Pelthos Therapeutics Targets Antibiotic Resistance with Xepi Acquisition

SAN DIEGO, CA – November 7, 2025 – Pelthos Therapeutics, Inc. today announced the acquisition of U.S. commercialization rights for Xepi (ozenoxacin) cream, a non-fluorinated quinolone antimicrobial indicated for the topical treatment of impetigo. The move comes as concerns grow regarding antibiotic resistance and the need for alternative treatment options, and is coupled with an $18 million funding round. The acquisition strategically expands Pelthos’ dermatology portfolio, alongside its recently approved treatment for molluscum contagiosum.

Impetigo, a common skin infection primarily affecting children, is increasingly becoming resistant to traditional antibiotic treatments. The Centers for Disease Control and Prevention (CDC) has reported a significant rise in antibiotic-resistant strains of bacteria causing the infection, prompting a search for alternative therapeutic options. “We are seeing a worrying trend of impetigo becoming harder to treat with common antibiotics,” said a dermatology expert, speaking on background. “New options like Xepi are crucial to maintaining effective treatment options.”

Addressing a Growing Need

Xepi represents a different approach to treating impetigo. Its mechanism of action differs from traditional antibiotics, offering a potential solution to combat resistant strains. The acquisition allows Pelthos to address a critical unmet need in pediatric dermatology while also capitalizing on a growing market for innovative treatment options. “This acquisition isn’t just about adding another product to our pipeline,” explained a Pelthos representative. “It’s about delivering a solution that addresses a real and growing public health concern.”

Why Xepi Struggled Previously

Despite FDA approval in 2017, Xepi’s commercial success under its previous owner, Biofrontera, was limited. Research indicates that Biofrontera struggled with effective marketing and distribution in the competitive U.S. pharmaceutical market. “Biofrontera has a different strategic focus and limited resources,” explained an industry analyst. “They struggled to gain traction with Xepi despite its potential.”

“The previous marketing strategy lacked sufficient reach and didn’t adequately communicate Xepi’s unique benefits to physicians and parents,” one healthcare professional commented anonymously. “Many were simply unaware of it as a viable treatment option.”

Pelthos: A Stronger Commercial Partner?

Pelthos appears well-positioned to overcome these challenges. The company’s robust financial backing, demonstrated by the recent $18 million funding round led by Ligand Pharmaceuticals and Murchinson Ltd., provides the resources necessary for a comprehensive commercial launch. Ligand and Murchinson have a strong track record of successful investments in biopharmaceutical companies, suggesting confidence in Pelthos' ability to execute its growth strategy.

“Pelthos has a dedicated dermatology sales team and a proven ability to launch and commercialize new products,” a source close to the company stated. “They are committed to ensuring that Xepi reaches the patients who need it most.”

The company also benefits from a streamlined product portfolio focused specifically on dermatological conditions. This allows them to dedicate resources and expertise to maximizing the potential of Xepi and other pipeline products.

The Financial Details
The acquisition agreement includes an upfront payment of $3.0 million to Biofrontera, with an additional $1.2 million contingent upon achieving specific milestones. Pelthos will also be responsible for paying royalties on future sales of Xepi. Ferrer Internacional, the other party involved in the deal, will continue to benefit from a royalty stream, reflecting their prior investment in the product.

Looking Ahead

Pelthos plans to immediately begin ramping up commercial activities for Xepi, including physician detailing, marketing campaigns, and patient education initiatives. The company expects to see a significant increase in sales over the next 12-18 months. “We are confident that Xepi will become a valuable addition to the dermatologist’s toolkit for treating impetigo,” the Pelthos representative said. “We are committed to making this innovative therapy available to patients across the country.”

The company also intends to explore potential combination therapies and expand the use of Xepi to treat other skin infections. “We see significant opportunities to unlock the full potential of this product and address a broader range of unmet needs in dermatology,” said a Pelthos scientist. “We are committed to continuous innovation and delivering meaningful benefits to patients.”

The acquisition of Xepi represents a strategic win for Pelthos Therapeutics, solidifying its position as a growing leader in the dermatology space. By tackling the growing threat of antibiotic resistance and providing a novel treatment option for impetigo, the company is poised to deliver value to both patients and shareholders.

The implications of this deal stretch beyond the company, showcasing a proactive approach to combating antibiotic resistance and highlights the importance of investing in innovative therapies. As resistance continues to grow, solutions like Xepi are pivotal in safeguarding effective treatments for common infections and safeguarding public health.