Botanix’s Sofdra Sales Soar 323% as Losses Widen to $86.4M

Revenue Growth Amid Heavy Investment

Botanix Pharmaceuticals Limited (ASX, BOT) revealed a dramatic increase in revenue to $5.76 million for the year ended 30 June 2025, primarily driven by sales of its lead product Sofdra™ and royalties from its Japanese sublicensee. This represents an 857% jump compared to the prior year, marking a significant commercial milestone for the company.

However, this revenue growth was accompanied by a substantial net loss of $86.4 million, more than doubling the previous year’s loss. The widened loss reflects Botanix’s strategic decision to ramp up manufacturing, expand infrastructure, build out its sales organisation, and intensify marketing efforts to support Sofdra’s US launch and commercialisation.

Sofdra Launch Momentum and Market Opportunity

Launched in early 2025, Sofdra is the first FDA-approved topical treatment for primary axillary hyperhidrosis, a condition affecting approximately 10 million Americans. The company’s innovative Botanix Fulfilment Platform has enhanced patient access and reimbursement, contributing to a 323.5% increase in total prescriptions from Q3 to Q4 2025 and a doubling of unique prescribers to over 2,300.

Patient adherence rates have exceeded industry averages, with refill compliance boosted by direct-to-patient telemedicine and pharmacy services. Botanix aims to further improve its gross-to-net yield, which reached 23% by June 2025, targeting a range of 30-40% typical of successful dermatology pharmaceuticals.

Financial Position and Capital Strategy

Botanix ended the fiscal year with a robust cash balance of nearly $65 million and access to an additional $15.3 million in undrawn debt from a loan facility with Kreos Capital VII (UK) Limited. This strong liquidity position provides a runway to sustain operations and invest in growth initiatives without immediate capital raising.

The company’s operating costs stabilized in the second half of FY2025, with no inventory purchases expected in the first half of FY2026, reflecting operational discipline as revenue scales. Botanix’s management remains confident in achieving profitability as Sofdra’s market penetration accelerates.

Leadership and Governance Updates

During the year, Executive Director Matthew Callahan resigned to address medical issues, with his consulting contract subsequently placed on hold. Post-year-end, Dr Patricia Walker, a seasoned dermatologist with extensive pharmaceutical leadership experience, was appointed as a Non-executive Director, strengthening the board’s expertise in dermatology and medical affairs.

Botanix’s executive team and board bring decades of dermatology commercialisation experience, underpinning the company’s strategic focus on expanding Sofdra’s footprint and exploring additional dermatology assets.

Outlook and Strategic Focus

Botanix is actively expanding its sales force and marketing programs to capitalize on Sofdra’s early commercial success. The company is also investing in patient education and physician engagement, including materials tailored for the large Spanish-speaking population in the US.

While the company faces inherent risks typical of pharmaceutical commercialisation, including regulatory compliance, supply chain dependencies, and market acceptance, its strong capital base and experienced leadership provide a solid foundation for growth.