Sol-Gel Reports Third Quarter 2025 Financial Results and Provides Corporate Updates

Core Insights - Sol-Gel Technologies, Ltd. reported financial results for Q3 2025, highlighting a significant decrease in total revenue compared to the same period in 2024, primarily due to lower licensing revenue [6][8] - The company is advancing its late-stage pipeline, particularly focusing on SGT-610 for Gorlin syndrome and exploring its potential for high-frequency basal cell carcinoma (BCC) [4][5] - Sol-Gel has secured additional partnerships and regulatory approvals, which are expected to enhance its revenue streams and market presence [3][5] Financial Performance - Total revenue for Q3 2025 was $0.4 million, a decrease from $5.4 million in Q3 2024, with the previous revenue primarily derived from various licensing agreements [6] - Research and development expenses increased to $5.7 million in Q3 2025 from $4.8 million in Q3 2024, attributed to higher manufacturing and clinical trial costs [7] - The company reported a net loss of $5.9 million for Q3 2025, compared to a net loss of $0.4 million in Q3 2024, resulting in a loss of $2.13 per share [8] Corporate Developments - Sol-Gel is pursuing high-frequency BCC as an additional indication for SGT-610, which could potentially double the drug's commercial value if approved [5] - The company received Health Canada approval for EPSOLAY in September 2025 and signed a licensing agreement with Viatris for commercialization in Australia and New Zealand [5][6] - Sol-Gel's ongoing Phase 3 trial for SGT-610 is expected to yield top-line results in Q4 2026, with growing interest from physicians regarding its use in severe BCC cases [4][5] Market Outlook - Sol-Gel anticipates that TWYNEO and EPSOLAY will launch in new territories by 2028 and 2027, respectively, with projected annual royalty revenue reaching approximately $10 million by 2031 [3] - The company aims to leverage its partnerships to unlock the value of its approved products and create non-dilutive revenue streams [4][5] - The market for SGT-610 and SGT-210 is expected to grow, particularly in the context of rare dermatological diseases, with a focus on addressing significant unmet medical needs [6][12]