Botanix in $15m raising

Medical dermatology company Botanix Pharmaceuticals has raised $15 million through a strongly supported share placement, with the proceeds set to be spent on developing its lead product for acne.

Botanix, which is led by Perth-based chairman Graham Griffiths and executive director Matt Callahan, said the placement had received demand from institutional and sophisticated investors in Australia and Asia.

The company will issue shares at 11 cents each, representing a 7.9 per cent discount on the 30-day volume-weighted average price.

Bell Potter Securities and Argonaut Securities acted as joint lead manager to the placement, while Vesparum Capital acted as an independent capital markets adviser.

Botanix said the funds would be used to advance its acne product, BTX 1503, into a phase two clinical study.

The company announced positive results from the first phase of the study last week, with top-line data indicating a significant reduction in acne lesions after four weeks of treatment.

Mr Callahan said the strong demand for the placement was an endorsement of the company’s business strategy.

“Our recent results validate and support the broader utility of Botanix’s product portfolio, given the strong evidence of the role synthetic cannabidiol can play in inflammation,” he said

“Botanix can now expedite phase two clinical development of BTX 1503 in the US and provide the necessary platform to attract commercial partners.

“The company is also in a strong position to develop other key pipeline products, including BTX 1204 (for atopic dermatitis), while continuing to explore the commercial potential of the broader product portfolio and Permetrex.”

Shares in Botanix were down 7 per cent to 13 cents each at 2pm AEDT.