Pelthos Therapeutics Inc. Q1 FY2026 earnings call

Zelsumi Commercial Launch Performance

• Prescribed units increased 25% quarter-over-quarter, rising from 6,312 units in Q4 2025 to 7,884 units in Q1 2026. Month-over-month growth continued into April 2026, with prescribed units rising 14.1% to 3,776 units from 3,309 units in March 2026, hitting an all-time weekly high of 917 prescribed units for the week ending May 1, 2026.
• Unique prescribers grew from 2,377 in Q4 2025 to 3,228 by the end of Q1 2026, with 170-200 new first-time prescribers added weekly in recent months, and over 500 repeat prescribers recorded in the most recent reporting week, an all-time high. Approximately 25-27% of utilization comes from pediatricians, with the remaining 73-75% from dermatologists.
• Insurance coverage currently stands at 59% for commercial plans and 99% for Medicaid. The Q1 2026 gross-to-net (GTN) discount was 29.1%, in line with management expectations. The PBM contract executed in December 2025 has doubled dispensed units and increased prescribers by 121% within that PBM's network.
• Cumulative dispensed units since launch exceed 20,000 units. The company's main Zelsumi YouTube commercial has reached over 6.7 million total views, driving patient and caregiver inquiries to healthcare providers.

Sales Force Expansion

• The company expanded its sales force from 50 to 64 territory managers in early 2026, and the expanded sales force has already covered its incremental operating costs via increased prescription volume. Three additional targeted territories will be added by June 2026.
• All existing sales representatives will carry Zepi and Zeglyze at launch, leveraging the company's existing commercial infrastructure without requiring major incremental expansion or overhead.

Pipeline and Launch Preparation

• Zepi, an FDA-approved topical treatment for pediatric impetigo, is on track for launch in early 2027, with manufacturing scale-up and launch inventory build currently underway.
• Zeglyze, another FDA-approved product complementary to Zelsumi and Zepi, is on track for launch in mid-2027, with manufacturing currently being established.
• Both pipeline products treat conditions managed by the same healthcare providers that currently prescribe Zelsumi, allowing full leverage of existing commercial and operational infrastructure.

Balance Sheet Update

• The company closed a $50 million term debt facility in January 2026, drawing $30 million to add $27.5 million in net cash to the balance sheet after fees.
• As of March 31, 2026, Peltos holds $32 million in cash, with working capital of $44.8 million, which management confirms is sufficient to execute its current business plan.

Peltos only has one commercial product launched as of Q1 2026: Zelsumi (Zell Sue Me), which accounts for 100% of the company's net product revenue. In Q1 2026, Zelsumi generated net product revenue of $10.7 million, a 17% increase from $9.1 million in Q4 2025. Cumulative net product revenue for Zelsumi across the three quarters since its July 2025 launch totals $26.9 million, consisting of $7.1 million in Q3 2025, $9.1 million in Q4 2025, and $10.7 million in Q1 2026. Cost of goods sold for Q1 2026 was $1.7 million, flat compared to Q4 2025. Zepi and Zeglyze are still in pre-launch preparation and have not generated any revenue as of Q1 2026.

• No discrete full-year revenue or earnings guidance is provided at this early stage of Zelsumi's launch.
• Management expects gross-to-net discounts will increase to the mid-30% range in the future as the company pursues additional payer contracts, and views mid-30% as the long-term steady state for GTN discounts.
• The stepped-up fair value inventory from the July 2025 merger is expected to be fully consumed by late summer 2026 for finished goods, and 12-15 months later for active pharmaceutical ingredient inventory. Once this inventory is fully utilized, normalized per-unit cost of goods sold is expected to be a mid-single digit percentage of the current WAC price.
• Quarterly cash-basis SG&A (excluding royalties) will fluctuate throughout 2026 as the company continues investing in Zelsumi growth and prepares Zepi and Zeglyze for launch.
• Management confirms it is confident in Zelsumi's ongoing revenue growth trajectory, and the current cash balance provides sufficient runway to execute the company's business plan through upcoming product launches.

• Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from management's current expectations, including potential delays in Zepi and Zeglyze manufacturing scale-up or launch timelines.
• GTN discounts could increase faster or higher than expected if the company is required to negotiate more favorable contract terms with additional payers to secure broad access.
• Seasonal factors, severe weather, and office closures can negatively impact quarterly prescription volume, as seen with January 2026 severe weather that disrupted operations.
• Growth in pediatrician adoption of Zelsumi may take longer than expected due to historical wait-and-see treatment paradigms for Molluscum contagiosum.
• The company's cash runway depends on actual Zelsumi revenue growth performance, and slower-than-expected growth could require additional capital raising to fund pipeline launch activities.

Q: Can you quantify repeat prescriber levels, and when do you expect to hit the mid-30% gross-to-net discount range? / A: Management reports 170-200 new first-time prescribers are added weekly, and the most recent week hit an all-time high of 500 repeat prescribers. Repeat prescribing is growing in line with overall script volume, with increased adoption across all prescriber volume bands, including those who have written over 100 units since launch. Gross-to-net was 29.1% in Q1 2026, which is better than expected; the mid-30% target includes headroom for an additional large payer contract, but timing of that move is still being evaluated.

Q: What is the long-term steady-state gross-to-net, what are your plans for further sales force expansion ahead of Zepi and Zeglyze launches, and what is your appetite for future complementary product acquisitions? / A: Management confirms mid-30% GTN is the expected long-term steady-state, and the company does not anticipate needing more than one additional major payer contract beyond current arrangements. The existing 64-person sales force will carry all three products, with only 3 new targeted territories added by June 2026; no large-scale expansion is needed for Zepi and Zeglyze. Management will only pursue disciplined acquisitions of products that fit its existing pediatric dermatology focused strategy, with current priority focused on launching Zelsumi, Zepi, and Zeglyze rather than near-term M&A.

Q: What is the current split of Zelsumi utilization between dermatologists and pediatricians, and what is your plan for commercial infrastructure investment ahead of the two new product launches? / A: Current utilization is 25-27% pediatric and 73-75% dermatologist, in line with historical treatment patterns where dermatologists have traditionally treated most Molluscum contagiosum cases. Commercial investment will focus on low-cost, high-impact non-personal promotion such as targeted digital content for providers and patients, plus thought leadership engagement and upcoming publications for Zepi and Zeglyze, with most resources still allocated to Zelsumi commercial execution.

Q: Will the Zelsumi utilization mix shift to more pediatricians over time, and what opportunity exists to shift treatment from dermatologists to frontline pediatricians? / A: Pediatric utilization growth is already ahead of management's expectations, and the company expects the pediatric share to grow over time. Historically, pediatricians used a wait-and-see approach rather than active treatment, and Zelsumi's FDA-approved at-home safety profile provides a new, acceptable option that aligns with patient and parent demand for treatment. The company is already working with dermatologists to refer frontline treatment to pediatricians, which aligns with dermatologists' preference to avoid low-margin MC cases, supporting faster pediatric adoption.