Durham, NC Biopharma Co. Finds High-Growth Drug Opportunity

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Pelthos Therapeutics Inc. (PTHS:NYSEAmerican) reported positive Q4 2025 earnings on March 19, 2026. A press release by the company showed net product revenue for Q4 at US$9.1 million, which is a 28% increase over Q3's US$7.1 million. Pelthos reported total revenue, including licensing revenue, at US$16.8 million for 2025, with most of that revenue coming in after the launch of its signature drug, Zelsuvmi, mid-year.

The company made cuts to its costs in the final quarter of last year, lessening the cost of goods sold from 2.3 million in Q3 to 1.7 million in Q4. Its operating loss changed from US$15.4 million in Q3 to US$12 million in Q4, and its adjusted EBITDA showed 22% improvement from Q3 to Q4, moving from US$11.5 million to US$9 million.

Improvements showed in SG&A expenses, as well. Pelthos lessened them to US$18.5 million from US$19.6 million, 6% less quarter over quarter, with adjusted SG&A declining from US$14.2 million to US$13.5 million, 5% less quarter over quarter.

Much of this success is due to the rollout of Zelsuvmi, said the company, with "8,948 ZELSUVMI units prescribed by 2,712 unique prescribers for fiscal year 2025, with a 129% quarter over quarter increase in units dispensed, rising from 2,716 units in the third quarter of 2025 to 6,232 units in the fourth quarter of 2025."

Further, the company's announcement said, "Change in fair value of debt, related to the convertible note issued in November 2026, was US$15.0 million in the fourth quarter of 2025. The Company analyzed the terms of the convertible notes and its embedded features, concluding it appropriate to account for the convertible notes at fair value. Accordingly, the Company initially recognized the convertible notes at fair value and will subsequently measure the convertible notes at fair value with changes in fair value recorded in current period earnings."

Scott Plesha, CEO of Pelthos, stated, "We are delighted with the growth of ZELSUVMI in our second quarter of commercialization despite the seasonal reduction of patients seeking MC treatment during the fourth quarter. The launch metrics, including prescriptions, revenue growth, gross to net discounts, and other financial results, have exceeded our expectations. We anticipate strong continued growth for ZELSUVMI in 2026, and with the capital raised with the issuance of the convertible notes in November 2025 and the term debt issued in January 2026, we believe that our cash balance provides the runway to execute on our business plan."

The Biotechnology Market Is Expanding

Pelthos is a bio-pharmaceutical company, headquartered in Durham, NC, that specializes in medications targeted toward diseases that primarily affect children. The company holds a proprietary nitric oxide-based technology platform called NITRICIL and launched its revenue-leading drug, Zelsuvmi, in mid-2025.

The company has curated a portfolio of pharmaceuticals that are largely prescribed for skin conditions in children. Zelsuvmi treats Molluscum Contagiosum (MC), a highly contagious poxvirus that can last months or years without intervention. It is most common in children and can cause itching, redness, pain, inflammation, social anxiety, and social isolation.

Debashree Bora of Straitresearch.com discussed the market for MC, writing, "The global molluscum contagiosum market size was valued at US$2.42 billion in 2024 and is projected to reach from US$2.53 billion in 2025 to US$3.67 billion by 2033, growing at a CAGR of 4.75% during the forecast period (2025-2033)."

"The market growth stage is high, and the pace of the market growth is accelerating," said Grandview Research. "The biotechnology market is characterized by a high degree of innovation due to rapid advancements in genomics, molecular biology, cellular & tissue engineering, bioimaging, novel drug discovery, and delivery methodologies."

Pelthos Therapeutics Inc. Gets a Buy Rating

H.C. Wainwright & Co. and Roth Capital Partners rated Pelthos as a Buy. On March 19, 2026, Roth projected gross net revenue to grow to the mid- to upper-30% range over the long term and noted that, "PTHS has the only FDA-approved drug for treating MC at home."

In the same analysis, Jonathan Aschoff of Roth released a price target: "Our 12-month price target of US$55 is based on a DCF analysis using a 20% discount rate that is applied to all cash flows and the terminal value, which is based on a 5x multiple of our projected 2033 operating income of US$79 million."

Brandon Folkes, of Wainwright, however, went even further, giving the company a US$60 price target over the next 12 months. On March 18, Wainwright wrote, "In our view, the current trajectory supports continued growth into 2026, particularly as the business enters seasonally stronger periods." Wainwright attributes their decision to Q4 results, staying, "We believe the most important development in the quarter was the clear improvement in revenue quality."

Catalysts

In the wake of Zelsuvmi's success, Pelthos has recently hired an additional 14 sales representatives in hopes of reaching more prescribing physicians.

The company has also broadened its portfolio by adding two highly synergistic drugs, Xepi and Xeglyze. Xepi is a prescription targeted toward treating impetigo, the #1 bacterial infection seen by pediatricians, and Pelthos plans to launch it in late 2026, with exclusivity until 2032. Xeglyze targets head lice with a formula that kills eggs as well as nits, removing the need for repeat treatments. According to the company website, there are 6-12 million cases of lice in the U.S. per year, and the goal is to launch Xeglyze in the first half of 2027.  

CEO Scott Plesha said, "The recent acquisition of XEPI and XEGLYZE have added two highly complementary products to our portfolio. FDA-approved XEPI and XEGLYZE each treat infectious skin conditions primarily impacting children, which aligns with the same target market as ZELSUVMI. This presents our sales reps and Pelthos with a synergistic opportunity to increase revenue by leveraging our current commercial relationships and infrastructure with de minimis additional SG&A. We believe we are well-positioned to capitalize on the large addressable markets and unmet needs presented by these three products and have the commercial infrastructure and experience to continue to grow ZELSUVMI and launch and grow XEPI and XEGLYZE."

The company is eager to release both Xepi and Xeglyze, though current peak net revenue is forecasted at US$175m per annum based on Zelsuvmi alone by 2028.

Ownership and Shares Information¹

Pelthos Therapeutics Inc. has a market cap of US$77.91 million and holds 3.24 million shares outstanding. Institutions own 34.49% of the company's shares, and strategic investors own 50.44%. Management and Insiders own 1.37% of shares, while the remaining 13.7% are held by retail.