Company: PTHS
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001753926-25-001764
Chunk: 44

Company: Pelthos Therapeutics Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 44
---
 had progressed the development of that in-licensed intellectual property
portfolio from the UNC License Agreement and obtained 12 U.S. patents, in addition to two U.S. patents obtained with the original
UNC License Agreement, resulting in a total of 14 issued U.S. patents covering ZELSUVMI. These 14 U.S. patents are expected to
expire during the time period beginning in 2026 and ending in 2035. Upon the initial FDA approval of ZELSUVMI, LNHC applied for
1,280 days of patent term extension (“PTE”), for the U.S. patent covering ZELSUVMI compositions. Assuming grant of
the PTE application, the term of this patent may be extended from February 27, 2034, to August 30, 2037.

    28

Ligand
Royalty Agreement 

Under
the terms of the ZELSUVMI License, Ligand is entitled to (i) a 13% royalty on worldwide sales, excluding, Japan, of ZELSUVMI prior
to the expiration of the initial royalty term, defined as on a country-by-country basis, the period of time commencing on the
effective date and continuing until the expiration or termination of the last to expire valid claim of the patent rights that
are included in the specified intellectual property and that cover the licensed product; (ii) a 10.4% royalty on worldwide sales,
excluding, Japan, of ZELSUVMI after the expiration of the initial royalty term; (iii) upon the first commercial sale of the Zelsuvmi,
a $5,000 milestone; (iv) upon the occurrence obtaining a threshold of $35,000 in aggregate net sales during four consecutive calendar
quarters, a $5,000 milestone; and (vi) 30% of all non-royalty sublicense income received by the Company or its affiliates from
any sublicensee. The first commercial sale milestone has been accrued within accrued expenses on the condensed consolidated balance
sheets as of September 30, 2025.

Ligand
may terminate the ZELSUVMI License on 30 days’ prior notice to the Company if (i) the Company fails to launch ZELSUVMI in
the U.S. by December 31, 2025; (ii) the Company fails to use commercially reasonable efforts to enter into an agreement with a
third-party to commercialize ZELSUVMI in France, Germany, Italy, Spain and the