Scott Jensen's questions to SWK Holdings (SWKH) leadership • Q2 2025
Question
The analyst inquired about the financial implications of the Mod three sale, specifically regarding recurring costs and the impact on SG&A. He also asked for the company's perspective on broader industry trends, including the effects of FDA changes on portfolio companies and the competitive landscape in the private credit market.
Answer
The company confirmed there will be no recurring costs from the Mod three sale after a brief transition period, and they are targeting a normalized quarterly SG&A of around $2 million. Regarding industry trends, they see minimal risk to their portfolio from FDA changes or drug pricing risks but have noted some impact from NIH funding cuts on a few companies. They acknowledged the increased competition in private credit, which has led them to be more disciplined and measured in their capital deployment.