Botanix (ASX:BOT) was received warmly by some investors on Monday when its latest quarterly earnings report showed that revenues from anti-sweating drug Sofdra have increased to $7.1M, reflecting growth of around 65%, on top of the fact that the company’s expanded its sales force to 50 staff.
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While at least one HotCopper user wondered what the upsizing of the sales team to 50 could mean for the company’s commercial position moving forward, others noted Botanix’s cash on hand of just below $50M – suggesting a capital raise mightn’t be on the cards after the sales team expansion.
For those out of the loop, Botanix was a healthcare darling on the forums earlier this year – but in July, it had a mighty fall as the company’s original revenues coming from Sofdra definitely missed the expectations built up in investors’ minds.
Heading into November, YTD returns remain down -62%; YoY down -52%.
Underpinning revenues was prescription growth, up 50% QoQ. “The company believes the number of physicians prescribing Sofdra, the increase in prescription numbers and the strong refill rate are all demonstrative of rapid acceptance of the benefits of Sofdra by physicians and patients alike,” Botanix wrote.
Also worth noting: The company reported manufacturing costs cratered from $11.2M down to $2.2M – a decrease of -81%. This was attributed to a “steady-state level when converting raw materials into finished goods in a quarter without purchases of drug substance.” Make of that what you will.
BOT last traded at 16.5cps.
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