Shares of VYNE Therapeutics (VYNE -3.04%) were crashing 18.1% lower as of 11:35 a.m. EDT on Thursday. The big decline came after the company announced its first-quarter results before the market opened.
VYNE reported Q1 revenue of $4.1 million, up from $1.8 million in the prior-year period. Despite the significant year-over-year increase, this result fell well below the average analyst revenue estimate of $5.3 million.
The company's revenue growth stemmed from higher sales for topical skin medication Amzeeq and Zilxi. VYNE launched Zilxi in October 2020 after receiving approval earlier that year by the U.S. Food and Drug Administration (FDA) for the drug in treating rosacea.
Lower-than-expected sales haven't been the only challenge for the biotech stock. VYNE executed a 1-for-4 reverse stock split in the first quarter to boost its share price and reduce its number of outstanding shares.
VYNE Therapeutics hopes to have better news on the way later this year. The company plans to advance FMX114 into a phase 2a study in the third quarter for treating mild-to-moderate atopic dermatitis. Top-line results from this study are expected before the end of 2021.