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NESS ZIONA, Israel - Sol-Gel Technologies Ltd. (NASDAQ: SLGL), a dermatology-focused clinical-stage company, has announced a financial boost through a product purchase agreement with Mayne Pharma Group Limited (ASX: MYX). According to InvestingPro data, Mayne Pharma currently holds more cash than debt on its balance sheet, with a current ratio of 2.93. The deal, involving the sale and exclusive U.S. licensing rights for EPSOLAY and TWYNEO, will provide Sol-Gel with $16 million in two payments during 2025. This strategic move is expected to extend the company’s cash runway into the first quarter of 2027.
EPSOLAY and TWYNEO are topical treatments for rosacea and acne vulgaris, respectively, utilizing proprietary technology to encapsulate active ingredients, enhancing their effectiveness. With this agreement, following the termination of a previous license with Galderma, Sol-Gel shifts its focus to the development of SGT-610, a hedgehog signaling pathway blocker potentially serving as a preventative treatment for basal cell carcinomas in Gorlin syndrome patients. Mayne Pharma, trading near its 52-week high according to InvestingPro analysis, shows mixed financial health indicators with an overall weak rating based on comprehensive metrics.
Sol-Gel’s optimism is buoyed by a significant enrollment milestone in the Phase III clinical trial of SGT-610, with top-line results anticipated in the fourth quarter of 2026. The company estimates the U.S. market potential for SGT-610 to be between $400 and $500 million annually, based on independent market research.
The company also provided updates on its SGT-210 Phase 1b trial for Darier disease, with half of the participants having completed the trial. Sol-Gel is preparing for a Phase 2 IND filing in the second quarter of 2025, pending positive trial outcomes.
As of March 31, 2025, Sol-Gel reported a total balance of $16.9 million, with no marketable securities. This financial position, bolstered by the agreement with Mayne Pharma, aims to support the completion of the SGT-610 Phase III trial and further the development of SGT-210. Mayne Pharma’s market capitalization stands at $7.25 million, with analysts anticipating continued challenges in profitability this year. Get deeper insights into both companies’ financial health metrics and more exclusive analysis with InvestingPro, which offers over 10 additional key insights for informed investment decisions.
The press release also mentions ongoing efforts to establish a commercial network for Epsolay and Twyneo outside the U.S., with several partnerships already in place, suggesting potential for global business growth.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. These include regulatory milestones, the success of clinical trials, and market acceptance of the company’s product candidates. Sol-Gel’s statements are forward-looking and actual results could vary materially.
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