Ligand, Channel Merge Subsidiaries, Accelerate Zelsuvmi Launch

Ligand Pharmaceuticals and Channel Therapeutics have agreed to merge Ligand's Pelthos Therapeutics unit and LNHC, Inc. with Channel's subsidiary, forming a new company called Pelthos Therapeutics Inc., expected to be publicly traded under the ticker PTHS. The deal is supported by $50 million in capital from Ligand and a group of investors led by Murchinson, with Ligand investing $18 million and the investor group contributing $32 million. The combined company will focus on accelerating the commercialization of Zelsuvmi, the first FDA-approved home-use prescription gel for treating molluscum contagiosum infections in adults and children as young as one year old. Ligand will retain a 13% royalty on worldwide sales of Zelsuvmi, which targets a significant U.S. market. The new entity will also advance Channel's NaV 1.7 programs for chronic and eye pain as well as post-surgical nerve blocks. The merger is anticipated to close in the summer of 2025, with Scott Plesha serving as CEO and Frank Knuettel II as CFO.