Ann: Botanix $40 Million Capital Raising for Sofdra Rollout, page-94

Botannix Webinar qtr 1

• Current run rate of 2000 new customers monthly
• Will achieve revenue forecast of $100mill with current run rate.
• Sales doubled from Feb to March
• 100% refills (11 per year)
• 1500 prescribers with currently 400 prescribing per week.
• Digital launch 3 weeks ago, new patient acquisitions largely due to digital
• Feedback positive from Physicians and patients . Benefits include access, efficacy, financial, benign side effects, and ease of receiving delivery.
• Nearly doubling new patient acquisitions per month.
• $3.26mill AUD after 9 week doubling from week 5 to week 9.
• Inventory build with additional suppliers, and stock levels.

Questions:

• long term efficacy?

No issues.

• why raise capital now and sales expansion?

Response in 9 weeks a lot stronger than expected at 2000 patients, acknowledged not wanting to do it with market conditions, but want to act early to assist in continuing growth. Early customer growth significantly increases future revenue growth.

• launch success and customer acquisition thoughts?

Growing a lot higher than forecast, needed capital to add sales and infrastructure to cater for early growth. Front ending sales is the main purpose behind raise and early success.

• why is 2000 new patients per month significant?

Company forecast 6 refills per year at 2000 new patients per month gets to their target gross revenue. And they’re getting 11 refill run rate..

Main focus is getting maximum refill rate.

• what happens at the end of a year after 12 customer refills?

Suppliers and platform call prescriber a month early and re-send a new prescription to patient.

• How does cashflow payments from payers process work?

45-60 day payment process to get to BOT

• Is the digital platform usable for other things?

It migrates everything to one site for easier navigation and use. And all data aggregation from customers and prescribers is there to see.

Useable for other products and assists in better customer retention. Heavily tested and refined for managing growth.

• interests from other companies in relation to licensing Sofdra?

Yes, continued interest from larger partners, particularly outside of the USA. Will be selective on which and where they license to outside of the USA.

-Tariffs?

Keep in mind the tariff is not on the list price of Sofdra, + 25% from Canada.. We believe cost addition is between $4-15 per bottle. 25% of Bottle cost. So that’s a yes. Tariffs are an impact in costs.. Currently looking at local USA suppliers to mitigate..

• Roll out of additional sales staff and costs?

Will continue to make efficiency’s from digital platform to maximise cost efficiency.

• Adding to expand indications of drug?

90% of target market have sweating in more than one place. Off label is addressing this, but right now just focusing on on label under arm prescriptions.

• Goal for Botannix?

Create a big company with dividends and multiple products, and initially make Sofdra an overwhelming success..

Great optionality as company grows and succeeds. M&A, additional products. Platform is unique and one of the key factors in future growth..

IMO DYOr