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SXTP Nasdaq· 60 Degrees Pharmaceuticals Inc.
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SXTP Nasdaq· 60 Degrees Pharmaceuticals Inc.
Earnings report Q3 2023

SXTP Reports Significant Decline in Product Revenues for Q3 2023

Segments of revenue

SXTP's product revenues, net of discounts and rebates, amounted to $51,188 for the three months ended September 30, 2023, representing a substantial decrease of $116,997 or 69.56% compared to the same period in 2022.

Strengths

Despite the decline in product revenues, SXTP's management highlighted that their U.S. pharmaceutical distributor accounted for 100% of their total net sales for the nine months ended September 30, 2023. This indicates a strong partnership and market presence in the U.S., which could potentially be leveraged for future growth.

Challenges

SXTP faced significant challenges in the latest quarter, as evidenced by the sharp decline in product revenues. The company experienced a decrease of $132,490 or 50.88% in product revenues for the nine months ended September 30, 2023, compared to the same period in 2022. This decline could be attributed to various factors such as changes in market demand, competition, or supply chain disruptions.

Noteworthy

It is worth noting that SXTP reported a gross loss of $20,008 for the three months ended September 30, 2023, compared to a gross profit of $75,904 in the same period last year. This indicates a significant deterioration in profitability. Additionally, the company's gross margin percentage for the three months ended September 30, 2023, was -39.09%, reflecting a negative margin.

Summary

SXTP faced a challenging quarter with a substantial decline in product revenues, resulting in a gross loss. The company's reliance on its U.S. pharmaceutical distributor for all net sales indicates a potential strength in the U.S. market. However, SXTP needs to address the factors contributing to the decline in revenue and focus on improving profitability to ensure long-term sustainability.

Source documents

Form 10-Q  filed on Nov 20, 2023
3 pages scanned

Reference data

Company financials Q3 revenue 42.7k
Analyst estimates Q3 EPS missed by -17.36%
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