Botanix Pharmaceuticals Ltd (ASX: BOT) balance sheet is on the cusp of receiving a significant big boost. The clinical-stage cannabinoid company has issued 8.5 million shares ahead of the completion of a $40 million investment from biotech investment funds as well as leading US institutional investors.
The company has already received firm commitments amounting to $40 million at an offer price of $0.21 a share. The company continues to elicit keen institutional interest following the release of positive data from multiple studies as part of the ongoing clinical development program. Net proceeds from the placement should allow the company to accelerate the development of its clinical development programs as the company also seeks to embark on an aggressive commercialization drive.
“The recent release of data from multiple studies has generated an exceptional level of interest globally.[…] The support from leading US institutional investors with significant dermatology and pharmaceuticals investment track records enables Botanix to advance to the next level,” executive chairperson Vince Ippolito in a statement.
Botanix Pharmaceuticals has since moved to strengthen its management team. Richard Peterson is the new Chief Financial officer as part of the new management appointment. Conversely, Howie McKibbon is to take over as the Chief Commercial officer tasked with the responsibility of spearheading the company’s commercialization strategy.
According to the chairperson, Botanix Pharmaceuticals securing the services of Peterson and McKibbon marks an important milestone. For starters, it underscores the new executive’s strong belief in the company’s vast cannabinoid portfolio. With the new appointments coupled with a strong cash position and robust pipeline, the company remains well-positioned for healthy growth according to the chairperson.
Botanix Robust Clinical Programs
The pharmaceutical company is currently in the final stages, on the development of BTX 1503, a novel treatment, in Phase 2 clinical study, for the treatment of moderate and severe acne. The company has already completed patient recruitment as it eyes a 12-week randomized vehicle-controlled clinical study.
Similarly, Botanix Pharmaceuticals is progressing on phase 2 atopic clinical study of BTX 1204. As part of a 12 week randomized, double-blind vehicle-controlled study, the pharmaceutical company is analyzing BTX 1204 as a potential treatment option for people struggling with moderate atopic dermatitis. Study results of the ongoing clinical trials should be out in the fourth quarter.
The company is also working on BTX 1308 as it seeks to establish the effectiveness of cannabis in addressing various skin conditions. Preliminary results have already shown that the novel candidate has immune-modulating activity in the skin.
Also, Botanix Pharmaceutical has released groundbreaking data affirming the antimicrobial nature of cannabis. Studies carried out in collaboration with Dr. Mark Blaskovich of the University of Queensland have so far shown cannabis has the potential to be a powerful and positive antibiotic.
While working on BTX 1801, the company has proved that extensive exposure to CBD does not expose people to the risk of developing resistance to CBD. The clinical studies further validate the antimicrobial properties of CBD, which continues to address skin diseases as well as complications associated with chronic skin infections.