60 Degrees Pharmaceuticals (SXTP, Financial), a biopharmaceutical company, reported a 164% year-over-year increase in Q3 2024 sales, totaling $135,000. This was driven by a 140% growth in ARAKODA® pharmacy deliveries. The company also turned around its gross profit, posting $24,000 for the quarter, compared to a $20,000 loss in Q3 2023
However, SG&A was 36% higher this year at $2.16 million, mainly due to stock-based payments, which put pressure on profits. As a result, it has posted a net loss of $2.27 million, a very grim picture from the $4.09 million net profit in the same period last year.
Additionally, the company managed to bolster its funds through private placement worth $4 million to fund working capital, commercialization exercises, and existing and new R&D projects. In the same light, collaborations with the University of Kentucky and the US Army support its strategies for ARAKODA® development and market penetration.
ARRAKODA®, a malaria preventive medication approved by the FDA, is still being produced as demand increases. However, 60 Degrees' financial condition is fragile, and the auditors have questioned the entity's ability to continue as a going concern.
Thus, the evidence of steady revenue growth speaks about the company's gradual improvement in the market, but the deepening losses and continuously growing expenses make attention necessary. These challenges will prove a test to management. The continued development of strategic partnerships and strengthening of the firm's financial base will be vital to sustained advancement.
