Sol-Gel Technologies Ltd. (SLGL): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at Sol-Gel Technologies Ltd. now, and you need to know the old direct-sales playbook is finished; this dermatology company has definitely pivoted to a high-margin licensing model, which completely changes how we view the 4 P's. We see this new reality clearly: after selling US commercial rights in April 2025, revenue swung from a $\text{16 million}$ upfront payment in Q2 to just $\text{0.4 million}$ in Q3 royalties. The game is now about securing global partners and advancing the pipeline, like SGT-610, so dive into the Product, Place, Promotion, and Price details below to map out the true near-term opportunity.

Sol-Gel Technologies Ltd. (SLGL) - Marketing Mix: Product

You're looking at the core offering of Sol-Gel Technologies Ltd. (SLGL), which centers on leveraging its proprietary technology to create enhanced topical dermatological treatments. The product portfolio balances currently marketed assets with late-stage pipeline candidates addressing significant unmet needs.

The foundation of Sol-Gel Technologies Ltd.'s product strategy is its proprietary, silica-based microencapsulation technology platform. This technology is designed to entrap active ingredients within an inert, inorganic silica shell. This shell acts as an unnoticeable barrier between the active ingredient and the skin, which helps enhance the tolerability and stability of topical drugs while maintaining their efficacy.

The company has two key assets that have achieved U.S. Food and Drug Administration (FDA) approval and are now licensed out for commercialization in the U.S. market. These licensed assets are:

• EPSOLAY®, a topical cream containing encapsulated benzoyl peroxide, 5%, approved for the treatment of inflammatory lesions of rosacea in adults. Health Canada issued a Notice of Compliance for this product for rosacea in September 2025.
• TWYNEO®, a topical cream indicated for acne vulgaris in adults and pediatric patients nine years of age and older. This product is the first U.S.-approved combination of encapsulated tretinoin, 0.1%, and encapsulated benzoyl peroxide, 3%.

Sol-Gel Technologies Ltd. received a total consideration of $16 million from Mayne Pharma in 2025 for the sale and exclusive U.S. license rights to both EPSOLAY and TWYNEO, with payments structured as $10 million in the second quarter of 2025 and $6 million in the fourth quarter of 2025. These products utilize the company's patented technology.

The pipeline is focused on advancing novel topical treatments for rare skin conditions. Here's a look at the key candidates as of late 2025:

SGT-610, the lead candidate, has received both Orphan Drug designation and Breakthrough Therapy designation from the FDA. The company is also evaluating pursuing high-frequency basal cell carcinoma (BCC) as an additional indication for SGT-610, which is expected to at least double the drug's commercial potential if successful.

The product development strategy emphasizes addressing high unmet needs in dermatology, as seen with SGT-210, which is also being used in compassionate treatment for pediatric patients with Olmsted disease. The technology itself is a chemical method for producing solid materials from small molecules, involving the transition from a liquid phase (sol) to a solid phase (gel) via hydrolysis and condensation reactions of metal precursors.

Sol-Gel Technologies Ltd. (SLGL) - Marketing Mix: Place

Place, or distribution, for Sol-Gel Technologies Ltd. (SLGL) in late 2025 is heavily weighted toward strategic licensing agreements, moving away from direct U.S. commercial operations for its core approved products.

U.S. Commercial Rights Transition

You saw a major shift in the U.S. distribution strategy in the second quarter of 2025. Sol-Gel Technologies executed a product purchase agreement on April 17, 2025, transferring the U.S. rights for EPSOLAY and TWYNEO to Mayne Pharma. This transaction involved Sol-Gel Technologies receiving a total consideration of $16 million, structured as $10 million in the second quarter of 2025 and an expected $6 million in the fourth quarter of 2025. This infusion of capital is projected to extend the company's cash runway into the first quarter of 2027. This move followed the mutual termination of the prior exclusive five-year license agreement for the U.S. market with Galderma.

The distribution structure for the core products outside the U.S. is managed through licensing partners, reflecting a strategy focused on leveraging established commercial footprints.

• Global distribution relies on licensing partners, including Galderma for prior U.S. rights and Searchlight Pharma for Canada.
• Sol-Gel Technologies is in advanced stages of establishing commercial networks outside the U.S., with many partnership agreements signed and others under negotiation.

The Canadian market access for EPSOLAY is secured through a specific partnership.

EPSOLAY commercial launch in Canada is via the Searchlight Pharma partnership. This was enabled by Health Canada issuing a Notice of Compliance for EPSOLAY in September 2025. Under the 2023 agreement, Sol-Gel Technologies is eligible to receive up to $11 million in combined potential upfront and regulatory/sales milestone payments for both EPSOLAY and TWYNEO in Canada, in addition to tiered royalties on net sales ranging from the low double-digits to high-teens.

The distribution focus is inherently tied to the target patient populations for the licensed products and the pipeline assets Sol-Gel Technologies is prioritizing for internal development.

The commercial focus is directed toward the patient populations served by the partners, such as the treatment of inflammatory lesions of rosacea with EPSOLAY in Canada. Furthermore, the strategic focus on the SGT-610 pipeline candidate suggests a significant future distribution target, with Sol-Gel Technologies estimating its U.S. market potential between $400 to $500 million annually.

Here is a quick look at the key commercial agreements impacting Place:

Finance: draft 13-week cash view by Friday.

Sol-Gel Technologies Ltd. (SLGL) - Marketing Mix: Promotion

Promotion for Sol-Gel Technologies Ltd. centers on communicating significant clinical milestones and strategic partnership achievements to a sophisticated B2B audience of potential licensees, investors, and key opinion leaders in dermatology. The focus is less on broad consumer advertising and more on data dissemination and deal-making.

Strategy centers on securing high-value, ex-U.S. commercialization licenses.

The promotional narrative heavily features the expansion of the commercial footprint for the approved products, EPSOLAY and TWYNEO, outside of the U.S. This activity directly supports investor confidence and future revenue streams. As of late 2025, the company has been actively signing and announcing these deals.

Key ex-U.S. licensing and regulatory promotion points include:

• Health Canada approval of EPSOLAY in September 2025 for rosacea, driving promotion through the Searchlight Pharma partnership.
• An additional agreement with Viatris in August 2025, covering Australia and New Zealand for both EPSOLAY and TWYNEO.
• This builds upon seven agreements signed during 2024 covering most European countries, South Africa, and South Korea.
• The company is actively negotiating future deals covering Latin American countries, Spain, and Portugal.

The financial impact of this licensing focus is reflected in the reported revenue:

The U.S. market rights for EPSOLAY and TWYNEO were strategically shifted in Q2 2025 via a product purchase agreement with Mayne Pharma, which brings in a total of $16 million, with the final installment of $6 million expected in the fourth quarter of 2025.

R&D updates, like SGT-610 Phase 3 completion, drive investor and partner interest.

The primary promotional focus for the pipeline asset, SGT-610, is the de-risking achieved through clinical trial progress. Announcing the completion of enrollment is a major communication point to partners and the investment community.

Milestones driving partner/investor interest:

• Patient enrollment for the pivotal Phase 3 clinical trial of SGT-610 for Gorlin Syndrome has been completed as of the second quarter of 2025.
• Top-line results for the SGT-610 Phase 3 study are expected in the fourth quarter of 2026.
• The potential commercial value promoted for SGT-610 in Gorlin Syndrome is estimated to exceed $300 million annually upon approval.
• Sol-Gel is promoting the potential to at least double SGT-610's commercial potential by pursuing high-frequency Basal Cell Carcinoma (BCC) as an additional indication.
• The Phase 1b trial for SGT-210 in Darier disease is concluding Stage 1, with results anticipated in December 2025; this indication targets a market estimated between $200 to $300 million.

Investment in these promotional/development activities is reflected in R&D spend:

• Research and development expenses for the third quarter of 2025 were $5.7 million, compared to $4.8 million in the third quarter of 2024.
• For the nine months ended September 30, 2025, R&D expenses totaled $18.69 million (Note: This figure appears to be total sales/revenue from another source, the actual R&D expense for the nine months is not explicitly stated as a single number, but Q1 R&D was $8.8 million and Q3 R&D was $5.7 million).

Digital marketing efforts target dermatology professionals directly.

While specific digital marketing spend is not itemized separately from G&A or R&D, the communication strategy directly targets the professional community through clinical updates and case studies, which function as high-value content marketing.

Evidence of targeted professional engagement includes:

• The SGT-610 data progress has led to growing physician interest regarding its use in severe, high-frequency BCC.
• Sol-Gel agreed to provide SGT-610 for compassionate use to a non-Gorlin patient in France with a PTCH-1 mutated lesion.
• The company is evaluating a feasibility study in this new indication to start in 2027.

Promotion is B2B, focusing on clinical data and strategic partnerships.

The entire promotional framework is Business-to-Business, centered on validating the technology platform and product candidates through regulatory and commercial success with established partners. The shift in U.S. commercialization for EPSOLAY/TWYNEO and the ongoing SGT-610 trial are the core promotional assets.

Key partnership and data validation points:

• The $16 million agreement with Mayne Pharma for U.S. rights to EPSOLAY and TWYNEO is a major B2B transaction that supports the cash runway into the first quarter of 2027.
• The company's General and administrative expenses were $1 million in Q3 2025, down from $1.4 million in Q3 2024, reflecting cost-saving measures that allow more focus on R&D and partnership management.
• The successful Health Canada approval of EPSOLAY in September 2025 serves as a template for promoting the product in other ex-U.S. territories via partners like Viatris and Searchlight Pharma.

Sol-Gel Technologies Ltd. (SLGL) - Marketing Mix: Price

You're looking at Sol-Gel Technologies Ltd. (SLGL) and seeing how the pricing structure is entirely dependent on strategic partnerships rather than direct consumer sales for their core technology. The revenue model defintely shifted toward milestone and royalty payments from partners, which creates lumpy, less predictable top-line results quarter-to-quarter. This was evident in Q2 2025, where total revenue hit $17.2 million, significantly boosted by a $16 million upfront payment from Mayne Pharma for the U.S. rights to EPSOLAY and TWYNEO.

Still, that upfront cash flow doesn't reflect the recurring price realization. For the most recent reported period, Q3 2025 revenue was low at only $0.4 million from license revenue, which primarily reflects the ongoing, smaller-scale royalty or license fee component of their agreements, compared to Q3 2024 revenue of $5.4 million which included $0.4 million royalty from Galderma and $3.8 million from Padagis.

The immediate financial underpinning for operations, which dictates how long they can wait for these pricing structures to mature, is based on their current balance sheet strength. As of September 30, 2025, Sol-Gel Technologies Ltd. held $20.9 million in cash, cash equivalents, and marketable securities, which management projects will fund operations into Q1 2027.

Future pricing power for Sol-Gel Technologies Ltd. is entirely indirect, tied to the commercial success of their partners in the market and the negotiated royalty rates embedded in those agreements. This is the long-term pricing strategy you need to track.

• Anticipated partner-driven royalties projected to approach $10 million annually by 2031.
• The U.S. market potential for SGT-610 is estimated at $400-500 million annually, which would translate into future royalty streams if a partner successfully commercializes it.
• Q3 2024 royalty revenue components included $0.4 million from Galderma and $0.6 million from Searchlight.