Ligand Pharmaceuticals’ topical skin infection gel Zelsuvmi is changing hands again—sort of.
After Ligand last year created Pelthos Therapeutics to support the launch of Zelsuvmi, Pelthos is now joining forces with Channel Therapeutics in a merger backed by $50 million in capital.
The combined company, which will operate under the Pelthos name and at Pelthos' North Carolina headquarters, will work on launching Zelsuvmi this summer, according to an April 17 press release. The combined group will also retain Channel’s development programs that target chronic pain, eye pain and post-surgical nerve blocks.
“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,” Channel CEO Frank Knuettel II said in the release. Ligand’s CEO Todd David agreed that the transaction “presents a compelling opportunity to launch a commercial-ready product.”
Channel will acquire all outstanding equity interest in Pelthos as part of the deal, which is expected to close this summer. The merger is supported by $18 million from Ligand plus $32 million from a group of investors.
Further, Ligand is entitled to a 13% royalty on worldwide sales of Zelsuvmi.
Zelsuvmi won FDA approval in January 2024 as the first at-home treatment cleared to treat molluscum contagiosum, a highly contagious viral skin infection, in patients ages 1 and older. The drug can be applied by parents, caregivers or patients themselves to quell the condition, which causes skin lesions that are often painless.
Ligand got its hands on the product through its 2023 buyout of Novan’s assets. Novan was originally trying to push Zelsuvmi over the FDA finish line, but the firm encountered setbacks in late-stage testing and ended up filing for bankruptcy.
At the time of the FDA approval, Ligand aimed to make the drug available in the second half of 2024. More recently, the company said it was targeting a mid-2025 launch.
Last April, Ligand established the Pelthos unit, with Zelsuvmi serving as its lead product. Experienced biotech leader Scott Plesha was tapped as CEO, a role he will continue to hold at the newly expanded Pelthos. Plesha is “excited to lead the combined company into this next growth phase,” he said in the April 17 release. Knuettel, meanwhile, is slated to become chief financial officer of the merged company.