Ligand's Pelthos merges with Channel Therapeutics for Zelsuvmi launch

Pelthos Therapeutics and Channel Therapeutics are set to collaborate on the launch of Zelsuvmi, an FDA-approved treatment for molluscum contagiosum, later this year. Originally developed by Ligand Pharmaceuticals, Zelsuvmi is a topical gel intended for the treatment of the contagious viral skin infection in patients aged one year and older. This collaboration between Pelthos and Channel is supported by a $50 million capital investment and marks a significant step toward commercializing Zelsuvmi.

The new arrangement comes after Ligand Pharmaceuticals, having acquired Novan's assets in 2023, established Pelthos Therapeutics specifically to facilitate the launch of Zelsuvmi. Now, Pelthos is merging with Channel Therapeutics. The merger will see the combined entity operating under the Pelthos name from their headquarters in North Carolina. This strategic move aims to bring Zelsuvmi to market by the summer, as announced in an April 17 press release.

The merger not only focuses on Zelsuvmi but also incorporates Channel's ongoing development programs, which address chronic pain, eye pain, and post-surgical nerve block issues. Frank Knuettel II, CEO of Channel, expressed enthusiasm about the merger, highlighting the extensive market research conducted on Zelsuvmi and the alignment of operational goals. Todd David, CEO of Ligand, echoed this sentiment, noting the merger as a significant opportunity to introduce a product already prepared for the commercial market.

As part of the merger agreement, Channel Therapeutics will acquire all outstanding equity of Pelthos. The financial backing for this transaction includes $18 million from Ligand and an additional $32 million from various investors. Post-merger, Ligand retains a 13% royalty on the global sales of Zelsuvmi, ensuring continued participation in its commercial success.

Zelsuvmi achieved FDA approval in January 2024, marking it as the first at-home treatment authorized for molluscum contagiosum. This skin condition, while highly contagious, typically results in painless lesions and affects a broad age range starting from one year. The approval was a significant milestone, particularly given Novan's previous hurdles in advancing Zelsuvmi through late-stage trials, which led to their bankruptcy and Ligand’s subsequent acquisition.

Initially, Ligand aimed to launch Zelsuvmi in the latter half of 2024. However, recent announcements have adjusted the timeline, with a launch now anticipated by mid-2025. The creation of Pelthos last year, with Zelsuvmi as its flagship product, underscores Ligand’s commitment to bringing this treatment to market.

Leading the expanded Pelthos as CEO will be Scott Plesha, an experienced figure in the biotechnology industry, who expressed his eagerness to guide the company through this transformative period. Frank Knuettel II will transition to the role of Chief Financial Officer within the merged organization, bringing his expertise to the financial helm.

Through this strategic merger, Pelthos Therapeutics and Channel Therapeutics aim to successfully deliver Zelsuvmi to patients, offering a new and accessible solution for those suffering from molluscum contagiosum.