Sol-Gel Technologies (SLGL) Q2 2024 earnings summary

Executive summary

• Cash runway extended into Q1 2026 following cost-cutting and recent transactions.

• Ongoing Phase 3 trial for SGT-610 in Gorlin Syndrome; top-line results expected by Q2 2026.

• SGT-210 proof-of-concept study in Darier disease continues, targeting a $200–$300M market.

• Signed new licensing agreements for TWYNEO and EPSOLAY in Europe and South Africa; more deals in negotiation.

• Management realignment: Mr. Mori Arkin to become interim CEO in January 2025, pending shareholder approval.

Financial highlights

• Q2 2024 revenue was $5.4M, up from $0.6M in Q2 2023, mainly from licensing.

• Net income of $2.0M in Q2 2024 vs. net loss of $6.0M in Q2 2023; EPS $0.07 vs. $(0.22).

• R&D expenses dropped to $2.4M from $5.3M year-over-year due to cost-saving measures.

• G&A expenses decreased to $1.4M from $1.8M year-over-year.

• Cash, equivalents, and marketable securities totaled $30.5M as of June 30, 2024.

Outlook and guidance

• Cash resources expected to fund operations into Q1 2026; exploring non-dilutive funding to extend runway.

• Anticipates $3.7M in upfront and milestone payments from new licensing deals.

• Royalty revenue from new territories projected to reach $1–2M in 2026, growing to ~$10M by 2030.

• TWYNEO and EPSOLAY launches in new territories expected in 2026–2027.

• SGT-610 Phase 3 top-line results expected Q2 2026; SGT-210 Phase 2 IND filing anticipated Q2 2025.