Botanix Pharmaceuticals Stock is On the Rise Again Following Release of Quarterly Activities and Cashflow Report

The company managed to significantly advance several clinical programs during the quarter, while also closing out the year with a strong financial position.

Botanix Pharmaceuticals Limited (ASX:BOT) took the market for a double today, after the company  announced key updates to its product portfolio while unveiling its Quarterly Activities Report and Appendix 4C Quarterly Cash Flow report for the period ending 31 December 2019.

Botanix's clinical development program made several big leaps forward during the quarter, with the first being the release of results from the Phase 2 clinical study for the company's acne drug, BTX 1503.

Testing conducted on BTX 1503 has confirmed that the optimum dosage will be a once-daily application—which is ideal from a compliance perspective—while also demonstrating the overall safety and efficacy of the drug.  

As a result, the company is now planning an end-of-Phase 2 meeting with the FDA—with an expected date in Q2 2020—to begin preparations for Phase 3 studies.

Additionally, the de-scheduling of Purisys supplied CBD and other improvements to Botanix's supply chain are expected save considerable time and costs, while also advancing the company's chemistry and manufacturing abilities.

During the quarter Botanix also completed patient recruitment for its BTX 1204 Phase 2 atopic dermatitis clinical study, with top line data currently on schedule for release in Q1 2020.

The company currently has 211 patients enrolled from a number of leading dermatology clinics across Australia, New Zealand and the US, who are set to take part in a 12-week randomised, double-blind and vehicle-controlled study aimed at evaluating the therapeutic benefits of the drug.

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In December 2019 Botanix also received ethics approval for its BTX 1701 Phase 1b clinical study for the treatment of papulopustular rosacea. The trial is expected to feature a 6-week randomised, double-blind, vehicle-controlled study, with plans to enrol 120 patients across 6 clinics before the commencement date later in Q1 2020.

During this time the company also secured a new Innovation Connections Grant of $50,000 from the Australian Government, which will be used to aid in the acceleration of its medicinal chemistry program.

The program is currently being run with assistance from the University of Queensland, with the goal of developing patentable synthetic analogues to CBD while further investing its antimicrobial qualities.

Another big piece of news was US Drug  Enforcement Administration (DEA) decision to de-schedule the synthetic CBD developed by Purisys—who signed a supply agreement with Botanix in October 2019—which means that it is no longer a controlled substance.

This was huge news for Botanix, as it is expected to significantly improve the speed, risk and cost of product manufacturing, while also reducing other cost overheads such as shipping and storage.

During the quarter the company had net cash outflows of $7.64 million, with A$6.48 million invested in R&D activities related to the development of BTX 1503 and BTX 1204 Phase 2, along with additional clinical research programs.

Botanix ended the quarter strongly with more than $27 million in cash, however this does not account for the $7.6 million R&D tax incentive refund received by the company in January 2020, which should considerably strengthen its financial position.

To learn more about Botanix Pharmaceuticals visit their Company HQ here

Disclaimer: Past performance is not an indicator of future performance.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.

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