Company: PTHS
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001753926-25-000503
Chunk: 259

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 259
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 result, we may forego or delay pursuit of opportunities with other of our
compounds or for other indications that later prove to have greater commercial potential. Our resource allocation decisions may
cause us to fail to timely capitalize on viable commercial products or profitable market opportunities. Our spending on current
and future research and development programs and our lead compounds for specific indications may not yield any commercially viable
products. If we do not accurately evaluate the commercial potential or target market for a particular compound, we may relinquish
valuable rights to that compound through collaboration, licensing or other royalty arrangements in cases in which it would have
been more advantageous for us to retain sole development and commercialization rights to such compound.

If
we are not successful in discovering, developing and commercializing additional compounds, our ability to expand our business
and achieve our strategic objectives would be impaired.

Although
a substantial amount of our effort initially focuses on developing CC8464, CT2000 and CT3000 towards approval in the U.S. and
other countries, an additional component of our strategy is to discover, develop and potentially commercialize a portfolio of
compounds to treat orphan diseases and potentially, non-orphan diseases. Identifying new compounds requires substantial technical,
financial and human resources, whether any other compounds are ultimately identified. We may not be able to identify new molecules
with the potential for clinical development and ultimate approval. Even if we identify new compounds that initially show promise,
we may fail to successfully develop and commercialize such new compounds for many reasons, including the following:

    ●
    the research methodology
    used may not be successful in identifying potential new compounds;

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    ●
    competitors may
    develop alternatives that render our compounds obsolete;

    ●
    new compounds we
    develop may nevertheless be covered by third parties’ patents or other exclusive rights;

    ●
    a new compound may,
    on further study, be shown to have harmful side effects or other characteristics that indicate it is unlikely to be effective
    or otherwise does not meet applicable regulatory criteria;

    ●
    a new compound may
    not be capable of being produced in commercial quantities at an acceptable cost, or at all; and

    ●
    a new compound may
    not be accepted as safe and effective by patients, the medical community or third-party payors.

If
we are unsuccessful in identifying and developing additional new compounds, our potential for growth may be impaired.

We
face significant competition in an environment of rapid technological change and