60 Degrees Pharmaceuticals, Inc. (SXTP) AI Stock Analysis

• Market Cap: $1.97M
• Dividend Yield: N/A
• Average Volume (3M): 199.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.15
• Revenue Growth: 192.72%
• EPS Growth: 83.61%
• Country: US
• Employees: 3
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.67
• Shares Outstanding: 4,230,448
• 10 Day Avg. Volume: 488,900
• 30 Day Avg. Volume: 199,179
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 4.83
• P/FCF Ratio: -0.50
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: -0.19
• 1Y Price Target: $4.40
• Price Target Upside: 780.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.45 ▼(-9.40% Downside)

The score is held down primarily by very large ongoing losses and persistent negative free cash flow, which outweigh the recent revenue rebound and low leverage. Technicals are broadly bearish with the stock below key moving averages, while valuation remains unattractive due to lack of profitability. A recent strategy update is modestly positive but paired with explicit going-concern and regulatory risks.

Positive Factors

Low Financial Leverage

Balance sheet shows very low debt relative to equity, providing durable financial flexibility and lower interest burden. This reduces near-term solvency pressure and gives management optionality for financing or restructuring while operating losses persist, supporting survival odds.

Revenue Rebound and Improving Commercial Traction

A sharp TTM revenue rebound indicates improving commercial traction off a small base, suggesting that product sales can scale with execution. If sustained, rising revenue can help leverage fixed costs, improve gross margin contribution, and reduce reliance on financing over time.

Established Product with Growing Use (ARAKODA)

Management highlights expanding commercial adoption of ARAKODA for chronic babesiosis, a structural product-market fit opportunity. Durable commercial uptake would create a recurring revenue stream and a platform for geographic or indication expansion if regulatory milestones are met.

Negative Factors

Persistent Negative Cash Flow

Consistently negative operating and free cash flow demonstrates structural cash burn and reliance on external financing. Over months this erodes runway, forces capital raises or asset sales, and constrains investment in commercialization or R&D that are needed to reach sustainable profitability.

Extremely Weak Profitability

An outsized negative net margin indicates the cost base greatly exceeds current revenue, reflecting poor unit economics or high fixed costs. Without major scale, margin improvement, or cost restructuring, profitability appears structurally distant and increases dilution or restructuring risk.

Operational and Regulatory Concentration Risks

Dependence on third-party manufacturing plus clinical and regulatory uncertainty are durable operational risks. Supply disruptions, approval delays, or failed trials can materially impair revenue flows and trigger additional financing needs, making long-term commercialization fragile.

60 Degrees Pharmaceuticals, Inc. Business Overview & Revenue Model

Company Description

60 Degrees Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development and commercialization of therapies for the prevention and treatment of infectious diseases in the United States. It offers Arakoda for malaria preventative treatment. The company also engages in the development of Tafenoquine (Arakoda regimen) that is in Phase IIb clinical trial for COVID-19 indications; Tafenoquine, which is in phase IIA clinical trials for babesiosis, fungal pneumonias, and candidiasis disease; and Celgosivir for Zika, respiratory viruses, and dengue. It also has patent license agreement with Tufts Medical Center to jointly advance the development and commercialization of tafenoquine for the treatment and prevention of babesiosis. The company was founded in 2010 and is headquartered in Washington, District Of Columbia.

How the Company Makes Money

60 Degrees Pharmaceuticals generates revenue through the commercialization of its pharmaceutical products, which may include direct sales to healthcare providers and distribution partnerships with pharmaceutical distributors. The company may also derive income from licensing agreements and collaborations with other biopharmaceutical companies, leveraging its research and development capabilities to create valuable intellectual property. Additionally, government grants and funding from research institutions may contribute to its earnings as the company advances its drug development pipeline.

60 Degrees Pharmaceuticals, Inc. Financial Statement Overview

Summary

Despite a sharp TTM revenue rebound (+45.72%) and currently low leverage (debt-to-equity ~0.03–0.04), results remain dominated by extremely large losses (TTM net margin roughly -828%) and persistent cash burn (TTM operating cash flow about -$6.8M; free cash flow about -$6.9M), implying continued reliance on external funding.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded sharply (+45.72%), showing improving commercial traction off a small base. However, profitability remains very weak: gross margin is modest (about 19% in TTM) and the company is running extremely large operating and net losses versus revenue (TTM net margin roughly -828%), indicating the cost structure is far ahead of current scale. Annual results also show high volatility in revenue and margins (including negative gross profit in 2022–2023), which raises execution and scaling risk.

Balance Sheet

Recent balance sheets (2024 and TTM) show very low leverage (debt-to-equity ~0.03–0.04) and positive equity, which is a relative strength and suggests limited balance-sheet debt pressure. That said, returns on equity are deeply negative in 2024 and TTM due to ongoing losses, and the history includes prior years (2020–2022) with negative equity and very high debt levels, highlighting past recapitalization stress and a higher-risk profile if losses persist.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are materially negative in every period provided, including TTM (operating cash flow about -$6.8M; free cash flow about -$6.9M). While TTM free cash flow improved versus the prior year (positive growth rate), the business is still consuming cash at a high rate, implying ongoing dependence on external funding until revenue scales meaningfully and losses narrow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	963.53K	607.57K	253.57K	223.21K	1.16M	2.18M
Gross Profit	184.44K	222.81K	-220.98K	-209.16K	309.60K	1.48M
EBITDA	-7.90M	-7.88M	-1.43M	-2.11M	-1.01M	-341.17K
Net Income	-7.98M	-7.95M	-3.77M	-6.18M	-4.25M	-3.03M
Balance Sheet
Total Assets	6.69M	5.76M	7.78M	1.30M	1.39M	2.61M
Cash, Cash Equivalents and Short-Term Investments	4.12M	3.39M	2.14M	264.87K	115.40K	191.70K
Total Debt	153.76K	155.89K	172.67K	22.42M	18.80M	19.14M
Total Liabilities	2.34M	1.80M	2.99M	25.45M	19.55M	20.68M
Stockholders Equity	4.43M	4.04M	4.87M	-23.58M	-17.58M	-17.50M
Cash Flow
Free Cash Flow	-6.86M	-5.83M	-4.66M	-1.07M	-684.50K	-238.28K
Operating Cash Flow	-6.79M	-5.65M	-4.54M	-1.01M	-649.11K	-167.30K
Investing Cash Flow	1.62M	-1.89M	-115.89K	-60.13K	-35.39K	-70.98K
Financing Cash Flow	5.98M	7.05M	6.47M	1.22M	611.23K	277.36K

60 Degrees Pharmaceuticals, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SXTP, the sentiment is Neutral. The current price of 0.5 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.86, and below the 200-day MA of 1.65, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 56.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SXTP.

60 Degrees Pharmaceuticals, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SXTP	45 Neutral	$1.97M	-0.08	-152.19%	―	192.72%	83.61%
KALA	44 Neutral	$16.73M	-0.11	―	―	―	52.39%
ONCO	33 Underperform	$2.50M	>-0.01	-263.57%	―	-34.58%	96.41%
OGEN	29 Underperform	$3.91M	-0.06	-168.95%	―	―	90.27%

60 Degrees Pharmaceuticals, Inc. Corporate Events

60 Degrees Pharma outlines growth strategy in investor webinar

On January 8, 2026, 60 Degrees Pharmaceuticals made available an investor presentation tied to a RedChip-hosted webinar, providing updated information on its clinical development timelines and regulatory strategy. The materials highlighted growing commercial use of ARAKODA for chronic babesiosis since 2019, improving gross margins despite recent inventory and supply issues, and the company’s efforts to increase malaria-related sales through a targeted commercial pilot that tackles low brand recognition, generic competition, and access barriers. The presentation also underscored management’s view that future ARAKODA sales for chronic babesiosis could ultimately exceed those for malaria and potentially grow by orders of magnitude if regulatory milestones are achieved, positioning the company for significant long-term revenue expansion from a very small current market capitalization base, while reminding investors of going-concern risks, clinical and regulatory uncertainties, and dependence on third-party manufacturing.

The most recent analyst rating on (SXTP) stock is a Sell with a $0.48 price target. To see the full list of analyst forecasts on 60 Degrees Pharmaceuticals, Inc. stock, see the SXTP Stock Forecast page.