NESS ZIONA, Israel - Sol-Gel Technologies Ltd. (NASDAQ: NASDAQ:SLGL), a dermatology-focused pharmaceutical company, has been granted an additional 180 days to meet Nasdaq's minimum bid price requirement, the company announced Monday. The extension, which lasts until May 19, 2025, provides Sol-Gel with more time to lift its share price above the $1.00 threshold required for continued listing on the Nasdaq Capital Market.
The company, which is known for its FDA-approved dermatology products TWYNEO® and EPSOLAY®, as well as its Phase 3 clinical trial candidate SGT-610 for Gorlin syndrome, was initially listed on the Nasdaq Global Market. On November 15, 2024, Sol-Gel transitioned its listing to the Nasdaq Capital Market after submitting an application and receiving approval.
According to Nasdaq's rules, if Sol-Gel's ordinary shares maintain a closing bid price of at least $1.00 for ten consecutive business days during the new compliance period, the company will receive written confirmation of compliance, effectively resolving the issue. Sol-Gel has indicated its willingness to consider various strategies, including a potential reverse stock split, to address the minimum bid price deficiency.
The company's pipeline also includes SGT-210, a topical drug under investigation for rare hyper-keratinization disorders. Sol-Gel's focus remains on developing treatments for skin diseases and providing innovative solutions for patients with severe skin conditions.
This news is based on a press release statement from Sol-Gel Technologies. The company's ability to regain compliance with Nasdaq's listing requirements and the success of its product candidates and clinical trials are forward-looking statements subject to various risks and uncertainties.
InvestingPro Insights
As Sol-Gel Technologies (NASDAQ: SLGL) navigates its Nasdaq listing challenges, recent InvestingPro data provides additional context to the company's financial situation. With a market capitalization of just $12.01 million, Sol-Gel is currently operating in micro-cap territory, which aligns with the stock's struggle to maintain the $1.00 minimum bid price.
Despite the listing concerns, InvestingPro Tips reveal that Sol-Gel "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." These factors could provide the company with some financial flexibility as it works to address its share price issues.
However, the company faces significant headwinds. An InvestingPro Tip indicates that Sol-Gel is "quickly burning through cash," which could be a concern for investors considering the company's need to fund ongoing clinical trials and product development. Additionally, the stock has "taken a big hit over the last week," with a 1-week price total return of -18.68%, reflecting the market's current sentiment.
On a positive note, analysts anticipate sales growth in the current year, which could potentially help improve investor confidence. The company's revenue growth is particularly striking, with a 2416.9% increase reported for the most recent quarter. However, this growth hasn't translated to profitability yet, as evidenced by the negative gross profit margin of -43.31% and operating income margin of -96.71% for the last twelve months.
The stock's current price of $0.43 is significantly below the fair value of $5.00 based on analyst targets, suggesting potential upside if the company can overcome its current challenges. Investors considering Sol-Gel may want to weigh these factors carefully and might benefit from the additional 12 InvestingPro Tips available for a more comprehensive analysis of the company's prospects.
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