Company: PTHS
Filing Date: 2025-05-27
Form Type: DEFM14C
Source: 0001140361-25-020509
Chunk: 214

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-05-27
Form: DEFM14C
Chunk 214
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 and to M&N Sarchet for use in its financial analyses and for purposes of the Fairness Opinion (as summarized under the section entitled “ The Merger-Opinion of M&N Sarchet to the Special Committee and the Channel Board of Directors”). The LNHC Projections were the only financial projections relied upon by M&N Sarchet in rendering the Fairness Opinion.

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In considering the reasonableness of the LNHC Projections and understanding the inherent uncertainty to short- and long-range forecasting, Channel’s management performed a robust assessment that included multiple rounds of review related to key inputs and the accuracy of data that were based on currently available estimates and judgments of the management of LNHC. The uptake rate and total penetration of LNHC’s product was reflected in the probability of technical success included in the financial projections. These probabilities were determined by LNHC’s management and reviewed by Channel’s management and advisors and, in turn, reviewed and considered by the Special Committee and the Channel board of directors. The inclusion of the LNHC Projections should not be regarded as an indication that any of Channel, LNHC, their respective affiliates, officers, directors, advisors, other representatives, or any other recipient of the LNHC Projections considered, or now considers, such LNHC Projection to be necessarily predictive of actual future performance or events, or that they should be construed as financial guidance, and Channel stockholders and LNHC stockholders are cautioned not to place undue reliance on the LNHC Projections. Accordingly, the LNHC Projections are not included to influence any person’s views on the Transactions and are summarized in this information statement solely to provide access to information that was provided to the Special Committee and the Channel board of directors and to M&N Sarchet in connection with the Merger. The LNHC Projections were prepared solely for internal use and are subjective in many respects. Material assumptions that are underlying the LNHC Projections for ZELSUVMI for the treatment of Molluscum contagiosuminfections include:

| • | the LNHC revenue projections begin in 2025 and the LNHC revenue projects includes rest of world revenue starting in 2027; |

| • | The revenue model for ZELSUVMI for the treatment ofMolluscum contagiosuminfections includes rest of world revenue starting in 2027. The revenue projections assumed reaching peak penetration within 8 years of launch. After year eight, the model assumes 3.0% by the end