Verrica Pharmaceuticals : Company Presentation

Company Overview

January 2021

1

Disclaimer

Certain information contained in this presentation and statements made orally during this presentation relates to or is based on studies, publications, surveys and other data obtained from third-party sources and Verrica's own internal estimates and research. While Verrica believes these third-party sources to be reliable as of the date of this presentation, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. While Verrica believes its internal research is reliable, such research has not been verified by any independent source.

This presentation contains forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, our clinical results and other future conditions. All statements other than statements of historical facts contained in this presentation, including statements regarding future results of operations and financial position, business strategy, interactions with the FDA, including regarding the CRL Verrica received related to its NDA submission for VP-102 for the treatment of molluscum, current and prospective product candidates, planned clinical trials and preclinical activities, product approvals, degree of market acceptance of approved products, research and development costs, current and prospective collaborations, timing and likelihood of success, plans and objectives of management for future operations, and future results of anticipated product candidates, are forward-looking statements. The words "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "estimate," "believe," "predict," "potential" or "continue" or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

The information in this presentation, including without limitation the forward- looking statements contained herein, represent our views as of the date of this presentation. Although we believe the expectations reflected in such forward- looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements. The forward-looking statements in this presentation involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include uncertainties inherent in the drug development process and the regulatory approval process, our reliance on third parties over which we may not always have full control, and other risks and uncertainties that are described in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the U.S. Securities and Exchange Commission (SEC) on March 13, 2020, our Quarterly report on Form 10-Q for the quarter ended September 30, 2020, filed with the SEC on November 9, 2020, and our other filings made with the SEC. New risk factors and uncertainties may emerge from time to time, and it is not possible to predict all risk factors and uncertainties. There can be no assurance that the opportunity will meet your investment objectives, that you will receive a return of all or part of such investment. Investment results may vary significantly over any given time period. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. We recommend that investors independently evaluate specific investments and strategies.

2

Investment Highlights

YCANTH™ in Development to Address Two of the Largest Unmet Needs in Dermatology

• Prevalence of ~6 million in molluscum contagiosum(1) and ~22 million in common warts in the U.S.(2)
• No FDA-approved drugs to treat molluscum or warts

Resubmitted U.S. NDA for YCANTH™ (VP-102) for the Treatment of Molluscum in December 2020 Positive Phase 3 Results in Molluscum Contagiosum

• Achieved statistical significance for primary endpoints in two pivotal trials for YCANTH™ (VP-102)
• P-value<0.0001 for primary endpoint in both pivotal trials

Innovative Product Candidate

• Proprietary drug-device combination of formulation and single-use applicator

Physician Acceptance

• 95% of pediatric dermatologists have used API(3)

Dermatology Oncology

• Worldwide rights to LTX-315:first-in-class oncolytic peptide injected directly into tumor
• Positive tumor-specific immune cell responses in multi- indication Phase 1/2 oncology trials
• Verrica to focus initially on development to treat basal cell and squamous cell carcinomas
• 5.4 million diagnoses annually in the U.S. of basal and squamous cell skin cancers(4); patients typically treated with surgery
• Submission of U.S. IND anticipated during first half of 2021

Option Agreement with Torii Pharmaceuticals for Development and Commercialization of VP-102 in Japan

• Torii option includes Verrica product candidates for the treatment of molluscum and common warts in Japan

Proven Team

• Industry-leading,experienced management team with extensive dermatology product launch experience
• Strengthened clinical and drug development leadership in August 2020

1. Prevalence in the US of 5.1% to 11.5% in children aged 0-16 years. (Fam Pract. 2014 Apr;31(2):130-6). US Census estimates ~69.4MM children aged 0 to 16 years in 2016.
2. IMS National Disease and Therapeutic Index (NDTI) Rolling 5 Years Ending June 2016. Nguyen et al, Laser Treatment of Nongenital Verrucae A Systemic Review. JAMA Dermatology. 2016; 152(9): 1025-1033
3. Based on a survey of 115 dermatologists the results of which have been extrapolated to pediatric dermatologists.3(4)https://www.cancer.org/cancer/basal-and-squamous-cell-skin-cancer/about/key-statistics.htmland Rogers JAMA Derm 2015

Our Product Portfolio

YCANTH

VP-102

VP-103

LTX-315

PRE-IND	PHASE 2	PHASE 3	NDA	NEXT EXPECTED
MILESTONE
Molluscum Contagiosum				FDA acceptance of NDA
			that was resubmitted in
				December 2020
Common Warts		*		Evaluate potential
			second Phase 2 trial*
External Genital Warts				Request End-of-Phase 2
			meeting in Q1 2021
Plantar Warts				Initiate Phase 2 trial**
Non-Melanoma				Submit US IND during
Skin Cancer***				1H 2021

• Original Phase 2 program completed. Company evaluating potential for conducting an additional Phase 2 trial based on FDA feedback for Phase 3 trial protocol.
• Timing for initiating new clinical trials to be determined
• Initially focused on basal cell and squamous cell carcinomas

4