Latest news with #Zelsuvmi
Business Journals
22-04-2025
- Business
- Business Journals
Pelthos Therapeutics to go public via merger with Channel
The drug company is preparing to launch a product that has its roots at Novan, the Durham company that went bankrupt in 2023. Story Highlights Pelthos Therapeutics merges with Channel Therapeutics, becoming publicly listed company. Zelsuvmi, FDA-approved home treatment for molluscum contagiosum, nears commercial launch. Combined company raises $50 million, plans to expand workforce. A biopharmaceutical firm in Durham has reached a deal to become a publicly listed company as it nears a commercial launch of its lead product. Pelthos Therapeutics is merging with Channel Therapeutics (NYSE American: CHRO), with the combined entity operating under the Pelthos name and focused on advancing its lead product, Zelsuvmi. The deal gives Pelthos a public listing and additional capital. Channel will acquire 100 percent of the issued and outside equity interests of Pelthos. The deal is backed by a $50 million capital raise, with Ligand Pharmaceuticals (Nasdaq: LGND) investing $18 million in the combined company and an investor group led by Murchinson investing another $32 million. Pelthos is a subsidiary of Ligand, which in 2023 acquired some of Novan's assets as part of the Durham company's bankruptcy process. The assets included Novan's lead candidate, a topical gel that treats the viral skin infection molluscum contagiosum. The U.S. Food and Drug Administration approved the treatment in January 2024 under the brand name Zelsuvmi. Ligand formed Pelthos to advance the commercialization of Zelsuvmi. Aside from the product itself, Pelthos is also occupying Novan's former facility on Stirrup Creek Drive where the active ingredient for Zelsuvmi is manufactured. Over the past year, the company has taken steps to prepare its product launch, said Pelthos CEO Scott Plesha. "We've been spending the bulk of our time making sure that we're ready for for launch when we got to a point of funding it," Plesha said. "Obviously, this deal announcement is kind of a catalyst for the launch process." The transaction is expected to close this summer. Plesha will remain as CEO, while Channel's chief executive, Frank Knuettel II, will become the company's chief financial officer. The board will include Plesha, two independent directors, two members appointed by Ligand and another two independent directors "who are reasonably acceptable to Murchinson," according to a statement announcing the deal. The latter two are current Channel board members. The combined company's top priority is the launch of Zelsuvmi, but Channel also has early-stage programs in its pipeline that Plesha said the company will fully evaluate. This includes non-opioid pain programs, with one focused on eye pain and the other on post operative pain. Pelthos will ramp up hiring as it gets closer to a launch. The company has 31 employees and expects to have about 90 by mid-summer. Many of these will be sales jobs spread throughout the country to support the launch. The company expects to add employees at its Durham office, where it makes the active ingredient for the product. The company ships the ingredient to Finland where the drug product is manufactured and packaged. Zelsuvmi is the first FDA-approved prescription product that can be used at home to treat molluscum contagiosum. Other existing options require treatments and procedures done in a physician's office. "There is a high demand for ... a product that can be used at home and applied by either patients or caregivers in the home for this disease state," Plesha said.
Yahoo
18-04-2025
- Business
- Yahoo
EXCLUSIVE: Ligand Subsidiary Pelthos Therapeutics To Combine with Channel Therapeutics Creating Pain Medicines Focused Entity
Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) and Channel Therapeutics Corporation (NYSE:CHRO) on Thursday signed a definitive merger agreement to combine Ligand's wholly owned subsidiaries, Pelthos Therapeutics Inc. and LNHC, Inc. (collectively Pelthos) with CHRO Merger Sub Inc., a wholly owned subsidiary of Channel. The merger will be supported by $50 million in capital raised from a group of strategic investors led by Murchinson. Under the merger agreement, Channel will acquire 100% of Pelthos' issued and outstanding equity interests, change its name to Pelthos Therapeutics, and trade on the NYSE American exchange under the ticker PTHS. Also Read: In connection with the transaction, Ligand has agreed to invest $18 million in the combined company, and the Investor Group has agreed to invest $32 million in a total of $50 million. Upon completing the transaction, Scott Plesha, CEO of Pelthos, will become CEO of the combined company, and Frank Knuettel II, CEO of Channel Therapeutics, will become CFO. The transaction is expected to close in the summer of 2025. The combined company will initially focus on accelerating the commercialization of Pelthos' Zelsuvmi (berdazimer) topical gel, 10.3%, for Molluscum contagiosum infections in adults and pediatric patients one year and older. The U.S. Food and Drug Administration (FDA) approved Zelsuvmi in 2024. It is the first and only prescription therapy for molluscum infections approved for use at home by patients, parents, and caregivers. Ligand is entitled to a 13% royalty on worldwide sales of Zelsuvmi. The combined company will also retain Channel's existing NaV 1.7 development programs for various types of chronic pain, acute and chronic eye pain, and post-surgical nerve blocks. In December 2024, Channel Therapeutics announced that it achieved its endpoints in two pre-clinical in vivo models of the company's nerve block formulations for acute pain, showing material improvement in efficacy and duration over the existing standard of care, bupivacaine. An update on the Channel's animal efficacy study for its eye pain program will be forthcoming. 'This transaction presents a compelling opportunity to launch a commercial-ready product, with significant financial backing from Murchinson, that has the potential to deliver both near and long-term value to our shareholders,' said Todd Davis, CEO of Ligand. Frank Knuettel II, CEO of Channel Therapeutics, commented, 'We have performed extensive due diligence on the Zelsuvmi market opportunity and their team and operations, and we believe this is an extraordinary opportunity for current Channel shareholders. Strategically, it provides the potential for near-term revenue generation from an FDA-approved drug, the opportunity to advance Channel's existing NaV 1.7 programs, and expanded capitalization from strong, long-standing investors.' Molluscum contagiosum is a poxvirus and one of the most common skin infections, afflicting an estimated 16.7 million people in the U.S. Price Action: LGND stock is up 2.08% at $106.80 during the premarket session at the last check Thursday, and CHRO stock closed at $1.26 on Wednesday. Read Next:UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? LIGAND PHARMACEUTICALS (LGND): Free Stock Analysis Report This article EXCLUSIVE: Ligand Subsidiary Pelthos Therapeutics To Combine with Channel Therapeutics Creating Pain Medicines Focused Entity originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
