- In the third fiscal quarter of 2024, 60 Degrees Pharmaceuticals, Inc. reported an impressive sales revenue surge of 164% year-over-year, totaling approximately $135 thousand, compared to $51 thousand in the same period last year.
- The company’s net product revenue also demonstrated sequential growth, increasing by 8.3% quarter-over-quarter, indicating a steady upward trajectory in sales performance.
- 60 Degrees Pharmaceuticals experienced a significant turnaround in gross profit for Q3 2024, leaping from a loss of approximately $20 thousand in Q3 2023 to a positive gross profit of around $24 thousand in the most recent quarter.
WASHINGTON, Nov. 14, 2024 (GLOBE NEWSWIRE) — 60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW) (the “Company”), a pioneering pharmaceutical firm dedicated to the development of innovative treatments for infectious diseases, announced its financial results for the third fiscal quarter of 2024, concluding on September 30, 2024.
Financial Highlights for the Quarter Ended September 30, 2024:
- This quarter, the Company saw a remarkable 140% increase in deliveries of its leading product ARAKODA®, from 550 boxes in Q3 2023 to an impressive 1,319 boxes in Q3 2024, generating a corresponding increase in sales revenue of 164%, rising from $51 thousand to approximately $135 thousand.
- The significant improvements in operational performance were reflected in the gross profit, which shifted from an approximate gross loss of $20 thousand during the third quarter of 2023 to a notable gross profit of about $24 thousand in Q3 2024.
- However, operating expenses saw an increase to approximately $2.16 million in Q3 2024, up from about $1.58 million in the same quarter of 2023. This rise in expenses was mainly attributed to the delivery of research materials valued at $600,000, which were previously compensated with stock prior to the Company’s initial public offering in July 2023.
- The net loss attributable to common shareholders for Q3 2024 was approximately $2.27 million, equating to ($0.93) per share, a stark contrast to the net income of around $4.09 million, or $9.13 per share, reported in Q3 2023, marking a significant decline of approximately $6.36 million. This downturn is primarily due to the alteration in fair value of liabilities from $6.20 million in Q3 2023 to a minimal amount of ($0.06) million in Q3 2024.
- A noteworthy $4 million private placement was concluded in September, consisting of common stock and associated warrants priced at $1.38 per share, with net proceeds allocated toward supporting working capital, the commercialization of ARAKODA® (tafenoquine), and ongoing research and development efforts.
Business Highlights for the Quarter Ended September 30, 2024
- In a significant collaboration, 60 Degrees Pharmaceuticals granted the University of Kentucky the right of reference to the Company’s new drug application (NDA) for ARAKODA® (tafenoquine). This authorization enables the FDA to evaluate essential clinical efficacy and safety data, non-clinical data, and chemistry, manufacturing, and controlled information regarding ARAKODA as they assess protocols and new IND submissions associated with the University of Kentucky’s SJ733 Phase IIb program.
- The Company secured a fixed-price contract with the United States Army Medical Materiel Development Activity, aimed at enhancing the commercial validation of new bottle and replacement blister packaging for ARAKODA® (tafenoquine).
- Ethics approval was granted for an open-label, expanded access study focusing on the ARAKODA® regimen of tafenoquine in conjunction with standard care for immunosuppressed patients enduring persistent or relapsing babesiosis, marking a major milestone in the quarter.
- 60 Degrees Pharmaceuticals successfully finalized clinical trial agreements with all designated trial sites for the anticipated Tafenoquine Babesiosis Study, further underscoring the Company’s commitment to advancing clinical research.
About 60 Degrees Pharmaceuticals, Inc.
Founded in 2010, 60 Degrees Pharmaceuticals, Inc. is dedicated to creating and marketing groundbreaking medicines aimed at treating and preventing infectious diseases that impact countless lives globally. The Company achieved a significant milestone with FDA approval of its flagship product, ARAKODA® (tafenoquine), for malaria prevention back in 2018. Collaborating with leading research institutions across the U.S., Australia, and Singapore, the firm has received in-kind support from the U.S. Department of Defense and investments from notable private institutional stakeholders like Knight Therapeutics Inc., a Canadian specialty pharmaceutical company. Headquartered in Washington D.C., 60 Degrees Pharmaceuticals, Inc. also operates a majority-owned subsidiary in Australia. To learn more, visit www.60degreespharma.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may encompass “forward-looking statements” as defined by the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements reflect the Company’s current perspective concerning future events. When terms such as “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or their negative variants appear in these communications, they identify forward-looking statements. It should be noted that forward-looking statements are not historical facts nor assurances of anticipated performance. Instead, they are rooted in the Company’s current beliefs, expectations, and assumptions about future operations, plans, strategies, anticipated occurrences, trends, and regulatory environment. Due to inherent uncertainties and external factors that are hard to foresee, actual outcomes may significantly differ from those projected in these statements. Consequently, caution is advised when depending on these forecasts. Potential risk factors could include, but are not limited to, doubts regarding the Company’s ability to maintain ongoing operations, eligibility for Australian government tax incentives, successful development or commercialization timelines for non-malaria indications of tafenoquine, the feasibility of planned clinical trials, and manufacturing capabilities, which could impede timely market entry for products. A detailed discussion of these risks is available in the Company’s SEC filings, including the Annual Report on Form 10-K submitted on April 1, 2024. Stakeholders are encouraged to review these documents at no cost on the SEC website at www.sec.gov. Given variables such as significant changes in assumptions or new information, actual results may diverge markedly from expectations. All forward-looking statements made herein are based solely on information current at the time they were issued and are not guaranteed to be updated publicly thereafter.
Media Contact:
Sheila A. Burke
SheilaBurke-consultant@60degreespharma.com
(484) 667-6330
Investor Contact:
Patrick Gaynes
patrickgaynes@60degreespharma.com
(310) 989-5666
How has the collaboration with the University of Kentucky impacted the development of ARAKODA®?
**Interview with Dr. Jane Doe, CEO of 60 Degrees Pharmaceuticals, Inc.**
**Editor:** Thank you for joining us today, Dr. Doe. Your company, 60 Degrees Pharmaceuticals, recently reported some impressive financial results for Q3 2024. Can you walk us through the highlights?
**Dr. Doe:** Absolutely! We were thrilled to report a 164% year-over-year increase in sales revenue, which totaled approximately $135 thousand compared to $51 thousand in Q3 2023. This remarkable growth is largely driven by our leading product, ARAKODA®, where deliveries surged from 550 boxes last year to over 1,319 this quarter.
**Editor:** That’s quite an impressive leap! It seems like the operational performance has significantly improved as well.
**Dr. Doe:** Yes, indeed! We’ve transitioned from a gross loss of about $20 thousand in Q3 2023 to achieving a gross profit of around $24 thousand this quarter. This turnaround reflects our strategic focus on enhancing operational efficiency and market outreach.
**Editor:** However, I noticed that your operating expenses increased as well. Could you elaborate on that?
**Dr. Doe:** Certainly. Our operating expenses rose to approximately $2.16 million, predominantly due to the delivery of research materials that were previously compensated with stock before our IPO. While this rise is concerning, it’s a necessary step for advancing our research and development efforts, which will ultimately benefit our product pipeline.
**Editor:** Speaking of product pipeline, can you tell us about any recent developments specifically related to ARAKODA®?
**Dr. Doe:** We had quite a busy quarter. We granted the University of Kentucky the right to reference our new drug application for ARAKODA®, allowing the FDA to evaluate critical data for upcoming clinical trials. Additionally, we secured a fixed-price contract with the U.S. Army for packaging enhancements, proving our commitment to both commercial validation and research.
**Editor:** That’s a significant collaboration! On a broader note, what do you envision for the future of 60 Degrees Pharmaceuticals as you move forward?
**Dr. Doe:** We’re optimistic about our trajectory. Our recent $4 million private placement will bolster our working capital and strengthen our commercialization efforts for ARAKODA®. With scientific advancements and strong institutional partnerships, we believe we’re well-positioned to make a substantial impact on the infectious diseases landscape.
**Editor:** Thank you for sharing these insights, Dr. Doe. It’s clear that 60 Degrees Pharmaceuticals is making strides toward impacting global health positively.
**Dr. Doe:** Thank you for having me! We’re excited about the potential ahead and grateful for the support from our stakeholders and the community.
