Company: PTHS
Filing Date: 2025-05-09
Form Type: PREM14C
Source: 0001140361-25-018219
Chunk: 83

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-09
Form: PREM14C
Chunk 83
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 products. Product liability claims could delay or**

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prevent completion of its development programs, clinical or otherwise. If Channel succeeds in marketing and selling products, such claims could result in a recall of any products or a limitation or other change in the indications for which they may be used. If Channel cannot successfully defend itself against claims that its compounds or drugs caused injuries, Channel will incur substantial liabilities. Depending on their merit or eventual outcome, liability claims may result in:

| • | decreased demand for any product candidates or drugs that Channel may develop; |

| • | injury to Channel’s reputation and significant negative media attention; |

| • | withdrawal of clinical trial participants; |

| • | significant costs to defend the related litigation; |

| • | substantial monetary awards paid to trial participants or patients. |

| • | loss of revenue; |

| • | reduced resources of our management to pursue our business strategy; and |

| • | the inability to commercialize any products that it may develop. |

In addition, Channel currently does not have product liability insurance, but plan to obtain such insurance at appropriate levels prior to initiating studies in humans or clinical trials and prior to marketing and selling any drug or device products. Any insurance it obtains may not provide sufficient coverage against potential liabilities. These liabilities could prevent or interfere with its product development and commercialization efforts. Furthermore, if Channel was unable or otherwise failed to obtain and maintain sufficient insurance at a reasonable cost to protect it against any such liabilities, that inability could have a material adverse effect on its business. Risks Related to Channel Intellectual Property If Channel is unable to obtain and maintain adequate U.S. and foreign patent protection for its compounds, including CC8464, CT2000 and CT3000, or if the scope of the patent protection obtained is not sufficiently broad, its competitors could develop and commercialize products and technologies similar or identical to Channel’s, and its ability to successfully commercialize CC8464, CT2000, CT3000 and any of its other current or future compounds may be adversely affected. Channel’s success depends, in large part, on its ability to obtain and maintain patent protection in the United States and other countries with respect to CC8464, CT2000 and CT3000, additional new compounds in its product pipeline, and its institutional knowledge. The patent prosecution process is expensive, time- consuming and complex. In particular, Channel may not be able to file, prosecute, maintain, and/or enforce all necessary or