Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 109

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 109
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 royalty-bearing, non-transferable right and license under certain of Novan’s intellectual property
rights, with the right to sublicense with Novan's prior written consent, to develop, use and sell products in Japan that incorporate
SB204 in certain topical dosage forms for the treatment of acne vulgaris, and to make the finished form of such products.

On
October 5, 2018, Novan and Sato entered into the second amendment (the “Sato Amendment”) to the Sato Agreement (collectively,
the “Amended Sato Agreement”). The Sato Amendment expanded the Sato Agreement to include SB206, Novan's drug candidate
for the treatment of viral skin infections. Pursuant to the Amended Sato Agreement, Novan granted to Sato an exclusive, royalty-bearing,
non-transferable license under certain of its intellectual property rights, with the right to sublicense with Novan’s prior
written consent, to develop, use and sell products in Japan that incorporate SB204 or SB206 in certain topical dosage forms for
the treatment of acne vulgaris or viral skin infections, respectively, and to make the finished form of such products.

Novan
or its designated contract manufacturer was to supply study materials to Sato for use in the development of SB204 and SB206 in
the licensed territory. The rights granted to Sato did not include the right to manufacture the API of SB204 or SB206; rather,
the parties agreed to negotiate a commercial supply agreement pursuant to which the Novan or its designated contract manufacturer
would be the exclusive supplier to Sato of the API for the commercial manufacture of licensed products in the licensed territory.
Under the terms of the Amended Sato Agreement, Novan also had exclusive rights to certain intellectual property that may be developed
by Sato in the future, which Novan could choose to use for its own development and commercialization of SB204 or SB206 outside
of Japan.

63

The
term of the Amended Sato Agreement (and the period during which Sato must pay royalties under the amended license agreement) expires
on the twentieth anniversary of the first commercial sale of a licensed product in the licensed field in the licensed territory
(adjusted from the tenth anniversary of the first commercial sale in the Sato Agreement). The term of the Amended Sato Agreement
may be renewed with respect to a licensed product by mutual written agreement of the parties for additional two-year periods following
expiration of the initial term. All other material terms of the Sato