Analyst Joseph Pantginis of H.C. Wainwright reiterated a Buy rating on Botanix Pharmaceuticals Limited, retaining the price target of A$1.00.
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Joseph Pantginis has given his Buy rating due to a combination of factors related to Sofdra’s supply chain, cost profile, and commercial trajectory. He views the newly executed term sheet with Piramal for a second Sofdra API source as a strong confirmation of the robustness and scalability of Botanix’s manufacturing setup, particularly as the product ramps globally.
The addition of a U.S.-based, alternate supplier meaningfully reduces single-source risk, improves supply security for a new chemical entity, and enhances the company’s strategic appeal for potential acquirers. In his assessment, the expected 25%–40% reduction in COGS, coupled with rising Sofdra prescription volumes and extended patent protection through 2040, supports higher gross margins and long-term value creation that underpins the A$1.00 price target and Buy recommendation.