Botanix Pharmaceuticals (BOT: $0.465, last raise at $0.33) delivered its first US prescriptions of Sofdra last December and completed its full commercial launch last quarter, including the deployment of its sales force in February. Promising early sales of $5 million for the quarter have been achieved.
March sales more than doubled from the previous month, rising to $3.3 million from $1.5 million. The company is currently onboarding around 2,000 new patients per month, with more than 1,500 doctors now prescribing the product. Refills in March reached 100%, with Botanix attributing its revenue growth to the fully deployed direct sales force.
Sofdra was approved by the FDA last year for the treatment of excessive underarm sweating (axillary hyperhidrosis).
To reach patients, Botanix is working closely with the International Hyperhidrosis Society, which is expected to refer 18,000 of its subscribers to the new therapy following an initial Patient Experience Program involving 500 participants.
In addition, Botanix will continue marketing Sofdra through a direct US-based sales force. The recent $40 million capital raise will support the expansion of this team, increasing headcount from 27 to 33, to further capitalise on commercial momentum. According to the company, there are approximately 3.7 million patients in the US seeking treatment for this condition.
Botanix is capitalised at $909 million. It finished March with $28 million in cash and has since raised an additional $40 million (at $0.33 per share) to fund the ongoing rollout of Sofdra. The company is also exploring debt funding options for working capital and other costs to sustain its rapid commercialisation strategy.
Bioshares Recommendation: Speculative Hold Class A
Disclaimer:
Information contained in this newsletter is not a complete analysis of every material fact respecting any company, industry or security. The opinions and estimates herein expressed represent the current judgement of the publisher and are subject to change. Blake Industry and Market Analysis Pty Ltd (BIMA) and any of their associates, officers or staff may have interests in securities referred to herein (Corporations Law s.849). Details contained herein have been prepared for general circulation and do not have regard to any person’s or company’s investment objectives, financial situation and particular needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without consulting their investment adviser (Corporations Law s.851). The persons involved in or responsible for the preparation and publication of this report believe the information herein is accurate but no warranty of accuracy is given and persons seeking to rely on information provided herein should make their own independent enquiries. Details contained herein have been issued on the basis they are only for the particular person or company to whom they have been provided by Blake Industry and Market Analysis Pty Ltd. The Directors and/or associates declare interests in the following ASX Healthcare and Biotechnology sector securities: Analyst MP: 1AD, ACR, AVR, CGS, CUV, CYC, DXB, IMM, LBT, MX1, OPT, NEU, PAB, PXS,RNO,SOM. These interests can change at any time and are not additional recommendations. Holdings in stocks valued at less than $100 are not disclosed.
