Sol-Gel Technologies Posts Widening Losses as Q3 Revenue Contracts Sharply

AirdropCollector · 2025-12-23T13:23:13+00:00

Sol-Gel Technologies, Ltd. reported a significant net loss of $5.9 million in Q3, a sharp increase from the previous year's loss. Revenue dropped to $0.4 million, relying heavily on ex-US licensing. R&D spending increased to $5.7 million, indicating a focus on pipeline development despite challenges.

AirdropCollector

2025-12-23 13:23:13

Abstract generation in progress

Biotech firm Sol-Gel Technologies, Ltd. (SLGL) disclosed a significantly widening net loss of $5.9 million, or $2.13 per share, in the third quarter, marking a pronounced deterioration from the prior-year period’s $0.4 million loss, or $0.13 per share. The company’s quarterly revenue collapsed to just $0.4 million, plunging from $5.4 million in the comparable 2024 period.

Revenue Composition Undergoes Major Shift

The company’s drastically diminished top line now consists almost entirely of license revenue generated from ex-US licensing agreements. This contrasts starkly with last year’s more diversified revenue base, which included $0.4 million in royalty payments from Galderma, $0.6 million in royalties from Searchlight, $3.8 million derived from the Padagis partnership, and $0.5 million from ex-US licensing arrangements.

Research and Development Spending Escalates

R&D expenditures expanded to $5.7 million from $4.8 million year-over-year, reflecting the company’s intensified investment in pipeline advancement. The $0.9 million increase was primarily driven by a $0.8 million uptick in manufacturing development expenses tied to SGT-610 and a $0.7 million rise in clinical trial spending for the same candidate. These expansions were partially offset by reduced professional expenses related to ex-US commercial efforts for EPSOLAY and TWYNEO, which declined by $0.4 million, and decreased spending on generic product development initiatives, down $0.3 million.

The widening loss trajectory underscores the company’s aggressive investment posture despite contracted revenues, signaling a critical phase in its product development cycle as it prioritizes long-term pipeline strength.

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