obligated to make any sales. The offering ends when all the shares are sold or the agreement is terminated.
The shares are being sold under a Form S-3 registration statement, File No. 333-269079, together with a prospectus supplement filed on August 28, 2025. Troutman Pepper Locke LLP has issued a legal opinion on the legality of the shares, which is attached as Exhibit 5.1. The 8-K does not name any counsel for the agents.
The agreement it replaces
The same day, Journey terminated its earlier at-the-market agreement with B. Riley, which the company entered into on December 30, 2022 and which covered up to 4,900,000 shares. From December 30, 2022 to August 28, 2025, the company sold 4,121,318 shares under that agreement. The 8-K says that, following the termination, the company may not offer or sell any additional shares under the original agreement.
The 8-K does not say how much the earlier program raised in dollars, and it does not give a price for any sale under either program.
The company and its products
The company's annual report, filed in March 2025, describes Journey Medical as a commercial-stage pharmaceutical company that focuses on selling and marketing FDA approved prescription products through a field sales organization. The report says the company is a controlled subsidiary of Fortress Biotech, Inc., which it calls its parent. The company was incorporated in Delaware in 2014 and lists executive offices in Scottsdale, AZ.
The report lists a set of marketed products. Qbrexza is a medicated cloth towelette for primary axillary hyperhidrosis. Accutane is an oral isotretinoin drug for severe recalcitrant nodular acne. Targadox is an oral doxycycline drug for adjunctive therapy for severe acne. Zilxi is a minocycline topical foam for inflammatory lesions of rosacea. The newest product is Emrosi, a minocycline hydrochloride extended release capsule, 40 mg, for inflammatory lesions of rosacea in adults. The FDA approved Emrosi on November 1, 2024. The report says the initial supply became available in March 2025, the first prescriptions had been filled, and sales promotion was expected to begin in April 2025.
Emrosi was developed in collaboration with Dr. Reddy's Laboratories, Ltd. The company says Emrosi showed superiority to Oracea and placebo on the co-primary endpoints and all secondary endpoints in two phase 3 studies and was well-tolerated. Those are the company's own characterizations. It says it intends to commercialize Emrosi in the United States with its existing commercial team.
What the filings do not say
The 8-K does not describe the company's cash position, its revenue or its net loss. It does not say what the company will use the proceeds for, or at what pace it expects to sell shares. It gives no price for any sale under either program and no share count for the company before or after the agreement.