Sol-Gel Technologies Ltd. (SLGL): History, Ownership, Mission, How It Works & Makes Money

Sol-Gel Technologies Ltd. (SLGL) is a small-cap dermatology player, but with a Q3 2025 revenue of just $0.4 million and a net loss of $5.9 million, can its pipeline of rare-disease treatments really justify the current market optimism you're seeing? The company's entire story hinges on its innovative microencapsulation technology and lead candidate SGT-610, which targets Gorlin syndrome and has a potential annual peak revenue exceeding $300 million. You see the $20.9 million cash runway extending into Q1 2027, which buys time, but are you defintely factoring in the execution risk on their Phase 3 trials and the December 2025 results for SGT-210? We need to understand the mission, the ownership structure, and the mechanics of how Sol-Gel plans to turn a clinical-stage balance sheet into a commercial powerhouse.

Sol-Gel Technologies Ltd. (SLGL) History

You're looking for the bedrock of Sol-Gel Technologies Ltd. (SLGL), the original blueprint that explains how a small Israeli firm became a NASDAQ-listed dermatology player. The story starts with proprietary chemistry, specifically silica-based microencapsulation (a fancy term for trapping drug molecules in a tiny glass shell), which is their core technology for delivering topical drugs more effectively and with less irritation. This focus on drug delivery, not just drug discovery, is their main differentiator.

Given Company's Founding Timeline

Year established

Sol-Gel Technologies Ltd. was established on October 28, 1997.

Original location

The company was founded and remains headquartered in Ness Ziona, Israel, specifically at the Weizmann Science Park.

Founding team members

The company was co-founded by two scientists: David Avnir and Alon Seri-Levy.

Initial capital/funding

While the initial seed capital is not publicly detailed, the company's first recorded funding round occurred in October 2007. The largest early funding event was a Series A round in November 2008, which raised $9 million. Overall, the company has raised a total of $26 million across eight funding rounds prior to its IPO.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been defined by two major strategic shifts: proving the core technology and then monetizing it to fund the next-generation pipeline. The initial success was getting the FDA to sign off on their silica-based microencapsulation (a drug delivery system) for two major dermatology products, TWYNEO and EPSOLAY. That's defintely a big deal.

The most recent, and arguably most transformative, decision came in 2025 with the sale of the U.S. commercial rights for their two approved products. This move was a clear pivot from being a commercial-stage company in the U.S. to a clinical-stage development powerhouse focused on rare skin conditions, specifically Gorlin syndrome. This transaction provided a much-needed capital injection.

• Monetizing Commercial Assets: The sale of U.S. rights to Mayne Pharma in 2025, which included a $10 million payment in Q2 2025 and an expected $6 million in Q4 2025, provided a critical cash runway, which as of June 30, 2025, stood at $24.2 million.
• Financial Re-engineering: The 10-for-1 reverse share split in May 2025 was a necessary, though not ideal, move to keep the stock listed on NASDAQ, ensuring continued access to public capital markets.
• Focusing on Orphan Drugs: The capital from the Mayne Pharma deal is explicitly earmarked to fund the Phase 3 clinical trial for SGT-610 (patidegib gel, 2%) for Gorlin syndrome, a rare condition with a market opportunity estimated between $400 million and $500 million annually in the U.S. alone. This is a higher-risk, higher-reward strategy.

For a deeper dive into the immediate financial impact of these decisions, you should check out Breaking Down Sol-Gel Technologies Ltd. (SLGL) Financial Health: Key Insights for Investors. Looking at the Q2 2025 results, the company actually reported a net income of $11.6 million due to that one-time payment, a sharp contrast to the $8.8 million net loss in Q1 2025. That's the power of a strategic asset sale.

Sol-Gel Technologies Ltd. (SLGL) Ownership Structure

Sol-Gel Technologies Ltd. (SLGL) operates with a highly concentrated ownership structure, where a single insider holds a dominant stake, meaning the company's strategic direction is defintely tied to one key decision-maker.

This is a publicly traded company, listed on the NASDAQ Global Market under the ticker symbol SLGL, which it has been since its initial public offering (IPO) in January 2018. As of November 2025, the company has a market capitalization of approximately $99.59 million, reflecting its small-cap status in the Biotechnology sector.

Given Company's Current Status

SLGL is a public, clinical-stage dermatology company incorporated in Israel, but its shares trade on the NASDAQ. This dual structure means it must comply with both Israeli and US Securities and Exchange Commission (SEC) regulations, including filing reports like the Form 6-K, which was last filed in November 2025. The stock price stood at $35.50 per share as of November 20, 2025.

The company focuses on developing and commercializing topical drug products for skin diseases, such as its marketed products Twyneo and Epsolay, which are licensed to Galderma Holding SA in the US.

Given Company's Ownership Breakdown

The ownership is heavily skewed toward insiders, which gives them near-total control over major corporate actions. This concentration of power is a critical factor for any investor to consider, as it reduces the influence of institutional and retail shareholders.

Here's the quick math on who controls the company, based on data available as of November 2025:

The fact that insiders own 70% of the company means that major decisions-like mergers, acquisitions, or significant strategy shifts-are largely predetermined by the management team. Institutional investors, who collectively hold 20.62%, provide a layer of professional oversight, but their voting power is limited. For a deeper dive into the major institutional players, you can look at Exploring Sol-Gel Technologies Ltd. (SLGL) Investor Profile: Who's Buying and Why?

Given Company's Leadership

The company is steered by a leadership team whose average tenure is relatively short at 1.1 years, suggesting a recent transition or restructuring, but the board's tenure is longer, at 7.8 years. This mixed experience level is worth watching.

The key figure is Moshe Arkin, who serves as the CEO and Executive Chairman. He is the largest shareholder, directly owning the majority of the insider stake, which gives him significant influence over the company's strategic and financial future. The formal leadership structure includes:

• Moshe Arkin: CEO and Executive Chairman.
• The management team's short tenure suggests a fresh, but less seasoned, group is executing the day-to-day strategy.
• The Board of Directors, which has a longer average tenure, provides continuity and long-term governance experience.

What this estimate hides is the potential conflict of interest between a majority owner's personal financial goals and the interests of minority shareholders, so you should always track insider trading activity.

Sol-Gel Technologies Ltd. (SLGL) Mission and Values

Sol-Gel Technologies Ltd. operates with a core purpose focused on pioneering advanced dermatological treatments, particularly for severe and rare skin conditions, a mission supported by aggressive R&D spending. This commitment to better patient outcomes is defintely the cultural bedrock, even as the company manages a challenging financial profile with a net loss of $5.9 million in Q3 2025.

Given Company's Core Purpose

The company's mission transcends standard profit motives, centering on the development and delivery of innovative, controlled-release topical drugs. This focus on specialized dermatology is a clear differentiator, driving their research pipeline which includes candidates like SGT-610 for Gorlin syndrome. For a deeper dive into the company's objectives, you can review Mission Statement, Vision, & Core Values of Sol-Gel Technologies Ltd. (SLGL).

Official mission statement

Sol-Gel Technologies' mission is to identify, develop, and commercialize or partner drug products that elevate treatment paradigms for skin diseases, with a strategic emphasis on rare and severe conditions. This is a clinical-stage focus, meaning their current revenue of just $0.4 million in Q3 2025 is less important than their R&D investment, which was $8.8 million in Q1 2025 alone.

• Identify and develop promising dermatology assets.
• Leverage proprietary technology to enhance therapeutic trajectories.
• Deliver innovative formulations to patients who need them most.

The core business is about solving complex medical challenges, not just selling existing products.

Vision statement

The company's vision is to be recognized as a leader of a new dermatological era, motivated by a drive for superior patient outcomes that surpass the current standard of care. This long-term view is what justifies their current cash runway, which is expected to fund operations into the first quarter of 2027.

• Push the boundaries of medical dermatology.
• Advance novel solutions for rare skin conditions like Gorlin syndrome.
• Achieve substantial growth, with partner-driven royalties anticipated to reach approximately $10 million by 2031.

They are building value on future clinical success, not current sales volume.

Given Company slogan/tagline

Sol-Gel Technologies does not prominently feature a single, public-facing slogan or tagline in its corporate communications, preferring instead to articulate its purpose through its scientific focus. The closest articulation of their operational spirit is found in their self-description as:

• Harnessing Dermatological Innovation.

Here's the quick math: with Q2 2025 net income at $11.6 million, largely due to a strategic product sale, the company bought itself crucial time to focus on its high-risk, high-reward pipeline. That's smart capital allocation.

Sol-Gel Technologies Ltd. (SLGL) How It Works

Sol-Gel Technologies is a specialty dermatology company that creates and partners topical drug products using its proprietary silica-based microencapsulation technology to improve treatment efficacy and safety. The company's business model is shifting from direct U.S. commercialization to a high-risk, high-reward focus on advancing its late-stage clinical pipeline for severe, underserved skin conditions, funding this research through strategic licensing deals.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

You need to see where the money is going, and for Sol-Gel Technologies, it's all about the pipeline. The operational framework is currently a classic clinical-stage biotech model, even with two approved products.

• R&D Focus: The primary value driver is the advancement of SGT-610 and SGT-210. Research and development (R&D) expenses were $5.7 million in the third quarter of 2025, which is a significant outlay to push SGT-610 toward its pivotal Phase 3 top-line results expected in Q4 2026.
• Strategic De-Risking: The company strategically sold the U.S. commercial rights for its approved products, EPSOLAY and TWYNEO, to Mayne Pharma for a $16 million upfront payment in Q2 2025. This move effectively outsources commercialization risk and provides a crucial cash infusion.
• Cash Runway Management: This strategic sale boosted the balance sheet, giving the company a total cash, equivalents, and marketable securities balance of $20.9 million as of September 30, 2025. Management expects this cash to fund operations into the first quarter of 2027. This is a tight runway for a clinical-stage company.
• Revenue Stream: Near-term revenue is volatile. Total revenue for Q3 2025 was only $0.4 million, primarily from ex-U.S. licensing agreements, after the non-recurring $16 million payment was recognized in Q2 2025. The long-term plan is to generate growing partner-driven royalties, projected to reach around $10 million annually by 2031.

Given Company's Strategic Advantages

The core advantage isn't in marketing; it's in the chemistry. Sol-Gel Technologies' proprietary technology allows them to formulate drugs that are simply better tolerated by patients, which is a huge deal in topical dermatology.

• Proprietary Sol-Gel Microencapsulation: This platform is the company's biggest asset. It encases active drug ingredients, like benzoyl peroxide or tretinoin, in microscopic silica-based capsules (sol-gel). This allows for controlled, sustained release of the drug, which translates directly into enhanced efficacy with reduced irritation, a common problem with topical treatments.
• Niche Orphan Drug Focus: By concentrating R&D on rare, severe conditions like Gorlin Syndrome with SGT-610, the company targets markets with high unmet needs and potential for Orphan Drug designation. This designation offers market exclusivity and streamlined regulatory pathways, which can lead to higher peak sales potential-SGT-610's peak revenue is estimated at more than $300 million annually if approved.
• De-risked Commercialization Model: Partnering with larger pharmaceutical companies like Mayne Pharma and Galderma for commercialization of approved products minimizes the need for a costly, large-scale sales force. This frees up capital and management focus to concentrate on the high-value R&D pipeline. You can read more about the company's long-term vision here: Mission Statement, Vision, & Core Values of Sol-Gel Technologies Ltd. (SLGL).

Sol-Gel Technologies Ltd. (SLGL) How It Makes Money

Sol-Gel Technologies Ltd. (SLGL) generates revenue primarily through a two-pronged model: upfront and milestone payments from licensing agreements with pharmaceutical partners, and a smaller, emerging stream of royalties and product sales from its commercialized topical dermatology treatments like EPSOLAY and TWYNEO.

This is a classic clinical-stage biotech revenue profile: large, intermittent cash injections from deals fund the high research and development (R&D) costs necessary to push new drug candidates through clinical trials.

Sol-Gel Technologies Ltd.'s Revenue Breakdown

Looking at the nine months ended September 30, 2025, the revenue profile is heavily skewed by a significant, non-recurring licensing payment received earlier in the year. Here's the quick math on the $18.69 million in total revenue for that period:

The 92.0% slice represents the large, non-recurring cash injection that boosted the year-to-date figures. The true test of the company's commercial engine is the 8.0% from product sales and royalties, which is the long-term, sustainable revenue stream. To be fair, this breakdown masks the near-term strain: Q3 2025 revenue was only $0.4 million, a steep drop from Q3 2024's $5.4 million, as the one-time licensing revenue evaporated.

Business Economics

Sol-Gel's financial health is defined by its high-margin, high-cost, and high-risk clinical-stage business model. They use their proprietary sol-gel technology-a chemical process that synthesizes solids from a liquid phase-to create advanced topical drug delivery mechanisms, which allows them to charge a premium.

• High Gross Margin: The gross profit margin is exceptionally high, reported at approximately 97.98% in a recent financial period. This is because the primary revenue sources (licensing fees and royalties) have a very low cost of goods sold (COGS).
• Premium Pricing: Products like the company's topical medication, which is a specialized dermatological prescription, are positioned at a premium, with a single treatment course priced in the range of $450-$500. This strategy relies on the unique efficacy and delivery advantages of their technology.
• Partner-Driven Commercialization: Sol-Gel often partners with larger pharmaceutical companies, such as their agreement with Viatris for commercialization in Australia and New Zealand. This strategy shifts the massive sales and marketing costs onto the partner in exchange for lower-risk, long-term royalty payments, which are projected to grow to around $10 million annually by 2031.

The core economic fundamental is simple: spend heavily on R&D now to secure a blockbuster drug, then monetize it through a high-margin licensing and royalty structure later. For more on their long-term goals, check out the Mission Statement, Vision, & Core Values of Sol-Gel Technologies Ltd. (SLGL).

Sol-Gel Technologies Ltd.'s Financial Performance

As of November 2025, Sol-Gel's financial performance reflects a company in a heavy investment phase, burning cash to advance its pipeline, particularly its lead candidate SGT-610 for Gorlin syndrome.

• Net Loss: The company reported a net loss of $5.9 million for the third quarter of 2025. This loss is directly attributable to the high operating costs of a clinical-stage biotech.
• R&D Expense: Research and development (R&D) expenses were $5.7 million in Q3 2025 alone. This is the engine of future revenue, showing the accelerating investment in their pipeline, which is the right move for a company focused on long-term drug development.
• Cash Runway: As of September 30, 2025, the company held $20.9 million in cash, cash equivalents, and marketable securities. This cash balance is projected to fund operations into the first quarter of 2027, giving them a finite runway before pivotal data or partner milestones must materialize. That's a defintely tight timeline for a biotech.
• Cash Burn Rate: The Trailing Twelve Months (TTM) Cash from Operations sits at a negative -$5.66 million, which is the company's operating 'cash burn'. This negative cash flow is normal for this stage, but it means the clock is ticking on that $20.9 million balance.

Sol-Gel Technologies Ltd. (SLGL) Market Position & Future Outlook

Sol-Gel Technologies Ltd. (SLGL) is at an inflection point in late 2025, transitioning from a clinical-stage company with early commercial products to one focused primarily on its high-value, orphan-drug pipeline after monetizing its two FDA-approved assets in the US. The company's future hinges on the clinical success of SGT-610 for Gorlin syndrome, which could unlock significant value in a niche market with high unmet need.

Here's the quick math on the shift: the company's Q2 2025 revenue of $17.2 million was largely driven by the one-time $16 million sale of US rights to EPSOLAY and TWYNEO to Mayne Pharma, which effectively funds its R&D into 2027.

Competitive Landscape

The overall topical dermatology market is highly fragmented, so Sol-Gel Technologies' direct market share is tiny. Its true competition is for clinical success in rare diseases, but its legacy products compete with major pharmaceutical players.

Opportunities & Challenges

The company's strategic decision to sell its US commercial rights was a clear move to de-risk its balance sheet, extending its cash runway into the first quarter of 2027, but it also increases reliance on its pipeline.

Industry Position

Sol-Gel Technologies is a small-cap biotechnology firm ($102.1 million market capitalization as of late 2025) positioned as an R&D engine within the dermatology space, not a commercial powerhouse.

• Focus on Innovation: The core strength is its silica-based microencapsulation drug delivery system, which aims to improve patient compliance by reducing irritation from active ingredients like retinoids.
• Orphan Drug Strategy: The pivot to rare and severe skin conditions (Gorlin syndrome, Darier disease) is a high-risk, high-reward strategy that bypasses the intense competition and massive marketing budgets of the large-market topical drug players.
• Financial Stability: The $24.2 million cash balance as of June 30, 2025, provides a critical buffer to execute its Phase 3 trial plan.

The company's long-term value is now entirely tied to its pipeline success, moving away from being a small player in the crowded acne and rosacea markets. You can review their corporate direction here: Mission Statement, Vision, & Core Values of Sol-Gel Technologies Ltd. (SLGL).