The Botanix (ASX:BOT) share price is soaring 15% higher today. Here's why.

The Botanix Pharmaceuticals Ltd (ASX: BOT) share price is soaring higher today following the release of its September quarter update.

| More on:

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 is soaring higher today following the release of its September quarter update.

At the time of writing, the synthetic cannabinoid company's shares are up 15% to a year-high of 11.5 cents.

What did Botanix announce?

Botanix recorded strong results for the period ending 30 September, the first quarter of FY21. During the quarter, net cash flows equated to $2.56 million, with $2.3 million invested in research and development activities.

Botanix reported a strong financial position, holding a cash balance of $22.1 million. Most notably, this represents more than 2 years of financing the company's ongoing operations.

In addition, Botanix president Vince Ippolito participated in a company presentation at the 2020 ASX Small & Mid-Cap virtual conference last month. The presentation provided an overview of its development programs as well as new data supporting Botanix's antimicrobial platform. The company said it was continuing to explore funding opportunities and partnerships that would help in the development of antimicrobial treatments.

Clinical development programs

BTX 1801

Botanix advised it was well-advanced for the recruitment of its BTX 1801 phase 2a clinical study. The trial will seek to evaluate the safety, tolerability and efficiency of BTX 1801 for the prevention of surgical site infections.

The enrolment will consist of 60 volunteers who will undergo twice-daily treatments across a five-day period. Botanix said the study would be done in a cost-effective manner, with target completion later this year.

BTX 1503

The company noted its BTX 1503 acne program achieved an important drug development milestone in July. The successful end of its phase 2 meeting with the United States Food and Drug Agency (FDA) highlighted the safety profile of BTX 1503. This allowed several waivers for studies that are normally required for dermatology drug registration.

Botanix said it was currently reviewing the timetable for its phase 3 study, pending the completion of its BTX 1702 phase 2 trial, and lifting of COVID-19 restrictions.

BTX 1702

Travel restrictions have temporarily halted the BTX 1702 rosacea program. Botanix said once borders were eased between Australia and New Zealand, recruitment would begin. The six-week randomised study will aim to evaluate patients with moderate to severe papulopustular rosacea.

Given the overlapping characteristics between rosacea and acne, the study will also provide supporting information for the BTX 1503 program.

Botanix share price summary

The Botanix share price has performed strongly since the market meltdown in March. The synthetic cannabinoid company's shares are up 500% for the period, from 2.3 cents to today's price of 11.5 cents.

The company has a market capitalisation of $107 million, and still has a long way to go to reach its 52-week high of 26 cents.

Motley Fool contributor Aaron Teboneras 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 Market News

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another strong showing from the share market today.

Read more »

Three miners looking at a tablet.
Resources Shares

Own ASX mining shares? Experts say an upswing in commodity prices has begun

HSBC economists Paul Bloxham and Jamie Culling explain why global commodity prices are rising.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Brambles, Lifestyle Communities, Northern Star, and Select Harvests shares are sinking

These shares are having a tough session. But why?

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Share Market News

Will the Reserve Bank wait for the US Fed to cut interest rates first?

Here's when AMP thinks interest rates will be cut in the US, Australia, New Zealand, Canada and the Eurozone.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Healthco Healthcare, Medadvisor, Ramsay Health Care, and Tamboran shares are rising

These shares are having a strong session. But why?

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Share Gainers

If you invested $6,000 in Mesoblast shares a month ago you'd have $15,636 now!

Mesoblast shares have been on a tear this past month. But why?

Read more »

Gold bars on top of gold coins.
Gold

Is it too late to buy gold as an investment in 2024?

Can we still take advantage of gold at new record highs?

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Mergers & Acquisitions

Wesfarmers shares baulk on fresh acquisition gossip

A healthcare company gone nowhere in a decade might be on Wesfarmers' radar.

Read more »