K.U.
Your pup will be just fine - no need to freak out. Demodectic mange is quite common and it is NOT contagious. All dogs have these skin mites and normally their immune system keeps them in check - but sometimes a puppy's immune system is immature or not quite strong enough and the mites become more numerous, resulting in areas of hair loss. If it is mild and localized to 1 or 2 small areas, sometimes treatment isn't even needed and it will resolve on it's own. Sometimes we may prescribe a topical cream that you can use. But sometimes they are not improving or the infection is more generalized and wide-spread and then oral ivermectin is the treatment of choice. Slowly increasing the dose daily, then continuing for a month or 2 is the standard recommended schedule. Demodectic mange (also called demodicosis) is diagnosed by your vet doing skin scrapes of affected areas and finding the mites under a microscope. If a dog is positive and treated with ivermectin, they should be treated until they get negative skin scrapes, and then for 1 month afterwords. Again, it is NOT contagious to other dogs or to people. Some collies and other herding breeds can be sensitive to ivermectin, but it seems to be in certain families and lines, not every individual dog. And it's normal to slowly up the dose of medication daily for the first 5 days so it's less likely to cause stomach upset.
BTW, I am a small animal veterinarian who has treated many cases of demodicosis without complications - and I can assure you, there is no reason to freak out. ;)