Botanix shares plunge on study results

Shares in Bentley-based medical cannabis company Botanix Pharmaceuticals have nearly halved, after it released the results of its clinical trial for acne treatment.

Botanix was down 47.9 per cent to 12.5 cents each at the close of trade.

The results of the phase two clinical trial, which was conducted in the US and Australia, revealed that those using its BTX 1503 cannabis-derived antimicrobial skin gel had a similar outcome to the subjects who used a placebo skin gel.

Botanix claimed the results were affected by an "unusually high vehicle response" that was limited to the US clinical sites.

It said the positive effect of its skin gel was more pronounced in Australia.

The trial overall involved 250 acne patients in the US and 118 in Australia, and was held over a 12-week period.

It still intends move forward with a larger phase three drug trial of BTX 1503.

Despite the investor response, Botanix executive chairman Vince Ippolito was positive about the results.

“We are pleased with the overall efficacy outcome, clean safety profile and highly significant Australian data,” Mr Ippolito said.

In August, Botanix announced it would raise $40 million via a share placement, at 21 cents per share, underpinned by strong support from US institution investors.