WASHINGTON - 60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW), a company specializing in the development of treatments for infectious diseases, has announced a significant increase in its financial results for the second quarter of 2024, which ended on June 30, 2024.
The company reported a year-over-year doubling of its net product revenues, reaching $125 thousand for the quarter, with an 18.3% growth compared to the previous quarter. This increase is primarily attributed to a 288% rise in pharmacy deliveries of their malaria prevention drug, ARAKODA®, from 331 boxes in the second quarter of 2023 to 1,301 boxes in the corresponding period of 2024.
Gross profit for the quarter stood at approximately $35 thousand, a notable improvement from the gross loss of $124 thousand reported in the second quarter of the previous year. However, operating expenses saw a substantial increase to approximately $4.22 million, up from $0.67 million in the second quarter of 2023. The spike in expenses included a non-recurring, non-cash, R&D charge of $2.63 million.
Despite the increase in revenues, the net loss attributable to common shareholders widened to approximately $4.29 million, or ($4.23) per share, compared to a net loss of approximately $3.34 million, or ($16.84) per share, in the same period last year.
In terms of business developments, 60 Degrees Pharmaceuticals enrolled the first patient in a clinical trial of tafenoquine for Babesiosis at Tufts Medical Center and received FDA Orphan Drug Designation for the treatment of acute babesiosis.
The company, which was founded in 2010, has been supported by in-kind funding from the U.S. Department of Defense and private institutional investors, including Knight Therapeutics Inc. It achieved FDA approval for ARAKODA® in 2018 and collaborates with various research organizations globally.
While the press release includes forward-looking statements about the company's future, these are based on current expectations and are subject to risks, uncertainties, and changes that could cause actual results to differ materially. The information in this article is based on a press release statement.
In other recent news, 60 Degrees Pharmaceuticals has been making significant strides in the development of treatments for infectious diseases. The University of Kentucky, in collaboration with Eisai Co (OTC:ESAIY). Ltd., is set to begin a Phase IIb clinical trial for a novel treatment for vivax malaria, with 60 Degrees Pharmaceuticals supplying the previously approved anti-malarial drug tafenoquine. Concurrently, the company declared a 1-for-12 reverse stock split to comply with Nasdaq's minimum bid price requirement.
Moreover, 60 Degrees Pharmaceuticals secured a contract with the United States Army Medical Materiel Development Activity for the commercial validation of new packaging for its malaria prevention drug, ARAKODA. The company also initiated a clinical trial to evaluate the efficacy and safety of tafenoquine in treating babesiosis, an emerging tick-borne disease.
In the corporate governance realm, shareholders approved several significant proposals, including the election of five board members and amendments to the equity incentive plan and certificate of incorporation. Ascendiant Capital continues to maintain its Buy rating on 60 Degrees Pharmaceuticals, following a strong first-quarter performance. These developments highlight the company's ongoing efforts in the field of infectious diseases.
InvestingPro Insights
As 60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW) navigates the competitive landscape of infectious disease treatments, the latest financial data from InvestingPro provides a nuanced view of the company's performance and market position. With a reported revenue of $0.38 million for the last twelve months as of Q1 2024, the company has seen a quarterly revenue growth of a staggering 580.65%, reflecting the significant increase in sales mentioned in their recent press release.
However, despite these revenue gains, the company's gross profit margin stands at a concerning -262.72%, underscoring the challenges it faces in translating top-line growth into bottom-line results. This is echoed in the company's operating income margin of -1463.65% for the same period, indicating substantial operational costs relative to income.
InvestingPro Tips highlight that while 60 Degrees Pharmaceuticals holds more cash than debt on its balance sheet, indicating a solid liquidity position, analysts are wary of the company's profitability. They do not anticipate the company will be profitable this year and expect a drop in net income. Moreover, the stock has experienced a significant return over the last week, with a 19.81% total return, yet has fared poorly over the last month, with a -54.18% total return, reflecting the volatile nature of the stock's performance.
For those interested in a deeper analysis, InvestingPro offers additional insights on 60 Degrees Pharmaceuticals, with a total of 16 InvestingPro Tips available to guide investors' decisions. These tips, which can be found at https://www.investing.com/pro/SXTP, provide a comprehensive look at the company's financial health and market prospects.
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