Sol-Gel Reports Third Quarter 2024 Financial Results and Provides Corporate Updates

Core Insights - Sol-Gel Technologies, Ltd. has appointed Mori Arkin as interim CEO effective January 1, 2025, replacing founder Dr. Alon Seri-Levy, who will continue as a consultant for at least one year [2] - The company is conducting a Phase 3 clinical trial of SGT-610 for Gorlin Syndrome, with over 40 clinical sites activated and top-line results expected in the second half of 2026 [2][4] - Financial results for Q3 2024 show total revenue of $5.4 million, a significant increase from $0.2 million in Q3 2023, primarily driven by licensing revenue [5] Corporate Developments - The transfer of Sol-Gel's Ordinary Shares from The Nasdaq Global Market to The Nasdaq Capital Market was approved, effective November 15, 2024, to provide a second 180-day compliance period for the minimum bid price rule [2] - A new agreement with Padagis will enhance Sol-Gel's cash position by approximately $6 million through eight quarterly payments and low single-digit royalties from sales of a generic drug product [2] - Sol-Gel signed a license agreement for the commercialization of TWYNEO and EPSOLAY in South Korea, with expected upfront and regulatory milestone payments of up to $3.7 million [2] Clinical Trials and Product Pipeline - The Phase 3 study of SGT-610 is ongoing with approximately 140 subjects enrolled across 40 clinical centers, targeting a market exceeding $300 million annually if approved [2][4] - The proof-of-concept study for SGT-210 in patients with Darier disease is also ongoing, with a market potential estimated between $200 million to $300 million [2][4] - SGT-210 is currently being used in a compassionate use treatment for a pediatric patient, showing promising preliminary results [3] Financial Performance - Research and development expenses for Q3 2024 were $4.8 million, slightly up from $4.7 million in Q3 2023, primarily due to increased clinical trial expenses [6] - General and administrative expenses decreased to $1.4 million from $1.9 million in the same period last year, attributed to cost-saving measures [7] - The net loss for Q3 2024 was $0.4 million, a significant improvement compared to a net loss of $5.7 million in Q3 2023 [8] Cash Position - As of September 30, 2024, Sol-Gel had $14.6 million in cash and cash equivalents, and $14.6 million in marketable securities, totaling $29.2 million [8] - The company expects its cash resources to fund operations into the first quarter of 2026 [8]