Botanix Pharmaceuticals Ltd (ASX: BOT) shares are crashing down to Earth on Tuesday.
In afternoon trade, the ASX 300 stock is down a whopping 55% to 14 cents.
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Why is this ASX 300 stock crashing?
Investors have been selling the dermatology company's shares following the release of an update on sales of its Sofdra product.
Sofdra is the first and only new chemical entity approved by the US Food & Drug Administration (FDA) to treat primary axillary hyperhidrosis (excessive sweating). The company notes that it presents a novel safe and effective solution for patients who have lacked treatment options for this socially challenging medical condition.
And while sales of Sofdra have been growing month on month since its launch in January, it has not been enough for some investors it seems.
Sales update
According to the release, the ASX 300 stock recorded gross sales of approximately A$25 million from January through to June 2025.
During the March quarter, the company reported gross sales of A$4.99 million. This means gross sales of approximately A$20 million were generated during the last three months. And according to management, sales have been growing month on month during this time.
Another positive failing to stop the ASX 300 stock from crashing today is its strong refill rates. It explains:
Total prescriptions (TRx) grew monthly, having over 16,000 prescriptions filled across 6,700 patients from launch to 30 June 2025. A refill rate exceeding the industry average contributed strongly to TRx growth. Patients starting Sofdra in February have already received 3.4 fills on average, compared to the industry average of 2 fills per year.
Patients enrolled in the auto-refill program had a 95% adherence rate, a measure of how consistently patients obtain refills for their prescribed medications. The adherence rate was 79% amongst all patients. Continued refill growth reflects a positive patient experience and the strength of the Botanix Fulfilment Platform.
What's next?
The company revealed that it is making strategic investments to further accelerate Sofdra's growth.
At launch, the initial regional alignment included three regions, each consisting of nine territories, for a total of 27 territories. Further investment has been planned to increase the number of regions to five and the number of territories to 50 in the second quarter of FY 2026.
Commenting on the update, the ASX 300 stock's executive chairman, Vince Ippolito, said:
We are pleased with the overall performance of Sofdra since its launch in February 2025. The launch trajectory of Sofdra is trending in a positive direction, and we expect continued growth.
Overall, a promising start for Botanix and Sofdra. However, it seems that the market's expectations were simply too high and its shares are now correcting for this.
