Ligand earns $5 million milestone as partner launches molluscum treatment

JUPITER, Fla. - Ligand Pharmaceuticals Incorporated (NASDAQ:LGND), currently trading near its 52-week high with a market capitalization of $2.36 billion, announced Thursday it has received a $5 million milestone payment following partner Pelthos Therapeutics Inc.’s (NYSE American:PTHS) commercial launch of ZELSUVMI. According to InvestingPro data, Ligand has demonstrated robust revenue growth of 53.4% over the last twelve months.

The newly launched product is the first FDA-approved at-home treatment for molluscum contagiosum, a highly contagious viral skin condition that affects millions of Americans, particularly children.

Ligand owns 56% of Pelthos following the completion of a merger between Pelthos Therapeutics and Channel Therapeutics earlier this month. Under the license agreement, Ligand is entitled to a 13% royalty on worldwide sales of ZELSUVMI and could receive up to an additional $5 million in commercial sales milestones.

"We are thrilled to see that ZELSUVMI is now commercially available as it addresses a significant unmet need for these patients," said Todd Davis, CEO of Ligand, in a press release statement.

ZELSUVMI (berdazimer) topical gel 10.3% received novel drug designation from the FDA in 2024. The treatment was developed using Ligand’s proprietary nitric oxide-based technology platform, NITRICIL.

The product is indicated for adults and pediatric patients one year of age and older, and can be applied by patients, parents, or caregivers at home without requiring a medical setting.

In other recent news, Ligand Pharmaceuticals reported strong financial results for the first quarter of 2025, exceeding both earnings per share (EPS) and revenue forecasts. The company achieved an adjusted EPS of $1.33, surpassing the expected $1.22, and recorded a total revenue of $45 million against a forecast of $37.92 million. Additionally, Ligand has completed a merger involving its subsidiary LNHC, Inc. and Channel Therapeutics Corporation’s subsidiary, resulting in the formation of Pelthos Therapeutics Inc. Pelthos plans to launch ZELSUVMI, a topical gel for treating molluscum contagiosum, in July, backed by $50.1 million in equity capital raised during the merger.

Ligand is entitled to a 13% royalty on worldwide sales of ZELSUVMI, which targets an infection affecting approximately 16.7 million people in the United States. Analysts note that Ligand’s revenue rose 46% year-over-year, with a significant contribution from strong royalty revenue growth. The company reaffirmed its full-year guidance, projecting continued growth in royalty revenue and adjusted EPS. Furthermore, Ligand has a robust pipeline and strategic investments, positioning itself for sustained growth despite a challenging biotech financing environment.

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