60 Degrees Pharmaceuticals Reports Revenue Growth but Net Loss in Latest 10-Q Filing

60 Degrees Pharmaceuticals, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated net revenues of $183,011, a substantial increase from $69,868 in the same period last year, driven primarily by a rise in product revenues, which reached $163,552 compared to $105,674 in the prior year. The gross profit also saw a notable increase, climbing to $90,280 from $40,237, resulting in a gross margin of 55.20%, up from 38.08% a year earlier. However, the company reported a net loss of $1,876,549, a decline from a net income of $430,470 in the previous year, reflecting increased operating expenses.

The company's operating expenses rose significantly to $2,093,886 from $1,412,316, with general and administrative expenses accounting for a large portion of this increase. The company attributed the rise in expenses to higher sales, advertising, and promotion costs, as well as stock-based compensation expenses related to new option grants. Research and development costs also increased, primarily due to expenses associated with the ongoing babesiosis trial for tafenoquine.

In terms of strategic developments, 60 Degrees Pharmaceuticals has been active in expanding its product offerings and market presence. The company announced the enrollment of the first patient in an expanded access clinical study for tafenoquine, aimed at treating patients with persistent babesiosis. Additionally, the FDA authorized the importation of Kodatef, a branded version of tafenoquine, to ensure supply continuity in the U.S. market. The company also completed two significant offerings in January and February 2025, raising approximately $1.7 million and $908,627, respectively, to support its operations and growth initiatives.

Operationally, the company reported an increase in sales volume, with 1,579 boxes of Arakoda sold to pharmacies and dispensaries in the U.S. during the quarter, a 55% increase from the previous year. The company also noted that its Australian distributor reported sales of Kodatef, contributing to its revenue growth. As of March 31, 2025, 60 Degrees Pharmaceuticals had cash and cash equivalents of $3,451,500, a significant increase from $1,659,353 at the end of the previous fiscal year, indicating improved liquidity.

Looking ahead, the company expressed a cautious outlook, emphasizing the need for additional capital to fund ongoing operations and clinical trials. The management highlighted the importance of achieving profitability and maintaining sufficient cash reserves to support its business strategy. However, the company acknowledged the inherent risks and uncertainties in the biopharmaceutical industry, including regulatory challenges and market competition, which could impact its future performance.