Sol-Gel Technologies Ltd. (SLGL): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that just made a major strategic call. Sol-Gel Technologies Ltd. (SLGL) definitely pivoted in 2025, ditching U.S. commercialization for a pure R&D and licensing focus. This means they traded boots-on-the-ground sales for upfront cash, like the $16 million they booked from Mayne Pharma, while sitting on $20.9 million in cash as of Q3 2025. It's a classic biotech trade-off: high-cost pipeline development-they spent $5.7 million on R&D in Q3 2025 alone-versus the potential payoff from their proprietary silica technology and the lead candidate, SGT-610. The model now hinges entirely on successful clinical execution and partner performance. This is a lean, focused machine now. Dive into the full Business Model Canvas below to see exactly how Sol-Gel Technologies Ltd. is structuring its path to profitability under this new mandate.

Sol-Gel Technologies Ltd. (SLGL) - Canvas Business Model: Key Partnerships

You're mapping out Sol-Gel Technologies Ltd.'s strategic alliances as of late 2025. These partnerships are critical for both immediate cash flow and future royalty streams, especially as the company focuses resources on its pipeline asset, SGT-610.

The Key Partnerships block for Sol-Gel Technologies Ltd. centers heavily on leveraging established commercial infrastructure for its FDA-approved products, EPSOLAY and TWYNEO, while managing clinical trial execution for its pipeline.

The company's financial stability in late 2025 is directly tied to these arrangements, as evidenced by the cash runway extension.

Here's a breakdown of the specific relationships:

• Mayne Pharma Group for U.S. rights to EPSOLAY and TWYNEO
• Searchlight Pharma as exclusive Canadian licensee
• Viatris for commercialization in Australia and New Zealand
• Clinical Research Organizations (CROs) for Phase 3 trial execution

The transaction with Mayne Pharma Group was significant for near-term liquidity. Sol-Gel Technologies Ltd. entered a product purchase agreement for the exclusive U.S. rights to EPSOLAY and TWYNEO. The total consideration agreed upon was $16 million, all to be received during 2025. This was structured in two tranches: $10 million received in the second quarter of 2025, with the final $6 million expected in the fourth quarter of 2025. This infusion is projected to extend the Company's cash runway into the first quarter of 2027. This agreement followed the mutual termination of the previous exclusive five-year license agreement with Galderma in the U.S. market. Sol-Gel Technologies Ltd. estimates the U.S. market potential for its lead candidate, SGT-610, to be between $400 to $500 million annually, which the Mayne Pharma capital helps fund through its Phase 3 completion expected in the fourth quarter of 2026.

For the Canadian market, Searchlight Pharma holds the exclusive license for both TWYNEO and EPSOLAY over a fifteen-year term, renewable for subsequent five-year periods. Under the initial agreement terms, Sol-Gel Technologies Ltd. is set to receive up to $11 million combined from upfront payments and regulatory/sales milestones for both drugs. Furthermore, Sol-Gel Technologies Ltd. is entitled to additional royalties ranging from low double-digits to high-teens. A key late-2025 development was Health Canada marketing approval for EPSOLAY in September 2025.

The expansion into the Asia-Pacific region is managed through Viatris. Sol-Gel Technologies Ltd. signed an additional license agreement with Viatris Pty Ltd, a subsidiary of Viatris Inc., on August 19, 2025, covering commercialization rights for TWYNEO and EPSOLAY in Australia and New Zealand. Based on forecasts from partners, launches are anticipated in 2028 for TWYNEO and 2027 for EPSOLAY. Following these launches, these transactions are anticipated to provide Sol-Gel Technologies Ltd. with an annual royalty revenue stream potentially growing gradually to approximately $10 million by the year 2031 and beyond.

Clinical Research Organizations (CROs) are instrumental in advancing SGT-610, for which patient enrollment in the Phase 3 trial for Gorlin syndrome has been completed. Clinical trial expenses related to SGT-610 showed fluctuations; for instance, there was a reported decrease of $0.5 million in Q1 2025 year-over-year, but an increase of $1.0 million in Q2 2025 year-over-year for SGT-610 clinical trial expenses. For context on the scale of the trial investment, full-year 2023 research and development expenses included $4.2 million related to the pivotal Phase 3 clinical trial for SGT-610.

You can see the commercialization structure mapped out here:

The focus on SGT-610 development is supported by these external relationships.

• SGT-610 Phase 3 top-line results are expected in the fourth quarter of 2026.
• The SGT-610 trial involved approximately 140 subjects at about 40 experienced clinical centers in North America, the United Kingdom, and Europe as of late 2023.
• The SGT-210 Phase 1b trial for Darier disease had 50 percent of patients completed as of April 2025, with results expected in the fourth quarter of 2025.

Finance: draft 13-week cash view by Friday.

Sol-Gel Technologies Ltd. (SLGL) - Canvas Business Model: Key Activities

You're mapping out the core engine of Sol-Gel Technologies Ltd., the activities that actually make the business run as of late 2025. This isn't about the cash in the bank, but what the team is actively doing to create and deliver value, which is heavily weighted toward clinical development and partnership management right now.

Research and development (R&D) of new topical drugs

The R&D function is clearly prioritizing the advancement of the pipeline, especially SGT-610. This focus shows up directly in the operating expenses. For the third quarter ending September 30, 2025, Research and Development expenses were reported at $5.7 million. This compares to $4.8 million in the same period of 2024. To be fair, the Q1 2025 R&D spend was even higher at $8.8 million, showing a variable intensity in spending tied to clinical milestones.

The increase in Q3 2025 R&D, a jump of $0.9 million year-over-year, was specifically driven by:

• Increase of $0.8 million in manufacturing development expenses related to SGT-610.
• Increase of $0.7 million in clinical trial expenses for SGT-610.

The SGT-210 program, targeting Darier disease, is also an active R&D focus, with its Phase-1b proof-of-concept trial ongoing. The market potential for SGT-210 is estimated to be between $200 million to $300 million. That's the kind of upside that keeps R&D funding flowing.

Managing pivotal Phase 3 clinical trials for SGT-610

This is arguably the most critical activity. Sol-Gel Technologies has successfully completed patient enrollment in its pivotal Phase 3 clinical trial for SGT-610, which targets Gorlin syndrome. This is a huge operational milestone. The company is now squarely focused on the readout, with top-line results anticipated in the fourth quarter of 2026. If approved, SGT-610 is projected to be the first therapy to prevent new basal cell carcinomas in this population, targeting potential peak annual revenue exceeding $300 million.

Furthermore, the team is actively expanding the potential value of this asset by pursuing high-frequency basal cell carcinoma (BCC) as an additional indication. Success here is expected to at least double the commercial potential of SGT-610. Here's the quick math: doubling $300 million is a significant opportunity to capture.

Securing and managing international licensing agreements

Generating non-dilutive funding through partnerships is a core activity that directly impacts the cash runway, which is currently expected to extend into the first quarter of 2027. The success of this activity is visible in the revenue figures. For instance, Q2 2025 total revenue hit $17.2 million, largely due to a $16 million agreement with Mayne Pharma related to the sale of IP for EPSOLAY and TWYNEO in the U.S. In Q3 2025, sales were $0.4 million.

Management is actively expanding the geographic footprint for the approved products, EPSOLAY and TWYNEO. Specifically, in September 2025, Sol-Gel announced a new agreement with Viatris for commercialization in Australia and New Zealand. This adds to seven agreements signed in 2024 covering most European countries, South Africa, and South Korea. The expected upfront and regulatory milestone payments from these 2024 agreements total up to $3.7 million. You can see the financial impact of these deals in the table below.

Protecting proprietary Sol-Gel silica-based microencapsulation technology

The protection of the core technology is inherent in the development and licensing activities, as the technology is the foundation for SGT-610, EPSOLAY, and TWYNEO. While specific patent filing numbers or technology performance metrics aren't explicitly detailed in the latest financials, the investment in SGT-610 manufacturing development, which was $0.8 million of the Q3 R&D increase, suggests ongoing efforts to scale and protect the proprietary delivery system for new applications. The company's entire value proposition rests on this platform, which enables topical delivery of agents like patidegib (SGT-610). The technology is what allows for the expected improved safety profile of SGT-610 compared to oral hedgehog inhibitors.

The key activities boil down to this: execute the SGT-610 trial flawlessly. Finance: draft 13-week cash view by Friday.

Sol-Gel Technologies Ltd. (SLGL) - Canvas Business Model: Key Resources

You're looking at the core assets Sol-Gel Technologies Ltd. (SLGL) is relying on to drive future value, especially as they navigate the late stages of their pipeline. These aren't just line items; they are the tangible and intangible things the business absolutely must have to deliver its value proposition.

Proprietary Sol-Gel Drug Delivery Technology Platform

The foundation of Sol-Gel Technologies Ltd. is its core technology platform. This is what allows them to formulate existing molecules into novel topical products. This platform underpins their currently commercialized assets, which are key revenue generators right now. You have two FDA-approved products built on this technology:

• TWYNEO: Approved by the FDA for treating acne vulgaris in adults and pediatric patients nine years of age and older.
• EPSOLAY: Approved by the FDA for treating inflammatory lesions of rosacea in adults.

These approved products are now being expanded geographically, which is a critical resource for future revenue. For instance, Sol-Gel Technologies Ltd. secured Health Canada approval for EPSOLAY, a topical cream for rosacea, allowing commercialization in Canada via a partnership with Searchlight Pharma. This regulatory win is a direct monetization of the core technology platform.

Lead Drug Candidate SGT-610 for Gorlin Syndrome

SGT-610 is arguably the most significant near-term asset. This is a topical patidegib 2% gel being developed to prevent new basal cell carcinomas (BCCs) in patients with Gorlin syndrome. If approved, it's expected to be the first therapy of its kind. Here's the status as of late 2025:

Enrollment for the pivotal Phase 3 clinical trial is complete. Top-line data is now anticipated in the fourth quarter of 2026. Analysts are pricing in significant potential here; peak revenue for SGT-610 is estimated at more than $300 million annually upon approval. It definitely helps that the asset carries significant regulatory advantages already.

The regulatory advantages for SGT-610 are a major resource:

• Orphan Drug designation status in the U.S. and E.U.
• Breakthrough Therapy designation status in the U.S.

Cash, Equivalents, and Marketable Securities of $20.9 million as of Q3 2025

Liquidity is always a top-tier Key Resource, especially for a company in late-stage development. As of September 30, 2025, Sol-Gel Technologies Ltd. reported a total balance of $20.9 million in cash, cash equivalents, and marketable securities. This was comprised of $6.8 million in cash, cash equivalents, and deposits, plus $14.1 million in marketable securities. Honestly, this cash position is expected to fund cash requirements into the first quarter of 2027, which gives them a runway to reach the SGT-610 data readout without immediate capital stress.

To give you a clearer picture of the asset base supporting operations, here's a look at the key components of the balance sheet around that time, using data from the end of Q2 2025 and Q3 2025 where available, and noting the required Q3 2025 figure:

Note that the required $20.9 million figure is confirmed by the sum of cash/deposits ($6.8M) and marketable securities ($14.1M) as of September 30, 2025, from the Q3 report. The slight difference in the table's implied total is due to rounding in the source snippets.

Intellectual Property and Regulatory Approvals (e.g., Health Canada's EPSOLAY approval)

The intellectual property (IP) portfolio, covering the Sol-Gel technology and specific drug compositions like SGT-610, is a critical barrier to entry. Beyond the regulatory designations for SGT-610, the existing commercial products represent proven IP value. Sol-Gel Technologies Ltd. also has another asset in development, SGT-210, a topical erlotinib for Darier disease. The proof-of-concept Phase-1b trial for SGT-210 was expected to report top-line results in the fourth quarter of 2025, which, if positive, would add another significant IP asset to the pipeline.

The company also monetized some of this IP recently. Sol-Gel and Mayne Pharma announced a purchase agreement for the U.S. rights to EPSOLAY and TWYNEO for a total consideration of $16 million to be received during 2025, with $10 million received in Q2 2025 and the final $6 million expected in the fourth quarter of 2025. This transaction validates the IP behind the approved products.

Finance: draft 13-week cash view by Friday.

Sol-Gel Technologies Ltd. (SLGL) - Canvas Business Model: Value Propositions

Sol-Gel Technologies Ltd.'s value proposition centers on leveraging its proprietary silica-based microencapsulation technology to create differentiated topical treatments, particularly for underserved and rare dermatological conditions.

Potential first-ever preventative topical treatment for Gorlin Syndrome (SGT-610)

The lead drug candidate, SGT-610 (patidegib gel, 2%), is positioned as the first therapy designed to prevent new basal cell carcinomas (BCC) in patients with Gorlin syndrome. Sol-Gel Technologies Ltd. is advancing the pivotal Phase 3 clinical trial for this indication, with top-line results anticipated in the fourth quarter of 2026. If approved for Gorlin syndrome, the potential peak revenue is estimated at more than $300 million annually. Furthermore, Sol-Gel Technologies Ltd. intends to pursue high-frequency BCC as an additional indication for SGT-610, which, if approved, could at least double the drug's commercial potential.

Improved safety and efficacy via controlled drug release technology

The technology platform underpins the value of SGT-610, which is a topically applied hedgehog signaling pathway blocker. This topical formulation is expected to offer an improved safety profile when compared to existing oral hedgehog inhibitors. Research and development expenses related to manufacturing development for SGT-610 were $0.8 million in the third quarter of 2025, reflecting investment in this core technology.

Addressing significant unmet medical needs in rare skin disorders

Beyond Gorlin syndrome, Sol-Gel Technologies Ltd. is developing SGT-210 (topical erlotinib) for Darier disease, which represents a significant unmet medical need with a market potential estimated between $200 to $300 million. The Phase-1b proof-of-concept clinical trial for SGT-210 is ongoing, with vehicle-controlled results expected in the fourth quarter of 2025.

Here's a quick look at the pipeline assets targeting rare diseases:

• SGT-610 peak revenue estimate: >$300 million annually.
• SGT-210 market potential estimate: $200 to $300 million.
• SGT-610 Phase 3 top-line data expected: Q4 2026.
• SGT-210 Phase-1b results expected: Q4 2025.

FDA-approved treatments for common conditions like acne and rosacea (licensed out)

Sol-Gel Technologies Ltd. has successfully commercialized two large-category dermatology products in the U.S. through licensing agreements: TWYNEO and EPSOLAY. In September 2025, Sol-Gel Technologies Ltd. announced Health Canada approval of EPSOLAY. The company also signed an additional agreement with Viatris covering Australia and New Zealand for both products. The expected launch timelines for these ex-US markets are 2027 for EPSOLAY and 2028 for TWYNEO. Following these launches, the transactions are anticipated to provide Sol-Gel Technologies Ltd. with an annual royalty revenue stream with the potential to grow gradually to approximately $10 million for the year 2031.

Financial performance related to these licensed assets shows variability based on transaction timing:

The value proposition here is the non-dilutive revenue stream generated from past development success, as seen by the $16 million received in Q2 2025 from the U.S. rights sale of EPSOLAY and TWYNEO to Mayne Pharma. Still, Q3 2025 license revenue alone was only $0.4 million.

Sol-Gel Technologies Ltd. (SLGL) - Canvas Business Model: Customer Relationships

You're managing a specialty pharma company where the customer relationships aren't just about selling a finished product; they're about deep scientific collaboration and managing finite cash resources against clinical timelines. Here's the breakdown of how Sol-Gel Technologies Ltd. (SLGL) structures its key external interactions as of late 2025.

Strategic, long-term partnerships with pharmaceutical licensees

The commercial success of Sol-Gel Technologies Ltd. hinges on its licensing agreements, which bring in non-dilutive capital and manage market access for its approved products, TWYNEO and EPSOLAY. These relationships are the primary source of current, recurring revenue, though it's important to note the quarterly variability, often tied to milestone payments rather than just steady royalties.

For instance, in the second quarter of 2025, total revenue hit $17.2 million, which was significantly boosted by a one-time event: $16 million from the sale of U.S. rights for EPSOLAY and TWYNEO to Mayne Pharma, with $10 million received in Q2 and the final $6 million installment expected in the fourth quarter of 2025. Royalty revenue from Galderma, for the products marketed since 2022, was only $0.5 million in that same strong Q2 period. To be fair, the third quarter of 2025 showed a return to lower, more typical revenue, with total sales at just $0.4 million.

The relationship strategy is clearly evolving toward geographic expansion through new deals. Sol-Gel Technologies Ltd. signed a license agreement with Viatris for Australia and New Zealand during the third quarter of 2025. The company is projecting that these partner-driven royalties could grow to approach ~$10 million by 2031.

Here's a look at the recent revenue components tied to these partners:

The company maintains license agreements with Galderma Holding SA and Searchlight Pharma Inc..

High-touch relationship with clinical investigators and patients for trials

For pipeline assets, the relationship with clinical investigators is paramount, as trial progression directly impacts the company's valuation and future revenue potential. You need to keep these investigators engaged, especially when recruitment slows down.

For SGT-610, the pivotal Phase 3 trial for Gorlin Syndrome, enrollment is now completed, which is a major milestone to communicate to investigators and the market. Top-line results from this trial are expected in the fourth quarter of 2026. If approved, SGT-610 is targeting potential peak revenue exceeding $300 million annually.

The Phase 1b proof-of-concept trial for SGT-210 in Darier disease has faced challenges; recruitment was slowed due to circumstances in Israel, pushing study completion and top-line results to the fourth quarter of 2025. This trial involved only 7 treated subjects as of the Q3 update. Still, SGT-210 is being used in compassionate treatment for a pediatric patient with Olmsted disease, a rare disorder with no approved treatment. The market potential for Darier disease alone is estimated between $200 to $300 million.

Key trial relationship data points:

• SGT-610 Phase 3 enrollment: Completed
• SGT-610 Top-line data expected: Q4 2026
• SGT-210 Stage 1 results due: December 2025
• SGT-210 Darier disease market potential: $200 to $300 million

Investor relations focused on pipeline milestones and cash runway

Investor relations is about translating scientific progress and partnership deals into a clear financial picture, especially when the cash burn rate is a concern. You're managing expectations around the cash runway against the next major data readouts.

As of September 30, 2025, Sol-Gel Technologies Ltd. held $20.9 million in cash, equivalents, and marketable securities. This balance is expected to fund cash requirements into the first quarter of 2027. This runway is critical because the next major data point, the SGT-610 top-line results, isn't until Q4 2026.

The financial performance in Q3 2025 showed a net loss of $5.94 million, or a loss of $2.13 per share, on revenue of only $0.4 million. This contrasts with the net income of $11.6 million reported in Q2 2025. The investor narrative must bridge this gap by emphasizing the non-recurring IP sale in Q2 versus the ongoing R&D spend supporting pipeline milestones.

For the next quarter, analysts have a consensus revenue forecast of $6.500M and an EPS forecast of $0.400 for Q4 2025. The IR team focuses on ensuring stakeholders understand the value embedded in the pipeline, like the potential for SGT-610 to exceed $300 million annually, to justify the current cash position and R&D investment.

Key financial metrics for investor context:

• Cash & Securities (Sept 30, 2025): $20.9 million
• Cash Runway Projection: Into Q1 2027
• Q3 2025 Net Loss: $5.94 million
• Analyst Q4 2025 Revenue Forecast: $6.500M

Finance: draft 13-week cash view by Friday.

Sol-Gel Technologies Ltd. (SLGL) - Canvas Business Model: Channels

You're looking at how Sol-Gel Technologies Ltd. gets its products and pipeline assets to market as of late 2025. The channels strategy is clearly bifurcated: leveraging established partners for commercial products and using clinical sites as the delivery mechanism for pipeline advancement.

Pharmaceutical licensing partners (e.g., Mayne Pharma, Searchlight Pharma)

The channel for commercial products like EPSOLAY and TWYNEO relies heavily on strategic partnerships for geographic reach. The U.S. rights for both products were sold and exclusively licensed to a subsidiary of Mayne Pharma in Q2 2025. This deal was a significant channel shift, following the mutual termination of the prior U.S. agreement with Galderma. The financial structure of this channel is concrete:

The ex-U.S. channel strategy involves securing international licensing agreements, with several partnerships already finalized across Europe, Asia, Africa, Latin America, and Australia. These ex-U.S. launches are positioned to begin in the 2027-2028 timeframe, with projected royalties potentially reaching approximately $10 million annually by 2031. This focus on out-licensing allows Sol-Gel Technologies Ltd. to channel resources toward its pipeline assets, like SGT-610.

Clinical trial sites and specialized dermatology centers

For pipeline assets, clinical trial sites are the primary channel for data generation and proof-of-concept. Enrollment for the pivotal Phase 3 trial of SGT-610 for Gorlin syndrome is now complete. This trial is investigating the drug in approximately 140 subjects across about 40 experienced clinical centers in North America, the United Kingdom, and Europe. The next channel milestone for this asset is the reporting of top-line data in the fourth quarter of 2026. Also, the Phase-1b proof-of-concept clinical trial of SGT-210 for Darier disease is ongoing; as of April 2025, 50% of the patients had completed the trial, with top-line results anticipated in the fourth quarter of 2025.

The use of SGT-210 in compassionate treatment for a pediatric patient with Olmsted disease also serves as an informal channel for gathering real-world usage data on this rare skin disorder treatment.

• SGT-610 Phase 3 Enrollment: Completed
• SGT-610 Clinical Centers: Approximately 40
• SGT-210 Phase 1b Completion Rate (as of April 2025): 50%

Direct regulatory filings (FDA, Health Canada)

Direct regulatory interaction is a critical channel for product commercialization and pipeline progression. Sol-Gel Technologies Ltd. secured a major regulatory win in Canada, which directly impacts the Searchlight Pharma channel. The company received the Notice of Compliance (NOC) from Health Canada for EPSOLAY on August 27, 2025. This complements the existing FDA approvals for both EPSOLAY (rosacea) and TWYNEO (acne vulgaris) in the U.S. market. For the pipeline, the next direct regulatory action is anticipated for SGT-210.

If the SGT-210 trial yields positive results by the end of Q4 2025, the company anticipates filing for a Phase 2 IND (Investigational New Drug application). The potential market for SGT-210 in Darier disease is estimated between $200 to $300 million annually. The company's cash position, extended into Q1 2027 by the Mayne Pharma deal, is intended to fund the completion of the SGT-610 Phase III trial, which is a direct precursor to potential future FDA filings for that asset.

• Health Canada Approval Date (EPSOLAY): August 27, 2025
• SGT-210 Phase 2 IND Filing Target: Pending results by Q4 2025
• SGT-610 Phase 3 Top-Line Data Expected: Q4 2026

Sol-Gel Technologies Ltd. (SLGL) - Canvas Business Model: Customer Segments

You're looking at the core groups Sol-Gel Technologies Ltd. (SLGL) targets with its specialized dermatology assets, spanning both large-market approved products and high-unmet-need rare disease candidates. This is where the revenue and future value are rooted.

Pharmaceutical companies seeking late-stage dermatology assets

This segment involves strategic partners who acquire or license the rights to commercialize Sol-Gel Technologies Ltd.'s products in specific territories, or those who collaborate on development. These relationships provide upfront payments, milestone achievements, and future royalty streams, which are critical to funding the pipeline.

For instance, Sol-Gel Technologies Ltd. executed a product purchase agreement with a subsidiary of Mayne Pharma Group Limited for the exclusive U.S. rights to EPSOLAY and TWYNEO. This deal is set to deliver a total of $16 million in 2025, with $10 million received in the second quarter of 2025 and the remaining $6 million expected in the fourth quarter of 2025. Furthermore, Sol-Gel Technologies Ltd. is actively expanding its reach, having signed an agreement with Viatris Pty Ltd for the commercialization of TWYNEO and EPSOLAY in Australia and New Zealand.

The expected long-term royalty revenue from these ex-U.S. licensing agreements for TWYNEO and EPSOLAY is anticipated to grow gradually to approximately $10 million annually by the year 2031.

Key Partnerships and Commercial Reach in 2025:

Patients with severe, rare dermatological conditions (Gorlin, Darier disease)

This segment represents the primary focus for Sol-Gel Technologies Ltd.'s innovative pipeline, where the value proposition is addressing significant unmet medical needs with novel, targeted therapies. These patients are enrolled in the company's late-stage clinical trials.

For SGT-610, targeting Gorlin Syndrome (also known as Nevoid Basal Cell Carcinoma Syndrome), patient enrollment for the pivotal Phase III clinical trial has been completed. The estimated prevalence of Gorlin Syndrome in the United States is approximately 1 per 31,000. If approved, SGT-610 is projected to generate peak revenue exceeding $300 million annually.

For SGT-210, targeting Darier disease, the Phase-1b proof-of-concept clinical trial is ongoing. The market potential for Darier disease is estimated to be between $200 to $300 million. Sol-Gel Technologies Ltd. expects to release the results of Stage 1 of this trial in December 2025. As of April 2025, 50% of patients in the SGT-210 trial had already completed the study.

The patient populations targeted by these two key assets:

• Patients with Gorlin Syndrome: Targeted by SGT-610 (patidegib gel, 2%).
• Patients with Darier disease: Targeted by SGT-210 (topical erlotinib).
• Gorlin Syndrome prevalence in the USA: Estimated at 1 per 31,000.
• Darier disease market potential: Estimated between $200 to $300 million.

Dermatologists and specialists treating rare skin disorders

This group includes the prescribing physicians who rely on Sol-Gel Technologies Ltd.'s FDA-approved products for more common, yet still significant, dermatological conditions, as well as specialists who manage the rare diseases mentioned above.

The approved products serve a broad base of dermatologists:

• TWYNEO (cream): For acne vulgaris in adults and pediatric patients nine years of age and older.
• EPSOLAY (topical cream, 5% benzoyl peroxide): For the treatment of inflammatory lesions of rosacea in adults.

For the U.S. commercial products, Sol-Gel Technologies Ltd. achieved improved managed care coverage, with a notable increase of over 1 million commercial lives covered for EPSOLAY, bringing the total to 67.1 million lives covered as of late 2025.

Sol-Gel Technologies Ltd. (SLGL) - Canvas Business Model: Cost Structure

You're looking at where Sol-Gel Technologies Ltd. is putting its capital to work to advance its pipeline and maintain operations as of late 2025. The cost structure is heavily weighted toward innovation and development, which is typical for a company focused on novel dermatology treatments.

The most recent reported Research and Development (R&D) expenses hit $5.7 million for the third quarter ending September 30, 2025. This compares to the second quarter of 2025, where R&D was $4.6 million, and the first quarter of 2025, which saw R&D expenses of $8.8 million.

Here's a quick look at the recent R&D spending trend:

The Q3 2025 R&D spend increase of $0.9 million over Q3 2024 was driven by specific clinical and development activities.

Key drivers within the R&D costs include:

• Clinical trial expenses for SGT-610 increased by $0.7 million in Q3 2025.
• Manufacturing development expenses related to SGT-610 increased by $0.8 million in Q3 2025.
• Expenses associated with supplier-led manufacturing development to support future commercialization of SGT-610 were a major factor in Q1 2025, totaling an increase of $3.6 million.
• The vehicle-controlled Phase 1b clinical trial (Stage 1) investigating SGT-210 for Darier disease has faced challenges due to the limited number of eligible patients in Israel.

General and administrative (G&A) overhead is a smaller, more stable component of the cost base. For the second quarter of 2025, G&A expenses were reported at $1.4 million, matching the G&A expense from the second quarter of 2024. This stability suggests controlled overhead costs outside of direct development efforts.

Finance: draft 13-week cash view by Friday.

Sol-Gel Technologies Ltd. (SLGL) - Canvas Business Model: Revenue Streams

You're looking at how Sol-Gel Technologies Ltd. converts its proprietary technology and approved products into cash, which is key for funding that late-stage pipeline work, like the SGT-610 Phase-3 trial. Honestly, the revenue mix is heavily weighted toward upfront payments and milestones right now, which helps fund operations until royalties kick in later.

The core of the current revenue is built on a few distinct pillars. You've got the immediate cash from asset sales, the upfront components of licensing deals, and then the longer-term, recurring royalty potential. It's a classic pharma/dermatology licensing model, but with a significant one-time boost this year.

Here's a breakdown of the key revenue components as of late 2025:

• One-time product sale/licensing fees, including $16 million from Mayne Pharma in 2025.
• Milestone payments from commercialization partners, such as up to $11 million from Searchlight Pharma.
• Tiered royalties on net sales from international licensees.
• Total revenue for the nine months ended September 30, 2025 was $18.69 million.

Let's look closer at that big one-time inflow. Sol-Gel Technologies Ltd. secured a product purchase agreement with Mayne Pharma for the U.S. rights to EPSOLAY and TWYNEO. This deal is structured to deliver a total of $16 million during 2025. That payment schedule was important; you saw $10 million received in the second quarter of 2025, with the remaining $6 million expected in the fourth quarter of 2025. That cash was definitely aimed at extending the company's financial runway into the first quarter of 2027.

The milestone and upfront payments from partners are also critical for non-dilutive funding. While the Mayne Pharma deal was a sale, other agreements are structured around development and regulatory achievements. For instance, existing agreements covering territories like most European countries, South Africa, and South Korea are expected to provide upfront and regulatory milestone payments totaling up to $3.7 million. Plus, you have the potential from Searchlight Pharma, outlined as up to $11 million.

The future value is locked into the tiered royalties. This stream is tied to the net sales of licensed products like TWYNEO and EPSOLAY in ex-U.S. territories. Based on forecasts from partners, Sol-Gel Technologies Ltd. anticipates that following product launches, these royalties could grow gradually to approximately $10 million annually by the year 2031. They are targeting an EBITDA of $10 million from this business alone by 2031, so you see the long-term goal here.

To put the nine-month performance in context against the different revenue types, here's a snapshot of what we know about the revenue breakdown for the period ending September 30, 2025:

It's important to note the quarterly variation, which shows the lumpiness of the licensing revenue. For the third quarter alone, total revenue was just $0.4 million. Compare that to the third quarter of 2024, which brought in $5.4 million, which included $0.6 million in royalty revenue from Searchlight. That difference highlights how much the current period relies on those larger, non-recurring transactions, like the Mayne Pharma deal.

You should track the timing of those remaining milestone payments closely. Here's what the structure looks like for potential non-product sale income:

• Upfront and regulatory milestone payments from 2024 agreements: up to $3.7 million.
• Potential milestone payments from Searchlight Pharma: up to $11 million.
• Expected cash runway extension from Mayne Pharma deal: into the first quarter of 2027.

Finance: draft 13-week cash view by Friday.