Pelthos Therapeutics Merges With Channel Therapeutics And Raises $50.1M In Private Placement To Advance Pipeline

Pelthos Therapeutics Inc., a biopharmaceutical company focused on bringing innovative treatments to patients with significant unmet medical needs, has completed its previously announced merger with LNHC, Inc., a wholly owned subsidiary of Ligand Pharmaceuticals. As part of the transaction, CHRO Merger Sub Inc., a subsidiary of Channel Therapeutics Corporation, merged with and into LNHC. Following the merger, LNHC has become a wholly owned subsidiary of Channel Therapeutics, and the combined company will continue to operate under the name Pelthos Therapeutics Inc.

Shares of the newly combined Pelthos Therapeutics Inc. will begin trading on the NYSE American exchange under the ticker symbol “PTHS” starting July 2, 2025. In conjunction with the merger, Pelthos also completed a $50.1 million private placement led by Murchinson Ltd. and other strategic investors. The funding includes investments in Pelthos’ Series A Convertible Preferred Stock (par value $0.0001 per share) and common stock (par value $0.01 per share). The capital raise also involved the conversion of approximately $18.8 million in bridge financing previously provided by certain investors earlier in 2025 to support the planned launch of ZELSUVMI™.

Pelthos will initially focus on launching and commercializing ZELSUVMI™ (berdazimer) topical gel, 10.3%, a novel FDA-approved treatment for molluscum contagiosum—a highly common skin infection that affects both children and adults. It is estimated that 16.7 million people in the United States suffer from this condition. ZELSUVMI™ is the first and only prescription drug approved for molluscum that can be applied at home by caregivers, patients, or parents.

Scott Plesha, the CEO of the Company following the Merger, said in a statement, “This Merger represents a significant milestone for Pelthos, taking us closer to the launch of ZELSUVMI™ and enabling us to deliver this innovative product to the patients who need it. We are excited to begin this new chapter as a publicly traded company and to create value for our shareholders.”

Frank Knuettel II, former CEO of Channel Therapeutics Corporation and the newly appointed CFO of Pelthos, mentioned, “I am pleased to have completed the Merger on behalf of Channel’s shareholders, and I am delighted to join the high-caliber team at Pelthos to help guide the launch of ZELSUVMI™. The management team has extensive experience in successfully launching new therapies, and I believe this transaction will position Pelthos for future growth.”

Beyond ZELSUVMI™, Pelthos is also continuing to evaluate its NaV 1.7 development programs, which aim to address a range of pain conditions including chronic pain, acute and chronic eye pain, and nerve blocks used in post-surgical settings. A.G.P. / Alliance Global Partners acted as financial advisor to Channel Therapeutics Corporation for the transaction. Legal counsel was provided by Sullivan & Worcester LLP for Channel, Latham & Watkins LLP for Ligand Pharmaceuticals, and Kelley Drye & Warren LLP and Morgan, Lewis & Bockius LLP for Murchinson Ltd.