Ligand Pharmaceuticals Merges to Form Pelthos Therapeutics

By Tamara Parker • Wednesday, July 02 15:23 • Permanent Link

Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) has announced the completion of its merger with Channel Therapeutics Corporation, forming the new company Pelthos Therapeutics Inc. Pelthos is set to commence trading on the NYSE American Exchange under the ticker symbol "PTHS" on July 2, 2025.

Concurrent with the merger, Pelthos raised $50.1 million of equity capital, including a private placement from a group of strategic investors led by Murchinson, with Ligand investing $18 million in the combined company. Pelthos also cancelled approximately $18.8 million in bridge capital that was advanced to support the commercial launch of Zelsuvmi, a novel product addressing molluscum contagiosum infections.

Zelsuvmi (berdazimer) topical gel, 10.3%, is set to be launched for the treatment of molluscum contagiosum infections in July 2025. This is an FDA-designated novel drug and the first and only prescription medication approved for the treatment of molluscum that can be administered at home by parents, patients, and caregivers.

Moreover, Ligand is entitled to a 13% royalty on worldwide net sales of Zelsuvmi, marking a significant potential revenue stream for the company.

Pelthos has also announced plans to evaluate the path forward for 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.

This merger marks a transformative turning point for Pelthos, which aims to bring innovative products to market and create long-term value for shareholders. The company's successful capital raise and strategic investments reflect a strong financial foundation as it ventures into the next phase of growth and commercialization. Today the company's shares have moved 0.99% to a price of $113.67. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.