Fundamental comparison – 60 Degrees Pharma’s Q2 2025 results were marked by a supply‑chain disruption that trimmed topline revenue, even though the company posted higher profits thanks to a shift toward cash‑pay sales. With just $1.97 M of cash on hand, the runway now ends in March 2026, a tight liquidity profile for a small‑cap biotech. By contrast, the nearest peers in its therapeutic niche – for example Arcadia Therapeutics (NASDAQ: ARCD) and Neurogenix (NASDAQ: NRGX) – both reported double‑digit revenue growth and closed the quarter with cash balances of $12 M–$18 M, giving them ample runway to fund late‑stage trials and potential commercial launches. Their gross margins remain in the 70‑80 % range, whereas 60 Degrees’ margin compression from the supply shortfall likely sits below 50 %. In short, the company is under‑performing on both top‑line growth and cash position relative to its peers, which could pressure valuation multiples (P/S, EV/EBITDA) lower than the sector average.
Trading implications – The earnings miss and constrained cash balance have already prompted a 5–7 % sell‑off in the stock, with the price now testing the 50‑day moving average and a key support level near $0.45. Momentum indicators (RSI around 38) suggest the down‑trend may still have room, especially if no corrective financing news emerges. However, the technical chart also shows a bullish flag formation on the 4‑week chart, implying a potential short‑term rebound if the company announces a supply‑restoration plan or a strategic partnership. Investors should consider a cautious long‑only stance only after a confirming breakout above the $0.55 resistance, or position a tight stop‑loss (~$0.42) for a speculative short. Monitoring upcoming conference‑call commentary for cash‑raise intentions or acquisition talks will be critical; any positive catalyst could rapidly narrow the performance gap with its better‑funded competitors.