Mitigation Outlook: While the Q2 release did not list a formal roadmap, 60 Degrees Pharma’s management repeatedly flagged the recent supply shortfall as a catalyst for “strengthening our sourcing architecture.” In practice, this will likely translate into three concrete actions: (1) qualifying additional API and excipient vendors across different geographies to reduce single‑point‑of‑failure risk; (2) building a modest safety‑stock buffer for critical raw materials, financed by the recently‑expanded cash runway ($1.97 M to March 2026); and (3) investing in tighter demand‑forecasting analytics and tighter contract‑manufacturing agreements that include penalty clauses for non‑delivery. These steps should blunt future revenue‑impact spikes and improve cash‑flow predictability.
Trading Implications: Technically, SXTP has been testing a tight range near its 50‑day SMA, with the price hovering just below a nascent bullish flag on the 4‑hour chart. If the company successfully communicates a clear supply‑chain mitigation plan in its next earnings call, the upside bias could be reinforced, offering a short‑to‑mid‑term target around the 20‑day EMA (+8‑10%). Conversely, any lingering uncertainty about execution or a repeat of the current shortfall would keep the stock vulnerable to a breakdown below the recent swing low (~$0.28), potentially opening a 15‑20% downside corridor. Given the cash runway extension, the fundamental risk‑/reward profile remains skewed positive for risk‑averse investors—consider a modest long position with a stop just under the current support level, while keeping an eye on upcoming guidance for concrete supply‑chain initiatives.