Ligand Pharmaceuticals Incorporated and Channel Therapeutics Corporation have announced a definitive merger agreement to combine Ligand’s wholly-owned subsidiaries, Pelthos Therapeutics Inc. and LNHC, Inc., with CHRO Merger Sub Inc., a wholly-owned subsidiary of Channel. This move is supported by $50 million in capital raised from a group of strategic investors led by Murchinson. Upon completion of the transaction, the combined company will operate under the name Pelthos Therapeutics Inc. and trade on the NYSE American exchange under the ticker PTHS.
The combined company will initially focus on accelerating the commercialization of Pelthos’ Zelsuvmi™ (berdazimer) topical gel, 10.3%, for the treatment of molluscum contagiosum infections in adults and pediatric patients one year of age and older. Zelsuvmi was approved by the U.S. Food and Drug Administration (FDA) in 2024 and is the first and only prescription therapy for molluscum infections approved for use at home by patients, parents, and caregivers. The combined company will also retain Channel’s existing NAV 1.7 development programs for the treatment of various types of chronic pain, acute and chronic eye pain, and post-surgical nerve blocks.
The transaction is expected to close in the summer of 2025, subject to customary closing conditions. Under the terms of the merger agreement, Channel will acquire 100% of the issued and outstanding equity interests of Pelthos, and will change its name to Pelthos Therapeutics Inc. Ligand has agreed to invest $18 million in the combined company, and the investor group has agreed to invest $32 million, totaling $50 million.
Upon completion of the transaction, Scott Plesha will become CEO of the combined company and Frank Knuettel II will become CFO. The board of directors will consist of Mr. Plesha, two independent directors, Peter Greenleaf and Matt Pauls, two board members appointed by Ligand, and an additional two independent directors who are reasonably acceptable to Murchinson, both of whom are current Channel board members.
Molluscum contagiosum is a poxvirus and one of the most common skin infections seen by dermatologists, pediatric dermatologists, and pediatricians, afflicting an estimated 16.7 million people in the United States. Molluscum infections spread to others through contact with infected persons or contaminated objects like towels, toys, furniture, swimming pools, and other surfaces.
Pelthos Therapeutics is committed to commercializing innovative, safe, and efficacious therapeutic products to help patients with unmet treatment burdens. Its lead product, Zelsuvmi™ (berdazimer) topical gel, 10.3%, for the treatment of molluscum contagiosum, was approved by the U.S. Food and Drug Administration in 2024. In addition to Zelsuvmi, Pelthos has a pipeline of potential product candidates that utilize its proprietary nitric oxide-based technology platform, Nitricil™.
The merger is seen as presenting a compelling opportunity to launch a commercial-ready product, with significant financial backing, and has the potential to deliver both near and long-term value to Ligand shareholders. The transaction is expected to close in the summer of 2025, subject to customary closing conditions.
This merger represents a significant development in the biopharmaceutical industry and is expected to have a considerable impact on the market in the coming years. Today the company's shares have moved 0.2% to a price of $104.88. If you want to know more, read the company's complete 8-K report here.
