SXTP

60 Degrees Pharmaceuticals ($SXTP): CEO's Massive Buying at Historic Lows Signals 'Bottom'?

12/12/2025 13:46

60 Degrees Pharmaceuticals ($SXTP) is drawing attention amid severe stock decline due to persistent buying by management. This Washington D.C.-based biotech company commercializes Arakoda, a malaria preventative treatment, while focusing on developing treatments for babesiosis and COVID-19. Investors should pay particular attention to President Geoffrey Dow's recent buying behavior. On December 10-11, 2025, he purchased a total of 12,963 shares at $0.92-0.95 per share, near historic lows. This extends his consecutive buying pattern since November last year, signaling strong confidence in the company's internal situation. Dow's buying history reveals interesting patterns. After purchasing 1,400 shares at around $4.50 in November 19-21, 2024, he made large purchases of 14,791 shares at $5.56-6.36 on December 5-9. When the stock recently fell below $1, he again engaged in aggressive buying, suggesting conviction rather than ceremonial purchases. Director Cheryl Xu shows similar patterns. She has been consistently buying since August 2024, purchasing 5,000 shares at $2.88 per share in June 2025. Notably, her continued buying after the 1:5 reverse split on February 24, 2025, deserves attention. Objectively analyzing $SXTP's situation, revenue growth is impressive. TTM revenue of $1.36 million represents a 256.9% year-over-year surge, attributed to market penetration of flagship product Arakoda and supply chain improvements. The company shifted to a cash-pay model by importing Australian KODATEF instead of Arakoda, which faced supply disruptions in 2024, improving profitability. However, losses persist. TTM net loss of $8.48 million and negative operating cash flow of $6.79 million reflect typical early-stage biotech financials. Nevertheless, $4.12 million in cash provides runway through March 2026. Investors should note warning signals. The stock has declined over 86% year-to-date, with institutional ownership at only 6.77%. High volatility with beta of 2.82 adds risk factors. Clinical trial failures or regulatory approval delays remain inherent biotech risks. Despite challenges, positive signals emerge. FDA granted orphan drug designation for babesiosis treatment, targeting Q2 2026 for new drug application filing. A patent license agreement with Yale University strengthened R&D capabilities. Market research estimating the babesiosis market at $1.1 billion suggests future growth potential. Ascendiant Capital maintains a Buy rating with a price target of $2.80 (up to $6), indicating significant upside potential from current levels. Considering scenarios at current price levels: optimistically, clinical trial success and drug approval could drive sharp rebounds. The base scenario expects gradual recovery with continued revenue growth. However, clinical failures or funding shortfalls could trigger additional declines. The key point is the unusual timing and scale of insider buying. The CEO's large purchases at historic lows suggest either significant positive developments ahead or severe current undervaluation. Risk-seeking investors pursuing high-risk, high-reward opportunities should carefully consider entry at current price levels.