WASHINGTON (dpa-AFX) - Ligand Pharmaceuticals Inc. (LGND) Thursday announced a definitive merger agreement with Channel Therapeutics Corp. (CHRO) to combine Ligand's wholly owned subsidiaries, Pelthos Therapeutics Inc. and LNHC, Inc. with CHRO Merger Sub Inc., a wholly owned subsidiary of Channel.
The merger will be backed by $50 million from strategic investors, with Murchinson leading the group.
Under the merger agreement, Channel, the non-opioid pain treatment therapeutics provider, will fully acquire Pelthos and rename and operate as Pelthos Therapeutics Inc.
As part of the deal, Ligand will invest $18 million, and the Investor Group will contribute $32 million, bringing the total investment to $50 million.
The new company's first focus will be on speeding up the launch of Pelthos' Zelsuvmi gel with 10.3 percent berdazimer, used to treat molluscum infections in adults and children aged one and older.
Ligand is entitled to a 13 percent royalty on Zelsuvmi and the transaction is expected to close in the summer of 2025
The new company will also continue Channel's NaV 1.7 programs, which focus on treating chronic pain, eye pain, and nerve blocks after surgery. An update on its eye pain study in animals will be shared soon.
In the pre-market trading, Ligand is 0.65% higher at $105.30 on the Nasdaq.
Wednesday, Channel had closed 3.46% lesser at $1.2550 on the New York Stock Exchange.
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