Pelthos Therapeutics acquires Xepi cream and raises $18 million

Pelthos Therapeutics Inc. (NYSE American: PTHS) announced it acquired U.S. commercialization rights to Xepi (ozenoxacin) Cream, 1%, from Biofrontera Inc. and Ferrer Internacional S.A., and closed an $18 million private convertible notes financing.

Under the acquisition terms, Pelthos will pay Biofrontera $3.0 million and Ferrer $1.2 million upfront, with additional payments based on commercial availability and sales milestones. The company will pay royalties on U.S. net sales to Ferrer and investors.

Xepi is an FDA-approved topical treatment for impetigo, a bacterial skin infection affecting approximately 3 million people annually in the U.S. The medication treats infections caused by Staphylococcus aureus or Streptococcus pyogenes in patients two months and older. The FDA approved Xepi in 2017 as the first new impetigo treatment in over 10 years.

Biofrontera has owned U.S. rights since 2019 but has not actively promoted the product. Pelthos plans to re-launch Xepi in late 2026.

The convertible notes carry an 8.5% annual interest rate and mature November 6, 2027. The notes convert at $34.442 per share. Existing investors including Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) and a group led by Murchinson Ltd participated in the financing.

Pelthos intends to use proceeds to acquire and relaunch Xepi, accelerate commercialization of its ZELSUVMI molluscum contagiosum treatment, and for working capital. Investors will receive royalties on Xepi U.S. sales and potential milestone payments on ZELSUVMI sales in Japan if approved there.

The acquisition adds to Pelthos' dermatology portfolio anchored by ZELSUVMI, which the FDA approved in 2024 for molluscum contagiosum treatment.

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