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60 Degrees Pharmaceuticals

SXTP
24
Biotechnology · Healthcare
Price
$1.51
-0.01 (-0.66%)
Market Cap
$1.2M
Exchange
NASDAQ Capital Market
Winston Score
24
Winston is worried
Weak fundamentals across most pillars.

Share count falling — buybacks

53.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.4M (2021) → 670K (2025)

60 Degrees Pharmaceuticals is a small specialty pharmaceutical company focused on treatments for infectious diseases, particularly those affecting military personnel and travelers. Its main product is Arakoda (tafenoquine), a once-weekly malaria prevention pill approved by the FDA. The U.S. Department of Defense is a key customer, and the company also targets civilian travelers heading to malaria-prone regions.

The company earns revenue by selling its prescription drug directly to government agencies and through retail pharmacies, though sales volumes remain very small. It operates primarily in the United States but targets markets wherever malaria is a travel risk. With a gross margin around 21% and a deeply negative operating margin, the company is spending far more than it earns, which is common for early-stage drug companies. The main growth driver is expanding Arakoda's adoption beyond the military into the broader travel medicine market, while the biggest risk is its limited cash runway and dependence on a single approved product.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+79.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$2M/ year

Declining (-58% vs prior year)

209.5% of revenue

11.6x the sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

3.2%ownership

Relatively low insider ownership

Cash Runway

~4 months

$3M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Short runway — potential dilution ahead through share issuance

Cash watch

60 Degrees Pharmaceuticals has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
47.1%
Healthy — 47.1% gross margin
Operating Margin
-1292.5%
Losing money on operations — -1292.5%
ROCE
-42.1%
Weak — -42.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+46.5%
Fast-growing sales (46.5% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-818.3%
Burning cash (-818.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.03
Conservative — low debt load (0.03)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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