July 2024

MagnaPharm and Sol-Gel Technologies Ltd have entered into an Exclusive Licensing Agreement of Twyneo® and Epsolay® products in 19 countries in Central & Eastern Europe. MagnaPharm with proven track records and existing dermatology network is an ideal candidate to partner with Sol-Gel and introduce products in CEE region. The non-conflict existing dermatology portfolio in combination to highly professional sales and marketing team have the potential to safeguard a very successful launch. MagnaPharm and Sol-Gel partnership will significantly contribute to MagnaPharm’s CEE expansion with innovating and patent protected products at Dermatology therapeutic segment. MagnaPharm is one of leading players in both, Rx and Otc segments of pharmaceutical market in CEE and offers an excellent platform to launch Sol-Gel’s dermatology brands.

“We are excited and proud to announce our partnership with Sol-Gel. For more than a decade we are very successful in marketing of unique Rx and premium OTC pharmaceuticals in CEE region. Dermatology is one of our core Rx therapeutical fields we develop strategically around the whole MagnaPharm geography. We target to become a leading regional dermatology player. Sol-Gel’s innovative and high-quality products in dermatology perfectly fits with our existing portfolio structure. The cooperation will help us to maintain and grow MagnaPharm’s strong presence in CEE pharmaceutical market. We look forward to working with Sol-Gel in achieving our milestones and increasing standards of care in dermatology.”

Karol Michalak, CEO MagnaPharm

“We are pleased to partner with a leading and dynamic pharmaceutical company, MagnaPharma, to introduce our two innovative dermatology drugs to Central & Eastern European patients and to generate non-dilutive capital for our shareholders. With this partnership, we look forward to expanding our strong commercial presence in Europe and further strengthening our growing revenue base.”

Alon Seri-Levy, Ph.D., CEO Sol-Gel

About MagnaPharm

MagnaPharm is a premier pharmaceutical and consumer healthcare service provider in Central & Eastern Europe. MagnaPharm is the partner of choice on the Central and Eastern Europe pharmaceutical market, offering a unique and full range of services on the distribution, marketing, sales, pharmaceutical retail, market access, pricing and medical services segments. MagnaPharm is going an extra mile to fulfil the demands of its reputable partners, multinational and specialty international pharmaceutical companies that have decided not to operate directly in CEE or already operating in CEE but outsourcing parts of their portfolios. MagnaPharm operates in all main CEE countries: Romania, Bulgaria, Poland, Hungary, Czech Republic, Slovakia, Serbia, Slovenia, Lithuania, Estonia, Latvia, Croatia, Bosnia, Albania, Montenegro, Kosovo and North Macedonia.

For more info about MagnaPharm, please visit: www.magnapharm.eu

About Sol-GEL and Sol-Gel brands.

Sol-Gel Technologies Ltd is a dermatology company that carries out the identification, development and commercialization of investigational topical drug products for the treatment of skin diseases. Sol-Gel provides products under the brand name Epsolay® for the treatment of inflammatory lesions of rosacea in adults and Twyneo® for the treatment of acne vulgaris. Sol-Gel utilizes silica-based microencapsulation technology platform to enhance the tolerability and stability of topical drugs. Sol-Gel was successful in developing pioneer topical drugs, Twyneo® and Epsolay®, for the treatment of acne and inflammatory lesions of rosacea.

Epsolay® utilizes proprietary technology in order to encapsulate benzoyl peroxide within silica-based microcapsules to create a barrier between the medication and the skin. The silica-based shell is designed to slowly release benzoyl peroxide over time to provide a favorable efficacy and safety profile.

Twyneo® is topical cream containing a fixed-dose combination of tretinoin and benzoyl peroxide, 0.1% / 3%, for the treatment of acne vulgaris in adults and pediatric patients nine years of age and older. TWYNEO is the first acne treatment that contains a fixed-dose combination of benzoyl peroxide and tretinoin. Tretinoin and benzoyl peroxide have a complementary mechanism of action and are widely prescribed separately for acne vulgaris; however, benzoyl peroxide causes degradation of the tretinoin molecule, thereby potentially reducing its effectiveness if used at the same time or combined in the same formulation. TWYNEO uses silica (silicon dioxide) core shell structures to separately micro-encapsulate tretinoin crystals and benzoyl peroxide crystals enabling inclusion of the two active ingredients in the cream.

For more information, please visit: https://www.sol-gel.com/

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, the potential of Sol-Gel’s assets including Twyneo and Epsolay SGT-610. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. Forward-looking statements are based on information Sol-Gel has when those statements are made or our management’s current expectations and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to, the risk that Sol-Gel will not benefit from the exclusive license agreements to the same extent as anticipated, our partners ability to register and commercialize TWYNEO and Epsolay in their respective territories, a delay in the timing of our clinical trials, the success of our clinical trials, and an increase in our anticipated costs and expenses, as well as the following factors: (i) the adequacy of our financial and other resources, particularly in light of our history of recurring losses and the uncertainty regarding the adequacy of our liquidity to pursue our complete business objectives; (ii) our ability to complete the development of our product candidates; (iii) our ability to find suitable co-development partners; (iv) our ability to obtain and maintain regulatory approvals for our product candidates in our target markets, the potential delay in receiving such regulatory approvals and the possibility of adverse regulatory or legal actions relating to our product candidates even if regulatory approval is obtained; (v) our collaborators’ ability to commercialize our pharmaceutical product candidates; (vi) our ability to obtain and maintain adequate protection of our intellectual property; (vii) our collaborators’ ability to manufacture our product candidates in commercial quantities, at an adequate quality or at an acceptable cost; (viii) our collaborators’ ability to establish adequate sales, marketing and distribution channels; (ix) acceptance of our product candidates by healthcare professionals and patients; (x) the possibility that Sol-Gel may face third-party claims of intellectual property infringement; (xi) the timing and results of clinical trials that Sol-Gel may conduct or that our competitors and others may conduct relating to our or their products; (xii) intense competition in our industry, with competitors having substantially greater financial, technological, research and development, regulatory and clinical, manufacturing, marketing and sales, distribution and personnel resources than Sol-Gel do; (xiii) potential product liability claims; (xiv) potential adverse federal, state and local government regulation in the United States, China, Europe , South Africa or Israel; and (xv) loss or retirement of key executives and research scientists; (xvi) general market, political and economic conditions in the countries in which the Company operates; and, (xvii) the current war between Israel and Hamas and any deterioration of the war in Israel into a broader regional conflict involving Israel with other parties. These factors and other important factors discussed in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 13, 2024, and our other reports filed with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Except as required by law, Sol-Gel undertake no obligation to update any forward-looking statements in this press release.