60 Degrees Pharma targets $245 million market for babesiosis treatment

Published 15/07/2025, 12:26
60 Degrees Pharma targets $245 million market for babesiosis treatment

WASHINGTON - 60 Degrees Pharmaceuticals, Inc. (NASDAQ:SXTP) announced Tuesday it has determined the maximum commercial market for its drug ARAKODA (tafenoquine) for treatment of human babesiosis to be approximately 380,000 patients annually, representing potential sales of $245 million per year. According to InvestingPro data, analysts anticipate significant sales growth for the company, though current revenue stands at just $0.8M for the last twelve months.

The pharmaceutical company estimates a cumulative total addressable market of 1.17 million patients and $1.1 billion through patent expiration in 2035. These market projections were based on a nationwide survey of 6,000 patients and a quantitative research study involving 300 healthcare professionals conducted by independent market research firm Format Analytics. InvestingPro analysis shows the company currently maintains a strong liquidity position with a current ratio of 3.13, though it faces challenges with rapid cash burn and negative EBITDA of -$10.22M.

Human babesiosis is a tick-borne illness often found as a co-infection in patients with Lyme Disease. Currently, there are no FDA-approved treatments specifically for babesiosis.

Three company-sponsored clinical trials are underway or planned to evaluate tafenoquine’s safety and efficacy in treating humans diagnosed with babesiosis. The company expects data from one or more of these studies in the first half of 2026 and plans to submit a New Drug Application to the FDA that year.

"The full extent to which 60 Degrees Pharmaceuticals may be in a position to improve the lives of large numbers of people who suffer with babesiosis is now coming into view," said Geoff Dow, CEO of 60 Degrees Pharmaceuticals.

ARAKODA is currently FDA-approved only for malaria prophylaxis in patients aged 18 years and older. Tafenoquine has not been proven effective for treatment or prevention of babesiosis and is not approved by the FDA for such an indication.

The drug was originally discovered by Walter Reed Army Institute of Research and was approved for malaria prevention in 2018 in the United States and Australia.

The information in this article is based on a company press release statement. For deeper insights into SXTP’s financial health and growth prospects, InvestingPro subscribers have access to over 10 additional ProTips and comprehensive financial metrics, including detailed profitability analysis and Fair Value estimates.

In other recent news, 60 Degrees Pharmaceuticals announced plans to pursue a Minor Use Minor Species designation from the FDA for its tafenoquine treatment for acute canine babesiosis. The company will conduct a gap analysis of existing data before submitting the request, based on results from three clinical efficacy studies. These studies evaluated ARAKODA® (tafenoquine) for canine babesiosis and showed promising results. Additionally, 60 Degrees Pharmaceuticals has introduced a new 8-count bottle of ARAKODA® through major retail pharmacies, aimed at travelers needing malaria prophylaxis. This packaging offers a convenient option for short-term travelers to malaria-prone regions.

In analyst updates, Ascendiant Capital adjusted its outlook on 60 Degrees Pharmaceuticals by lowering the stock price target to $7.00 from $8.50, while maintaining a Buy rating. The revised target reflects a reassessment of the company’s fair value, now estimated at $10.9 million. Analysts noted a potentially larger opportunity in Babesiosis but highlighted risks such as low visibility on regulatory approval for new indications. Despite these risks, the valuation adjustment suggests a significant potential upside from the current stock price.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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