60 Degrees Pharmaceuticals (SCTP) Registration Filing summary

Company overview and business model

• Specializes in developing and commercializing therapies for infectious diseases, with a focus on small molecule drugs with established safety profiles.

• Lead product, Arakoda (tafenoquine), is FDA-approved for malaria prevention; pipeline includes programs for tick-borne, fungal, and viral diseases.

• Business model leverages partnerships, licensing, and a virtual management structure to reduce development costs and risks.

Financial performance and metrics

• For the nine months ended September 30, 2024, product revenues were $365,939, up 186% year-over-year, driven by increased U.S. and Australian sales.

• Net loss for the nine months ended September 30, 2024 was $5.9 million; accumulated deficit as of September 30, 2024 was $38.5 million.

• Gross margin improved to 29.2% for the nine months ended September 30, 2024, compared to -156.7% in the prior year period.

• Cash and cash equivalents as of September 30, 2024 were $3.3 million; company expects to have sufficient funds through August 2025, excluding new trial costs.

• Auditors have raised substantial doubt about the company’s ability to continue as a going concern.

Use of proceeds and capital allocation

• Will not receive proceeds from the resale of shares by selling stockholders; may receive up to $2.66 million from the cash exercise of warrants if fully exercised.

• Any proceeds from warrant exercises will be used for general corporate purposes and working capital.

• Recent capital raises include ATM offerings, private placements, and direct offerings, with proceeds allocated to commercialization and R&D activities.