The Botanix Pharmaceuticals Ltd (ASX: BOT) share price was a very strong performer on Friday.
The clinical stage synthetic cannabinoid company's shares ended the day a massive 20% higher at 7.8 cents.
However, despite this strong gain, the Botanix share price is still down 40% since the start of the year.
Why did the Botanix share price rocket higher?
With no news out of the company, today's gain in the Botanix share price is a bit of a mystery.
However, as I mentioned above, with its shares down by materially since the start of the year, some investors may believe they had fallen to an attractive level. Especially given some of its promising studies that are currently underway.
One of those is the BTX 1204 Pilot Study. BTX 1204A is a new higher dose formulation of synthetic cannabidiol (CBD) for atopic dermatitis. It leverages the company's Permetrex formulation used in the recent successful BTX 1801 Phase 2a study.
Management notes that results from a pilot study of canines with atopic dermatitis provides encouraging data to support further investigation. It also provides a clinically efficient approach to inform progression to further human studies.
What else has been happening?
Optimism over the aforementioned BTX 1801 Phase 2a study could also be giving the Botanix share price a lift. A recent update revealed that BTX 1801 was safe, well tolerated, clinically effective, and successful at achieving decolonisation of Staph aureus in the nose.
The success of this study has seen the company launch the next phase of BTX 1801 development, targeting the nasal decolonisation of Staph aureus in haemodialysis patients to prevent bloodstream infections.
Management highlights that there is an urgent need and significant market opportunity for novel approaches to prevent bloodstream infections in haemodialysis patients. Positively, plans for a Phase 2b clinical study are well advanced and can be fully funded with existing capital reserves.
Some investors may be hoping positive updates relating to these studies will keep the Botanix share price heading in the right direction during the second half of the year.