Pelthos Therapeutics (NYSEAMERICAN:PTHS) executives detailed the company’s path to the public markets, early commercial traction for its lead product ZELSUVMI, and plans to add two additional pediatric-focused dermatology products during an investor interview hosted by Roth Capital Partners senior biotechnology analyst Jonathan Aschoff.
How Pelthos became public and current capitalization
Chief Executive Officer Scott Plesha said Pelthos and its topical product ZELSUVMI were previously housed within Ligand as a subsidiary for roughly 18 to 24 months. On July 1, 2025, the business merged into Channel Therapeutics and the combined company was renamed Pelthos, which Plesha said was driven in part by “brand equity” that had developed with potential ZELSUVMI prescribers.
Chief Financial Officer Frank Knuettel II said Channel had gone public on NYSE American in February 2024 and pursued both a sodium channel modulation pain program and a strategy of bringing commercial products. He said the PIPE shares were issued as Series A convertible preferred stock “which exists just for financial reporting purposes” and has fixed conversion prices. Knuettel summarized that Pelthos reports about 3.2 million common shares outstanding on an as-converted basis, but about 8.9 million shares when including the preferred, and described the company’s market capitalization as “about $200 million or so.”
ZELSUVMI’s role in molluscum contagiosum treatment
Plesha described ZELSUVMI as a topical nitric oxide-releasing product indicated for molluscum contagiosum in patients one year of age and older, used once daily for up to 12 weeks. He said that prior to FDA approval, treatment largely relied on “destructive modalities” performed in-office, including curettage, cryotherapy, and blistering agents. In the discussion, curettage was characterized as physically removing lesions with an instrument.
Plesha emphasized molluscum as a disease concentrated in pediatric patients, stating that about 80% of patients are age 10 and under and 90% are 20 and under. He said clinicians often consider patient age, lesion location, and lesion count when choosing treatment, and argued that office-based destructive approaches can be difficult in young children with numerous lesions. Plesha also noted that destructive treatments may require multiple visits rather than a single session.
He called ZELSUVMI the first and only FDA-approved product that can be applied at home for molluscum, highlighting what he described as strong efficacy and safety.
Launch performance: prescriptions, revenue, and prescriber growth
Management pointed to an increase in prescriptions between the third and fourth quarters, citing a 129% rise from Q3 to Q4. Plesha said net revenue was $7.1 million in Q3 and increased to $9.1 million in Q4. He also said that of the Q3 revenue figure, about $4 million was “demand-driven,” and described the progression to $9.1 million as “really nice growth.”
Plesha said the business typically slows around the holidays and in colder months, but that the company saw acceleration again in February and March, reaching new highs across metrics including new prescribers, new prescriptions, and refills. Since launch on July 10, 2025, he said Pelthos has exceeded 4,200 unique prescribers.
Payer access, patient mix, and gross-to-net expectations
On reimbursement, Plesha said the mix is about 70% commercial, cash, and copay card use, with a little under 30% Medicaid. He noted that approximately 30% to 35% of children in the U.S. are on Medicaid.
He said Pelthos’ market research suggested payers cover pediatric disease states relatively well and that ZELSUVMI’s acute course creates a finite payer cost. Plesha described coverage as “very good,” and said the company recently disclosed that about 60% of commercial lives are covered and 99% of Medicaid lives are covered for ZELSUVMI.
Regarding patient out-of-pocket costs, he said the company offers a “rich” copay card program that can reduce cost to $0. Pelthos reported gross-to-net of 28.7% in Q4, up from 25.3% in Q3, and management guided toward a mid- to upper-30% range longer term for 2026.
On commercial targeting, Plesha said the company uses ICD-10 claims data to identify high-volume healthcare providers. He said the call plan is split slightly under 50% dermatology and pediatric dermatology combined, and a little over 50% pediatricians, with uptake occurring across specialties.
Two additional products: Xepi and Xeglyze, timing, and exclusivity
The executives discussed recently acquired rights to Xepi (impetigo) and Xeglyze (head lice), describing both as pediatric-focused and commercially synergistic with ZELSUVMI. Plesha said the assets allow Pelthos to leverage its existing sales force and commercial channels, with minimal incremental manufacturing spend and only about three additional headcount anticipated, focused on marketing and manufacturing.
- Xepi (impetigo): Plesha said there are about 3 million new impetigo cases per year and described mupirocin (generic Bactroban) as the current standard of care, with key opinion leaders noting increasing resistance. Management said Xepi previously launched “quite well” with a 30-rep dermatology-only focus but was later deprioritized after an acquisition, and manufacturing was disrupted when the manufacturer went bankrupt during COVID (which Plesha said was unrelated to the product).
- Xeglyze (head lice): Plesha said the head lice market is roughly 75% OTC and 25% prescription, and described Xeglyze as having dual action that kills lice and eggs, supporting a one-treatment indication. He also cited widespread “super lice” resistance to OTC products, saying Xeglyze has not been launched and therefore has not developed resistance. He characterized it as an opportunistic acquisition for $1.8 million, with worldwide rights and no milestones or royalties.
On launch timing, Knuettel said Pelthos expects to stand up Xepi manufacturing during 2026 and conduct a full formal launch in early 2027, with Xeglyze targeted for formal launch in the latter half of Q2 2027. Plesha added that while stocking could potentially occur by the end of 2026, the company viewed year-end as a poor time to launch and preferred a January start.
On exclusivity, management said ZELSUVMI has patent protection to 2035 with a pending patent term extension for composition of matter to mid-2037. Xepi was described as protected to early 2032. Xeglyze was described as protected to 2034, with additional patents pending that could extend the runway. Plesha also highlighted Pelthos’ manufacturing know-how for nitric oxide-based products and said the company produces the API for Xepi at its Durham, North Carolina facility.
Finally, Knuettel addressed liquidity and outlook, noting the $50 million PIPE, an $18 million convert raised in November, and a $30 million draw on a $50 million term debt facility in January. He said the company had “just over $48 million” in cash after closing the term debt and that management is “very, very comfortable” funding its current business plan without an immediate need for additional financing. Knuettel reiterated that Pelthos has previously indicated an expectation of reaching $175 million in ZELSUVMI net revenue in 2028 and said management is “very comfortable” with current-year consensus of just over $60 million, while noting the company has not yet provided guidance for Xepi or Xeglyze.
About Pelthos Therapeutics (NYSEAMERICAN:PTHS)
We are a clinical-stage biotech company focused on developing and commercializing new therapeutics to alleviate pain. Our clinical focus is to selectively target the sodium ion-channel known as “NaV1.7”, as well as other receptors in the NaV family. NaV1.7 has been genetically validated as a pain receptor in human physiology. Genetic studies have shown that families with a certain inherited NaV1.7 modulation consistently show a pathology of not feeling pain. A NaV1.7 blocker is a chemical entity that modulates the structure of the sodium-channel in a way to prevent the transmission of pain perception to the central nervous system (“CNS”).
