Sol-Gel Q1 revenue falls sharply on milestone payment impact

SOL-GEL TECHNOLOGIES

28/05/2026 13:15

Overview
Dermatology firm's Q1 revenue fell sharply yr/yr due to lower milestone payments
Net loss narrowed as research and development expenses declined significantly
Company raised $33.1 mln in equity offering and signed India licensing deal for TWYNEO

Outlook
Company anticipates TWYNEO and EPSOLAY launches in most new territories in 2028 and 2027
Sol-Gel forecasts annual royalty revenue stream to reach $10 mln by 2031

Result Drivers
MILESTONE PAYMENT IMPACT - Revenue declined yr/yr primarily due to a milestone payment from Searchlight in Q1 2025 not recurring
LOWER R&D EXPENSES - Research and development expenses fell due to reduced manufacturing development and clinical trial costs for SGT-610, and lower expenses for EPSOLAY and TWYNEO

Company press release: ID:nGNX6T4Vq1

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
$0.1 mln
 
Q1 Net Income
 
-$3.70 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the biotechnology & medical research peer group is "buy"
Wall Street's median 12-month price target for Sol Gel Technologies Ltd is $110.00, about 49.1% above its May 27 closing price of $73.80

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)