Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 110

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 110
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 Agreement remain unchanged by the Sato Amendment.

Sato
is responsible for funding the development and commercial costs for the program that are specific to Japan. Novan was obligated
to perform certain oversight, review and supporting activities for Sato, including: using commercially reasonable efforts to obtain
marketing approval of SB204 and SB206 in the United States and sharing all future scientific information Novan may obtain during
the term of the Amended Sato Agreement pertaining to SB204 and SB206; and participating in a joint committee that oversees, reviews
and approves Sato’s development and commercialization activities under the Amended Sato Agreement. Additionally, Novan has
granted Sato the option to use the Novan’s trademarks in connection with the commercialization of licensed products in the
licensed territory for no additional consideration, subject to the Novan’s approval of such use.

Prior
to the Merger on July 1, 2025, on March 24, 2025, LNHC assigned the Sato Agreement to Ligand, however, LNHC assumed certain contractual
liabilities and obligations under the Sato Agreement and certain ancillary and supportive agreements related to the Sato Agreement.
In consideration of LNHC addressing these contractual obligations, Ligand is obligated to pass-through all future payments received
from Sato to LNHC.

Reedy
Creek

On
April 29, 2019, Novan entered into a royalty and milestone payments purchase agreement (the “Reedy Creek Purchase Agreement”)
with Reedy Creek, pursuant to which Reedy Creek provided funding to Novan in an amount of $25.0 million for it to pursue the development,
regulatory approval and commercialization activities (including through out-license agreements and other third-party arrangements)
for SB206, a topical gel with anti-viral properties being developed as a treatment for molluscum, and advancing programmatically
such activities with respect to SB204, a once-daily, topical monotherapy being developed for the treatment of acne vulgaris, and
SB414, a topical cream-based product candidate being developed for the treatment of atopic dermatitis. If Novan were to have successfully
commercialized any such product, following regulatory approval, it was obligated to pay Reedy Creek a low single digit royalty
on net sales of such products in the United States, Mexico or Canada.

Pursuant
to the Reedy Creek Purchase Agreement, Novan was obligated to pay Reedy Creek ongoing quarterly payments, calculated based on
an applicable