Botanix Pharmaceuticals Limited

Robust Increase in Revenues: Botanix Pharmaceuticals Limited (ASX: BOT)is in a clinical stage of medical dermatology. The company is into the development of safe and effective topical treatments for acne, psoriasis, atopic dermatitis and other skin conditions.

Consolidated Statement of Profit & Loss (Source: Company Reports)

The revenue from ordinary activities grew by 163.0% to $4.74 million for the half year ended 31 December 2018 as compared to $1.80 million for the half ended 31-Dec-2017.Net loss after income tax of the company for the six months ended 31 December 2018 was $4.18 Mn as compared to $2.39 million in the same period of the previous year. The net loss is attributable to expenditure in relation to the research and development activities and general administration costs associated with an ASX listed company.

What to Expect From BOT: The company is well positioned to continue the momentum going forward, with the near-term focus on moving Phase 2 clinical programs (acne and atopic dermatitis) into the clinic and progressing the dermatology pipeline (psoriasis and antimicrobial product).  Going forward, the company would primarily be aided by billion-dollar market potential, unmet patient needs and novel mechanism of action for skin disease. It is expected that 2019 would be a transformative year which is backed by planned completion of two Phase 2 studies, a Phase 1b patient study coupled with milestones for the broader pipeline as well as Permetrex™ technology platform.

Meanwhile, the stock price has a YTD return of 64.38% and a return of 57.89% over the past three months (as at March 06, 2019) and is trading close to the average of 52 weeks high and low level of ~$0.128. With the company positive outlook coupled with improved revenues in 1HFY19, Botanix looks decent with respect to its future performance. Hence, we maintain our “Speculative Buy” recommendation on the stock at the current market price of $0.125 per share.
 

Paradigm Biopharmaceuticals Limited

Growth in Revenues: Paradigm Biopharmaceuticals Limited (ASX: PAR) is an Australian biopharmaceutical company which is involved in the research and development of therapeutic products for human use and it is focused on repurposing the drug pentosan polysulphate sodium to treat inflammation. Mr. Paul Rennie is the Managing Director of the company.

Key Parameters (Source: Company Reports)

The revenue of the company grew by 25.99% to $28,140 for the half year ended 31-Dec-2018 over the prior corresponding period. The net loss for the period grew by 23.14% on the prior corresponding period to $4,400,269 for the half year period ended 31-Dec-2018 primarily driven by research & development expenses.

What to Expect From PAR: The company is confident that a single successful Phase 2/3 clinical trial will enable iPPS to be registered as a treatment for certain MPS indications. MPS is classified as an Orphan Indication/Designation in the US and EU which help to accelerate the regulatory approval process and ultimately the time it takes for the treatment to enter the market as well as providing for a minimum 7 years (10 years for EU) market exclusivity. 
 
Meanwhile, the stock price has a YTD return of 30.05% and a returnof 36.08% over the past six months and is trading close to the average of 52 weeks high and low level of ~$1.212. From the analysis front, current ratio substantially increased from 3.97 in 1HFY18 to 9.20x in 1HFY19, representing decent liquidity of the firm to meet its obligation in the short run. Based on foregoing and current trading level, we have a “Speculative Buy” recommendation on the stock at the current market price of $1.305 per share (down 1.136% on 07 March 2019) as the group has started discussions with International Key Opinion Leaders for the MPS clinical trial design and site selection.
 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.