Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 74

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 74
---
. The existing data for reimbursement based on some of these metrics is relatively limited, although certain states have begun to survey acquisition cost data for the purpose of setting Medicaid reimbursement rates, and the Centers for Medicare & Medicaid Services (“CMS”) has begun making pharmacy National Average Drug Acquisition Cost and National Average Retail Price data publicly available on at least a monthly basis. Therefore, it may be difficult to project the impact of these evolving reimbursement metrics on the willingness of payors to cover candidate products that Channel or its partners are able to commercialize. Channel expects to experience pricing pressures in connection with the sale of any of its product candidates due to the trend toward managed healthcare, the increasing influence of health maintenance organizations

40

#### TABLE OF CONTENTS
and additional legislative changes. The downward pressure on healthcare costs in general, particularly prescription drugs and surgical procedures and other treatments, has become intense. As a result, increasingly high barriers are being erected to the entry of new products such as Channel’s.

### Risks Related to Channel’s Business Operations
**Channel may not be successful in its efforts to identify or discover additional compounds and may fail to capitalize on programs or compounds that may be a greater commercial opportunity or for which there is a greater likelihood of success.

Beyond the development and commercialization of CC8464, CT2000 and CT3000, the future success of Channel’s business depends upon its ability to identify, develop and commercialize compounds based on the platform technology. CC8464, along with CT2000 and CT3000, which were derived from CC8464, was discovered in its labs using its technologies. Research programs to identify new compounds will require to invest substantial technical, financial and human resources. Channel may fail to identify other potential compounds for clinical development for several reasons. For example, its research may be unsuccessful in identifying potential compounds or its potential compounds may be shown to have harmful side effects, may be commercially impracticable to manufacture or may have other characteristics that may make the products unmarketable or unlikely to receive marketing approval.

Additionally, because Channel has limited resources, it may forego or delay pursuit of opportunities with certain programs or compounds or for indications that later prove to have greater commercial potential. Its spending on current and future research and development programs may not yield any commercially viable products. If Channel does not accurately evaluate the commercial potential for a particular compound, it may relinquish valuable rights to that compound through strategic collaboration, licensing or other arrangements in cases in which it would have been more advantageous for it to retain sole development and commercialization rights