NESS ZIONA - Sol-Gel Technologies, Ltd. (NASDAQ: NASDAQ:SLGL), an Israel-based dermatology company, has entered into an asset purchase agreement with Shenzhen Beimei Pharmaceutical Co. Ltd. for the commercialization of its acne treatment TWYNEO in China, Hong Kong, Macau, Taiwan, and Israel.
Under the terms of the agreement announced today, Sol-Gel will receive up to US$15 million, including US$10 million in upfront and regulatory milestone payments, as well as royalty payments on net sales.
TWYNEO, a combination of tretinoin and benzoyl peroxide, is the first and only fixed-dose acne vulgaris treatment approved by the U.S. FDA for adults and pediatric patients over nine years old. Sol-Gel's CEO, Alon Seri-Levy, Ph.D., noted that this agreement highlights the potential for TWYNEO beyond the U.S. market. He anticipates further agreements for the commercialization of TWYNEO and EPSOLAY, another FDA-approved dermatology product by Sol-Gel.
Ms. Wu Guangmei, founder and CEO of Beimei Pharma, expressed that the deal aligns with their strategy to expand in the field of dermatology and address the clinical needs of the acne market in China, particularly among adolescents.
Sol-Gel is also conducting a Phase 3 clinical trial of SGT-610 for Gorlin syndrome and has a pipeline that includes SGT-210 for rare hyper-keratinization disorders. TWYNEO and EPSOLAY are currently licensed to Galderma in the U.S. and to Searchlight in Canada.
Beimei Pharma specializes in pediatric prescription medicines and has a growing portfolio and pipeline of drugs across various therapeutic fields. The company has established partnerships with several large international pharmaceutical companies and has completed multiple rounds of financing.
The financial terms of the deal are subject to government approvals. This press release contains forward-looking statements regarding the potential of Sol-Gel's assets and the advancement of SGT-610. These statements are based on the company's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.
InvestingPro Insights
As Sol-Gel Technologies (NASDAQ: SLGL) forges ahead with its strategic partnership with Shenzhen Beimei Pharmaceutical, investors and industry observers are closely monitoring the company’s financial health and market performance. Key metrics from InvestingPro provide a snapshot of the company's current financial position:
- The company's Market Cap stands at $19.49 million USD, reflecting its valuation in the market.
- Sol-Gel's Price / Book ratio as of the last twelve months ending Q4 2023 is at 0.5, which could suggest the stock is undervalued relative to its assets.
- Despite a quarterly revenue growth of 347.0% in Q4 2023, the company's Revenue Growth over the last twelve months was -59.98%, indicating volatility in earnings.
InvestingPro Tips shed further light on the challenges and considerations for Sol-Gel:
- The company holds more cash than debt on its balance sheet, which can be a sign of financial stability.
- However, Sol-Gel is quickly burning through cash and suffers from weak gross profit margins, which are critical factors for potential investors to consider.
While the deal with Beimei Pharma may pave the way for TWYNEO's entry into the Asian market, Sol-Gel's financial data and InvestingPro Tips suggest a mixed picture. For those interested in a deeper analysis, InvestingPro offers additional insights and tips. With PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 12 InvestingPro Tips for Sol-Gel Technologies, which can help investors make more informed decisions.
For more detailed analysis and tips on Sol-Gel Technologies, visit InvestingPro.
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