Ligand Subsidiary Pelthos Therapeutics to Combine with Channel Therapeutics
Ligand Pharmaceuticals (NASDAQ: LGND) announced a merger agreement to combine its subsidiary Pelthos Therapeutics with Channel Therapeutics (NYSE: CHRO). The transaction, expected to close in summer 2025, will raise $50 million in equity capital, with Ligand investing $18 million and an investor group led by Murchinson contributing $32 million.
The combined company will operate as Pelthos Therapeutics Inc. (NYSE: PTHS) and focus on commercializing ZELSUVMI™, an FDA-approved prescription medication for Molluscum contagiosum infections. ZELSUVMI is the first home-use treatment approved for patients aged one year and older. Ligand will retain a 13% royalty on worldwide sales.
The merged entity will maintain Channel's NaV 1.7 development programs for chronic pain, eye pain, and post-surgical nerve blocks. Scott Plesha will serve as CEO of the combined company, with Frank Knuettel II as CFO.
Ligand Pharmaceuticals (NASDAQ: LGND) ha annunciato un accordo di fusione per unire la sua controllata Pelthos Therapeutics con Channel Therapeutics (NYSE: CHRO). L'operazione, prevista per l'estate 2025, raccoglierà 50 milioni di dollari in capitale azionario, con Ligand che investirà 18 milioni e un gruppo di investitori guidato da Murchinson che contribuirà con 32 milioni.
La società risultante opererà come Pelthos Therapeutics Inc. (NYSE: PTHS) e si concentrerà sulla commercializzazione di ZELSUVMI™, un farmaco da prescrizione approvato dalla FDA per le infezioni da mollusco contagioso. ZELSUVMI è il primo trattamento domiciliare approvato per pazienti a partire da un anno di età. Ligand manterrà una royalty del 13% sulle vendite mondiali.
La nuova entità manterrà i programmi di sviluppo NaV 1.7 di Channel per il dolore cronico, il dolore oculare e i blocchi nervosi post-chirurgici. Scott Plesha sarà il CEO della società combinata, con Frank Knuettel II come CFO.
Ligand Pharmaceuticals (NASDAQ: LGND) anunció un acuerdo de fusión para combinar su subsidiaria Pelthos Therapeutics con Channel Therapeutics (NYSE: CHRO). La transacción, que se espera cierre en el verano de 2025, recaudaría 50 millones de dólares en capital accionario, con Ligand invirtiendo 18 millones y un grupo de inversores liderado por Murchinson aportando 32 millones.
La empresa combinada operará como Pelthos Therapeutics Inc. (NYSE: PTHS) y se enfocará en la comercialización de ZELSUVMI™, un medicamento con receta aprobado por la FDA para infecciones de molusco contagioso. ZELSUVMI es el primer tratamiento para uso en el hogar aprobado para pacientes desde un año de edad. Ligand mantendrá una regalía del 13% sobre las ventas mundiales.
La entidad fusionada mantendrá los programas de desarrollo NaV 1.7 de Channel para el dolor crónico, dolor ocular y bloqueos nerviosos postquirúrgicos. Scott Plesha será el CEO de la compañía combinada, con Frank Knuettel II como CFO.
Ligand Pharmaceuticals (NASDAQ: LGND)는 자회사 Pelthos Therapeutics와 Channel Therapeutics (NYSE: CHRO)를 합병하는 계약을 발표했습니다. 이 거래는 2025년 여름에 완료될 예정이며, Ligand가 1,800만 달러를 투자하고 Murchinson이 이끄는 투자자 그룹이 3,200만 달러를 출자하여 총 5,000만 달러의 자본을 조달할 계획입니다.
합병된 회사는 Pelthos Therapeutics Inc. (NYSE: PTHS)라는 이름으로 운영되며, FDA 승인된 처방약인 ZELSUVMI™의 상업화에 집중할 예정입니다. ZELSUVMI는 1세 이상 환자를 위한 최초의 가정용 치료제입니다. Ligand는 전 세계 판매에 대해 13%의 로열티를 유지합니다.
합병 법인은 만성 통증, 안구 통증 및 수술 후 신경 차단을 위한 Channel의 NaV 1.7 개발 프로그램을 계속 유지할 것입니다. Scott Plesha가 합병 회사의 CEO를 맡고, Frank Knuettel II가 CFO를 맡습니다.
Ligand Pharmaceuticals (NASDAQ : LGND) a annoncé un accord de fusion pour combiner sa filiale Pelthos Therapeutics avec Channel Therapeutics (NYSE : CHRO). La transaction, dont la clôture est prévue pour l'été 2025, permettra de lever 50 millions de dollars en capital-actions, Ligand investissant 18 millions et un groupe d'investisseurs dirigé par Murchinson apportant 32 millions.
La société combinée opérera sous le nom de Pelthos Therapeutics Inc. (NYSE : PTHS) et se concentrera sur la commercialisation de ZELSUVMI™, un médicament sur ordonnance approuvé par la FDA pour les infections à molluscum contagiosum. ZELSUVMI est le premier traitement à usage domestique approuvé pour les patients âgés d'un an et plus. Ligand conservera une redevance de 13 % sur les ventes mondiales.
L'entité fusionnée maintiendra les programmes de développement NaV 1.7 de Channel pour la douleur chronique, la douleur oculaire et les blocages nerveux post-chirurgicaux. Scott Plesha sera le PDG de la société combinée, avec Frank Knuettel II en tant que directeur financier.
Ligand Pharmaceuticals (NASDAQ: LGND) gab eine Fusionsvereinbarung bekannt, um seine Tochtergesellschaft Pelthos Therapeutics mit Channel Therapeutics (NYSE: CHRO) zusammenzuführen. Die Transaktion, die voraussichtlich im Sommer 2025 abgeschlossen wird, soll 50 Millionen US-Dollar an Eigenkapital einbringen, wobei Ligand 18 Millionen investiert und eine Investorengruppe unter der Führung von Murchinson 32 Millionen beiträgt.
Das fusionierte Unternehmen wird unter dem Namen Pelthos Therapeutics Inc. (NYSE: PTHS) operieren und sich auf die Vermarktung von ZELSUVMI™ konzentrieren, einem von der FDA zugelassenen verschreibungspflichtigen Medikament zur Behandlung von Molluscum-contagiosum-Infektionen. ZELSUVMI ist die erste für die Anwendung zu Hause zugelassene Behandlung für Patienten ab einem Jahr. Ligand behält eine Lizenzgebühr von 13 % auf den weltweiten Umsatz.
Das fusionierte Unternehmen wird Channels NaV 1.7-Entwicklungsprogramme für chronische Schmerzen, Augenschmerzen und postchirurgische Nervenblockaden fortführen. Scott Plesha wird als CEO des fusionierten Unternehmens fungieren, Frank Knuettel II als CFO.
- FDA-approved ZELSUVMI targets a large market of 16.7 million potential patients in the US
- Secured $50 million in equity capital funding
- 13% royalty stream on worldwide ZELSUVMI sales
- First-mover advantage with unique home-use treatment approval
- Retains valuable NaV 1.7 development pipeline for pain treatments
- Commercial success of ZELSUVMI yet to be proven
- Integration risks associated with merger execution
- Delayed revenue generation with merger closing in summer 2025
Insights
Ligand's strategic restructuring of Pelthos creates value through a $50M merger with Channel, securing both 13% royalties and equity in an FDA-approved product.
The merger between Ligand's subsidiaries and Channel Therapeutics represents a shrewd value-extraction strategy that exemplifies Ligand's capital-efficient business model. Rather than funding the full commercialization of ZELSUVMI internally, Ligand has structured a deal that provides
This transaction demonstrates Ligand's core competency in asset development and monetization. They acquired Pelthos, incubated ZELSUVMI through FDA approval, and are now leveraging that regulatory success into a structured deal with multiple value streams. For investors, this creates a derisked exposure to ZELSUVMI's commercial potential while freeing Ligand's resources for other opportunities.
The molluscum contagiosum market represents a substantial commercial opportunity given its high prevalence (16.7 million affected individuals in the US) and ZELSUVMI's unique positioning as the first at-home prescription treatment. The infection's characteristics—visible lesions causing social stigma, potential for household spread, and prolonged duration—create strong treatment motivation among patients/caregivers.
Most significantly, this transaction follows Ligand's established pattern of creating multiple shots on goal via diversified royalty streams rather than assuming full commercial execution risk. The summer 2025 closing timeline provides near-term catalysts as the transaction progresses toward completion.
Ligand orchestrates a capital-efficient exit for Pelthos while maintaining significant upside through royalties and equity, maximizing shareholder value with minimal downside.
This transaction represents a masterclass in financial engineering that optimizes Ligand's capital allocation while maintaining substantial economic interest in ZELSUVMI. By contributing the Pelthos assets to a public vehicle with
First, they secure the necessary commercialization funding without diluting existing Ligand shareholders or assuming execution risk. The
Second, they create a dual-stream value capture mechanism through both the
Third, they maintain governance influence through two board seats, ensuring Ligand's interests remain represented in key strategic decisions. The transaction effectively transforms an internal development program into a more transparent, independently valued public entity with dedicated focus and resources.
The market has historically rewarded Ligand's capital-efficient business model of creating and monetizing royalty streams. This transaction fits perfectly within that framework while adding the potential for equity appreciation. For investors, this represents a positive development that enhances Ligand's financial flexibility while maintaining meaningful economic exposure to ZELSUVMI's commercial prospects.
Proposed transaction will raise
ZELSUVMI is an FDA-designated novel drug and the first and only prescription medication approved for the treatment of Molluscum contagiosum infections administered at home by parents, patients, and caregivers
Ligand is entitled to a
Transaction is expected to close in the summer of 2025
JUPITER, Fla. and FREEHOLD, N.J., April 17, 2025 (GLOBE NEWSWIRE) -- Ligand Pharmaceuticals Incorporated (“Ligand”) (Nasdaq: LGND) and Channel Therapeutics Corporation (“Channel”) (NYSE American: CHRO), a pioneer in the development of non-opioid pain treatment therapeutics, today announced the signing of 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
The combined company will initially focus on accelerating the commercialization of Pelthos’ ZELSUVMI™ (berdazimer) topical gel,
“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. “We executed a complex restructuring to acquire the Pelthos assets, incubated the technology that became ZELSUVMI, achieved FDA approval for this first-in-class medication, and assembled a world-class team, to bring this therapy to market. Our ability to identify highly differentiated assets and execute customized transactions to maximize their value with equity and royalty rights distinguishes Ligand’s business model and value creation strategy.”
Frank Knuettel II, CEO of Channel Therapeutics, commented, “We are very excited about the merger with Pelthos. 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 seen by dermatologists, pediatric dermatologists, and pediatricians, afflicting an estimated 16.7 million people in the United States. 2,3 Molluscum infections spread to others through contact with infected persons or contaminated objects like towels, toys, furniture, swimming pools, and other surfaces. Children are the most vulnerable to molluscum infections. Adults with weakened immune systems or who are sexually active with a molluscum-infected partner are also particularly vulnerable. Molluscum infections present with raised, flesh-colored or red bumps that can appear anywhere on the body, including the face, hands, trunk, genitals, back of the knees, armpits, and other sensitive areas. People with molluscum may suffer discomfort from itching, secondary bacterial infections from scratching, or atopic dermatitis, as well as immense social stigma from having visible molluscum lesions, which typically last for months and frequently last for years.
Scott Plesha, CEO of Pelthos, added, “There is a significant unmet medical need for an easy-to-use, safe, and efficacious treatment option for molluscum that can be applied by patients, parents, or caregivers at home via prescription. We believe ZELSUVMI will complement pediatric and adult dermatologists’, general pediatricians’, and all other health care providers’ current efforts to treat molluscum while reducing the need for repeated invasive in-office procedures and the associated wait times needed to treat this highly infectious disease. Having commercialized both dermatology and pain management products, I am excited to lead the combined company into this next growth phase.”
Transaction Details
Under the terms of the merger agreement, Channel will acquire
Upon completion of the transaction, Mr. Plesha will become CEO of the combined company and Mr. Knuettel 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.
The transaction is expected to close in the summer of 2025, subject to customary closing conditions.
Advisors
Latham & Watkins LLP is serving as lead counsel to Ligand. Raymond James & Associates, Inc. is serving as financial advisor to Ligand and Pelthos. Sullivan & Worcester LLP is serving as Channel’s legal counsel. Kelley Drye & Warren LLP represented Murchinson.
About ZELSUVMI™ (berdazimer) topical gel,
ZELSUVMI (berdazimer) topical gel,
About Pelthos Therapeutics
Pelthos Therapeutics is a biopharmaceutical company committed to commercializing innovative, safe, and efficacious therapeutic products to help patients with unmet treatment burdens. The company’s lead product ZELSUVMI™ (berdazimer) topical gel,
About Murchinson
Founded by Marc J. Bistricer in 2012, Murchinson seeks to identify and invest in high-value opportunities across global markets. The firm leverages a disciplined, patient, and innovative investment approach to uncover value. Murchinson seeks to identify undervalued assets and opportunities in complex, evolving industries—particularly where innovation, regulatory shifts, and strategic changes create the potential for significant value creation. The firm is committed to generating superior, risk-adjusted returns by focusing on investments that have strong underlying fundamentals, operational improvement potential, and sustainable growth drivers. Learn more at www.murchinsonltd.com.
About Channel
Channel Therapeutics Corporation is a clinical-stage biotechnology company focused on developing and commercializing novel, non-opioid, non-addictive therapeutics to alleviate pain. Channel’s initial clinical focus is to selectively target the sodium ion-channel known as NaV1.7 for the treatment of various types of chronic pain, acute and chronic eye pain and post-surgical nerve blocks. For company updates and to learn more about Channel, visit www.channeltherapeutics.com or follow us on social media.
About Ligand Pharmaceuticals
Ligand is a biopharmaceutical company enabling scientific advancement through supporting the clinical development of high-value medicines. Ligand does this by providing financing, licensing our technologies or both. Our business model seeks to generate value for stockholders by creating a diversified portfolio of biotech and pharmaceutical product revenue streams that are supported by an efficient and low corporate cost structure. Our goal is to offer investors an opportunity to participate in the promise of the biotech industry in a profitable and diversified manner. Our business model is based on funding programs in mid- to late-stage drug development in return for economic rights, purchasing royalty rights in development stage or commercial biopharmaceutical products and licensing our technology to help partners discover and develop medicines. We partner with other pharmaceutical companies to attempt to leverage what they do best (late-stage development, regulatory management and commercialization) in order to generate our revenue. We operate two infrastructure-light royalty generating technology IP platform technologies. Our Captisol® platform technology is a chemically modified cyclodextrin with a structure designed to optimize the solubility and stability of drugs. Our NITRICIL™ platform technology facilitates tunable dosing, permitting an adjustable drug release profile to allow proprietary formulations that target a broad range of indications. We have established multiple alliances, licenses and other business relationships with the world’s leading pharmaceutical companies including Amgen, Merck, Pfizer, Jazz, Gilead Sciences and Baxter International. For more information, please visit www.ligand.com. Follow Ligand on X and LinkedIn.
We use our investor relations website and X as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Investors should monitor our website and our X account, in addition to following our press releases, SEC filings, public conference calls and webcasts.
Forward-Looking Statements
This press release contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, regarding Ligand and Channel’s current expectations. All statements, other than statements of historical fact, could be deemed to be forward-looking statements. In some instances, words such as “plans,” “believes,” “expects,” “anticipates,” and “will,” and similar expressions, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our good faith beliefs (or those of the indicated third parties) and speak only as of the date hereof. These forward-looking statements include, without limitation, references to our expectations regarding (i) our belief that investors should feel encouraged that Pelthos has a strong development path towards successfully launching drugs with considerable market opportunities, (ii) the timing of clinical and regulatory events of us and our partners, (iii) the timing of the initiation or completion of preclinical studies and clinical trials by us and our partners; (iv) the timing of product launches, including ZELSUVMI; (v) guidance regarding projected financial results for 2025 and beyond, and (vii) the timing and likelihood of closing the merger between Pelthos and Channel, and (vii) the listing of the combined company on the NYSE American, (viii) the anticipated benefits of the merger between Pelthos and Channel and (ix) the combined company’s opportunities, strategy and plans following the merger. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those set forth in such forward-looking statements include, but are not limited to, risks and uncertainties related to there being no guarantee that the trading price of the combined company’s Common Stock will be indicative of the combined company’s value or that the combined company’s Common Stock will become an attractive investment in the future; we may rely on collaborative partners for milestone payments, royalties, materials revenue, contract payments and other revenue projections and may not receive expected revenue; we and our partners may not be able to timely or successfully advance any product(s) in our internal or partnered pipeline or receive regulatory approval and there may not be a market for the product(s) even if successfully developed and approved; and changes in general economic conditions, including as a result of war, conflict, epidemic diseases, the implementation of tariffs, and ongoing or future litigation could expose us to significant liabilities and have a material adverse effect on us. These and other risks and uncertainties are described more fully in our filings with the U.S. Securities and Exchange Commission. The information in this press release is provided only as of the date of this press release, and we undertake no obligation to update any forward-looking statements contained in this press release based on new information, future events, or otherwise, except as required by law.
No Offer or Solicitation
This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Contacts
For Ligand/Pelthos:
Investors:
Melanie Herman
investors@ligand.com
(858) 550-7761
Media:
Kellie Walsh
media@ligand.com
(914) 315-6072
For Channel:
Investors/Media:
Mike Moyer
Managing Director, LifeSci Advisors, LLC
mmoyer@lifesciadvisors.com
For Murchinson:
Longacre Square Partners
Dan Zacchei / Ashley Areopagita
murchinson@longacresquare.com
1 Please see ZELSUVMI™ (berdazimer) topical gel full prescribing information available at https://www.fda.gov/drugsatfda for important safety information or www.zelsuvmi.com
2 US Census Bureau. QuickFacts: United States.2022. https://www.census.gov/quickfacts/fact/table/US/PST045222
3 Hebert AA, et al. J Clin Aesthet Dermatol. 2023 Aug;16(8 Suppl 1):S4-S11
FAQ
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