Botanix Pharmaceuticals Ltd (ASX: BOT) shares are edging lower today despite the company reporting it has received a research and development (R&D) tax refund. At the time of writing, the Botanix share price has fallen 3.45% lower to 14 cents.
What did Botanix Pharmaceuticals report?
In this morning's ASX release, Botanix reported it has received an R&D Tax Incentive refund of $6.87 million. The company had $19.2 million in cash as at 31 December.
Botanix stated that the tax refund alongside positive data from its BTX 1801 antimicrobial Phase 2a study places it in a strong position for clinical programs and corporate development in the 2021 calendar year.
The federal government provides the R&D Tax Incentive to support companies in their research and development programs. Companies can receive refunds of up to 43.5% of eligible R&D expenditure.
Commenting on the tax refund, Vince Ippolito, president and executive chair, said:
The receipt of the R&D refund provides the company with a strong financial position and funding flexibility across our product development pipeline. Following the announcement of our successful BTX 1801 study data last week, Botanix is well positioned to execute on our dermatology and antimicrobial programs and extend our leading position in synthetic cannabinoid research and development.
Botanix Pharmaceuticals share price and company snapshot
Botanix Pharmaceuticals is a clinical-stage cannabinoid therapeutics company. It focuses on developing safe and effective topical treatments for serious skin conditions. The company has an exclusive license to use a proprietary drug delivery system, Permetrex, for direct skin delivery of active pharmaceuticals in all skin diseases.
Botanix shares listed on the ASX in January 1985. The company has a current market capitalisation of $141 million.
Year to date, the Botanix share price is up 7.7% and has surged around 600% from its 30 March lows.
Over the past 12 months, Botanix shares have gained 55%. By comparison, the All Ordinaries Index (ASX: XAO) is down 1% over the past calendar year.