Botanix Pharmaceuticals Q2 Earnings Call Highlights

Botanix Pharmaceuticals (ASX:BOT) executives used a quarterly investor call held during the company’s 2026 U.S. national sales meeting to highlight early commercial traction for its hyperhidrosis drug Sofdra, improving revenue trends, and efforts to strengthen manufacturing economics. The update covered the period ending 31 December 2025 and included discussion of the company’s Quarterly Activity Report and 4C cash flow report.

Commercial launch momentum and market opportunity

Chief Executive Officer Dr. Howie McKibbon said Botanix has transitioned from a development-stage company to a revenue-generating dermatology business following the February launch of Sofdra for primary axillary hyperhidrosis (excessive underarm sweating). He described Sofdra as “the first and only” new chemical entity (NCE) approved for that indication and noted the condition affects more than 10 million patients in the U.S., with about 3.7 million already seeking treatment in the physician offices the company targets.

McKibbon also emphasized product attributes cited by prescribers, including a proprietary metered-dose pump intended to help patients apply the drug to the desired area and a mechanism designed to reduce sweating by selectively binding to the M3 receptor. He added that the product is rapidly metabolized as it enters the bloodstream, which he said helps minimize systemic adverse events. Management also pointed to patent protection “out to 2040,” characterizing it as a long runway for commercialization.

Fulfillment platform positioned as a key differentiator

Executives repeatedly highlighted Botanix’s U.S. fulfillment approach as a core value driver. McKibbon said the company’s single pharmacy network provides direct shipment to patients for both initial prescriptions and refills, while offering follow-up services intended to support adherence. According to management, refill rates are exceeding the industry standard by 250%, which McKibbon described as making patients “very sticky throughout their patient life cycle.”

He said the platform is designed to improve insurance clearance rates and increase the number of fully reimbursed prescriptions, which in turn can lift gross-to-net yield. The company also emphasized the operational visibility the model provides and argued it can be scaled for potential future Botanix products.

Quarterly performance: prescriptions, net revenue, and gross-to-net

McKibbon reported that total prescriptions shipped rose 24% quarter-over-quarter in the period discussed, while net revenue increased 28% to $9.1 million from $7.1 million in the prior quarter. Gross-to-net yield improved to 24% from 23%.

Management framed the gross-to-net progression as notable given the recent expansion of the sales team and the need to educate new prescribers on the company’s SendRx process. McKibbon said that as newly activated physicians learn the platform and insurance clearance process, it can temporarily reduce gross-to-net yield—similar to a “learning curve” experienced at launch. He reiterated a longer-term goal of reaching a 30%–40% gross-to-net yield, describing that range as typical of successful U.S. dermatology pharmaceutical companies and meaningful for future cash flow.

Looking beyond the quarter, McKibbon cited cumulative launch-to-date metrics through December, stating that in the 11 months from February to December cumulative gross sales reached $93.5 million, cumulative net revenue reached $21.2 million, and total prescriptions increased to 62,500.

Sales force expansion and physician market research

Botanix completed a sales force expansion from 27 to 50 sales specialists in late October. McKibbon said both new hires and existing representatives have been “highly productive,” with early performance tracking the original team’s prescription-per-rep levels. He noted the newest hires began during the U.S. holiday season and said management was encouraged by results despite that timing, adding the company is beginning to see seasonality that may benefit performance in February and March.

McKibbon also discussed market research conducted in late October and early November with U.S. dermatology healthcare providers, including dermatologists, physician assistants, and nurse practitioners. He said 90% of those surveyed expect to increase Sofdra prescribing in the next six months. According to management, prescribers cited the streamlined process of the fulfillment platform, strong efficacy, the applicator, and the safety profile as key drivers. McKibbon said interviewees also indicated many patients remain undiagnosed and untreated in their practices, which the company views as supportive of continued runway.

Cash, costs, and manufacturing initiatives

U.S. Chief Financial Officer Chris Lesovitz said the company delivered another quarter of revenue growth while focusing on cost discipline, though operating cash outflow increased to $17.2 million from $13.1 million in the prior quarter. He attributed the higher outflow largely to the addition of 23 sales professionals, including a one-month prepayment in October and one-time start-up costs, as well as annual cash outflows such as corporate staff bonuses and a required PDUFA fee paid during the quarter.

Lesovitz reported inventory of approximately $27.5 million, which he said should support higher prescription volume generated by the expanded sales force in the third quarter. He also cited available funding of $46.4 million, consisting of $31.5 million in cash and $14.9 million in undrawn debt.

On expenses, Lesovitz said product manufacturing cost rose 25% to $2.7 million from $2.2 million, reflecting conversion of raw materials into finished goods and excluding active pharmaceutical ingredient (API) purchases. He said once API procurement begins for future production runs, the company expects a temporary cost uplift before returning to normalized levels. Operating expenses increased 43% to AUD 14.7 million from AUD 10.2 million, which he again tied mainly to sales force expansion and one-time items. Staff expenses rose 32%, while G&A expenses declined 22% to AUD 1.9 million, which Lesovitz attributed to tighter controls.

During Q&A, McKibbon said Botanix is prioritizing engagement with an alternate API supplier after identifying a potential 25%–40% reduction in cost of goods sold, which he described as beneficial both to gross profit and supply chain risk reduction. He said the company was discussing bridging supply schedules with partner Kaken.

Lesovitz also addressed questions about tariffs, stating that as of the date of the call, tariffs had not impacted the business, but the company was monitoring the situation and exploring defensive measures such as additional API sourcing and other manufacturing sites.

Separately, Lesovitz provided an update on Botanix partner Kaken’s out-licensed product, stating that Kaken launched ECCLOCK in Japan in November 2020, secured a sub-license and distribution agreement with Dongwha in June 2023 for South Korea, received South Korean regulatory approval on August 29, 2025, and that ECCLOCK launched in South Korea on January 19.

About Botanix Pharmaceuticals (ASX:BOT)

Botanix Pharmaceuticals Limited engages in the research and development of dermatology and antimicrobial products in Australia. The company engages in development of novel treatments for common skin diseases and infections. Its product pipeline includes Sofpironium Bromide, a drug in development for the treatment of primary axillary hyperhidrosis that has completed Phase 3 clinical programs; BTX 1503, a transdermal gel formulation for the treatment of serious acne in adults and teenagers that has completed Phase II clinical trials; BTX 1801, which has completed Phase IIb clinical trials for the treatment of staphylococcus aureus and methicillin resistant staphylococcus aureus; BTX 1702 that is in Phase II clinical trials for the treatment of papulopustular rosacea; and BTX 1204A for the treatment of atopic dermatitis.