BOTANIX (BOT) has received firm commitments from several investors to raise $70 million capital to fund the launch of hyperhidrosis drug Sofdra in the US, stated the company on Fri on the ASX.
Botanix Executive Chairman Vince Ippolito said, "we are extremely pleased to announce this significant placement, following on from the successful approval of Sofdra by the FDA last week".
"We are grateful to our loyal base of shareholders for supporting us through the approval of Sofdra and we welcome our new institutional investors, as we enter this exciting commercial phase."
The $70m gross proceeds, also called the placement, will fund sales force and marketing infrastructure, the telemedicine platform, as well as costs of manufacturing, new quality assurance, pharmacovigilance, support services, working capital and expenses of the share offer.
The capital raise will be done via an institutional placement for 233,333,334 new ordinary shares.
Sofdra is a prescription medicine used to treat primary axillary hyperhidrosis (excessive underarm sweating) in adults and children nine years and older (PD 16 Apr).
Hyperhidrosis is the third largest dermatology condition, after acne and atopic dermatitis, with approximately 10 million patients in the US suffering from it.
The medicine is the first and only new chemical entity approved by the FDA to treat this condition, and presents an effective solution for patients who have lacked treatment options for this socially challenging medical condition, stated Botanix.
The manufacturing and labelling of the Sofdra medication will likely take approximately four to five weeks to complete.
The product will be then shipped to Botanix's warehouse for distribution to US pharmacies to support its early patient experience program.
The placement is expected to settle on 27 Jun as per the ASX listing rule at an issue price of $0.30 per new share.
Botanix expects to receive first revenues from sales in Q4 in this calender year. JG
The above article was sent to subscribers in Pharmacy Daily's issue from 24 Jun 24
To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 24 Jun 24
