Sol-Gel Stock Delivers Over 150% Gain - Can The Upcoming Q4 Clinical Data Readout Sustain The Rally?

(RTTNews) - Sol-Gel Technologies Ltd. (SLGL) touched a new 52-week high of $18.66 yesterday, reflecting growing investor confidence. With a key clinical trial milestone on the horizon, it will be worth watching whether the stock's upward momentum can be sustained.

This dermatology company focuses on skin diseases for which there are no approved therapeutics. It has successfully developed two FDA-approved products, EPSOLAY and TWYNEO, and is advancing two drug candidates in clinical development: SGT-610 (topical Patidegib) and SGT-210 (topical Erlotinib).

SGT-610 is under a phase III clinical trial for the treatment of Gorlin syndrome. Enrollment in the study has been completed, and top-line results are expected in the fourth quarter of 2026.

Gorlin syndrome is a rare genetic disorder, and 90% of individuals with this syndrome develop multiple basal cell carcinomas (BCCs) by age 35, ranging from a few to many thousands of lesions during a patient's lifetime. Mohs surgery is the most common practice for the removal of BCCs. But as these lesions continue to appear, repeated surgical removal becomes impractical. About 11,000 people in the U.S. are affected by this condition.

If approved, SGT-610 has the potential to be the first drug for the prevention of new BCCs in GS patients. The company sees a potential global market opportunity of more than $600 million for SGT-610.

Up next is SGT-210, which is under a proof-of-concept phase 1b clinical trial in patients with Darier disease.

Darier's Disease is a rare genetic skin condition that affects areas typically associated with seborrhea (excessive sebum (oil) production), say the scalp, face, chest, and back. It causes thickened skin, along with scaly, crusty bumps that can be painful and lead to emotional stress.

Current treatments, which are used off-label, include moisturizers, oral retinoids, and corticosteroids. However, these options only provide limited symptom relief.

The completion of the phase 1b trial of SGT-210 and top-line results are expected in the fourth quarter of 2025.

If approved, SGT-210 could achieve net sales of $200 million to $300 million at its peak, according to the company.

In April of this year, Sol-Gel entered into a product purchase agreement with a subsidiary of Mayne Pharma Group Limited (ASX: MYX) for the sale and exclusive license of the U.S. rights to EPSOLAY and TWYNEO for a total consideration of $16 million. As part of the agreement, Sol-Gel received $10 million during the second quarter of 2025, and $6 million is expected next quarter (Q4. 2025).

EPSOLAY is a topical cream for the treatment of inflammatory lesions of rosacea in adults. TWYNEO is a topical cream for the treatment of acne vulgaris.

Cash Position

The company ended June 30, 2025, with a total cash balance of $24.2 million, which is expected to be sufficient to fund operations into the first quarter of 2027.

On May 7, 2025, when we alerted readers to SLGL, it was trading at $7.26. The stock touched an intraday high of $18.66 yesterday, before closing at $18.40, up 3.72%.

Had you invested in the stock back in May, you would be up over 150% today.