Pelthos Therapeutics has secured the rights to market non-fluorinated quinolone antimicrobial, Xepi (ozenoxacin) cream, 1% in the US from Biofrontera and Ferrer Internacional.
The topical cream is indicated to treat impetigo, a bacterial skin infection caused by Staphylococcus aureus or Streptococcus pyogenes in both adults and paediatric patients as young as two months.
In conjunction with this acquisition, Pelthos also completed a private financing round through convertible notes, bringing in $18m from current investors, including Ligand Pharmaceuticals and a consortium spearheaded by Murchinson.
Terms of the latest deal require Pelthos to pay $3m to Biofrontera and $1.2m to Ferrer upfront. Further payments will depend on commercial supply levels of the cream and future sales.
The agreement also includes royalty obligations by Pelthos on US net sales to both Ferrer and the investor group.
Initially developed by Ferrer in collaboration with Medimetriks Pharmaceuticals, Xepi received approval from the Food and Drug Administration (FDA) in 2017, becoming the first new treatment for impetigo in more than a decade.
Although Biofrontera has held rights to the cream in the US since 2019, there has been little promotion of the product thus far.
Pelthos has indicated plans for its relaunch towards the end of 2026.
Impetigo is seen among children and is known for its rapid spread, particularly in family households and crowded settings such as schools.
The convertible notes secured will accrue interest at 8.5% annually, with payments required every quarter.
These notes will mature on 6 November 2027 unless they are earlier rebought, redeemed or converted into ordinary shares of Pelthos under specific provisions.
Funds raised are also earmarked for progressing commercial activities for Zelsuvmi and general operational costs.
Investors participating in the financing will be entitled to a royalty percentage on US sales of Xepi, along with milestone payments and royalties should Zelsuvmi achieve approval and generate sales in Japan.
Legal advice to Pelthos was provided by Sullivan & Worcester and Paul Hastings, with Piper Sandler and Lake Street Capital Markets advising on the financing transaction.
Roth Capital Partners provided advice on the Xepi rights acquisition. Latham & Watkins represented Ligand, while Kelley Drye & Warren, along with Morgan, Lewis & Bockius, acted on behalf of Murchinson’s investor group.
