Pelthos, Ligand Gain After Launch Of First Prescription-At-Home Treatment For Water Warts

Shares of Ligand Pharmaceuticals and Pelthos Therapeutics rose on Thursday after the commercial launch of Zelsuvmi (berdazimer) topical gel, developed under their partnership, to treat a common viral skin infection.

Pelthos Therapeutics surged 60.8% to close at $10.01 on Thursday, while Ligand Pharmaceuticals gained 2.1%.

The launch triggered a $5 million milestone payment to Ligand under the companies’ license agreement. Under the terms of the licensing deal, Ligand is also entitled to a 13% royalty on worldwide sales of Zelsuvmi and up to $5 million in additional commercial milestones.

Ligand also holds a 56% equity stake in Pelthos following the completion of a merger between Pelthos and Channel Therapeutics on July 2.

Pelthos announced the merger earlier this month, in which CHRO Merger Sub, a wholly owned subsidiary of Channel, merged with LNHC, a wholly owned subsidiary of Ligand. 

LNHC survived as a subsidiary of Channel, and the combined company is now operating under the Pelthos Therapeutics name. Concurrent with the merger, Pelthos raised $50.1 million in a private placement led by Murchinson. 

The investment included new equity as well as the cancellation of $18.8 million in previously advanced bridge capital used to support the commercial launch of Zelsuvmi.

Zelsuvmi is a nitric oxide-releasing topical gel approved by the U.S. Food and Drug Administration in 2024 for the treatment of molluscum contagiosum, sometimes known commonly as “water warts”, in patients aged one year and older. 

It is the first prescription medication approved for at-home application by patients, parents, or caregivers. The product was developed using the nitric oxide-based Nitricil platform, now owned by Ligand.

On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘extremely high’ message volume.

On Stocktwits, retail sentiment for both Ligand Pharmaceuticals and Pelthos Therapeutics was ‘bullish’, with ‘high’ message volume for Ligand and ‘extremely high’ activity for Pelthos.

Ligand’s stock has gained 15.3%so far in 2025, while Pelthos has surged 266.3% over the same period.

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