Botanix Reports 24% Rise in Prescriptions and $9.1M Sofdra Revenue
Botanix Pharmaceuticals reported a robust 28% increase in net revenue for Sofdra in Q2 FY26, driven by a 24% rise in prescriptions and a growing US sales team. The company maintains a strong cash position while navigating higher operating costs.
- Sofdra net revenue up 28% to $9.1 million in Q2 FY26
- Total prescriptions shipped increased 24% quarter-on-quarter
- Operating cash outflow rose due to 23 new sales hires and start-up costs
- Strong market acceptance with 90% of healthcare professionals planning increased prescribing
- Cash reserves of $31.5 million and undrawn $14.9 million debt facility
Strong Commercial Momentum for Sofdra
Botanix Pharmaceuticals has delivered a compelling performance in the second quarter of fiscal 2026, with its flagship dermatology product Sofdra continuing to gain traction in the US market. Total prescriptions shipped rose 24% from 20,418 in the previous quarter to 25,351, reflecting growing physician and patient acceptance of the treatment for primary axillary hyperhidrosis.
Unaudited net revenue from Sofdra climbed 28% to $9.1 million, supported by a 25% increase in gross sales to $37.9 million. This growth underscores the effectiveness of Botanix's commercial strategy and the expanding footprint of its sales force.
Sales Force Expansion and Operating Costs
The company invested heavily in scaling its US sales team, adding 23 new professionals during the quarter to bring the total to 50. This expansion contributed to a rise in operating cash outflows to $17.2 million, up from $13.1 million in Q1 FY26. The increase includes one-time start-up costs and prepayments associated with onboarding new hires, as well as annual expenses such as bonuses and regulatory fees.
Despite higher costs, Botanix remains confident that this investment will accelerate Sofdra's market penetration and revenue growth, with early sales performance from new hires exceeding expectations even during the US holiday season slowdown.
Market Research Validates Growth Potential
Recent market research involving 30 US dermatology healthcare professionals revealed strong enthusiasm for Sofdra, with 90% anticipating increased prescribing over the next six months. Key drivers include the product's efficacy, ease of access through the SendRx pharmacy platform, and patient preference for home delivery.
The Botanix Fulfilment Platform continues to enhance prescription refill rates and gross-to-net yield, which improved to 24% in Q2 from 23% previously. The company aims to reach a gross-to-net rate of 30-40%, aligning with industry leaders in dermatology pharmaceuticals.
Financial Position and Supply Chain Initiatives
Botanix ended the quarter with a solid cash balance of $31.5 million and an undrawn debt facility of $14.9 million, providing ample runway to support ongoing operations and growth initiatives. Manufacturing costs remained stable, supported by prior inventory investments, though the company plans to engage secondary suppliers for its active pharmaceutical ingredient to reduce costs by up to 40% and mitigate supply risks.
Corporate governance developments included the appointment of Andrew Bickley as Joint Company Secretary and the issuance of shares and options to staff and executives. Notably, the remuneration report was not approved at the recent AGM, prompting Botanix to engage with shareholders to address concerns.
Bottom Line?
Botanix’s strategic sales expansion and strong Sofdra uptake set the stage for accelerated growth, but cost management and shareholder relations remain key watchpoints.
Questions in the middle?
- How will Botanix manage operating costs as it scales its sales force further?
- What progress will be made in securing secondary API suppliers to reduce manufacturing costs?
- How might unresolved shareholder concerns over remuneration impact future governance and investor confidence?
