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Botanix Pharmaceuticals (ASX:BOT) shares slip on June quarterly report

Health Care
ASX:BOT      MCAP $330.7M
23 July 2021 11:10 (AEST)
Botanix Pharmaceuticals (ASX:BOT) - President & Executive Chairman, Vince Ippolito

Source: Business News

Skincare specialist Botanix Pharmaceuticals (BOT) has opened red on the ASX today following the release of its latest quarterly financial report.

In the report, Botanix highlighted net cash outflows of around $1.7 million for the quarter, with most of the company’s spending coming from research and development work.

Nevertheless, with some $21.6 million work of cash still in the bank, Botanix said it ended the June quarter in a “strong financial position” to continue its cannabis-based drug and skincare product development work.

The BTX 1702 trial

This work includes an important first-phase trial for its BTX 1702 treatment for a skin disease known as papulopustular rosacea. Essentially, this chronic condition causes inflamed, red skin and acne-like breakouts across the phase.

BOT said the condition affects more than 16 million Americans and 415 million people across the globe.

The company received ethics approval for a clinical study to test BTX 1702 as a treatment for this condition in late March, and Botanix said it officially launched the study in June.

While the study is currently subject to COVID-19 restrictions, Botanix said it is busy recruiting patients in Australia, while the first study site in New Zealand should be initiated “in the short term”.

All up, Botanix plans to recruit 120 people across 12 dermatology clinics in Australia and New Zealand for the BTX 1702 trial.

Other trial work

Alongside the BTX 1702 trial, Botanix also continued its trial work for several other key products over the June quarter.

In May, for example, BOT launched a pilot study for its BTX 1204A product to test its ability to treat atopic dermatitis — a condition that makes skin red and itchy — in dogs.

Around the same time, the company launched phase 2b trials of its BTX 1801 product, designed to treat a bacterium known as staphylococcus aureus, or Staph aureus, which often lives on the skin or in the nose.

Specifically, the trial BTX 1801 trial is testing the drug’s ability to prevent life-threatening bloodstream infections from Staph aureus in haemodialysis patients.

Shares in Botanix Pharmaceuticals were down 3.7 per cent and trading at 7.8 cents each at 11:47 am AEST. The company has a $74 million market cap.

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