Botanix (ASX: BOT) share price jumped 20% today
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the Botanix Pharma Ltd. (ASX: BOT) the stock price performed very well on Friday.
Shares of the clinical-stage synthetic cannabinoid company ended the day up 20% to 7.8 cents.
However, despite this strong gain, the Botanix share price is still down 40% since the start of the year.
Why has the Botanix share price skyrocketed?
With no news from the company, today’s gain in the Botanix share price is a bit of a mystery.
However, as I mentioned above, with its stocks falling significantly since the start of the year, some investors may think they have fallen to an attractive level. Especially given some of his promising studies that are currently underway.
One of these is the BTX 1204 pilot study. BTX 1204A is a new higher dose formulation of synthetic cannabidiol (CBD) for atopic dermatitis. It is based on the Company’s Permrex formulation used in the recent successful BTX 1801 Phase 2a study.
Management notes that the results of a pilot study in dogs with atopic dermatitis provide encouraging data to support further investigation. It also provides a clinically effective approach to inform progression to further human studies.
What else happened?
The optimism over the aforementioned BTX 1801 Phase 2a study could also give a boost to the Botanix share price. A recent update revealed that BTX 1801 was safe, well tolerated, clinically effective, and successful in decolonizing Staph aureus in the nose.
The success of this study allowed the company to initiate the next phase of development of BTX 1801, targeting nasal decolonization of Staph aureus in hemodialysis patients to prevent blood infections.
Management emphasizes that there is an urgent need and a significant market opportunity for new approaches to prevent infections of the blood in hemodialysis patients. Positively, plans for a phase 2b clinical study are well advanced and can be fully funded with existing capital reserves.
Some investors may hope that positive updates regarding these studies will keep the Botanix share price in the right direction in the second half of the year.