SXTP

60 Degrees is a specialty pharma with one approved product (Arakoda, a malaria preventative on the market since 2019) and a pipeline of Tafenoquine/Celgosivir programs. The commercial reality is tiny: FY2025 product revenue of just $1.01M and gross profit of only $224K — a 22.3% gross margin that shows even the sold product barely covers its own cost of goods. Against that, the company ran an $7.76M operating loss and a -$7.37M net loss, for a net margin of -732%. This is a pre-scale clinical-stage company wearing a revenue label, not a business with durable economics.

The disqualifying issue is solvency, not story. Operating cash flow was -$6.85M in FY2025, yet cash and equivalents stood at just $1.51M (down 9% YoY) — well under three months of runway at the current burn. The MD&A confirms the cash drain is structural: G&A actually rose to $6.28M even as R&D was cut 57.8% to $2.11M to conserve cash, so the burn persists after gutting the pipeline spend. The only way this company has stayed alive is issuance: shares outstanding jumped 79% in a year to 2.64M, diluted EPS was -$11.73, and the accumulated deficit is -$47.9M. That combination — near-empty treasury, heavy monthly burn, and serial dilution — means existing holders face continuous, unknowable value transfer to new capital.