• Total prescriptions shipped grew 24% for the quarter
• Sofdra net revenue increased 28% from Q1 FY26
• Operating cash outflow increased due to sales force expansion
• Cash position of $31.5 million, undrawn debt facility of $14.9 million

Botanix Pharmaceuticals Limited (ASX:BOT) released its Quarterly Activity Report and Appendix 4C Quarterly Cash Flow Report for the period ended 31 December 2025. Key highlights include a 24% increase in total prescriptions shipped for the quarter, from 20,418 in Q1 FY26 to 25,351 in Q2 FY26. Sofdra net revenue (unaudited) increased from $7.1 million in Q1 FY26 to $9.1 million in Q2 FY26, representing a 28% increase. Operating cash outflow increased from $13.1 million in Q1 FY26 to $17.2 million in Q2 FY26, primarily due to the addition of 23 sales professionals and associated one-time start-up costs. The company had a cash position of $31.5 million on 31 December 2025 and an undrawn debt facility of $14.9 million. Market research showed strong acceptance for Sofdra and SendRx by healthcare professionals, with 90% expecting to increase Sofdra prescribing volume in the next six months. The company's operating cash outflow increased due to the expansion of the sales force, but it sees a clear path to profitability and is confident in the continuing sales momentum for Sofdra.

The company expects to achieve an average gross-to-net (GTN) of 30% - 40% for Sofdra, which is typical of successful US dermatology pharmaceutical companies. Further API purchases will be required in order to meet the continued strong demand for Sofdra.

Botanix is confident in the continuing sales momentum for Sofdra, driven by the strong performance of its expanded sales force. The company is currently engaging potential secondary API suppliers to decrease cost of goods sold (COGS), increase gross profit, and derisk the supply chain, which represents a potential 25 - 40% reduction in COGS.