Pelthos Therapeutics agrees to merge with Castle Creek Biosciences
PTHS•Pelthos Therapeutics will merge with Castle Creek Biosciences, whose stockholders will receive 5.2 million shares at closing, with up to $300 million in milestone payments and additional shares tied to potential FDA approval of D-Fi.
1. Merger terms
Castle Creek stockholders will receive 5.2 million common shares at closing, representing approximately 32.5% of fully diluted shares. FDA approval of D-Fi could trigger up to 5.8 million additional shares, and Castle Creek sellers would qualify for 80% of any proceeds from a priority review voucher sale.
2. Milestones and timing
Milestone payments could total up to $300 million, including $50 million for specified Phase 3 endpoints and up to $250 million tied to commercialization and sales. The companies expect the deal to close by the end of the first quarter of 2027, subject to customary conditions, including Castle Creek stockholder approval.
