JUPITER, Fla. & DURHAM, N.C. - Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) has announced the formation of Pelthos Therapeutics, a new biopharmaceutical subsidiary, and the appointment of Scott Plesha as its CEO. The company is gearing up to commercialize its lead product, ZELSUVMI™ (berdazimer) topical gel, 10.3%, a molluscum contagiosum treatment, with an expected release in late 2024.
ZELSUVMI, which targets a viral skin infection prevalent in adults and children over one year old, has been recognized by the U.S. Food and Drug Administration with a Novel Drug designation. It stands out as the first FDA-approved topical prescription medication for molluscum contagiosum that can be administered at home. The product stems from Pelthos’ proprietary nitric oxide-based technology, NITRICIL™.
Scott Plesha brings over three decades of pharmaceutical industry experience to Pelthos, including a successful tenure at BioDelivery (NASDAQ:BDSI) Sciences where, as President and Chief Commercial Officer, he oversaw a growth in sales from $5 million to $160 million. Ligand CEO Todd Davis expressed confidence in Plesha's leadership and the commercial potential of ZELSUVMI.
Ligand's strategy involves partnering with capital providers or strategic partners to commercialize products like ZELSUVMI, in exchange for equity and royalty rights. This approach has previously led to the creation of Viking Therapeutics (NASDAQ:VKTX), Primrose Bio, and OmniAb®.
The information in this article is based on a press release statement from Ligand Pharmaceuticals.
InvestingPro Insights
As Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) prepares to launch its subsidiary Pelthos Therapeutics and the new molluscum contagiosum treatment, ZELSUVMI™, investors may be interested in some key financial metrics and insights from InvestingPro. With a market capitalization of approximately $1.3 billion, Ligand is trading at a high EBITDA valuation multiple, reflecting a premium that the market is placing on the company's earnings before interest, taxes, depreciation, and amortization.
InvestingPro data shows that Ligand has a Price/Earnings (P/E) ratio of 24.15, which escalates to 95.5 when adjusted for the last twelve months as of Q4 2023. This high adjusted P/E ratio suggests that investors have high expectations for the company's future earnings. The Gross Profit Margin for the same period stands at a healthy 73.31%, indicating that the company retains a significant portion of its revenue after accounting for the cost of goods sold.
Two InvestingPro Tips for Ligand include that the company holds more cash than debt on its balance sheet, and its cash flows can sufficiently cover interest payments. These tips suggest that Ligand is in a strong financial position to manage its debt and finance its operations, which could be reassuring for investors considering the company's potential growth and profitability.
For those interested in further insights, InvestingPro offers additional tips on Ligand, such as the company's liquid assets exceeding its short-term obligations and analysts predicting profitability for the year. To explore these insights and more, prospective investors can visit https://www.investing.com/pro/LGND. Moreover, by using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 8 InvestingPro Tips that could help inform their investment decisions.
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