Yes, this appears to be a severe lip fold pyoderma. This is how it can be addressed:
1) Cleansing wipes (i.e., alcohol-free acne pads, baby wipes, chlorhexidine-containing pledgets, other antimicrobial wipes) used every 12-72 hours work very well.
2) Alternatively, routine topical therapy can be used to control the skin problem. The affected area should be cleaned every 1-3 days as needed with an antibacterial shampoo that contains chlorhexidine, benzoyl peroxide, or ethyl lactate. These shampoos can be found over the counter in pet/feed stores, online, or at Hattie's vet hospital.
3) Topical application of an antibiotic ointment, solution, or spray every 24 hours for the first 5-7 days of therapy may be helpful. The safe prescription mupirocin ointment is available through Hattie's vet and should be considered.
4) Surgical excision of excess skin folds is usually curative. The prognosis is good but lifelong topical maintenance therapy may be needed if surgical correction isn't performed.