UPDATE: Sol-Gel Reports Second Quarter 2024 Financial Results and Provides Corporate Updates

Core Insights - Sol-Gel Technologies is extending its cash runway into Q1 2026 following recent transactions and cost-cutting measures [1] - The company is conducting a Phase 3 clinical trial for SGT-610 targeting Gorlin Syndrome, with topline results expected by Q2 2026 [1][2] - Sol-Gel has signed multiple licensing agreements for its products TWYNEO and EPSOLAY in Europe and South Africa, with plans for further expansion into Latin America and other regions [2][5] Financial Performance - Total revenue for Q2 2024 was $5.4 million, a significant increase from $0.6 million in Q2 2023 [6] - Research and development expenses decreased to $2.4 million from $5.3 million in the same period last year, attributed to various cost-saving measures [7] - The company reported a net income of $1.9 million for Q2 2024, compared to a net loss of $6.0 million in Q2 2023 [8] Clinical Developments - The Phase 3 study for SGT-610 is ongoing with approximately 140 subjects involved, and results are anticipated in Q2 2026 [2][5] - A proof-of-concept study for SGT-210 in Darier disease is also in progress, targeting a market potential of $200 million to $300 million [3][5] Management Changes - Mr. Mori Arkin is set to become the interim CEO as of January 1, 2025, pending shareholder approval, following a management realignment [4] - The current CEO, Dr. Alon Seri-Levy, will step down at the end of 2024 but will continue as a consultant for at least one year [4] Licensing and Market Expansion - Sol-Gel has signed six initial license agreements for TWYNEO and EPSOLAY, expecting upfront and milestone payments of up to $3.7 million [2] - The company anticipates launching TWYNEO and EPSOLAY in new territories by 2027 and 2026, respectively, with projected annual royalty revenues starting at $1 million to $2 million in 2026 and growing to approximately $10 million by 2030 [2]