60 Degrees Pharmaceuticals Announces Second Quarter 2024 Results

Rhea-AI Summary

60 Degrees Pharmaceuticals (NASDAQ: SXTP) reported Q2 2024 financial results, showing significant growth in net product revenues. Key highlights include:

- Net product revenues doubled year-over-year to $125,000
- Sequential quarter-over-quarter revenue growth of 18.3%
- Gross profit improved from ($124,000) loss to $35,000 gain
- ARAKODA® pharmacy deliveries increased by 288%
- Operating expenses rose to $4.22 million, impacted by a non-recurring R&D charge
- Net loss widened to $4.29 million or ($4.23) per share

The company also reported progress in its clinical trials, with the first patient enrolled in a tafenoquine study for Babesiosis at Tufts Medical Center. Additionally, the FDA granted Orphan Drug Designation for tafenoquine in acute babesiosis treatment.

Positive

• Net product revenues doubled year-over-year to $125,000
• Sequential quarter-over-quarter revenue growth of 18.3%
• Gross profit improved from ($124,000) loss to $35,000 gain
• ARAKODA® pharmacy deliveries increased by 288%
• FDA granted Orphan Drug Designation for tafenoquine in acute babesiosis treatment

Negative

• Operating expenses increased significantly from $0.67 million to $4.22 million
• Net loss widened by $0.95 million to $4.29 million
• Loss per share increased to ($4.23) from ($16.84) in Q2 2023

Financial Analyst

60 Degrees Pharmaceuticals' Q2 2024 results show mixed signals. While the 110% year-over-year revenue growth to $125,000 is impressive, the absolute figure remains small. The transition from a gross loss to a gross profit of $35,000 is positive, indicating improved operational efficiency.

However, the significant increase in operating expenses to $4.22 million, largely due to a non-recurring R&D charge, led to a wider net loss of $4.29 million. The reduction in loss per share from ($16.84) to ($4.23) is mainly due to an increased share count rather than improved profitability.

The 288% increase in ARAKODA® pharmacy deliveries is encouraging, but the company needs to significantly scale up to achieve profitability. The recent FDA Orphan Drug Designation for tafenoquine could potentially accelerate future growth.

Medical Research Analyst

The initiation of the clinical trial for tafenoquine in Babesiosis at Tufts Medical Center marks a significant milestone. Babesiosis, a tick-borne illness, lacks FDA-approved treatments, presenting a potential market opportunity for 60 Degrees Pharmaceuticals.

The FDA Orphan Drug Designation for tafenoquine in acute babesiosis is crucial. This status provides benefits like market exclusivity, tax credits for clinical trials and potential fast-track designation. It could accelerate the drug's path to market and enhance its commercial viability.

However, it's important to note that clinical trials and regulatory approvals are time-consuming and costly processes with no guaranteed success. Investors should monitor the progress of this trial closely, as its outcomes could significantly impact the company's future prospects.

• Q2 2024 net product revenues doubled year-over-year to $125 thousand
• Sequential (quarter-over-quarter) net product revenue growth of 18.3%
• Gross profit increased from ($124 thousand) to $35 thousand, year-over-year

WASHINGTON, Aug. 14, 2024 (GLOBE NEWSWIRE) -- 60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW) (the “Company”), a pharmaceutical company focused on developing new medicines for infectious diseases, reported today their financial results for the second quarter of 2024, ended June 30, 2024.

Financial Highlights:

• 110% net product revenue growth resulted from an increase in ARAKODA® pharmacy deliveries of 288%, from 331 boxes (Q2 2023) to 1,301 boxes (Q2 2024).
• The Company achieved a gross profit of approximately $35 thousand in the second quarter of 2024, compared to an approximate gross loss of $124 thousand in the second quarter of 2023.
• Operating expenses were approximately $4.22 million in the second quarter of 2024, compared to approximately $0.67 million in the second quarter of 2023. The increase was impacted by a non-recurring, non-cash, R&D charge of $2.63 million.
• Net loss attributable to common shareholders in the second quarter of 2024 was approximately $4.29 million, or ($4.23) per share, compared to a net loss of approximately $3.34 million, or ($16.84) per share in the second quarter of 2023, representing a $0.95 million increase in loss.

Business Highlights for the Quarter Ended June 30, 2024

• The first patient was enrolled in the Company’s clinical trial of tafenoquine for Babesiosis at Tufts Medical Center.
• The Company received FDA Orphan Drug Designation for tafenoquine for treatment of patients with acute babesiosis.

About 60 Degrees Pharmaceuticals, Inc.
60 Degrees Pharmaceuticals, Inc., founded in 2010, specializes in developing and marketing new medicines for the treatment and prevention of infectious diseases that affect the lives of millions of people. 60 Degrees Pharmaceuticals, Inc. achieved FDA approval of its lead product, ARAKODA® (tafenoquine), for malaria prevention, in 2018. 60 Degrees Pharmaceuticals, Inc. also collaborates with prominent research organizations in the U.S., Australia, and Singapore. The 60 Degrees Pharmaceuticals, Inc. mission has been supported through in-kind funding from the U.S. Department of Defense and private institutional investors including Knight Therapeutics Inc., a Canadian-based pan-American specialty pharmaceutical company. 60 Degrees Pharmaceuticals, Inc. is headquartered in Washington D.C., with a majority-owned subsidiary in Australia. Learn more at www.60degreespharma.com.

Cautionary Note Regarding Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward‐looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, activities of regulators and future regulations and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: there is substantial doubt as to our ability to continue on a going-concern basis; we might not be eligible for Australian government research and development tax rebates; if we are not able to successfully develop, obtain FDA approval for, and provide for the commercialization of non-malaria prevention indications for tafenoquine (ARAKODA® or other regimen) or Celgosivir in a timely manner, we may not be able to expand our business operations; we may not be able to successfully conduct planned clinical trials; and we have no manufacturing capacity which puts us at risk of lengthy and costly delays of bringing our products to market. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the information contained in our Annual Report on Form 10-K filed with the SEC on April 1, 2024, and our subsequent SEC filings. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company’s actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Media Contact:
Sheila A. Burke
SheilaBurke-consultant@60degreespharma.com
(484) 667-6330

Investor Contact:
Patrick Gaynes
patrickgaynes@60degreespharma.com
(310) 989-5666

FAQ

What was 60 Degrees Pharmaceuticals' (SXTP) revenue growth in Q2 2024?

60 Degrees Pharmaceuticals reported a 110% year-over-year net product revenue growth in Q2 2024, with revenues doubling to $125,000.

How did ARAKODA® pharmacy deliveries perform for SXTP in Q2 2024?

ARAKODA® pharmacy deliveries increased by 288% year-over-year, from 331 boxes in Q2 2023 to 1,301 boxes in Q2 2024.

What was 60 Degrees Pharmaceuticals' (SXTP) net loss in Q2 2024?

The net loss attributable to common shareholders in Q2 2024 was approximately $4.29 million, or ($4.23) per share.

Did SXTP receive any FDA designations in Q2 2024?

Yes, 60 Degrees Pharmaceuticals received FDA Orphan Drug Designation for tafenoquine for the treatment of patients with acute babesiosis.