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The problem with building big valuation expectations on the treatment of rare diseases is that you either need expensive drugs, or, some kind of government support, because a rare disease, by its very nature, implies a small addressable market.
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HotCopper forums favourite Botanix (ASX:BOT), a company that developed a drug called Sofdra to treat an excessive underarm sweat condition, is perhaps demonstrating that today.
The stock has long been a darling, but a hotly awaited update on the sales performance of its drug, Sofdra, shows the company ultimately has less than 7,000 patients.
Revenue grew to $25M; nothing to be sniffed at. The company actively has a drug to sell in the US market, which is also by all measures a good thing.
But the fact remains the company is looking at less than 0.002% of the American population with 6,700 patients on its books. They’re refilling Sofdra slightly more than what other drugs to treat excessive sweat conditions exist, but still, that market size doesn’t lend itself to a psychologically exciting number.
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“We are pleased with the overall performance of Sofdra since its launch in February 2025… the launch trajectory of Sofdra is trending in a positive direction, and we expect continued growth,” company chair Vince Ippolito said.
That was the only commentary included in the company’s Tuesday disclosure.
BOT last traded at 19cps.
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