Botanix Pharmaceuticals Limited

I'm Vincent Polito, the Executive Chairman. I'm joining you from our U.S. headquarters in Phoenix, Arizona. Joined with me on this presentation this morning, live from Australia, are both our Chief Executive Officer, Dr. Howie McGibbon, and our Chief Financial Officer, Chris Lesovitz. We've got almost 350 people participants that were preregistered for this conference today. So following the presentation, we're going to take some Q&A. Obviously, with that many people, we'll take as many as we can in the time that is permitted here for it. With that, David, would you advance to the next slide, please? I'd like to point out in our investor update is an important notice and disclaimers that this presentation may contain certain forward-looking statements. I would encourage you to view our 4C quarterly cash report and this Q1 fiscal year 2026 investor update. But more importantly, I'll read our important notices and disclaimers. And with that, I'm going to turn the presentation over to Dr. Howie McGibbon. Howie?

Yeah, thank you, Vince, and thank you all for joining the Botanics Q1 quarterly update. Chris and I are out here in Noosa for the Canaccord Wilson's Drug and Device Conference, followed by a roadshow next week in Sydney and Milliburn. We're going to do this a few times a year, typically following one of our filings. Today, we'll provide a corporate overview for those of you that are new to the Botanics story. We're going to review our strong Q1 commercial performance, discuss our key financial highlights, which leave us in a very strong financial position to support profitability. And then we're going to preview our Q2 activity. Next slide, David. Again, for those that are new, Botanics is a fast-growing dermatology company. with the recent successful launch of our flagship product, Softra, for hyperhidrosis, commonly referred to as excessive sweating. Softra is the first and only new chemical entity for primary axillary hyperhidrosis, which affects over 10 million patients in the US alone. So to put that in perspective, the value of a new chemical entity There's only been 33 of those approved this year in the US for all therapeutic categories combined. And it cost about $250 million to get one approved. And that doesn't take into consideration any of the cost of the failures. What sets Botanics apart from other dermatology companies in the US is the innovative platform that we have. It increases patient compliance, improves gross to net, provides dermatologists with an experience that gives them confidence that when they prescribe Softra, their patients are going to get it quickly with little or no friction coming back to their office staff. We're in a strong capital position with cash of almost $50 million and another $15 million of undrawn debt. And finally, we're well positioned for growth. Softra is meeting an unmet need in a large marketplace. And as of today, we've expanded to 50 sales representatives actively selling our compound. The fulfillment platform is performing at a very high level. It's working well, extremely well, for both physician-patient experience along with refills. And we've scaled it so that you could add additional products to it as they become available. Now, keep in mind, before we go to the next slide, today we have 50 sales professionals. Everything that we're going to review today was done with 27. So we're very excited about our future prospects of what software can do. Next slide, please. We have a pretty experienced US-based executive leadership team here that's launched over 30 products in the dermatology space. And when I say launched, they've developed, secured approval for, and commercialized each of those products. They've also had a collection of successful exits from Anacor, Metasys, Dermavant, and Cassiopeia in multiple therapeutic areas. Next slide, please, David. Now, what's interesting about this category is that it's a third largest category or therapeutic area in dermatology. So we often think of psoriasis as a large therapeutic area, and it's done very well for the companies that are in that space. But to put that in perspective, Primary hyperhidrosis has twice the amount of patients that psoriasis has. So when you think about that from a U.S. population with the 300, now almost 350 million Americans that are out there, 16.1 million have some type of hyperhidrosis. 10 million have primary axillary hyperhidrosis or excessive sweating underneath the arms. 3.7 million of those patients are already in the doctor's office. That's allowed us to expand our sales force to meet that demand that patients need, and also to get to more physicians over time. Next slide, please. Let's talk a little bit about the product itself. Our FDA approved indication is the treatment of primary axillary hyperhidrosis in adults and pediatric patients nine years of age or older. We met our co-primary endpoints with high statistical significance on a patient-reported measure and an objective measure. What's unique about this product or unique about Softra is we've also hit on all key secondary endpoints. It was very safe and well-tolerated in clinical trials, no serious treatment of emergent adverse events, and what we really like about it is that in real world or in the real world data that we get back, it's performing at or even better than the profile that we see here. The proprietary drug delivery system allows patients to limit unwanted drug contact to hands during application ensures consistent dosing. Now, we believe this profile is directly related to the unique mechanism of action that software possesses. It binds selectively to the muscarinic 3 receptor of the sweat gland, blocks acetylcholine to inhibit the sweat signal, and just as important, is rapidly metabolized into a fairly inert molecule that's excreted, rendering this clean side effect profile. Next slide, David. I want to talk briefly about our fulfillment platform. And I said earlier that this really differentiates us from other dermatology companies in the United States. And it does this because it provides seamless fulfillment for physicians and patients. We have an increase in reimbursed prescriptions because we shepherd those physicians' offices through the prior author clearance process that's required for many insurance companies. We have adherence rates or refill rates that are two and a half times the industry standard. Just as important through all this, because we skipped the wholesaler, we're saving upwards of 18 to 20 percent over time in our gross to net. We're able to get very good insights with the data we get from SendRx, which allow us to make faster decisions. And one of those decisions was to expand the sales force significantly. because of the promotional sensitivity that we were able to identify much earlier than if we had to wait on the data. And one of the quotes from one of our derms, and there's many like this, is that I've never used a specialty pharmacy that's been as seamless as SendRx. Now, let me caveat this. This doesn't happen every time, but this did in this case. I put a prescription in on a Friday afternoon. The patient had their medication by Saturday morning. It does happen, but within a few days, the vast majority of patients do get their medicine. So let's turn to our strong commercial performance over the last quarter. Total prescriptions grew by 50% over Q4, and that was driven by our fulfillment platform and strong production from our sales team. 20,418 total prescriptions shipped for the quarter. We had 7.1 million net sales, an increase of 65% quarter over quarter, and a gross net yield of 23, which is two points higher than the 21%. gross to net yield for the prior quarter. Next slide. So when we take a look at this over time, we're seeing consistent growth in the volume of our total prescriptions shipped, which reflects on the production of the Salesforce, the activity of the Salesforce, and how well they've done to quickly get out to these physicians and get the right reach and frequency on our target base. Next slide, please, David. As you would expect, you see similar growth here with regard to your net sales going from 4.3 million to 7.1 million quarter over quarter. And the quarterly average gross to net yield has improved quarter over quarter, and we believe will continue to improve. You will see fluctuations in our gross to net. However, we're seeing all the right indicators that this will continue in a pathway that's positive for the company. Now we'll turn it over to Chris to talk about some of the financial highlights and the focus on the fiscal discipline that's allowed us to yield the results that we've got. Chris?

Perfect. Thank you, Howie. I'm excited to share our Q1 fiscal year 2026 results and outlook. We've made meaningful progress this quarter. We've had strong revenue growth, disciplined cost management, and a solid liquidity position that sets us up for continued success. As you can see, our operating cash flow improved significantly to $13.1 million, down from the prior quarter of $28.4 million. This improvement reflects our lower operating and manufacturing costs, combined with our higher receipts to product sales. Our inventory closed at approximately $29 million, giving us the capacity to support our planned Salesforce expansion in Q2 without any disruption. And most importantly, available funding stands at $64.4 million. This is inclusive of $49.2 million in cash and $15.2 million in undrawn debt facility. The strong liquidity position provides the runway to support software growth and other strategic initiatives we have planned. Next slide, please, David. So on the cost side, we've delivered substantial improvements. Product manufacturing costs dropped 81%, from $11.2 million to $2.2. This quarter reflects no purchases of drug substance, commonly referred to as API. The cost during a quarter represent our steady state level when converting raw materials into finished goods without any API purchases. Next, our operating cost fell 29% from 14.4 million to 10.2 million. This was driven by the pre-launch activities around our marketing campaigns, which occurred during the fiscal year 2025 Q4. Our G&A cost declined 22%. This went from 2.4 million to 1.9 million. This decrease was also due to legal expenses associated with launch activities that occurred in Q4 fiscal year 2025. So our total net cash used in operating activities improved by 54%, from 28.4 million to 13.1 million. Looking ahead, we are focused on growth and execution. As Howie mentioned, we plan to expand our sales force from 27 reps to 50 in the coming quarters. This investment will accelerate our revenue growth, but it will also increase in sales and marketing expenses. Our manufacturing costs will remain at steady state levels when converting our raw materials into our finished goods, and again, without any API purchases in the near term. We're expecting double-digit revenue growth to continue with our expanded sales coverage and strong demand signals that we see ahead. With that said, next slide and send it back to Hallie.