Pelthos Therapeutics (AMEX:PTHS) reported first-quarter financial results on Thursday. The transcript from the company’s first-quarter earnings call has been provided below.
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View the webcast at https://viavid.webcasts.com/starthere.jsp?ei=1761761&tp_key=d31924f2e0
Summary
Pelthos Therapeutics Inc reported strong revenue growth with a 17% increase in net product revenue for Q1 2026 compared to Q4 2025, driven by an increase in prescriptions of their lead product, Zelseubemi.
The company expanded its sales force from 50 to 64 representatives and executed a contract with a major pharmacy benefit manager, boosting demand for Zelseubemi.
Future plans include the launch of two FDA-approved products, Zeppi and Zeglais, in early and mid-2027 respectively, leveraging the existing sales infrastructure.
Pelthos Therapeutics Inc secured a $50 million term debt loan in January 2026 to support ongoing and future product launches.
Management is optimistic about continued growth and has not provided specific revenue guidance but feels confident about their financial trajectory and market opportunities.
Full Transcript
Mike Moyer (Moderator)
Good morning everyone and welcome to Pelthos Therapeutics Inc 2026 first quarter financial results Conference Call. Peltos issued a press release today announcing its financial results for the quarter ended March 31, 2026. A copy can be found in the investor relations tab on the corporate website, www.peltos.com. before we begin, I’d like to remind you that during today’s call, statements about the Company’s future expectations, projections, plans and prospects are forward looking statements. These forward looking statements are based on management’s current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from our current expectations expressed or implied by the forward looking statements. Any such forward looking statements represent management’s estimates as of the date of this conference call. While the Company may elect to update such forward looking statements at some point in the future, it disclaims any obligation to do so even if subsequent events cause its views to change. As a reminder, this conference call is being recorded and will remain available for 90 days. I’d now like to turn the floor over to Scott Plesha, Chief Executive Officer. Sir, you may begin.
Scott Plesha (Chief Executive Officer)
Thank you, Mike and good morning everyone. We’re delighted to be with you today and to share with you our first quarter 2026 operating results and highlights. Joining me today are John Gay, our Chief financial officer, and Cy Rangero, our chief commercial officer. The first quarter of 2026 was a successful one for Peltos with strong execution and progress made in several key areas that I’ll share at a high level with you. First, we experienced substantial revenue growth driven by increased prescriptions of our lead products, Zelsuvemi, during its third quarter since its launch. Next, we completed the expansion and optimization of our sales force from 50 sales representatives to 64. We believe that the expansion of our sales force and the contract we executed with a major pharmacy benefit manager in December 2025 have been important catalysts in demand for Zelsuvemi since January. Within this PBM units dispensed have doubled and the number of Prescribers has increased 121%. Finally, we continue to make progress in establishing the manufacturing of our two other highly complementary products, Zeppi and Zeglis. John and Sai will provide a more detailed look at the quarter Zelsumi launch metrics and reported financial results, but I’d like to share a brief overview of our results of operations. Our top line results were driven by a 25% increase in prescription units as reported by Symphony Health, which increased from 6,312 units in the fourth quarter of 2025 to 7,884 units in the first quarter of 2026. This drove an increase in net product revenue from $9.1 million during the fourth quarter of 2025 to 10.7 million in the first quarter of 2026. Importantly, we achieved this growth with only a minimal increase in wholesaler inventory while reducing the days on hand by more than one week from the end of Q4 2025 to the end of Q1 2026. As a reminder, Zelsuvemi is a novel topical nitric oxide releasing product indicated for the treatment of molluscum contagiosum or MC in patients 1 year of age and older for up to 12 weeks. Zelsuvemi is an important advancement in the treatment of MC as it’s the first and only FDA approved therapy that can be applied by parents, patients or caregivers in the home or on the go. We believe the opportunity to treat MC at home and without the need for an in office procedure has been and will continue to be a key driver of Zelsuvemi demand. We are pleased with the growth delivered in Q1 and are confident we can build on our momentum as units dispensed during April 2026 increased to 3776 from 3309 units in March 2026, a 14.1% month to month increase. Regarding Zepi and Zeglis Zepi is a novel FDA approved topical treatment for Empetigo that addresses a critical unmet needed antibiotic resistant skin infections by staph and strep infections most commonly affecting children. Empetigo is the most common skin infection in children seen by pediatricians with approximately 3 million patients diagnosed with this bacterial infection each year. We believe Zeppi is a highly complementary product as it mostly treats children that are managed by the same healthcare providers as Zelsuvemi. Importantly, this allows us to leverage our commercial infrastructure including our expanded sales force. We continue to focus on establishing the manufacturing process and building launch inventory. Expect to launch zeppi in early 2027. With respect to Zeglais, Zegleyes is a novel FDA approved product that is highly complementary to Zelsumi and Zeppi and is expected to require minimal incremental overhead to commercialize. At the operational level, we are standing up manufacturing for Zeglais and expect to bring it to market in mid-2027. Both Zeppe and Zeglais will have meaningful call overlap for existing sales force, providing the company with greater operational and financial leverage from our existing team and infrastructure. Supporting our continued launch execution of Zelsumi and the launch preparation of Zeppe and Zeglais, we closed a $50 million term debt loan in January 2026 of which we drew $30 million. This additional capital strengthens our balance sheet and together with expected revenue growth supports our in summary, we are pleased with the strong response from health care professionals to Zelsumi as demonstrated by the more than 20,000 units dispensed since its launch in July of 2025. We continue to plan for the upcoming launches of Zeppi and Zeglais, two complementary FDA approved products. We’ll continue to evaluate and optimize our commercial strategy to drive sustainable long term shareholder value. I’ll now turn it over to SY to provide more specifics on the results of the Xelsumi launch and key performance indicators.
Cy Rangero (Chief Commercial Officer)
Thank you Scott Good morning everyone. I’m pleased to provide an Update on our Q1 2026 Zelsuvemi performance. Our progress to date continues to deliver better than expected results in just our third quarter since launch for Q1 2026, shipments and prescriptions were ahead of expectations. On the qualitative side, we continue to receive very positive feedback from HCPs, patients and caregivers on the ease of use and efficacy of Zelsuvemi. Getting into prescription details the number of prescriptions rose a very strong 25% from 6,312 in Q4 2025 to 7,884 prescribed units in Q1 2026 and the number of unique prescribers rose from 2,377 in the fourth quarter 2025 to 3,228 by the end of the first quarter, with both sets of data reported in Symphony Health data. We are pleased with our sales force ability to drive a significant increase in prescriptions in Q1 despite seasonal dynamics at the start of the year and severe weather conditions disrupting operations in January. Our belief remains strong that celsuve ME is revolutionizing the treatment of MC and is becoming the first line treatment of choice for many HCPs and patients. We affirm this confidence with the increased utilization of Zelsuvie in April 2026 prescribed units in April were 3776 versus 3309 in March. We continue to see weekly highs in our prescribed units with our latest data week ending May 1st hitting an all time high of 917 prescribed units. Our coverage for ZELSUVMI remains strong in 2026. As of today we have a 59% coverage rate for commercial insurance plans and an incredible 99% coverage rate for Medicaid. This is a testament to the fact that Zelsuvemi, as the first FDA approved at home treatment for EBC, is being adopted as a first line treatment option and is being well received by HCPs and coverage providers. As previously announced, we executed a contract with a large PBM to remove friction and help gain access to zelsugmi for many patients. This effort has continued to help many patients gain rapid access to Zelsuvemi for Medicaid coverage. A large number of states do not require a prior authorization. For other states that require a pa, Medicaid only requires a prior authorization written to label, meaning that a patient over one year of age presenting with MC qualifies for coverage. We also continue to have very good gross to nets or GTNs. Our current GTNs largely revolve around distribution costs, Medicaid discounts, payer contracts and our copay voucher program. It is our goal to pay down with the copay card program so the prescription costs are $0 or close to zero for the patient in most instances. For the first quarter of 2026 we had favorable GTNs of 29.1% in line with our expectations and going forward we are expecting our GTNs to move to the mid 30% range. Next, I would like to provide an update on our sales team. As mentioned previously, we commenced the launch of Zelsuvi in July 2025 with 50 territory managers placing them in locations based on the ICD10 data of most prevalent MC cases. We then announced an expansion of an additional 14 territory managers in Q4 2025 in metropolitan areas not previously supported by the original sales footprint. Q1 data suggests that this is a highly effective expansion as prescriptions in many of those territories have jumped markedly to the point where in a very short time they have covered the costs of their sales efforts entirely. We continue to grow awareness and utilization for Zelsuvemi as the first only at home prescription treatment option for MC through various channels and venues, our Zelsuvmi YouTube commercial continues to be very successful with more than 6.7 million total views. This unique and informative short form video has prompted parents and caregivers, along with adult patients to ask their hcps about Celsus Me. To further our digital outreach, we launched a new YouTube video in April featuring a real patient testimonial including a young patient and a renowned pediatric dermatologist. This effort helps educate parents and caregivers on the benefits of treating MC with zellsuven. The video and others like it to follow also help hcps understand the significant benefits Zelsuvemi can provide for their patients very quickly. We will also continue to attend key conferences throughout 2026 educating HCPs on featured benefits of Xelsuviny for their patients. Our attendance and presentations at these meetings have garnered significant attention and generated vast HCP leads resulting in significant prescriptions from many new prescribers. We continue to build off our great tactical platform along with strong execution of our sales team to grow Zelsudni. I’m very pleased with our strong performance to date alongside our highly passionate, dedicated and hard working commercial team and with that I now turn the call over to John to discuss our financials. John
John Gay (Chief Financial Officer)
thank you Cy Good morning everyone. I am pleased to be with you on today’s call and thank you for joining us. As Scott and Cy have already touched on, we continue to see increasing demand for our flagship products el suit me as demonstrated with our growing pull through and dispensed units to date. Please note that my comments will focus on our first quarter 2026 results and as compared to the fourth quarter of 2025 as the first quarter of 2025 is not comparable due to the timing of our merger in July of last year. For the first quarter of 2026 we reported 10.7 million of net product revenue, representing a 17% increase from the fourth quarter of 2025. With today’s filings, including our quarterly report on Form 10Q also filed this morning, we have now completed and reported on three full fiscal quarters of commercialization efforts for Zelsuzme. While these quarters straddle two fiscal years, we have reported in aggregate 26.9 million of net product revenue for the three fiscal quarters since commercial launch of Zilsudemi in July of 2025. This amount is comprised of our net product revenue from the third and fourth quarters of fiscal 2025 of 7.1 million and 9.1 million respectively plus 10.7 million of net product revenue for the first fiscal quarter of 2026. In both the first quarter of 2026 and fourth quarter of 2025, cost of goods sold was 1.7 million. During the fourth quarter of 2025, write offs of …
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