Sol-Gel Technologies Ltd. (SLGL): BCG Matrix [Dec-2025 Updated]

Sol-Gel Technologies Ltd. is deep into a high-stakes pivot, shifting from established dermatology products to a future built on rare disease R&D, so you need a clear map of where their chips currently lie. Honestly, the portfolio shows no current Stars, just a $0.4 million revenue base in Q3 2025 struggling against a $5.94 million net loss, but the upside is massive: a pipeline asset targeting a $500 million market hangs on a Q4 2026 readout. We've mapped this transition using the BCG Matrix to show you exactly where the $16 million cash bridge from Mayne Pharma fits against the heavy R&D spend on Question Marks like SGT-610 and SGT-210. Dive in below to see the precise breakdown of their Dogs, Cash Cows, and the future Star that could defintely redefine the company.

Background of Sol-Gel Technologies Ltd. (SLGL)

You're looking at Sol-Gel Technologies Ltd. (SLGL), which you should know is primarily operating as a clinical-stage dermatology company as of late 2025. The firm focuses on identifying, developing, and commercializing, or partnering, drug products designed to treat various skin diseases. They leverage proprietary technology to create these topical solutions, though historically, the underlying science involved nanostructured materials.

The company has commercialized products like EPSOLAY and TWYNEO. For instance, Health Canada approved EPSOLAY recently, and they entered a significant $16 million agreement with Mayne Pharma for the U.S. rights to both EPSOLAY and TWYNEO, which boosted Q2 2025 revenue to $17.2 million and resulted in a net income of $11.6 million for that quarter. This partnership helps extend the company's cash runway into early 2027, which is a defintely positive development.

However, the most recent reported quarter, Q3 2025 (ending September 30, 2025), shows a different picture for product revenue alone. Total revenue for Q3 2025 was only $0.4 million, a sharp drop from the $5.4 million reported in the same period last year. This resulted in a net loss of $5.9 million, or a loss of $2.13 per share for the third quarter.

Looking at the balance sheet as of September 30, 2025, Sol-Gel Technologies Ltd. held $20.9 million in cash, cash equivalents, and marketable securities, which management expects will fund cash requirements into the first quarter of 2027. On the pipeline front, the company is advancing SGT-610, an Orphan Drug candidate for Gorlin syndrome, with top-line results anticipated in late 2026. They are also working on SGT-210 for Darier disease, though that trial faced some enrollment challenges.

As of November 28, 2025, the consensus rating from the single analyst covering Sol-Gel Technologies Ltd. was a Strong Buy. The management team is focused on unlocking value from their approved products through collaborations while pushing their key clinical candidates through the final stages of testing.

Sol-Gel Technologies Ltd. (SLGL) - BCG Matrix: Stars

You're looking at Sol-Gel Technologies Ltd. (SLGL) right now, and honestly, the current portfolio doesn't have a clear Star. The business is deep in a high-risk, high-reward transition phase, heavily reliant on pipeline success rather than established market dominance in any single product line. Current revenue performance shows this volatility; for example, Q2 2025 revenue hit $17.2 million, largely boosted by a $16 million IP sale/agreement with Mayne Pharma, but then Q3 2025 sales dropped significantly to just $0.4 million.

The investment required to move assets forward is substantial, which is typical when you're trying to create a Star. Research and development expenses for the third quarter of 2025 were $5.7 million, showing the cash burn needed to support future potential. As of June 30, 2025, Sol-Gel Technologies Ltd. held $24.2 million in cash, cash equivalents, and marketable securities, with management projecting this runway extends into the first quarter of 2027.

Future Star potential is almost entirely pinned on SGT-610. This asset, targeting Gorlin syndrome, has Orphan Drug and Breakthrough Therapy designations from the FDA, positioning it as a potential first-and-only therapy to prevent new basal cell carcinomas (BCCs) in that patient group. Success here would immediately shift this asset into the Star quadrant, as it targets a market that the company projects could reach over $300 million annually in peak revenue just for the Gorlin syndrome indication alone.

The key tenet of the BCG strategy here is clear: invest heavily now to secure future market leadership. If market share is kept, Stars grow into Cash Cows when the market growth slows. For Sol-Gel Technologies Ltd., the immediate action is supporting SGT-610 through its final trial stages. The company is also exploring an additional indication for SGT-610-high-frequency BCC-which could at least double the drug's commercial potential.

Here's a look at the key pipeline assets that represent the potential for the Star category, juxtaposed against the current investment level:

The outline specifies the target for SGT-610 is a U.S. market of up to $500 million annually. [This is the target to achieve Star status.]

The path to a true Star for Sol-Gel Technologies Ltd. is contingent on clinical validation, which is why the focus is so narrow:

• SGT-610 Phase 3 Trial: Enrollment completed; top-line results anticipated in the fourth quarter of 2026.
• SGT-610 Market Opportunity: If approved, it is expected to be the first therapy to prevent new BCC lesions in Gorlin syndrome patients.
• SGT-210 Trial Progress: The proof-of-concept Phase-1b trial is ongoing, though recruitment has faced impediments.

To be fair, the company is actively managing its cash to fund this transition. The strategic sale of U.S. rights for EPSOLAY and TWYNEO for a total consideration of $16 million, with $6 million expected in the fourth quarter of 2025, is specifically designed to support these R&D investments.

Finance: review the cash burn rate against the expected $6 million payment in Q4 2025 by next Tuesday.

Sol-Gel Technologies Ltd. (SLGL) - BCG Matrix: Cash Cows

Cash Cows represent established products with a high market share in mature segments, which are expected to generate more cash than they consume, funding other parts of the Sol-Gel Technologies Ltd. portfolio.

The U.S. rights for EPSOLAY and TWYNEO generated a significant, immediate cash infusion in 2025 following the product purchase agreement with Mayne Pharma Group Limited. This transaction involved a total upfront payment of $16 million to be received in two tranches during 2025: $10 million in the second quarter of 2025 and $6 million in the fourth quarter of 2025.

This one-time payment was strategically timed to act as a cash bridge. The expectation following these recent transactions is that Sol-Gel Technologies Ltd.'s cash resources will fund cash requirements into the first quarter of 2027. As of September 30, 2025, the total balance of cash, cash equivalents, and marketable securities stood at $20.9 million.

The ongoing ex-U.S. licensing efforts for TWYNEO and EPSOLAY are projected to become a consistent, high-margin revenue source, fitting the Cash Cow profile well. Sol-Gel Technologies Ltd. anticipates that following product launches in new territories, these agreements will provide an annual royalty revenue stream that could gradually grow to approximately $10 million annually by the year 2031. The company is confident enough in this stream to target $10 million EBITDA from this business alone by 2031.

Here's a quick look at the financial impact of these established assets in 2025:

The strategy here is to maintain these assets while minimizing promotional investment, focusing on infrastructure that supports the existing licensing agreements and maximizes cash extraction. You can see the expected cash flow contribution:

• Upfront cash received from U.S. rights sale: $16 million in 2025.
• Projected annual royalty revenue from ex-U.S. deals: up to $10 million by 2031.
• Expected EBITDA contribution from ex-U.S. royalties: $10 million by 2031.
• Cash position as of Q3 2025: $20.9 million total balance.

These products are the reliable source of funds that help cover administrative costs and support the development of Question Marks, like SGT-610. Finance: draft 13-week cash view by Friday.

Sol-Gel Technologies Ltd. (SLGL) - BCG Matrix: Dogs

You're looking at the part of the Sol-Gel Technologies Ltd. portfolio that demands a hard look, the units stuck in the Dogs quadrant of the BCG Matrix. These are products or business segments operating in markets with low growth prospects and where Sol-Gel Technologies Ltd. holds a small slice of the pie. Honestly, these areas tie up capital without giving much back in return. For Sol-Gel Technologies Ltd., this low-share, low-growth reality is starkly visible in the core business revenue, which clocked in at only $0.4 million in Q3 2025, excluding any partnership milestones. That number tells you the day-to-day commercial engine, outside of major deals, isn't driving significant cash flow right now.

When you see revenue that low, you have to check the bottom line, and the picture isn't pretty. Sol-Gel Technologies Ltd. posted an overall net loss of $5.94 million for Q3 2025. That negative result clearly signals a negative cash flow from operations for the quarter; the company is actively consuming cash to sustain its current structure, which is the classic danger of a Dog-it becomes a cash trap, even if it isn't burning cash as fast as a Question Mark.

Here's a quick look at the Q3 2025 financials that frame this Dog category:

The specific assets falling into this category are the legacy commercial operations for TWYNEO and EPSOLAY outside the U.S. While these products have FDA approval in the U.S., their international rollout through licensing agreements is clearly not yet mature enough to contribute meaningfully to current revenue or cash generation. In fact, the financial reports show professional expenses related to ex-US activities in EPSOLAY and TWYNEO were offset by decreases, suggesting a scaling back or minimal current activity level, which is defintely characteristic of a Dog unit that management is minimizing exposure to while focusing on pipeline assets.

These legacy international efforts currently exhibit the classic traits of a unit that should be divested or managed for minimal investment:

• Low current revenue contribution relative to overall company burn.
• Market share in these specific ex-US territories is not yet established.
• They require ongoing, albeit reduced, professional expense support.
• They are not the primary focus for near-term cash generation.
• Expensive turn-around plans are generally ill-advised here.

Finance: draft 13-week cash view by Friday.

Sol-Gel Technologies Ltd. (SLGL) - BCG Matrix: Question Marks

You're looking at the portfolio of Sol-Gel Technologies Ltd. and seeing where the big bets are being placed right now. Question Marks, in the Boston Consulting Group Matrix, are those assets in fast-growing markets but where the company hasn't yet captured significant market share. Honestly, they burn cash because they need heavy investment to scale up, but they hold the potential to become tomorrow's Stars. If they don't gain traction fast, they just turn into Dogs, so the decision to invest or divest is critical.

For Sol-Gel Technologies Ltd., these high-growth, low-share assets are primarily found deep within the development pipeline. The strategy here is clear: pour capital in now to capture that future market, or cut losses. Here's a look at the key components currently sitting in this quadrant:

• SGT-610 (Gorlin Syndrome): An orphan drug candidate requiring substantial R&D investment ahead of its projected 2026 readout.
• SGT-210 (Darier disease): A Phase 1b asset aimed at a specific, high-unmet-need market.
• Overall Business Model: The company's valuation and future success are heavily weighted on converting these clinical assets into commercial successes.

These pipeline efforts demand serious capital outlay. You can see this reflected directly in the operating expenses. For instance, the Research and Development expenses for the first quarter of 2025 alone hit $8.8 million. That's a significant drain on current free cash flow, but it's the price of admission for these high-growth therapeutic areas. These products have high demand prospects but currently generate low returns because they aren't commercialized yet.

To give you a clearer picture of the upside potential these Question Marks represent, let's map out the asset targets. This helps you see exactly what the investment is chasing:

The entire Sol-Gel Technologies Ltd. business model, as it stands today, functions as a Question Mark. It's a high-risk, high-reward structure dependent on successfully moving these assets through clinical trials and gaining regulatory approval to convert them into Stars. If SGT-610 delivers a positive readout in 2026, for example, that shifts the entire portfolio dynamic. If not, those investments become sunk costs. Finance: draft 13-week cash view by Friday.