Pelthos Therapeutics Inc. 2026 Q2 Earnings Call

You may begin. Good morning, everyone, and welcome to Pelthos Therapeutics' 2026 second quarter financial results conference call.

Pelthos issued a press release today announcing its financial results for the quarter ended June 30, 2026. A copy can be found in the investor relations tab on the company's corporate website at www.pelthos.com. Before we begin, I'd like to remind you that during today's call, statements about the company's future expectations, projections, plans, and prospects are forward-looking statements. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties, and other important factors that may cause the company's actual results, performance, or achievements to be materially different from the company's current expectations expressed or implied by the forward-looking statements. Any such forward-looking statements represent management's estimates as of the date of this conference call.

Scott, you may begin. Thank you, Mike, and good morning, everyone.

We're delighted to be with you today and share with you our second quarter 2026 operating results and highlights. Joining me today are John Gay, our Chief Financial Officer, and Sai Rangarao, our Chief Commercial Officer. The second quarter of 2026 was a successful one for Pelthos, with a strong execution and progress made in several key areas that I'll share at a high level with you. First, we experienced substantial revenue growth driven by increased prescriptions of our lead product, ZELSUVMI, in its fourth quarter since launch. Next, the contract we executed with a major pharmacy benefit manager at the end of last year has been an important catalyst in demand for ZELSUVMI. Within this PBM, units dispensed increased 81.3% during the quarter, while the number of prescribers increased 68%.

We continue to explore additional contracting options to further our reach and market penetration. Finally, we continue to make progress in establishing the manufacturing of our two other highly complementary products, XEPI and XEGLYZE. John and Sai will provide a more detailed look at the quarter's ZELSUVMI launch metrics and reported financial results. I'd like to share a brief overview of our results of operations. Our top-line results were driven by a 48% increase in prescriptions units as reported by Symphony Health, which increased from 8,084 units in the first quarter of 2026 to 11,925 units in the second quarter of 2026. This drove an increase in net product revenue from $10.7 million during the first quarter of 2026 to $15.4 million in the second quarter of 2026.

Importantly, we achieved this growth with only a minimal increase in wholesale inventory while reducing days on hand by approximately 3 days from the end of Q1 2026 to the end of Q2 2026. As a reminder, ZELSUVMI is a novel topical nitric oxide-releasing product indicated for the treatment of molluscum contagiosum, or MC, in patients one year of age and older for up to 12 weeks. ZELSUVMI is an important advancement in the treatment of MC, as it's the first and only FDA-approved therapy that can be applied by parents, patients, or caregivers in the home or on the go. We believe the opportunity to treat MC at home and without the need for an in-office procedure has been and will continue to be a key driver of ZELSUVMI demand. We are pleased with the growth delivered in Q2 and are confident in our future performance.

Our belief remains strong that ZELSUVMI is revolutionizing the treatment of MC and is becoming the first-line treatment of choice for many HCPs and patients. This is supported by the recent August 2026 Journal of Drugs in Dermatology, JDD, publication titled "Molluscum Contagiosum in the Pediatric Population: Expert Consensus Guidance on Prevention and Treatment," which includes berdazimer 10.3% gel, ZELSUVMI, as the only at-home available treatment option for MC that can provide clinically meaningful clearance rates, and when combined with supportive management, provides an opportunity to improve outcomes and quality of life for children with MC. These landmark guidelines represent a significant advancement in the management of MC, and we're committed to ensuring they are appropriately communicated to healthcare professionals who treat MC.

Regarding XEPI and XEGLYZE, XEPI is a novel FDA-approved topical treatment for impetigo that addresses a critical unmet need in antibiotic-resistant skin infections caused by staph and strep infections, most commonly affecting children. Impetigo is the most common skin infection in children seen by pediatricians, with approximately 3 million patients diagnosed with this bacterial infection each year. We believe XEPI is a highly complementary product as it mostly treats children that are managed by the same healthcare providers as ZELSUVMI. Importantly, this allows us to leverage our commercial infrastructure, including our expanded sales force.

We continue to focus on establishing the manufacturing process and building launch inventory and expect to launch XEPI in the first quarter of 2027. With respect to XEGLYZE is a novel FDA-approved product indicated for the treatment of head lice in patients 6 months of age or older that is highly complementary to ZELSUVMI and XEPI, and is expected to require minimal incremental overhead to commercialize. At the operational level, we are standing up manufacturing for XEGLYZE and expect to bring it to market in the third quarter of 2027. Both XEPI and XEGLYZE will have meaningful call overlap for existing sales force, providing the company with greater operational and financial leverage from our existing team and infrastructure. In summary, we are pleased with the strong response from healthcare professionals to ZELSUVMI, as demonstrated by the more than 30,000 units dispensed since its launch in July of 2025.

We continue to plan for the upcoming launches of XEPI and XEGLYZE, two complementary FDA-approved products. We'll continue to evaluate and optimize our commercial strategy to drive sustainable long-term shareholder value. I'll now turn it over to Sai to provide more specifics on the results of the ZELSUVMI launch and key performance indicators.

Thank you, Scott. Good morning, everyone. I'm pleased to provide an update on our Q2 2026 ZELSUVMI performance. Our progress to date continues to deliver better than expected results in our first full year or four full quarters since launch. For Q2 2026, shipments and prescriptions continue to track ahead of expectations. We also continue to receive very positive feedback from several prescribers regarding the ZELSUVMI clinical profile and ease of use. We now have more than 8,000 unique HCP prescribers in our latest data. We remain confident that ZELSUVMI is revolutionizing the treatment of MC, as evidenced by the increased utilization of ZELSUVMI. In the first full year since its commercial launch in July 2025, more than 25,000 patients have been prescribed ZELSUVMI. This is an incredible milestone for ZELSUVMI and Pelthos.

Getting into the prescription details for Q2 2026, the number of prescriptions rose a very strong 48%, from 8,084 in Q1 to 11,925 prescribed units in Q2. The number of unique prescribers also rose from 3,288 in the first quarter to 4,571 by the end of the second quarter, with both sets of data reported in Symphony's metadata. Prescribed units in July were 4,299 versus 4,208 in June. With typical seasonality and summer scheduling dynamics for HCPs and patients, performance between June and July was in line with our expectations. We continue to feel confident about our growth potential in Q3. We also continue to see weekly highs in prescribed units with our latest data for the week ending July 31st, reaching an all-time high of more than 1,000 units dispensed of ZELSUVMI. Our coverage for ZELSUVMI remains strong in 2026.