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Pelthos Therapeutics Secures Up to $50 Million Senior Secured Term Loan Facility from Horizon Technology Finance

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The minimally dilutive funding will accelerate Pelthos' highly successful commercialization efforts ...

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AI Summary

Pelthos secures $30 million funding for product commercialization. Funding supports ZELSUVMI™ and other FDA-approved products. Financing is minimally dilutive to existing shareholders. CEO emphasizes commitment to unmet treatment needs. Partnership with Horizon aims for significant growth.

Sentiment Rationale

The significant funding enhances Pelthos’ ability to commercialize ZELSUVMI™, potentially increasing revenue. Historically, similar financings have led to stock price increases due to improved growth prospects.

Trading Thesis

The immediate availability of funds will support product launches in the next few quarters, directly affecting market performance soon. Quick commercialization efforts could lead to higher sales numbers shortly after launch.

Market-Moving

  • Pelthos secures $30 million funding for product commercialization.
  • Funding supports ZELSUVMI™ and other FDA-approved products.
  • Financing is minimally dilutive to existing shareholders.

Key Facts

  • Pelthos secures $30 million funding for product commercialization.
  • Funding supports ZELSUVMI™ and other FDA-approved products.
  • Financing is minimally dilutive to existing shareholders.
  • CEO emphasizes commitment to unmet treatment needs.
  • Partnership with Horizon aims for significant growth.

Companies Mentioned

  • HRZN (HRZN)

Corporate Developments

The financing not only strengthens the balance sheet but also accelerates product commercializations, likely enhancing investor sentiment. This could attract new investors looking for growth in the biopharmaceutical sector.

Pelthos Therapeutics Secures Up to $50 Million Financing to Accelerate Growth

DURHAM, N.C., January 13, 2026 (GLOBE NEWSWIRE) -- Pelthos Therapeutics Inc. (NYSE American: PTHS), a biopharmaceutical company focused on innovative therapeutic solutions, announced today the successful acquisition of up to $50 million in financing from Horizon Technology Finance Corporation (NASDAQ: HRZN). This funding aims to boost Pelthos' commercialization efforts for its lead product, ZELSUVMI™ (berdazimer) topical gel, as well as support other growth initiatives.

Details of the Financing Agreement

The financing consists of an initial funding amount of $30 million, with the option to access an additional $20 million contingent upon achieving specific performance milestones. The loan's interest rate is set at Prime plus 3.75%, which currently equates to 10.50%. Amortization of the loan will begin after 36 months, with the potential to extend the interest-only period up to 48 months based on milestone achievements.

In addition, Pelthos granted Horizon warrants to purchase 65,488 shares of its common stock at an exercise price of $27.49 per share, further solidifying their partnership.

Impact on Product Commercialization and Company Growth

Scott Plesha, CEO of Pelthos, expressed optimism about the new financing, stating, “This transaction with Horizon gives Pelthos the flexibility and resources to accelerate the commercialization of our cutaneous infectious disease product portfolio. Most importantly, it brings ZELSUVMI, the first and only FDA-approved treatment for molluscum contagiosum, to families facing this difficult infection.”

Funds will specifically support the launch of ZELSUVMI™, as well as Pelthos' other products, Xepi® and Xeglyze®. The capital raised is anticipated to boost the company's operational strategies without diluting existing shareholder equity.

Financial Health and Future Prospects

As of September 30, 2025, Pelthos reported cash and investments totaling $14.2 million, augmented by the $18.0 million raised from convertible notes issued on November 6, 2025. Frank Knuettel II, CFO of Pelthos, highlighted the company's commitment to efficient capital management: “We believe this credit facility demonstrates our intent to manage our equity capitalization efficiently, without compromising the launch of our first three products.”

Oppenheimer & Co. acted as financial advisor, while Morgan, Lewis & Bockius LLP and Sullivan & Worcester LLP served as legal advisors for Pelthos. Horizon was represented by Holland & Knight LLP.

About Pelthos Therapeutics

Pelthos Therapeutics is dedicated to developing innovative therapies that address significant unmet medical needs. Its flagship product, ZELSUVMI™ (berdazimer) topical gel, is designed for the treatment of molluscum contagiosum and received FDA approval in 2024.

For more information on Pelthos Therapeutics, visit www.pelthos.com.

About Horizon Technology Finance

Horizon Technology Finance Corporation specializes in providing secured loans to venture-backed and publicly traded companies in sectors such as technology, life sciences, and healthcare. The firm aims to maximize income returns while supporting the growth and innovation of its clients.

Forward-Looking Statements

This announcement contains forward-looking statements regarding Pelthos' expectations about its financial performance and product launches. Investors are encouraged to consider the inherent risks and uncertainties that could lead to actual results diverging from these projections.

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