Why cannabis company Botanix rocketed higher today

The Botanix Pharmaceuticals Ltd (ASX:BOT) share price has been on fire again on Monday. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Botanix Pharmaceuticals Ltd (ASX: BOT) share price has continued its impressive run and is up over 14% to 24 cents in morning trade.

This means the clinical stage cannabinoid company's shares have gained almost 250% since the start of the year.

Why is the Botanix share price charging higher today?

Investors have been buying the company's shares this morning following the announcement of new data from studies recently conducted around its cannabidiol antimicrobial platform.

According to the release, new data has shown that a new drug candidate from Botanix's cannabidiol antimicrobial platform has potent activity against hypervirulent strains of the bacteria Clostridium difficile.

This is a major positive as the release explains that Clostridium difficile is the most commonly acquired hospital infection worldwide and is responsible for over 30,000 deaths each year in the United States alone.

It is also responsible for nearly 500,000 infections annually. Combined, the company estimates that it accounts for US$5.2 billion in health care costs each year in the country.

The study showed that cannabidiol was effective at killing all the major human and veterinary strains of C. difficile, with potencies similar to currently used antibiotics.

It was also effective against the super hypervirulent epidemic strain of C. difficile, ribotype 027. This strain is responsible for severe outbreaks of disease in North America and Europe and has reduced susceptibility to current antibiotics and spreads more easily within hospitals because they can resist typical hospital environment, cleaning, and disinfectants.

It was also proven to be effective again ribotype 078. This strain is generally associated with livestock, such as cattle and pigs. It frequently spreads between animals and humans with no apparent geographic barrier.

Botanix's founder and executive director, Matt Callahan, said: "We are overwhelmed by the potential this new data presents. Recently we announced the ground-breaking discovery that MRSA superbugs do not develop resistance to cannabidiol, as part of our BTX 1801 program. Now we have shown cannabidiol is also an effective antibiotic against C. difficile, the bacteria that the US Centers for Disease Control and Prevention regards as a global threat requiring urgent and immediate action."

Elsewhere in the industry today, the Althea Group Holdings Ltd (ASX: AGH) share price has stormed to a new record high and the Cann Group Ltd (ASX: CAN) share price is up 2%.

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.

More on Share Gainers

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX All Ords shares up 50%+ in March

These ASX shares have been on fire this month. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher

These shares are having a good session on hump day. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX shares this Tuesday.

Read more »

Two happy scientists analysing test results.
Healthcare Shares

Mesoblast share price rockets 36% on breaking FDA news

ASX investors are sending the Mesoblast share price soaring following promising FDA news.

Read more »