Pelthos Therapeutics Inc. Q4 FY2025 earnings call

• Fourth quarter 2025 had substantial demand-generated revenue growth for Zelsudmi post-launch in Q3 2025.
• Acquired two highly complementary FDA-approved products: Zepi in Nov 2025 and Zeglise in Dec 2025.
• Substantially bolstered balance sheet and reduced quarterly operating and non-GAAP net losses.
• Zelsudmi had 129% increase in prescriptions, with net product revenue rising to $9.1M in Q4 from $7.1M in Q3.
• Strong patent protection on Zelsudmi with composition of matter patent running to early 2035 and patent term extension on file.
• Zepi is complementary, treating children seen by same healthcare providers as Zelsudmi, expected to stock by end of Q4 2026 and launch Jan 2027.
• Zeglise is complementary with Zelsudmi and Zepi, requires minimal additional overhead, expected to bring to market late Q2 2027.
• Closed $18M convertible note in Nov 2025 and $15M term debt loan in Jan 2026, drawing $30M.
• Zelsudmi received positive feedback from HCPs, patients, and caregivers on ease of use and efficacy.
• Increased number of unique prescribers for Zelsudmi, with prescriptions rising strongly even in historically weak quarter for MC claims.
• Managed channel inventory closely, with inventory days on hand declining in Q4.
• Entered into commercial contract with a PBM in Q4, expanding covered lives and access to patients, with 59% coverage for commercial insurance and 99% for Medicaid.

Lead product Zelsudmi had a 129% increase in prescriptions from 2,716 units in Q3 2025 to 6,232 units in Q4 2025, driving net product revenue from $7.1 million in Q3 to $9.1 million in Q4. Net product revenue in Q3 included channel stocking with launch, while Q4 was mostly from units dispensed to customers. Inventory days on hand declined in Q4. Acquired Zepi, a novel FDA-approved topical treatment for emphytego, and Zeglise, a novel FDA-approved product for head lice. Zepi's U.S. rights acquired in Nov 2025, expected to stock by end of Q4 2026 and launch Jan 2027. Zeglise acquired in Dec 2025, expected to bring to market late Q2 2027. Cash from $18M convertible note in Nov 2025 and $15M term debt loan in Jan 2026 strengthened balance sheet.

• No discrete revenue and EPS guidance yet as still early in launch.
• Extremely confident about revenue growth trajectory.
• Additional capital from term debt gives comfort with cash balance and hitting cash flow generation goals.
• Expect GTNs to move to mid to upper 30% range going forward.
• Quarterly SG&A will rise in 2026 with increase in sales team size and launch prep for Zepi and Zeglise, but will closely manage expenses.
• Anticipate crossing over to profitability towards end of 2026 based on current business plan.

Q: For Frank, factor out components of gross to net discount increase.

A: Components include the contract signed in December impacting GTN from December, higher utilization on copay cards, and slightly higher Medicaid business than forecasted.

Q: Competitive dynamics between Pelthos and YCAM's counter-detailing.

A: Scott and Cy said they view products as different, Zelsudmi is first-line monotherapeutic option for at-home treatment vs office treatments, no counter-detailing strategy, positioned as first-line monotherapeutic option for HCPs and patients.

Q: Growth drivers in 2026 for Zelsudmi, breadth vs depth of prescribing, concentration of high decile molluscum prescriber.

A: PBM contract impact, addition of 14 reps with quick impact, prescribers growing with 4,000 unique prescribers approaching, repeat prescribers trending well. Breadth still a big component, not concentrated to one region.

Q: Unaided awareness of Zelsuvimi and where it could be when launching Zepi.

A: Executional strategy includes digital promotions and YouTube commercial driving awareness, intends to have Zelsudmi as first position when launching Zepi and beyond.

Q: Seasonality of volumes and philosophical approach to number of products in Salesforce bag.

A: Seasonality has November/December lower due to weather, but seeing trend for growth, early in launch building prescriber base. Philosophically have three complimentary products, staggering launches, evaluating Nitrosil platform long-term.

Q: Uptake with pediatricians, dermatologists, and strategy adaptation.

A: Fast adoption among dermatology community, better than expected uptake in pediatrician community, market access hurdles overcome with copay assistance, approval rates early in launch good.