• Sol-Gel Technologies is a specialty pharmaceutical company that acts like the dedicated dermatology innovation arm of a major player like AbbVie or Eli Lilly, but as an independent company using its own proprietary drug delivery technology.
• They're a biotech company focused on using a unique drug delivery platform to create better skin treatments, similar to how Moderna uses its mRNA platform to develop vaccines and other therapies.

• TWYNEO: A topical cream approved for the treatment of acne vulgaris in patients 9 years of age and older.
• EPSOLAY: A topical cream approved for the treatment of inflammatory lesions of rosacea in adults.
• SGT-501: An investigational topical roflumilast cream currently in Phase 3 clinical trials for the treatment of papulopustular rosacea.
• SGT-210: An investigational topical clindamycin phosphate and benzoyl peroxide gel for the treatment of acne vulgaris.

Sol-Gel Technologies (SLGL) primarily sells its products to other companies (B2B) rather than directly to individuals. The company focuses on developing and manufacturing dermatology-focused pharmaceutical products, which are then commercialized and distributed through strategic partnerships.

Based on their recent financial filings, the major customers of Sol-Gel Technologies are:

• Galderma: Galderma is Sol-Gel's primary commercialization partner for its key branded products, Twyneo (for acne) and Epsolay (for rosacea), in the United States. Galderma is responsible for the marketing, selling, and distribution of these products. For the years ended December 31, 2023 and 2022, sales to Galderma represented a significant majority of Sol-Gel's total revenues. (Galderma is a private company.)
• Padagis: Sol-Gel has agreements with Padagis for the development and potential commercialization of certain generic pharmaceutical products. (Padagis is a private company.)

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Mori Arkin, Chief Executive Officer, Chairman
Appointed CEO in January 2025. Mr. Arkin directly owns 70% of the company's shares.

Eyal Ben-Or, Chief Financial Officer
Joined Sol-Gel in 2017, serving as Director of Finance and Corporate Controller before his appointment as CFO in July 2024. Prior to Sol-Gel, he held financial reporting roles at Mobileye N.V. from 2014 to 2017 and served in various capacities within the assurance department of KPMG Israel from 2010 to 2014. Mr. Ben-Or is a certified public accountant and holds an MBA in financial management and a BA in accounting and business administration.

Michael Glezin, Chief Business Officer

Dr. Itzik Yosef, Chief Operating Officer

Dr. Ofra Levy-Hacham, VP, Clinical and Regulatory Affairs

Sol-Gel Technologies (SLGL) has several main products and product candidates with estimated addressable markets:

• Twyneo (tretinoin, 0.1%, and benzoyl peroxide, 3%, cream): This topical cream is indicated for the treatment of acne vulgaris in adults and pediatric patients aged 9 years and older.
  • **U.S. Market:** Estimated peak sales potential of $350 million to $400 million.
• Epsolay (benzoyl peroxide cream, 5%): This topical cream is used for the treatment of inflammatory lesions of rosacea in adults.
  • **U.S. Market:** Estimated peak sales potential of $75 million to $100 million.
• SGT-610 (Patidegib Gel 2%): This is a new chemical entity hedgehog signaling pathway blocker, currently in Phase 3 trials, for the chronic use and prevention of new basal cell carcinomas in Gorlin syndrome patients.
  • **U.S. Market:** The U.S. market potential is estimated to be between $400 million and $500 million annually.
• SGT-210 (topical erlotinib): This topical drug candidate is in Phase 1b trials for the treatment of Darier disease and other rare keratosis-related indications.
  • **U.S. Market:** Estimated market potential of $200 million to $300 million for Darier disease. An older estimate from 2021 suggested a market opportunity of $500 million in the United States if approved for palmoplantar keratoderma, with additional potential outside the U.S.

Here are the expected drivers of future revenue growth for Sol-Gel Technologies (SLGL) over the next 2-3 years:

1. International Commercialization of TWYNEO® and EPSOLAY®: Sol-Gel Technologies anticipates revenue growth from the launch and commercialization of its approved dermatology products, TWYNEO and EPSOLAY, in new territories outside the U.S. The company has signed licensing agreements for these products in most European countries and South Africa, with additional agreements being negotiated for Latin America and other regions. These launches are expected to commence in 2026 for EPSOLAY and 2027 for TWYNEO, projected to generate an annual royalty revenue stream starting with approximately $1 million to $2 million in 2026 and growing gradually to up to $10 million by 2030.

2. Launch of SGT-610 for Gorlin Syndrome: SGT-610 (patidegib gel, 2%), a topical treatment for Gorlin syndrome, is a significant pipeline asset. The pivotal Phase 3 clinical trial has completed patient enrollment, with top-line results anticipated in the fourth quarter of 2026. If approved, SGT-610 would be the first product designed to prevent new basal cell carcinoma lesions in Gorlin syndrome patients, targeting a market estimated to exceed $300 million annually.

3. Development of SGT-210 for Darier Disease: Sol-Gel Technologies is conducting a proof-of-concept study for SGT-210 (topical erlotinib) in patients suffering from Darier disease. This addresses a significant unmet medical need in dermatology, with an estimated market potential between $200 million and $300 million.

4. Royalty Revenue from Generic Zoryve® Cream: A new agreement with Padagis concerning a generic version of Zoryve® Cream (roflumilast cream 0.3%) is expected to contribute to future revenue. This agreement includes unconditional quarterly payments over 24 months and low single-digit royalties from gross profits from sales of the roflumilast cream for a period of five years.

Share Issuance

• In May 2025, Sol-Gel Technologies implemented a 10-for-1 reverse share split of its ordinary shares, which reduced the number of outstanding shares from approximately 27.9 million to 2.8 million. This action was primarily taken to increase the per-share market price and maintain compliance with Nasdaq's minimum bid price requirement.
• In 2021, Sol-Gel Technologies raised total net proceeds of $505,413 through an at-the-market (ATM) offering, by selling 41,154 shares at an average price of $12.66 per share.

Inbound Investments

• In April 2025, Sol-Gel Technologies entered into a product purchase agreement with a subsidiary of Mayne Pharma Group Limited for the sale and exclusive license of the U.S. rights to EPSOLAY and TWYNEO. Under this agreement, the company expects to receive a total of $16 million in two installments: $10 million received in the second quarter of 2025 and $6 million expected in the fourth quarter of 2025.
• Under a 2023 licensing agreement with Searchlight Pharma, the exclusive Canadian licensee for TWYNEO and EPSOLAY, Sol-Gel Technologies is eligible to receive up to $11 million in combined milestone payments, in addition to tiered royalties on net sales.
• In 2021, Sol-Gel Technologies announced an agreement with Padagis to unconditionally receive $21.5 million over 24 months, in lieu of its share in future gross profits for acyclovir cream and ivermectin cream and potential gross profits for eight unapproved generic programs.

Capital Expenditures

• Research and development expenses for Sol-Gel Technologies significantly increased to $8.8 million in the first quarter of 2025, primarily due to manufacturing development efforts for SGT-610 and commercialization costs for EPSOLAY and TWYNEO outside the U.S.
• As of March 28, 2022, Sol-Gel Technologies expected its cash resources to fund operational and capital expenditure requirements through the end of 2023.