NESS ZIONA, Israel - Sol-Gel Technologies, Ltd. (NASDAQ:SLGL), a company specializing in dermatological treatments, today announced a forthcoming change in its executive leadership.
Dr. Alon Seri-Levy, the current Chief Executive Officer, has expressed his intention to resign from his role as CEO and from the Board of Directors by the end of the year, contingent on shareholder approval as per Israeli law. Following his departure on December 31, 2024, Dr. Seri-Levy will continue to support the company through a one-year consulting agreement.
The company also declared the appointment of Mr. Eyal Ben-Or as the new Chief Financial Officer, effective last Friday. Mr. Ben-Or, who has been with Sol-Gel since May 2017, previously held the position of Director of Finance and before that, Corporate Controller.
His prior experience includes financial reporting roles at Mobileye N.V. and several positions within the assurance department at KPMG Israel. Mr. Ben-Or is a certified public accountant and holds an M.B.A. in financial management and a B.A. in accounting.
Mr. Ben-Or will be succeeding Mr. Gilad Mamlok, who will assist with the transition until the end of 2024. The company's Chairman of the Board, Mr. Mori Arkin, expressed gratitude to Dr. Seri-Levy for his leadership and to Mr. Mamlok for his financial guidance. He also welcomed Mr. Ben-Or's appointment, highlighting his extensive experience and expressing confidence in his ability to contribute to Sol-Gel's continued growth.
Sol-Gel Technologies has been recognized for its development of FDA-approved dermatology products, TWYNEO® and EPSOLAY®, and its successful initial public offering in the U.S. The company is currently conducting a Phase 3 clinical trial of SGT-610 for Gorlin syndrome and investigating SGT-210 for rare hyper-keratinization disorders.
The information in this article is based on a press release statement from Sol-Gel Technologies.
In other recent news, dermatology-focused pharmaceutical company, Sol-Gel Technologies, faces potential delisting from the Nasdaq due to non-compliance with the minimum bid price rule. The company has been given 180 days to raise its share price and regain compliance.
Concurrently, Sol-Gel has entered into an asset purchase agreement with Shenzhen Beimei Pharmaceutical for the commercialization of its acne treatment, TWYNEO, in China, Hong Kong, Macau, Taiwan, and Israel. This deal could potentially bring in up to $15 million in upfront and regulatory milestone payments, as well as royalties on net sales.
On the analyst front, H.C. Wainwright has lowered its price target for Sol-Gel Technologies shares to $6.00 from $9.00, while maintaining a Buy rating. The firm cited a slower revenue ramp and lower peak sales as the reasons for this adjustment.
Sol-Gel is also conducting a Phase 3 clinical trial for SGT-610, a potential treatment for Gorlin syndrome, and researching SGT-210 for rare hyper-keratinization disorders. These developments are part of the company's strategy to expand its product reach and global footprint.
InvestingPro Insights
As Sol-Gel Technologies (NASDAQ:SLGL) navigates through a period of executive transition, the company's financial health and market performance remain pivotal for investors. According to InvestingPro data, Sol-Gel holds a market capitalization of 26.74 million USD, showcasing the scale of the company within the biotech industry.
Despite its innovative strides in dermatology, the company's financial metrics indicate challenges, with a negative price-to-earnings (P/E) ratio of -1.15 for the last twelve months as of Q1 2024, reflecting the market's concerns over profitability.
The revenue for the same period stands at 1.72 million USD, with a stark revenue decline of 62.92% when compared to the previous year. This contraction underscores the need for strategic financial management amidst the executive reshuffling. Moreover, the company's gross profit margin at -1033.72% during the last twelve months as of Q1 2024, suggests significant cost management hurdles that the incoming CFO, Mr. Eyal Ben-Or, will need to address.
In terms of market dynamics, Sol-Gel's stock has witnessed a notable return over the last week, with a 13.65% increase in price total return. This short-term performance may reflect investor optimism about the company's future under new financial leadership.
Still, it is important to note that analysts do not anticipate the company will be profitable this year, as per InvestingPro Tips. Additionally, the company's liquid assets do exceed short-term obligations, indicating a degree of financial flexibility in the near term.
Investors and prospective shareholders can find more insights and a total of 9 additional InvestingPro Tips for Sol-Gel Technologies, which could help in making more informed investment decisions. To access these insights, visit https://www.investing.com/pro/SLGL and remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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