Key highlights
- Botanix has received firm commitments for a A$40m placement,
led by specialist US-based biotech investment funds and leading US
institutional investors, to advance its cannabinoid clinical
development and research portfolio
- New senior US-based executives appointed to support
Botanix’s expanding development programs and to lead
commercialisation in the US
- In addition to being funded through the completion of Phase
2 studies for lead acne and atopic dermatitis programs, Botanix is
now funded to progress its first antimicrobial program into
clinical studies and undertake supportive studies required prior to
Phase 3 studies
Clinical stage cannabinoid company Botanix Pharmaceuticals
Limited (ASX:BOT, “Botanix” or the “Company”) is pleased to
announce the receipt of firm commitments in respect of a A$40m
placement (“Placement”) led by specialist US-based biotech
investment funds and leading US institutional investors, as well as
the appointment of two new experienced dermatology executives.
Executive Chairperson and President of Botanix, Vince
Ippolito, said: “The recent release of data from multiple
studies has generated an exceptional level of interest globally.
This has created an opportunity for the Company to further
understand the applications of cannabinoids in skin diseases. The
support from leading US institutional investors with significant
dermatology and pharmaceuticals investment track records enables
Botanix to advance to the next level.”
Placement
Botanix has received firm commitments for A$40m at an offer
price of A$0.21 per fully paid ordinary share, underpinned by
strong support from US institutional investors including specialist
US-based biotech investment funds and leading institutional
investors. Cowen and Company, LLC acted as lead placement agent for
the placement. The Australian portion of the placement was jointly
managed by Argonaut Securities Pty Ltd and Bell Potter Securities
Ltd.
Upon completion of the Placement, Botanix will issue 190,476,191
shares, at an offer price of A$0.21. The offer price represents a
16.7% discount to the 15-day VWAP of A$0.252 to trading close on 29
July 2019. All Placement shares issued will rank equally with
existing ordinary shares.
The Placement will be undertaken in a single tranche within the
Company’s existing placement capacity with 77,402,820 shares to be
issued under ASX Listing Rule 7.1A and the remaining 113,073,341
shares to be issued under ASX Listing Rule 7.1. Shareholder
approval is not required for the Placement. The offer price of
A$0.21 meets the requirements of Listing Rule 7.1A.3 being greater
than 75% of the 15-day VWAP. Settlement is expected to occur on
Tuesday 6 August 2019, with quotation and trading of new shares
expected on Wednesday, 7 August 2019.
New Appointments of Chief Financial Officer and Chief
Commercial Officer
Botanix has also bolstered its executive management team through
the appointment of Richard (Ric) Peterson as Chief Financial
Officer (CFO) and Howie McKibbon as Chief Commercial Officer. The
new appointments significantly strengthen the executive management
team and provides valuable leadership, commercial knowledge and
industry expertise to drive Botanix’s next phase of
development.
Executive Chairperson and President of Botanix, Vince
Ippolito, commented: “Securing the services of both Ric and
Howie is a testament to Botanix’s impressive progress with
conservative expenditure of resources over three short years and
highlights the potential of its exciting cannabinoid portfolio. Ric
and Howie are great additions to the team and bring a wealth of
knowledge and industry experience to Botanix. The strong cash
position and robust pipeline, coupled with the recently expanded
management team, puts Botanix in a solid position to progress its
development strategy and explore other strategic
opportunities.”
Mr Peterson has extensive experience in the dermatology industry
and held the position of CFO at Dermavant Sciences. During his time
at Dermavant Sciences, Mr Peterson led a diverse range of group
functions including finance, company secretarial and operations.
Prior to Dermavant Sciences, Mr Peterson served as CFO at
dermatology companies Sienna Biopharmaceuticals, Novan and Medicis
Pharmaceutical. During his time at Medicis Pharmaceutical, Mr
Peterson held the positions of CFO, Executive Vice President and
Treasurer and played a key role in building the largest independent
dermatology company and eventual sale of Medicis Pharmaceutical to
Valeant for US$2.6bn in 2012. Mr Peterson is currently a director
on the Board of Universal Insurance Holdings (NYSE: UVE).
Mr McKibbon has more than 20 years of experience in the
pharmaceutical industry. He recently served as Senior Vice
President (SVP), Worldwide Commercial Operations, at Dermavant
Sciences with responsibility for all commercial activity. Prior to
Dermavant Sciences, he was SVP, Sales and Marketing, at Anacor
Pharmaceuticals, where he built the sales, marketing and managed
markets functions. Prior to Anacor Pharmaceuticals, he was VP,
Dermatology and Immunology, at Medicis Pharmaceuticals. He also
held commercial leadership positions for neuroscience and oncology
brands from development to exclusivity at Cephalon and Wyeth. Mr
McKibbon has launched 15 products including 11 in dermatology. He
has managed over 30 dermatology products and played a significant
role in two of the largest dermatology transactions with a combined
valuation of US$7.8bn.
Accelerating pipeline development
The funds from the Placement will enable Botanix to continue to
execute its key clinical development programmes and accelerate its
broader commercialisation strategy. Botanix is now fully funded to
progress the development of its antimicrobial program into clinical
studies and also undertake supportive studies that will be required
prior to commencement of Phase 3 studies for BTX 1503 (acne) and
BTX 1204 (atopic dermatitis). Botanix remains on track to complete
the Phase 2 BTX 1503 in 3Q CY2019 and BTX 1204 in 4Q CY2019, with
data readouts to follow completion of these studies shortly
thereafter. Funds from the Placement are also available for general
working capital use.
About Botanix Pharmaceuticals
Botanix Pharmaceuticals Limited (ASX:BOT) is a clinical stage
cannabinoid company based in Perth (Australia) and Philadelphia
(USA) committed to the development of pharmaceutical products that
are underpinned by science and supported by well-controlled
randomised clinical trials. The Company’s focus is the development
of safe and effective topical treatments for acne, psoriasis,
atopic dermatitis and other skin conditions, together with a
development platform of antimicrobial drug candidates. The active
ingredient contained in Botanix products is a synthetic form of
cannabidiol. Treatment targets for skin diseases include
inflammation, deterioration of the skin barrier, skin cell
proliferation, pruritus (itch), excess sebum production and
bacterial infection.
Botanix has an exclusive license to use a proprietary drug
delivery system (PermetrexTM) for direct skin delivery of active
pharmaceuticals in all skin diseases. Botanix is working with
multiple parties to test the application of PermetrexTM on both a
fee-for-service and traditional license basis. Botanix pursues a
rapid clinical development strategy aimed at accelerating product
commercialisation.
The Company completed its first acne patient studies with BTX
1503 in January 2018 and has commenced a Phase 2 clinical study in
June 2018 with patient treatment expected to complete in 3Q CY2019.
The BTX 1204 atopic dermatitis Phase 2 patient study is also
underway with enrolment expected to complete in 4Q CY2019. A
mechanism of action study for Phase 1b BTX 1308 (psoriasis) has
recently completed, with positive interim data announced in June
2019. Development of a pipeline of product candidates that
leverages the antimicrobial properties of cannabidiol are also
moving forward and first products are planned to enter the clinic
in 2H CY2019.
To learn more please visit: https://www.botanixpharma.com/
Cautionary Note on Forward-Looking Statements
Any statements in this press release about future expectations,
plans and prospects for the Company, the Company’s strategy, future
operations, and other statements containing the words “anticipate,”
“believe,” “estimate, ”expect,” “intend,” “may,” “plan,” “predict,”
“project,” “target, ”potential,” “will,” “would,” “could,”
“should,” “continue,” and similar expressions, constitute
forward-looking statements. Actual results may differ materially
from those indicated by such forward-looking statements as a result
of various important factors, including: risks and uncertainties
associated with market conditions and the satisfaction of customary
closing conditions related to the Placement, the expected gross
proceeds from the Placement and the intended use of proceeds of the
Placement, the Company’s ability to successfully develop its
product candidates and timely complete its planned clinical
programs and the Company’s ability to obtain marketing approvals
for is product candidates. In addition, the forward-looking
statements included in this press release represent the Company’s
views as of the date hereof. The Company anticipates that
subsequent events and developments will cause the Company’s views
to change. However, while the Company may elect to update these
forward-looking statements at some point in the future, the Company
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to the
date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20190801005307/en/
General enquiries Corporate Communications Botanix
Pharmaceuticals P: +61 8 6555 2945 investors@botanixpharma.com
Investor enquiries Joel Seah Vesparum Capital P: +61 3
8582 4800 botanixpharma@vesparum.com
Media enquiries Haley Chartres Hales2 Communications P:
+61 423 139 163 haley@h-squared.com.au
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