Botanix Surges 17% as Sofdra Launch Gains Momentum in the US

Market Reassesses Botanix as Q1 Data Sparks 17% Share Price Rise

Botanix (ASX: BOT) appears to be entering a turnaround phase following a difficult start to the year, when unmet growth expectations weighed heavily on its share price. The company’s Q1 FY26 investor presentation helped shift sentiment, with shares jumping 17% in early trading. What the market may have overlooked earlier was the timing of Botanix’s growth trajectory. With initial Sofdra launch data beginning to show meaningful traction and momentum starting to build across its US commercial rollout, investors are now beginning to reassess the company’s long-term potential.

What are the Best Biotech ASX stocks to invest in right now?

Check our buy/sell stock tips

Botanix Delivers 65% Sales Growth as Sofdra Commercial Momentum Builds

BOT is showing clear signs of commercial acceleration with its flagship Sofdra therapy, the first FDA-approved new chemical entity for treating primary axillary hyperhidrosis, or excessive sweating. Total prescriptions shipped rose 50% quarter-on-quarter to 20,418, driving net sales to AUD 7.1 million, a 65% increase from the previous quarter. Importantly, the company’s gross-to-net (GTN) yield improved to 23%, up from 15% in Q3 FY25.

For investors unfamiliar with the term, GTN yield represents how much revenue Botanix retains after accounting for discounts, rebates, and other deductions. The stronger yield highlights an improving commercial profile and growing pricing efficiency.

Earlier in the launch, Botanix deliberately accepted lower yields to accelerate product adoption, a move that initially weighed on market sentiment. In hindsight, this strategy appears to have been well-timed, laying the groundwork for stronger revenue growth and improved profitability as Sofdra gains traction in the U.S. market.

BOT financials looking healthy

Botanix remains in a solid financial position, supported by AUD 49 million in cash and an additional AUD 15 million undrawn debt facility. The company has also expanded its U.S. salesforce to 50 representatives, strengthening its commercial reach across key dermatology markets.

This provides Botanix with the capacity to fully capitalise on an estimated USD 1–2 billion addressable market, representing approximately 3.7 million patients actively seeking treatment for primary axillary hyperhidrosis. With its growing sales infrastructure and improving financial flexibility, the company is well-positioned to drive continued market penetration and scale the commercial success of Sofdra in the quarters ahead.

Botanix Outperforms Peers with Superior Sales Efficiency and Sofdra

When comparing Botanix to its peers, the company’s sales performance stands out. On a metric of total prescriptions (TRx) per sales representative, Botanix has achieved significantly stronger results since the second and third phases of its Sofdra® launch. Prescription volumes increased from 13,600 in Q4 FY25 to 20,418 in Q1 FY26, outperforming competitors such as Qbrexza, which generated roughly 300 TRx per representative in the same period with a team of 112. By contrast, Botanix achieved around 756 TRx per representative with only 27 reps, highlighting superior sales efficiency and product uptake.

Botanix’s Sofdra Captures 0.6% Market Share in Early U.S. Launch

My back-of-the-envelope analysis of Botanix’s recent performance highlights the early but promising commercial traction of Sofdra in the U.S. market. With 20,418 prescriptions (TRx) recorded in Q1 FY26, Botanix has captured an estimated 0.6% share of the total U.S. prescription market for primary axillary hyperhidrosis (PAH). The addressable market includes roughly 3.7 million patients actively seeking medical treatment each year, with most receiving one to two prescriptions per quarter. Using these averages, the total market is estimated at around 3 to 3.5 million prescriptions per quarter, placing Sofdra’s early market penetration into perspective.

While this estimate is based on broad assumptions, it underscores that Botanix remains in the early stages of its commercial rollout, with significant room to grow. Even allowing for a margin of error, the data suggests strong momentum that, if sustained, could see the company achieve approximately 0.15% annual market share within its first full year of launch.
If Sofdra were to keep growing at this pace, with QoQ growth of 20% FY26 prescriptions could reach 85000, bringing revenues in to around 30-49 million if growth were to continue to accelerate.