60 Degrees Pharmaceuticals closes $5 million public offering

WASHINGTON - 60 Degrees Pharmaceuticals, Inc. (NASDAQ:SXTP), a pharmaceutical company focused on infectious disease treatments, announced today the closing of its previously announced public offering that raised $5 million in gross proceeds. The announcement comes as the company’s stock trades at $1.66, down nearly 73% year-to-date, according to InvestingPro data.

The offering consisted of 2,631,578 shares of common stock (or pre-funded warrants) with accompanying Series A-1 and Series A-2 warrants, priced at $1.90 per share. Both warrant series have an exercise price of $1.90 per share, with Series A-1 warrants expiring in five years and Series A-2 warrants in 18 months.

If all Series A-2 warrants are fully exercised, the company could receive approximately $5 million in additional gross proceeds, though there is no guarantee of exercise.

H.C. Wainwright & Co. served as the exclusive placement agent for the offering, which was conducted through a registration statement declared effective by the Securities and Exchange Commission on July 15.

The company intends to use the net proceeds for working capital and general corporate purposes, according to the press release statement.

60 Degrees Pharmaceuticals specializes in developing treatments for infectious diseases and received FDA approval for its lead product, ARAKODA (tafenoquine), for malaria prevention in 2018. The company is headquartered in Washington D.C. with a majority-owned subsidiary in Australia.

The company noted in its announcement that there is substantial doubt about its ability to continue as a going concern, highlighting financial challenges despite the new funding.

In other recent news, 60 Degrees Pharmaceuticals announced that it has identified a potential market of $245 million annually for its drug ARAKODA (tafenoquine) aimed at treating human babesiosis, with a cumulative market opportunity of $1.1 billion through 2035. The company is conducting three clinical trials to evaluate the drug’s safety and efficacy for babesiosis, with data expected in 2026. Additionally, 60 Degrees Pharmaceuticals plans to seek FDA approval for a Minor Use Minor Species (MUMS) designation for tafenoquine as a treatment for acute canine babesiosis. This follows promising results from clinical studies on dogs, indicating the drug’s potential effectiveness against the disease. The company also introduced new packaging for ARAKODA, offering an 8-count bottle through major retail pharmacies, including Amazon Pharmacy, to cater to travelers needing malaria prophylaxis. Meanwhile, Ascendiant Capital revised its price target for 60 Degrees Pharmaceuticals, lowering it to $7 from $8.50, but maintained a Buy rating, citing a potentially larger opportunity in the babesiosis market. Despite the positive outlook, the analysts noted risks related to regulatory approvals and potential financing activities.

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