Ahhh....poor baby. Hang in there, he'll get better soon.
Did the Vet give you any special shampoo?
The Coat Handler makes a Shampoo (1 to 5) and a Conditioner that is suppose to be good for issues with skin just like this. They also make a cream called Skin Works that also does wonders for these types of skin issues. I don't know if the stores carry it or not, but I have always purchased the products online. Maybe they would benefit Timmy