EXCLUSIVE: Pelthos Secures Rights To Antimicrobial Drug, Raises $18 Million To Support Commercial Launch
Pelthos Therapeutics Inc. (NYSE:PTHS) on Friday acquired the U.S. commercialization rights to Xepi (ozenoxacin) Cream, 1%, from Biofrontera Inc. (NASDAQ:BFRI) and Ferrer Internacional S.A.
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Xepi is a non-fluorinated quinolone antimicrobial indicated for the topical treatment of impetigo due to Staphylococcus aureus or Streptococcus pyogenes in adult and pediatric patients two months of age and older.
Impetigo is a highly contagious bacterial skin infection most often caused by Staphylococcus aureus and/or Group A Streptococcus. It affects approximately 3 million people in the U.S. every year and is most common in children ages 2 to 5.
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Xepi Acquisition
Pelthos will pay Biofrontera $3.0 million and Ferrer $1.2 million upfront, with additional payments based on the availability of commercial quantities of Xepi and the achievement of sales-based milestones. Pelthos will pay royalties on U.S. net sales of Xepi to Ferrer and the Investors.
"This acquisition represents an excellent investment opportunity…," said Scott Plesha, CEO of Pelthos.
"Xepi is well-positioned to address antimicrobial resistance in pediatric dermatology, and we believe it will provide physicians with an important alternative to first-line impetigo treatments," Plesha added.
Xepi was developed by Ferrer and Medimetriks Pharmaceuticals, Inc., and approved by the FDA in 2017.
At the time of approval, Xepi was the first new novel treatment for impetigo in more than 10 years.
Biofrontera has owned the U.S. rights to Xepi since 2019 but has not been actively promoting the product. Pelthos intends to relaunch Xepi in late 2026.
$18 Million Financing
The company said it has also closed on an $18 million private convertible notes financing with existing investors, including Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) and a group of investors led by Murchinson Ltd.
The Notes will be convertible at an initial conversion price of $34.442. The company will use the notes proceeds to acquire and relaunch Xepi, accelerate the commercialization of Zelsuvmi, and for general working capital purposes.
In addition to the Notes, the investors will be entitled to a low single-digit royalty on U.S. net sales of Xepi and additional milestone payments and royalties on ZELSUVMI net sales in Japan, if Zelsuvmi is approved in Japan.
PTHS Price Action: Pelthos Therapeutics shares were unchanged at $37.42 during premarket trading on Friday, according to Benzinga Pro data.
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