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SOL - GEL Sol - Gel Technologies Reports Third Quarter 2021 Financial Results and Highlights Recent Corporate Developments November 11 , 2021 • Sol - Gel attains a profitable quarter , reporting total revenues of $ 8.8 million , net income of $ 1.3 million and EPS of $ 0.06 Recently obtained FDA approval of TWYNEO® triggers a $ 3.5 million milestone payment from Galderma , and , together with the $ 4.0 million down payment from Galderma , a total of $ 7.5 million was recognized in Q3 • • Sol - Gel to receive $ 21 million over 24 months in exchange for the transfer of its rights to two marketed generic drugs and eight unapproved generic programs based on a new agreement with Padagis ; Sol - Gel to retain collaboration rights on two programs related to four high - value candidates • Sol - Gel's cash runway expected to extend through the end of 2023 • Sol - Gel's focus remains on supporting Galderma to launch TWYNEO , and EPSOLAY® , subject to the approval of the latter , along with advancing its innovative new drug candidates NESS ZIONA , Israel , Nov. 11 , 2021 ( GLOBE NEWSWIRE ) -- Sol - Gel Technologies , Ltd. ( NASDAQ : SLGL ) , a dermatology company focused on identifying , developing and commercializing branded and generic topical drug products for the treatment of skin diseases , today announced financial results for the third quarter ended September 30 , 2021 and provided an overview of recent corporate developments . Third Quarter Corporate Highlights and Recent Developments • Sol - Gel reported a profitable quarter . The company recognized total revenues of $ 8.8 million , the majority of which was attributed to licensing revenue of $ 3.5 million related to TWYNEO approval milestones , and a $ 4.0 million TWYNEO upfront payment from partner Galderma . As a result of this recognized revenue , net income was $ 1.3 million , and the company reported EPS of $ 0.06 . • On July 27 , 2021 , Sol - Gel announced that the U.S. Food and Drug Administration ( FDA ) approved its first proprietary drug product , TWYNEO , indicated for the treatment of acne vulgaris in adults and pediatric patients nine years of age and older . • On November 4 , 2021 , Sol - Gel announced a new agreement with Padagis ( formerly a division of Perrigo Company plc ) effective November 1 , 2021 ( the " Agreement " ) , which replaces prior collaborative agreements for the development and commercialization of certain generic drugs for skin diseases . Under this Agreement , Sol - Gel is to unconditionally receive $ 21 million over 24 months , in lieu of its share in future gross profits for acyclovir cream and ivermectin cream and its potential gross profits for eight unapproved generic programs . In addition , Sol - Gel will cease paying any outstanding and future operational costs related to the earlier collaborative agreements . Importantly , Sol - Gel has retained collaboration rights to two generic programs related to four generic drug candidates that it believes to have the most value - generating potential . • On April 26 , 2021 , Sol - Gel received confirmation from the FDA that action on EPSOLAY had not yet been taken due to the inability of the FDA to conduct a pre - approval inspection of the production site for EPSOLAY because of COVID - 19 travel restrictions . • During the third quarter , Sol - Gel raised net proceeds of $ 505,413 in an at - the - market ( ATM ) offering of 41,153 shares at an average price of $ 12.66 . • Alon Seri - Levy , Ph.D. , Co - Founder and Chief Executive Officer , stated , " The approval of TWYNEO solidifies our Company's reputation as a successful drug developer , and we continue to support Galderma in their launch preparations for TWYNEO and EPSOLAY , pending the approval of the latter . " • Dr. Seri - Levy continued , “ We are extremely proud to have entered into a U.S. partnership with Galderma on attractive terms which permit us to regain our products after a five - year period . This partnership , along with revenue from our recent sale of certain generics assets to Padagis , allows us to focus on advancing our innovative , early - stage pipeline into clinical development , in line with our vision to establish Sol - Gel as a leading dermatology company , while reducing future cash needs for our company . " Financial Results for the Third Quarter Ended September 30 , 2021 Total revenue for the third quarter of 2021 was $ 8.8 million , $ 7.5 million of which consisted of licensing revenue and $ 1.3 million consisting of collaboration revenue , compared to revenues of $ 2.1 million of collaboration revenues for the same period in 2020 . Research and development expenses were $ 6.0 million in 2021 compared to $ 7.9 million during the same period in 2020. The decrease of $ 1.9 million was mainly attributed to a decrease of $ 3.6 million in regulatory expenses associated with the PDUFA fee for TWYNEO during the same period in 2020 , offset by an increase of $ 1.6 million in manufacturing expenses and an increase of $ 0.3 million in clinical trial expenses . General and administrative expenses were $ 2.1 million in 2021 compared to $ 3.0 million in 2020. The decrease of $ 0.9 million was mainly attributed to a decrease in commercialization expenses . Sol - Gel reported a profit of $ 1.3 million for the third quarter of 2021 and earnings of $ 0.06 per basic share , compared to loss of $ 8.6 million and loss of $ 0.37 per basic share for the same period in 2020 .