Pelthos acquires US rights to Xepi cream from Biofrontera and Ferrer

Core Insights - Pelthos Therapeutics has acquired the rights to market Xepi (ozenoxacin) cream, a non-fluorinated quinolone antimicrobial, in the US from Biofrontera and Ferrer Internacional, aimed at treating impetigo in both adults and children as young as two months [1][3] - The acquisition was supported by a private financing round that raised $18 million through convertible notes from existing investors, including Ligand Pharmaceuticals and a consortium led by Murchinson [2][5] - Pelthos plans to relaunch Xepi towards the end of 2026, with the product having received FDA approval in 2017 as the first new treatment for impetigo in over a decade [3][4] Financial Details - Pelthos is required to make an upfront payment of $3 million to Biofrontera and $1.2 million to Ferrer, with additional payments contingent on commercial supply levels and future sales [2][3] - The convertible notes will accrue interest at 8.5% annually, with quarterly payments required, maturing on November 6, 2027, unless converted into ordinary shares [4] - Funds raised will also support commercial activities for Zelsuvmi and cover general operational costs, with investors entitled to royalties on US sales of Xepi and milestone payments related to Zelsuvmi's approval in Japan [5] Legal and Advisory Support - Roth Capital Partners advised on the acquisition of Xepi rights, while Latham & Watkins represented Ligand, and Kelley Drye & Warren, along with Morgan, Lewis & Bockius, acted on behalf of Murchinson's investor group [6]