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JUPITER, Fla. - Ligand Pharmaceuticals Incorporated (Nasdaq:LGND), a $2.17 billion market cap company with a strong financial health score according to InvestingPro, announced Wednesday the completion of its merger between subsidiary LNHC, Inc. and Channel Therapeutics Corporation’s subsidiary CHRO Merger Sub Inc. The combined company, now operating as Pelthos Therapeutics Inc., will begin trading on the NYSE American exchange under the ticker symbol PTHS on Wednesday.
Pelthos plans to launch ZELSUVMI (berdazimer) topical gel, 10.3%, in July for treating Molluscum contagiosum infections in adults and pediatric patients one year and older. The FDA-designated novel drug is the first prescription medication for molluscum that can be administered at home.
Concurrent with the merger, Pelthos raised $50.1 million in equity capital, including $32 million from a group of strategic investors led by Murchinson and $18 million from Ligand. The funding includes cancellation of approximately $18.8 million in bridge capital advanced since early 2025 to support ZELSUVMI’s commercial launch. Ligand enters this deal from a position of strength, with InvestingPro data showing impressive revenue growth of 53.4% and a healthy current ratio of 5.27, indicating strong liquidity.
Ligand is entitled to a 13% royalty on worldwide sales of ZELSUVMI, which treats a poxvirus infection that affects an estimated 16.7 million people in the United States.
"We are excited to begin this new chapter as a publicly traded company and to bring this innovative product to the patients who need it," said Scott Plesha, CEO of Pelthos, according to the press release.
The company is also evaluating Channel’s existing NaV 1.7 development programs for treating various types of chronic pain, acute and chronic eye pain, and post-surgical nerve blocks.
Molluscum contagiosum is one of the most common skin infections seen by dermatologists, pediatric dermatologists, and pediatricians. With analysts setting price targets between $135 and $157, and maintaining a strong buy consensus, investors seeking detailed analysis can access comprehensive research reports and additional insights through InvestingPro’s extensive coverage of over 1,400 US stocks.
In other recent news, Ligand Pharmaceuticals reported a strong start to 2025, surpassing expectations for both earnings and revenue in the first quarter. The company achieved an adjusted earnings per share (EPS) of $1.33, exceeding the forecasted $1.22, and reported total revenue of $45 million, which was well above the anticipated $37.92 million. This represents a 46% increase in revenue year-over-year, largely due to a significant rise in royalty revenue. Despite the positive financial performance, the company’s stock experienced a slight decline in pre-market trading. Additionally, Ligand reaffirmed its full-year guidance, projecting royalty revenue between $135 million and $140 million and total revenue ranging from $180 million to $200 million.
In terms of strategic moves, Ligand executed a merger of its subsidiary, Pylthos Therapeutics, with Channel Therapeutics, securing substantial financial backing to accelerate the commercialization of the FDA-approved therapy ZELSUVME. Analysts from firms like RBC Capital Markets and Craig Hallum have shown interest in Ligand’s current investment strategy, noting the challenging biotech financing environment that presents both risks and opportunities. Ligand’s diversified portfolio and strategic investments are positioning the company for sustained growth in the coming year.
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