Insights

The Botanix (ASX:BOT) share price jumped 20% today

This cannabis focused biotech company was on form on Friday…
The post The Botanix (ASX:BOT) share price jumped 20% today appeared first on The Motley Fool Australia. –

The Botanix Pharmaceuticals Ltd (ASX: BOT) share price was a very strong performer on Friday.

The clinical stage synthetic cannabinoid company’s shares ended the day a massive 20% higher at 7.8 cents.

However, despite this strong gain, the Botanix share price is still down 40% since the start of the year.

Why did the Botanix share price rocket higher?

With no news out of the company, today’s gain in the Botanix share price is a bit of a mystery.

However, as I mentioned above, with its shares down by materially since the start of the year, some investors may believe they had fallen to an attractive level. Especially given some of its promising studies that are currently underway.

One of those is the BTX 1204 Pilot Study. BTX 1204A is a new higher dose formulation of synthetic cannabidiol (CBD) for atopic dermatitis. It leverages the company’s Permetrex formulation used in the recent successful BTX 1801 Phase 2a study.

Management notes that results from a pilot study of canines with atopic dermatitis provides encouraging data to support further investigation. It also provides a clinically efficient approach to inform progression to further human studies.

What else has been happening?

Optimism over the aforementioned BTX 1801 Phase 2a study could also be giving the Botanix share price a lift. A recent update revealed that BTX 1801 was safe, well tolerated, clinically effective, and successful at achieving decolonisation of Staph aureus in the nose.

The success of this study has seen the company launch the next phase of BTX 1801 development, targeting the nasal decolonisation of Staph aureus in haemodialysis patients to prevent bloodstream infections.

Management highlights that there is an urgent need and significant market opportunity for novel approaches to prevent bloodstream infections in haemodialysis patients. Positively, plans for a Phase 2b clinical study are well advanced and can be fully funded with existing capital reserves.

Some investors may be hoping positive updates relating to these studies will keep the Botanix share price heading in the right direction during the second half of the year.

The post The Botanix (ASX:BOT) share price jumped 20% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Botanix right now?

Before you consider Botanix, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Botanix wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

This crypto blew away Bitcoin’s 5% gains today

Up 53% in 12 months: Can the Xero (ASX:XRO) share price go even higher?
Crude to $100 per barrel? 3 ASX 200 oil shares trading well below pre-COVID levels

The Stockland (ASX:SGP) share price hit a new 52-week high today
Here are some of the most actively traded ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!