Sol-Gel Reports First Quarter 2026 Financial Results and Provides Corporate Updates
Rhea-AI Summary
Sol-Gel (NASDAQ: SLGL) reported Q1 2026 revenue of $0.1 million, down from $1.0 million in Q1 2025, and a net loss of $3.7 million ($1.31 per share), versus a $8.8 million loss a year earlier.
Research and development expenses fell to $2.8 million from $8.8 million. Cash, deposits and marketable securities totaled $52.8 million as of March 31, 2026, which is expected to fund operations into Q1 2028.
Recent milestones include a Notice of Allowance for a method-of-use patent protecting SGT-610 until 2044, an oversubscribed $33.1 million underwritten offering, ongoing Phase 3 development of SGT-610 in Gorlin syndrome with top-line results anticipated in Q4 2026, and an exclusive TWYNEO® commercialization license in India with Sun Pharma plus broader global partnership expansion.
AI-generated analysis. Not financial advice.
Positive
- Notice of Allowance extends SGT-610 method-of-use patent protection in the U.S. until 2044
- Oversubscribed underwritten offering raised approximately $33.1 million in gross proceeds
- Total cash, deposits and marketable securities of $52.8 million at March 31, 2026
- Company expects cash resources to fund requirements into the first quarter of 2028
- R&D expenses decreased to $2.8 million from $8.8 million year-over-year
- Net loss narrowed to $3.7 million from $8.8 million year-over-year
- Global TWYNEO/EPSOLAY deals may provide up to $4.5 million in milestones
- Royalty revenue from TWYNEO/EPSOLAY partners is anticipated to potentially reach about $10 million annually by 2031
Negative
- Q1 2026 revenue declined to $0.1 million from $1.0 million year-over-year
- Company reported a Q1 2026 net loss of $3.7 million
- TWYNEO and EPSOLAY partner launches are expected mainly in 2028 and 2027, delaying potential royalty ramp
Key Figures
Market Reality Check
Peers on Argus
SLGL was down 0.94% pre-news while biotech peers were mixed; one close peer, INKT, appeared on the momentum scanner with a ~5.6% upside move and no news, suggesting today’s setup looked more stock-specific than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 20 | Q3 2025 earnings | Neutral | -0.8% | Reported Q3 2025 results with lower revenue, ongoing SGT-610 progress and cash runway. |
| Aug 15 | Q2 2025 earnings | Positive | +1.3% | Q2 2025 beat with $17.2M revenue from Mayne Pharma deal and net income reported. |
| May 23 | Q1 2025 earnings | Negative | -1.2% | Q1 2025 showed higher R&D spend and wider net loss despite revenue doubling to $1M. |
| Nov 15 | Q3 2024 earnings | Positive | +3.0% | Q3 2024 revenue rose to $5.4M with near break-even loss and new license deals. |
| Aug 16 | Q2 2024 earnings | Positive | +2.6% | Q2 2024 delivered $5.4M revenue, net income and extended cash runway into Q1 2026. |
Earnings-related headlines for Sol-Gel have generally produced modest, directionally consistent moves, with an average absolute move of about 0.95%. Positive or improving fundamentals (revenue spikes, cash runway extensions, licensing deals) have usually coincided with mild gains, while weaker revenue or higher losses have seen small declines, indicating measured, not explosive, reactions to financial updates.
Recent earnings updates show Sol-Gel using licensing and product sale agreements to generate non-dilutive cash, while advancing SGT-610 through Phase 3. Prior quarters featured swings in revenue, from $0.4M to $17.2M, and periods of both net income and net loss, alongside repeated cash runway extensions into Q1 2026–Q1 2027. Those reports also emphasized global TWYNEO/EPSOLAY deals and steady progress in SGT-610, setting the backdrop for today’s Q1 2026 results, new patent protection, financing, and expanded licensing.
Historical Comparison
This earnings release follows 5 prior earnings updates, which historically moved SLGL about 0.95% on average and tended to track the tone of revenue, cash runway and partnership progress.
Across recent earnings, Sol-Gel has repeatedly extended its cash runway while advancing SGT-610 Phase 3 and expanding TWYNEO/EPSOLAY licensing. The current quarter adds larger cash resources, new IP protection for SGT-610 and broader geographic reach for TWYNEO.
Market Pulse Summary
This announcement combines Q1 2026 results with several strategic milestones: a method-of-use patent that protects SGT-610 until 2044, an oversubscribed $33.1M offering, and expanded TWYNEO licensing into India. Revenue declined to $0.1M, but R&D spend and net loss narrowed and cash plus securities reached $52.8M, guiding runway into Q1 2028. Investors may watch SGT-610 Phase 3 timelines, HF-BCC proof-of-concept plans, and the ramp of ex-U.S. royalty streams toward a potential $10M by 2031.
Key Terms
notice of allowance regulatory
phase 3 clinical trial medical
proof-of-concept study medical
gorlin syndrome medical
AI-generated analysis. Not financial advice.
- Sol-Gel received a Notice of Allowance for a method-of-use patent extending intellectual property protection for topical patidegib (SGT-610) until 2044
- Sol-Gel completed an oversubscribed underwritten offering, raising gross proceeds of approximately
$33.1 million from leading healthcare specialist investors - Pivotal Phase 3 clinical trial of SGT-610 (patidegib gel,
2% ) for Gorlin syndrome remains ongoing, with top-line results on track for anticipated readout in the fourth quarter of 2026 - Sol-Gel signed an exclusive license agreement with Sun Pharmaceutical Industries Ltd. for the commercialization of TWYNEO® in India
NESS ZIONA, Israel, May 28, 2026 (GLOBE NEWSWIRE) -- Sol-Gel Technologies, Ltd. (NASDAQ: SLGL), a dermatology company, pioneering treatments for patients with rare and severe skin conditions, today announced financial results for the first quarter ended March 31, 2026, and provided a corporate update.
Q1 2026 and Recent Corporate Developments
- In May 2026, the company received a Notice of Allowance (U.S. Patent Application No. 19/266,342) from the U.S. Patent and Trademark Office for our patent application covering a method-of-use that is critical to successful topical patidegib therapy. This patent will provide protection for SGT-610 until 2044.
- In March 2026, Sol-Gel closed an underwritten offering resulting in aggregate gross proceeds of approximately
$33.1 million . The offering included participation from new and existing investors, including Great Point Partners, LLC, Trails Edge Capital Partners, Surveyor Capital (a Citadel company), Affinity Asset Advisors, Squadron Capital Management, Stonepine Capital Management and AuGC BioFund. TD Cowen and LifeSci Capital acted as joint book-running managers for the offering. - Sol-Gel’s pivotal Phase 3 clinical trial of SGT-610 (patidegib gel,
2% ) for Gorlin syndrome continues to advance, and the Company remains on track to report top-line results in the fourth quarter of 2026; preparations for a proof-of-concept study of SGT-610 in HF-BCC are ongoing. - In April 2026, Sol-Gel entered into an exclusive license agreement with Sun Pharmaceutical Industries Ltd. for the commercialization of TWYNEO® in India. This agreement is in addition to the eight agreements for the commercialization of TWYNEO® and EPSOLAY Sol-Gel signed during 2024 and 2025 in various territories covering most European countries, South Africa, South Korea, Australia and New Zealand. These already signed agreements, together with agreements we anticipate signing in the future covering Latin American countries, Spain and Portugal, have the potential to provide upfront and regulatory milestone payments of up to
$4.5 million . The above excludes Sol-Gel's previously signed agreements with Beimei Pharma (China, Hong Kong, Macau, Taiwan and Israel) and Searchlight Pharma (Canada).
Based on the forecasts received from Sol-Gel’s current and potential partners, Sol-Gel now expects that TWYNEO and EPSOLAY will launch in the majority of these new territories during 2028 and 2027 respectively, and following launch, these transactions are anticipated to provide Sol-Gel with an annual royalty revenue stream with the potential to reach approximately$10 million by 2031 and potentially grow in subsequent years.
Mr. Mori Arkin, Executive Chairman of Sol-Gel, stated: “The first quarter of 2026 was a period of substantial progress on every front that matters to Sol-Gel. The Notice of Allowance extending the exclusivity of patidegib until 2044 marks a major milestone in the value creation of SGT-610 and Sol-Gel as a company. In parallel, the successful completion of our oversubscribed offering, with broad participation from leading healthcare specialist investors, is expected to provide Sol-Gel with the financial resources to support operations into 2028, allowing us to execute our Phase 3 program of SGT-610 through top-line readout and to support its pre-commercialization activities."
Mr. Arkin further commented: "We believe that the combination of our March 2026 financing and the Notice of Allowance for a method-of-use patent protecting topical patidegib until 2044 fundamentally reshapes the long-term opportunity for SGT-610. We now have both the capital and intellectual property runway to pursue the prevention of new BCCs in Gorlin syndrome, for which top-line results are expected in the fourth quarter of 2026. We continue to be excited about the potential of the high-frequency BCC indication, which could double the commercial potential of patidegib, and we look forward to initiating a proof-of-concept study."
Lastly, Mr. Arkin commented: "The license agreement with Sun Pharma for India, one of the largest dermatology markets in the world, is another important step in unlocking the global value of TWYNEO through partnerships with leading companies in their respective territories. While the commercialization of our legacy products is a non-core business of Sol-Gel, we believe that this activity has the potential to become an asset of substantial value, in the not-too-distant future. At the appropriate time, we plan to monetize this business and use the non-dilutive funds to support our long-term strategy of developing innovative treatments for unmet medical needs in dermatology."
Financial Results for the First Quarter 2026
Revenue for the first quarter was
Research and development expenses were
General and administrative expenses were
Sol-Gel reported a net loss of
As of March 31, 2026, Sol-Gel had
About Sol-Gel Technologies
Sol-Gel is a specialized dermatology company advancing innovative therapies for rare and serious skin diseases. Its lead investigational candidate, SGT-610 (patidegib gel,
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. including, but not limited to statements regarding the timing of clinical milestones for the Phase 3 program of SGT-610 in Gorlin syndrome, the Company’s cash runway, the timing of the launch of the commercialization of TWYNEO® and EPSOLAY in various territories and the anticipated financial benefits of the Company’s agreements for the commercialization of TWYNEO® and EPSOLAY. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. Forward-looking statements are based on information we have when those statements are made or our management’s current expectations and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to, the risk of a delay in reporting the top-line results of Sol-Gel’s pivotal Phase 3 clinical trial of SGT-610 (patidegib gel,
| SOL-GEL TECHNOLOGIES LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) (Unaudited) | |||||||
| December 31, | March 31, | ||||||
| 2025 | 2026 | ||||||
| Assets | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 11,033 | $ | 10,136 | |||
| Marketable securities | 12,966 | 42,692 | |||||
| Accounts receivables | 1,968 | 1,067 | |||||
| Prepaid expenses and other current assets | 1,004 | 1,894 | |||||
| TOTAL CURRENT ASSETS | 26,971 | 55,789 | |||||
| NON-CURRENT ASSETS: | |||||||
| Restricted long-term deposits and cash equivalents | 1,324 | 1,328 | |||||
| Property and equipment, net | 140 | 136 | |||||
| Operating lease right-of-use assets | 1,027 | 901 | |||||
| Other long-term assets | 62 | - | |||||
| Funds in respect of employee rights upon retirement | 393 | 396 | |||||
| TOTAL NON-CURRENT ASSETS | 2,946 | 2,761 | |||||
| TOTAL ASSETS | $ | 29,917 | $ | 58,550 | |||
| Liabilities and shareholders' equity | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 735 | $ | 782 | |||
| Other accounts payable | 4,941 | 5,046 | |||||
| Current maturities of operating leases | 495 | 485 | |||||
| TOTAL CURRENT LIABILITIES | 6,171 | 6,313 | |||||
| LONG-TERM LIABILITIES: | |||||||
| Operating leases liabilities | 496 | 377 | |||||
| Liability for employee rights upon retirement | 439 | 454 | |||||
| TOTAL LONG-TERM LIABILITIES | 935 | 831 | |||||
| TOTAL LIABILITIES | $ | 7,106 | $ | 7,144 | |||
| SHAREHOLDERS' EQUITY: | |||||||
| Ordinary shares, NIS 1 par value – authorized: 5,000,000 as of December 31, 2025 and March 31, 2026, respectively; issued and outstanding: 2,786,158 and 3,268,991 as of December 31, 2025 and March 31, 2026, respectively | 774 | 1,321 | |||||
| Additional paid-in capital | 259,047 | 290,822 | |||||
| Accumulated deficit | (237,010 | ) | (240,737 | ) | |||
| TOTAL SHAREHOLDERS' EQUITY | 22,811 | 51,406 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 29,917 | $ | 58,550 | |||
| SOL-GEL TECHNOLOGIES LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands) (Unaudited) | |||||||
| Three months ended | |||||||
| March 31 | |||||||
| 2025 | 2026 | ||||||
| REVENUES | $ | 1,031 | $ | 108 | |||
| RESEARCH AND DEVELOPMENT EXPENSES | 8,843 | 2,786 | |||||
| GENERAL AND ADMINISTRATIVE EXPENSES | 1,257 | 1,177 | |||||
| OPERATING LOSS | 9,069 | 3,855 | |||||
| FINANCIAL INCOME,net | (261 | ) | (128 | ) | |||
| LOSS FOR THE PERIOD | 8,808 | 3,727 | |||||
| BASIC AND DILUTED LOSS PER ORDINARY SHARE | 3.2 | 1.31 | |||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE * | 2,785,762 | 2,836,907 | |||||
* The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
Sol-Gel Investor Relations:
Eyal Ben-Or
Chief Financial Officer
ir@sol-gel.com
