Company: SXTPW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043779
Chunk: 50

Company: 60 DEGREES PHARMACEUTICALS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 50
---
 and Rebates

Our product revenues - net of discounts and rebates were $163,552 for
the three months ended March 31, 2025, as compared to $105,674 for the three months ended March 31, 2024. For the three months ended March
31, 2025, our U.S. pharmaceutical distributor and Infuserve America accounted for 85% and 6% of our total net product sales of Arakoda,
respectively, and Kodatef sales to our Australian distributor accounted for 9% of total net product sales (99%, 0%, and 1% for the three
months ended March 31, 2024, respectively). Domestic, commercial product sales are primarily driving increased sales volume during the
period.

We offer discounts and rebates to the civilian
U.S. supply chain distribution channel. We record sales when our 3PL partner transfers boxes into their title model. Discounts and rebates
offered to our 3PL partner amount to 12% (lower rates available upon reaching larger revenue tiers) along with a $5,500 fixed monthly
fee. The product is then transferred usually to one of the three large U.S. pharmaceutical distributors where rebates are 10%. Lastly,
we have relationships with several large pharmacy benefit managers (“PBMs”) that allow patients to purchase Arakoda at a discount.
The rebate associated with PBMs ranges from 30% to 41.25% depending on the amount of coverage provided. For the three months ended March
31, 2025, discounts and rebates were $91,401 compared to $94,869 for the three months ended March 31, 2024.

Arakoda entered the U.S. civilian supply chain
in the third quarter of 2019. For the three months ended March 31, 2024, 1,022 boxes were sold to pharmacies and dispensaries. Sales volume
increased by 55% to 1,579 boxes sold to pharmacies and dispensaries for the three months ended March 31, 2025. Based on IQVIA data, this
growth in sales volume appears to be driven primarily by organic growth in the Lyme disease community, whose prescribers utilize Arakoda
for treatment of babesiosis. The sales volume growth to pharmacies and dispensaries ties more closely to the growth in discounts and rebates
previously discussed than our reported sales to our 3PL.

Kodatef sales to our