Why did SLGL's Q2 2024 EPS surge beyond forecasts?

Sol-Gel Technologies Ltd. (NASDAQ: SLGL) experienced a surge in its Q2 2024 EPS, with the latest estimate at a loss of ($0.19) per share, compared to the previous forecast of ($0.14). This surge in EPS can be attributed to several factors:

1. **Revenue from Asset Purchase Agreement**: Sol-Gel Technologies recently announced an Asset Purchase Agreement with Beimei Pharma to commercialize TWYNEO® in certain regions for a total consideration of up to $115 million. This significant licensing deal is likely to boost Sol-Gel's revenue and profitability in the upcoming quarters.
2. **Phase 3 Clinical Trial**: The company is currently conducting a Phase 3 clinical trial for SGT-610 in Gorlin Syndrome, with the first patient already screened. Successful completion of this trial could lead to additional revenue streams and market opportunities for Sol-Gel.

In conclusion, Sol-Gel Technologies' Q2 2024 EPS surge can be attributed to the revenue from the Asset Purchase Agreement and the Phase 3 Clinical Trial. These factors indicate a positive outlook for the company's financial performance in the near future.