Dermatology company Sol-Gel Technologies Ltd (NASDAQ:SLGL) revealed on Thursday that it has entered into a product purchase agreement with a subsidiary of Mayne Pharma Group Limited (ASX:MYX) for the sale and exclusive license of the US rights to EPSOLAY and TWYNEO.

The deal follows the mutual termination of Sol-Gel's prior US licensing agreement with Galderma.

EPSOLAY is a topical cream containing encapsulated benzoyl peroxide, 5%, for the treatment of inflammatory lesions of rosacea (papulopustular rosacea) in adults. TWYNEO is a fixed-dose combination of encapsulated benzoyl peroxide, 3%, and encapsulated tretinoin, 0.1%, cream for the treatment of acne vulgaris.

Under the new agreement Sol-Gel will receive USD16m in two tranches: USD10m in the second quarter of 2025 and USD6m in the fourth quarter of 2025. The company expects the proceeds to extend its cash runway into the first quarter of 2027, providing sufficient funding to complete its Phase III trial of SGT-610.

SGT-610, a hedgehog pathway blocker, is being developed as a potential first preventative treatment for basal cell carcinomas in Gorlin syndrome patients. Top-line results from the Phase III trial are anticipated in the fourth quarter of 2026, with over 80% of patient recruitment completed.

Sol-Gel estimates the annual US market potential for SGT-610 to be between USD400m and USD500m. The company is also progressing its Phase 1b trial of SGT-210 for Darier disease, with 50% of patients having completed the study.

As of 31 March 2025, Sol-Gel reported a cash position of USD16.9m.