Whilst Botanix Pharmaceuticals (BOT: $0.165) is making excellent progress in gaining early traction for its new dermatology drug for the treatment of excessive sweating, the low initial gross-to-net margin appears to have surprised investors. This has resulted in the company’s share price falling by 51%.

Botanix Pharmaceuticals (BOT: $0.32) has received FDA approval for Sofdra, a prescription medicine for primary axillary hyperhidrosis (PAH), or excessive underarm sweating. It is the first novel chemical entity approved for this indication.