Sol-Gel Technologies (SLGL) Q3 2024 earnings summary

Executive summary

• Mori Arkin appointed interim CEO effective January 1, 2025, replacing founder Dr. Alon Seri-Levy, who will remain as consultant for at least one year.

• Ongoing Phase 3 trial of SGT-610 for Gorlin Syndrome with over 40 clinical sites activated; top-line results expected H2 2026.

• SGT-210 proof-of-concept study in Darier disease continues, with potential IND filing in Q2 2025.

• New and expanded licensing agreements for TWYNEO and EPSOLAY in Europe, South Africa, and South Korea, with launches expected in 2026–2027.

• Nasdaq listing transferred to Capital Market to secure additional compliance period for minimum bid price rule.

Financial highlights

• Q3 2024 revenue was $5.4 million, up from $0.2 million in Q3 2023, mainly from licensing agreements.

• Net loss for Q3 2024 was $0.4 million ($0.01 per share), a significant improvement from $5.7 million ($0.21 per share) in Q3 2023.

• Research and development expenses were $4.8 million, up slightly from $4.7 million year-over-year, reflecting increased clinical and commercialization costs offset by cost-saving measures.

• General and administrative expenses decreased to $1.4 million from $1.9 million year-over-year due to lower professional and payroll expenses.

• As of September 30, 2024, cash, cash equivalents, deposits, and marketable securities totaled $29.2 million, expected to fund operations into Q1 2026.

Outlook and guidance

• Anticipates upfront and milestone payments of up to $3.7 million from new licensing agreements, with annual royalty revenue from TWYNEO and EPSOLAY projected to reach $1–2 million in 2026 and up to $10 million by 2030.

• SGT-610 Phase 3 top-line results expected in H2 2026; SGT-210 IND filing anticipated in Q2 2025.

• Cash runway projected to last into the first quarter of 2026.