Botanix Pharmaceuticals Limited

Good morning and welcome to the webinar. I'm Vince Ippolito, the Executive Chairman of the Board for Botanics Pharmaceuticals Limited. Here it is the top of the hour. We're expecting close to 300 participants with pre-registrations and those that are continuing to come on right now as we speak. But we're going to get started with today's webinar. Well, the company's come a long way since our highly successful commercial launch of Softra. in February of 2025. It's really hard to believe that was just a little bit more than a year ago we launched. And we're pleased with the progress the company's made and with the approval of the balance of the capital raise later this month, we believe that we'll be well positioned for future growth. Well, the purpose of this call today is to discuss the 2026 half-year report. And at the end of the presentation, we'll have some time for some questions from the audience regarding the report. You could type them into the chat section there. We'll try to capture as many as we can. We've got a few questions in advance as well of this webinar that we're going to incorporate into the Q&A as well. And for all participants, all questions are monitored and moderated. And I'm joined here, as you can see on the screen today, by our Chief Executive Officer, Dr. Howie McGibbon, and the U.S. Chief Financial Officer, Chris Lesovitz, who will take you through today's presentation of the Botanics Half-Year Report for the period ending 31 December 2025. So with that, I'm going to turn the presentation over to Howie to get us started here.

All right. Thank you, Vince, and thank you to all the attendees for taking the time to join the call today. So today I'm going to provide a summary, a brief company overview, and then we're going to quickly move over to our first half results. So Softra experienced strong growth in the first 11 months of its launch with 62,500 prescriptions shipped, almost $100 million in gross revenue, and $21.2 million in net revenue over that time period. During that time period, Softra, our sales force, and our platform performed above our expectations. The Botanics Fulfillment Platform created the opportunity for frictionless access for both patients and physicians. It has the capacity to add products which can benefit from improved gross to net yield, a fill rate exceeding industry standards, and a high rate of fully reimbursed prescriptions. Market conditions are favorable for Botanics. M&A of products that would benefit from our platform. And our focus right now is to maximize its scalability with additional assets as they become available. Selection is underway for an alternate active pharmaceutical ingredient or API supplier, which is expected to decrease cost of goods sold by 25% to 40%. And given that software's IP or intellectual property runway goes all the way to 2040, It adds considerable value creation for both the profitability and can increase attractiveness to our potential acquirers in the future. So after the period ended, Botanics received firm commitments for a $45 million capital raise. We've received $14.9 million in funds to date under that raising, and the balance will be subject to shareholder approval at our meeting scheduled on April 1, 2026. You can refer to our notice of meeting released to the ASX yesterday for further information. So let's transition over to the quick company overview, and we're excited to get to our first half results. Next slide, please. So most of you are very familiar with Botanics, but for those that are new, it's a fast-growing dermatology company that successfully lost software last February, as Vince said earlier, for the treatment of hyperhidrosis, which is commonly referred to as excessive sweating. So it's the first and only new chemical entity for primary accelerated hyperhidrosis, and that affects over 10 million patients in the U.S. alone. So two things I want to put in perspective here. First and foremost, as a new chemical entity, there were only 46 NCEs approved in the U.S. across all therapeutic categories in 2025. So we're very fortunate to have one of these NCEs. And second, with a 10 million patient TAM, we are the third or in the third largest dermatological condition that exists. So a large underserved population with a new chemical entity with patent protection going all the way to 2040. Our platform has proven to increase patient compliance or adherence, which is the extent that patients stay on their drug treatment. That's very valuable for us. It makes those patients sticky. It's very valuable to the patient because they're getting the treatment that they need and ultimately the efficacy that goes along with it. It continues to exceed industry benchmarks at 2.5 times the industry standard with regard to fill rate. And we'll discuss further the innovative platform and why it's a key asset to the company later in the presentation. And finally, the Salesforce expansion of 50 sales specialists was completed in 20 October last calendar year. Both the new hires and the existing sales professionals have been highly productive. and they're performing as expected, or in some cases, better than expected. We expect the new sales specialists to build momentum as they penetrate new states, physicians, areas, and we look forward to them helping contribute in a meaningful way to increase software prescriptions in the future and helping to ensure that as many patients as possible get the treatment that they need for their hyperhidrosis. Next slide, please, David. So as we said earlier, SOFTRA is indicated for primary axillary hyperhidrosis going all the way down to children nine years of age and over, a very large part of the population. It presents a novel, safe, and effective solution for patients who've lacked treatment options for this socially challenging medical condition in the past. And we believe the novel mechanism of action of SOFTRA allows it to reduce sweat at its source selectively in a very targeted way, binds to the M3 receptor, which is the receptor implicated in sweat signaling. It blocks that receptor, does its job. It's rapidly metabolized once it's released and hits the bloodstream. And that helps, we believe, minimize the side effects for adverse events, which we're told by patients and physicians are really living up to the clinical profile of the clinical trials. Doctors have also told us that the proprietary metered dose pump, which helps limited unwanted drug contact to the hands, is one of the key reasons they prescribe Softra, in addition to the safety and the platform itself. Next slide, please. Let's talk about this TAM. It's a large market for Softra, and it's an underserved population. There haven't been many treatment options in the past. And just to put that in perspective, Consider that primary hyperhidrosis affects twice as many patients as psoriasis. That's generally a very large disease state recognized within the U.S., both by patient numbers and by dollars sold. So it's the third largest dermatological condition after acne and atopic dermatitis. So that 10 million patients is a big opportunity for us over the product lifecycle. Of those, about 3.7 million patients are actively seeking treatment, and those are the patients that our 50 sales representatives are going after and educating those physicians. So we'll transition over the next slide directly to the half-year results. So we've seen solid growth of prescriptions shift each half since launch. In the first half of fiscal year 2026, total prescriptions grew to 45,800 or 45,800 from 16,800 in the second half of fiscal year 2025. That increase in prescriptions and solid refill rates continue to indicate rapid acceptance of the benefits of software by both physicians and patients alike. Let's transition over to net revenue. Net revenue increased from $5.1 million in the second half of fiscal year 2025 to $16.2 million in the half year ending December 31, 2025. That's a 219% increase, and we expect net revenue to continue to grow into the foreseeable future for many of the reasons we've already discussed today. One of the reasons for our continued optimism is what physicians are telling us. So we conducted market research back in Q2, and the results of the research show that software strongly resonates with healthcare professionals and that 90% of those surveys expect to increase software prescribing in the next six months. It's given us great confidence in the product and its potential growth. Software use was driven by primarily by streamlined access, strong efficacy, unique applicator, and safety. Physicians also assured us that many patients remain undiagnosed in their practice, which tells us that there's a large opportunity here for those patients they already know have it that are coming in and raising their hand, but also for those patients that see our materials in the waiting room, that are reminded to talk about their condition to their physicians and actively bring that up. So the combination of this feedback does two things. First and foremost, they're happy with the safety and efficacy of the product. And knowing that we have this product until 2040 allows us confidence that we're going to be able to continue to build upon it. The second is their high rating of the reason to prescribe assigned to SendRx or our fulfillment platform. Also tells us that if we come in with other products, they already know how to use the platform, and they're looking at that as a benefit to any product that we bring in to put on that platform. Let's talk about the platform itself. It's a huge asset of the company. Like I said earlier, it provides streamlined fulfillment and access through a single pharmacy network. It supports both dermatology practices and the patients. And that's important from a prescribing perspective, but also the patient getting their prescription. And just as important, getting the refills that exceed the industry standard. Now, a key value driver of the platform is its ability to improve insurance clearance rates. So we get a larger number of fully reimbursed prescriptions, ensures that patients can easily access the product, makes it convenient for physicians to prescribe. And what they tell us is that when they have the confidence that their patients will get the prescription they prescribe, they're more apt to prescribe the product more in the future. It allows for personal follow-up with patients by the pharmacy. This effectively drives the adherence and the refill rates that exceed the industry standard and ensures that Botanics has high visibility into pharmacy operations, which allows us to make rapid changes based on the insights that we get on a very frequent basis. I think just as important, if not more important, is that the platform is scalable. It's proven that it can handle the throughput, and it positions botanics for future growth. It can improve the growth to net yields for a new product, increase its refill rate, and contribute significantly to net sales without incurring any additional development costs. So something that we might bring on, put on top of that platform, can be immediately accretive. Now I'd like to introduce our Chief Financial Officer, Chris Lesovitz, and he's going to take us through the financial results, and I'll come back and close the presentation.

Thank you. I'm pleased to walk through our operational and financial performance for the first half of fiscal year 2026. Let me begin with our operational progress. Over the last six months, we successfully completed the expansion of our sales force to 50 representatives. This was a core strategic priority for us, ensuring we have the commercial reach needed to support sustained growth. We also continued to enhance the performance of our Botanics fulfillment platform, which is driving greater patient compliance and improved gross to net. Our commercial execution translating to meaningful volume growth. Total prescriptions shipped in the first half grew by 171%, reaching 45,800 prescriptions. Importantly, sentiment among our healthcare professionals remain overwhelmingly positive, with 90% of our providers indicating that they expect to increase their prescribing of software over the next six months. Now turning to our financial results for the period, we delivered $16.5 million in total revenue, which includes royalty revenue during the first half of fiscal year 2026. Materials and related expenses totaled $6 million, Our direct operating expenses totaled $36.6 million, which includes product sales and marketing, employee, corporate consulting, and G&A expenses. These expenses reflect the investments we made in our commercial footprint and support functions as well as we scale. Our adjusted EBITDA loss for the half was $26.1 million, and we closed the period with $31.6 million in cash and equivalents. On the slide now is our statement of profit and loss. The total revenue increased to $16.5 million compared to $346,000 in the prior corresponding period. Softra was not fully launched yet in the first half of fiscal year 2025, whereas in the first half of fiscal year 2026, we generated $16.2 million of U.S. Softra revenue, following its introduction in the second half of fiscal year 2025. So our operating expenses reflect a scaling commercial business. Expenses increase in line with the investments required to support a national U.S. launch. You can see here our materials and related expenses rose sharply to $6 million due to the uptick in prescription volumes as well as associated royalty payments we made during the half. Our sales and marketing increased to $24.7 million as we expanded our promotional activity and field force coverage. Our internal employee costs grew to $7 million. This was driven by recognizing a full six months of internal headcount in the first half of fiscal year 2026 versus prior period of staffing was partial for fiscal year 2025. Our G&A expenses remain controlled, decreasing slightly year over year to $3.2 million. And now for our non-cash expenses, our share-based payments declined significantly due to investing timing. And we recognize a fair value gain on the financial liabilities for our debt instrument in the current period. Our loss before tax was $33.2 million. It's a modest increase from prior period. This reflects a typical early launch dynamic where investment precedes revenue scale. The software adoption continues to grow. We expect our revenue growth to start outpacing our cost basis here. With that said, I will now turn it back over to Howard.