WASHINGTON - 60 Degrees Pharmaceuticals, Inc. (NASDAQ:SXTP; SXTPW), a company specializing in infectious disease treatments, has initiated a nine-month pilot program aimed at increasing the awareness and usage of its antimalarial medication, ARAKODA® (tafenoquine). The program, which began today, utilizes virtual sales outreach and a co-pay assistance initiative to support patients and healthcare providers.
ARAKODA, the only antimalarial approved by the U.S. Food and Drug Administration (FDA) in over a decade, offers a weekly dosing schedule and is effective against all malaria stages. The Centers for Disease Control and Prevention recommend it for travelers to malaria-endemic regions due to these benefits and its safety profile.
The pilot program's focus is to gather data on healthcare professionals' perceptions of ARAKODA and their prescribing behaviors. This information will guide the company's future U.S. sales strategies, slated for expansion in 2025. The virtual sales representatives will engage with both potential and current customers, promoting the co-pay program to alleviate out-of-pocket expenses for those traveling to areas where malaria is prevalent.
The medication requires a loading phase of two 100 mg tablets daily for three days prior to travel, followed by a weekly dose during the travel period, which can last up to six months, and a final dose upon return. It is important to note that ARAKODA is not suitable for everyone, including those with Glucose-6-phosphate dehydrogenase (G6PD) deficiency, a history of psychotic disorders, or known hypersensitivity to the drug or its components.
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In other recent news, 60 Degrees Pharmaceuticals has made significant strides in their financial and operational developments. The biopharmaceutical company reported a doubling of its Q2 revenue, largely due to a 288% increase in pharmacy deliveries of their FDA-approved malaria prevention drug, ARAKODA. Despite the revenue growth, the company observed a net loss due to a substantial rise in operating expenses.
The company also disclosed the sale of shares and warrants in a private placement transaction, anticipating gross proceeds of approximately $4 million, with H.C. Wainwright & Co. acting as the exclusive placement agent. The net proceeds are intended to finance working capital, general operations, and further commercialization of ARAKODA.
In a collaborative effort with the University of Kentucky and Eisai Co (OTC:ESAIY). Ltd., 60 Degrees Pharmaceuticals is set to begin a Phase IIb clinical trial for a novel treatment for vivax malaria. Ascendiant Capital maintains its Buy rating on the company. Furthermore, the company initiated a clinical trial for the treatment of babesiosis and received FDA Orphan Drug Designation for the same.
The company also declared a 1-for-12 reverse stock split to comply with Nasdaq's minimum bid price requirement. Lastly, 60 Degrees Pharmaceuticals secured a contract with the United States Army Medical Materiel Development Activity for the commercial validation of new packaging for ARAKODA. These are among the recent developments in the company's ongoing efforts in the field of infectious diseases.
InvestingPro Insights
As 60 Degrees Pharmaceuticals, Inc. (NASDAQ:SXTP) embarks on its pilot program for ARAKODA®, investors should consider some key financial metrics and insights from InvestingPro. The company's revenue growth shows promise, with a 100.64% increase in quarterly revenue as of Q2 2024. This aligns with the company's efforts to boost awareness and usage of its antimalarial medication.
However, the road ahead may be challenging. An InvestingPro Tip indicates that SXTP is quickly burning through cash, which could be a concern as the company invests in its pilot program and plans for future U.S. sales expansion. Additionally, the company suffers from weak gross profit margins, suggesting potential difficulties in achieving profitability from its product sales.
Despite these challenges, SXTP holds more cash than debt on its balance sheet, providing some financial flexibility as it pursues its growth strategy. This could be crucial for supporting the co-pay assistance initiative and virtual sales outreach program.
Investors should note that analysts anticipate sales growth in the current year, which may be influenced by the success of the ARAKODA® pilot program. However, it's important to consider that the stock has experienced significant price declines, with a 65.48% drop over the past six months.
For those interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for SXTP, providing a deeper understanding of the company's financial health and market position.
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