Why cannabinoid company Botanix rocketed 25% higher today

The Botanix Pharmaceuticals Ltd (ASX:BOT) share price has been storming higher on Thursday. Here's why the cannabis company is on fire today…

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The Botanix Pharmaceuticals Ltd (ASX: BOT) share price has been a standout performer on the Australian share market on Thursday.

In morning trade the clinical stage cannabinoid company's shares rocketed 25% higher to an all-time high of 17.5 cents.

Why did the Botanix share price rocket higher today?

Hot on the heels of a positive update on its BTX 1308 psoriasis Phase 1b mechanism of action study on Wednesday, this morning the company released an update on its BTX 1801 antimicrobial product.

According to the release, the company has received positive new data from studies recently conducted at The University of Queensland's Institute for Molecular Bioscience's Centre for Superbug Solutions.

The release explains that BTX 1801 is a novel topical formulation of cannabidiol which utilises the company's proprietary skin delivery technology, Permetrex, to target bacterial infections in the skin.

Previous studies conducted by Botanix had demonstrated that cannabidiol has the potential to be a broad-spectrum Gram-Positive antibiotic.

These new studies confirm these initial findings and now show the potential for cannabidiol formulated as BTX 1801 to treat serious skin infections.

The studies have shown that BTX 1801 is a broad-spectrum Gram-Positive antibiotic which is effective against a range of problematic human and animal bacteria. This includes clinical isolates of staphylococcus aureus (staph) and methicillin resistance staphylococcus aureus (MRSA).

In addition to this, after 21 days of continuous treatment, the study found that MRSA bacteria do not form resistance to cannabidiol.

It also found that cannabidiol kills bacteria very quickly and disrupts the biofilms that bacteria use to protect themselves.

Botanix founder and executive director, Matt Callahan, said: "The implications and potential applications of these remarkable results are immense. This new data significantly expands the potential for BTX 1801, to not only serve as a powerful new antibiotic option for patients and doctors, but provides further confirmation antimicrobial activity may be a significant contributor to the overall efficacy of Botanix's Phase 2 products for acne (BTX 1503) and atopic dermatitis (BTX 1204)."

He added: "The fact that cannabidiol kills resistant bacteria quickly, when combined with the drug's newly validated anti-inflammatory properties, gives us confidence that BTX 1801 has significant potential as a powerful new antimicrobial for use in skin and other infections."

Elsewhere in the cannabis industry, Auscann Group Holdings Ltd (ASX: AC8) and Creso Pharma Ltd (ASX: CPH) shares have both pushed higher this morning.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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