Form 4: Opaleye Management Boosts Sol-Gel Stake

Opaleye Management Inc., a 10% owner and director, significantly increased its indirect beneficial ownership in Sol-Gel Technologies Ltd. through multiple share purchases.

Summary

• Opaleye Management Inc. reported multiple purchases of Sol-Gel Technologies Ltd. ordinary shares between December 29, 2025, and December 31, 2025.
• On December 29, 2025, 8,638 shares were purchased at a weighted average price of $41.8539 per share.
• On December 30, 2025, 35,169 shares were purchased at a weighted average price of $41.9866 per share.
• On December 31, 2025, 22,497 shares were purchased at a weighted average price of $41.9942 per share.
• These purchases increased Opaleye, L.P.'s indirect beneficial ownership to 443,739 ordinary shares.
• Additionally, 10,000 shares are indirectly owned by a separately managed account.
• Opaleye Management Inc. disclaims beneficial ownership of the reported shares except to the extent of its pecuniary interest.

Sentiment

Score: 8

Explanation: The sentiment is strongly positive due to significant insider buying by a 10% owner and director, indicating high confidence in the company's value and future prospects.

Positives

• A significant increase in beneficial ownership by a 10% owner and director, indicating confidence in the company's future prospects.
• The purchases were made at prices ranging from $39.95 to $42.00, suggesting a belief in value at current levels.

Risks

• Opaleye Management Inc. disclaims beneficial ownership of the shares reported except to the extent of its pecuniary interest, which could imply a limited direct commitment beyond the investment fund's mandate.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance from Sol-Gel Technologies Ltd. It solely reports insider transactions by Opaleye Management Inc.

Management Comments

• Opaleye Management Inc. disclaims beneficial ownership of the shares reported herein except to the extent of its pecuniary interest therein, and the filing of this Form 4 shall not be construed as an admission that Opaleye Management Inc. is the beneficial owner of any such shares for purposes of Section 16(a) of the Securities Exchange Act of 1934, as amended, or for any other purpose.

Industry Context

Insider buying by a significant shareholder and director in a biotechnology or pharmaceutical company like Sol-Gel Technologies Ltd. can signal internal confidence in upcoming clinical trial results, regulatory approvals, or commercialization efforts, which are critical drivers in this industry.

Comparison to Industry Standards

• Insider buying, especially by a 10% owner and director, is generally viewed as a positive signal across all industries, including biotechnology. While specific comparable companies or projects are not mentioned in this filing, such purchases often precede positive developments or reflect a belief that the stock is undervalued relative to its peers or future potential.
• The consistent buying over three consecutive days suggests a deliberate accumulation strategy rather than an isolated event, which is a stronger signal than sporadic purchases.

Stakeholder Impact

• Shareholders: The increased stake by a significant investor and director may instill greater confidence in the company's outlook, potentially leading to positive share price movement.
• Investment Professionals: This filing provides a strong signal of insider confidence, which analysts may factor into their valuation models and recommendations.

Next Steps

• Opaleye Management Inc. undertakes to provide full information regarding the number of shares purchased at each separate price within the reported ranges upon request by the SEC staff, the issuer, or a security holder.

Key Dates

Recommendation

The substantial and consistent buying by a 10% owner and director, Opaleye Management Inc., signals strong insider confidence in Sol-Gel Technologies Ltd.'s valuation and future prospects. Such actions often precede positive developments or indicate a belief that the stock is undervalued. This insider activity provides a compelling reason for investors to consider a 'buy' recommendation, assuming no other negative external factors are at play.

Keywords

Sol-Gel Technologies, SLGL, Opaleye Management, Insider Buying, Share Purchase, Form 4, Beneficial Ownership, Investment Management, Biotechnology, Pharmaceuticals