Sol-Gel Technologies Ltd. announced a new agreement with Padagis which will replace prior collaborative agreements for the development and commercialization of certain generic drugs for skin diseases. After a thorough strategic analysis, and following encouraging results from previously disclosed pre-clinical studies, Sol-Gel decided to focus on expediting the advancement of its innovative pipeline into clinical-stage development. Sol-Gel therefore decided to sell to Padagis its rights related to 10 generic collaborative agreements between the parties, including the agreements for acyclovir cream, ivermectin cream, halobetasol propionate lotion, and halobetasol propionate and tazarotene lotion. Under the new Agreement, Sol-Gel has retained collaboration rights to two generic programs related to four generic drug candidates that it believes to have the most value-generating potential. Under the terms of the new Agreement with Padagis, effective as of November 1, 2021, Sol-Gel will unconditionally receive $21 million over 24 months, in lieu of its share in future gross profits for acyclovir cream and ivermectin cream and its potential gross profits for eight unapproved generic programs. The new Agreement also provides that, effective as of November 1, 2021, Sol-Gel will cease paying any outstanding and future operational costs related to the collaborative agreements. Importantly, this Agreement is expected to extend Sol-Gel?s cash runway until at least the end of 2023.