Dermatology company Sol-Gel is considering an IPO in the coming months at a $200-300 million company value. Several months ago, the company reported success in an important Phase II clinical trial of a product for treatment of acne. According to the company, the trial, which included 726 patients, has improved its chances of becoming a leader in the sector. Sol-Gel's product uses the company's unique nano-technology wrapping method to combine two existing anti-acne drugs.
Sol-Gel says that its product met the targets for statistical significance. The results were better than for either of the materials by itself, and there were no severe side effects. The company is now conducting Phase III trials for the product.
Sol-Gel has successfully used its wrapping technique to found a line of sunscreen cream products. The products reached the sales stage, but the company elected to sell this product line to Merck for $8 million in order to focus on drug development.
Other products made by Sol-Gel are designed to treat Rosacea, Athlete's foot, and psoriasis. Sol-Gel's line of products is similar to that of Foamix Pharmaceuticals Ltd.(Nasdaq:FOMX). Foamix's products are in foam form, while Sol-Gel's products feature its nano-technological wrapping. In both cases, the product's form is designed to help the drug penetrate the skin. Foamix's market cap is $177 million.
Arkin Holdings acquired Sol-Gel for $17 million three years ago. Founded in 1997, the company was financed by venture capital funds, including Jerusalem Venture Partners (JVP), Challenge Fund - Etgar, and Argonaut Capital Management, before being sold to Arkin. The company's CEO is cofounder Dr. Alon Seri-Levy.
Published by Globes [online], Israel Business News - www.globes-online.com - on August 15, 2017
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