Pelthos Therapeutics Inc.

What they do

Pelthos was effectively formed on July 1, 2025 through the merger of Channel Therapeutics Corporation and LNHC, Inc. It commercializes Zelsuvmi (berdazimer gel, 10.3%), an at-home prescription treatment for molluscum contagiosum, and also holds the FDA-approved products Xepi and Xeglyze. It operates a manufacturing facility, equipment and know-how for the active pharmaceutical ingredient used in Zelsuvmi and the NITRICIL technology platform, and holds clinical-stage assets targeting the NaV1.7 sodium ion-channel.

Revenue drivers

• Zelsuvmi (berdazimer gel, 10.3%) — Sole commercial driver to date; launched July 2025 for molluscum contagiosum. Generated $42.3 million in net sales over the first four quarters of commercial operations and $15.4 million in Q2 2026.
• Xepi — One of two additional FDA-approved products acquired in Q4 2025. No revenue contribution; commercialization is planned for Q1 2027 per management.
• Xeglyze — Second FDA-approved product acquired in Q4 2025. No revenue contribution; commercialization planned for Q3 2027 per management.
• API manufacturing and NITRICIL platform — The company holds a manufacturing facility, equipment and know-how to produce the API used in Zelsuvmi and the NITRICIL technology platform; third-party technology transfer for non-Zelsuvmi products is permitted under the Ligand master services agreement.

Recent performance

Q2 2026 revenue was $15.6 million, of which Zelsuvmi net product revenue was $15.4 million, up 45% from $10.7 million in Q1 2026. Units dispensed rose 48% quarter-over-quarter, from 8,084 to 11,925, written by 4,571 unique prescribers in the quarter; 29,126 units and 7,414 unique prescribers cumulative as of June 30, 2026, with more than 25,000 patients prescribed since launch. Cost of goods sold was $3.6 million in Q2 2026 versus $1.7 million in Q1 2026, including a $0.9 million write-off of commercial API inventory found outside specifications. SG&A was $27.7 million in Q2 2026 versus $21.1 million in Q1 2026, including a $6.0 million increase in royalty and milestone expense driven by $5.3 million of two non-recurring sales-based milestones. As of June 30, 2026, the company reported $24.2 million of cash, total liabilities of $138.9 million and shareholder equity of negative $1.5 million.

Strategy

Pelthos is focused on commercializing Zelsuvmi while preparing to launch its two additional FDA-approved products, Xepi in Q1 2027 and Xeglyze in Q3 2027. It funded operations with a $50.0 million senior secured term loan facility with Horizon Technology Finance entered January 2026, drawing $30.0 million at close and potentially accessing an additional $10.0 million after achieving trailing twelve-month net product revenues of $42.3 million as of June 30, 2026, subject to lender discretion. The facility proceeds are earmarked for commercialization of the existing product, launch preparation for the two acquired products, working capital and general corporate purposes. Zelsuvmi is licensed from Ligand for worldwide rights excluding Japan, and Ligand or related parties may supply API under a master services agreement. Management states its $24.2 million cash balance is expected to support the current business plan.

Risks

• Going concern and capital needs — The auditor's report on the 2024 financial statements contained a going concern qualification, and the company states that if it cannot maintain sustainable revenues it may be unable to continue as a going concern.
• Dependence on a single product — Zelsuvmi accounted for essentially all reported revenue, and Xepi and Xeglyze are not expected to launch until Q1 2027 and Q3 2027 respectively.
• Restated financials — An August 13, 2026 8-K disclosed that previously issued financials are not reliable, alongside the Q2 2026 earnings release.
• Negative equity and thin cash relative to liabilities — At June 30, 2026 shareholder equity was negative $1.5 million against $138.9 million of total liabilities, with $24.2 million of cash on hand.

Outlook

Management said it expects further Zelsuvmi growth, noting over 4,200 units dispensed in July 2026 and cumulative units dispensed since launch surpassing 30,000. It reiterated planned commercialization of Xepi in Q1 2027 and Xeglyze in Q3 2027. The company states its $24.2 million cash balance, combined with the Horizon facility and potential access to additional funds subject to lender discretion, is expected to provide capital for the business plan.