Botanix kills superbug Staph for Surgical Site Infections

Antibiotic resistance could cost the world $100 trillion by 2050, and approximately kills 700,000 per year. Some in the scientific community say it could be as bad as cancer. Antimicrobial resistance (AMR) has emerged as one of the principal public health problems of the 21st century. The World Health Organisation published a list of bacteria of which new antibiotics are urgently needed, and superbug “Staph” was Priority high. It’s a global epidemic.

We should be rational optimists, as Matt Ridley explains with evidence in his book. Through science and technology the world gets better via our collective brain.

Botanix Pharmaceuticals (Botanix) has made a scientific breakthrough. In September 2020, Botanix proved its product  BTX 1801 kills superbug Staph (aka MRSA or golden Staph) without allowing resistance to develop. It was done in human skin. This product is designed for Surgical Site Infections (SSI) which costs hospitals US$10 billion per year. The Phase 2a study is due in Q4 2020. They did this a year after they raised US$40 million at a valuation of US$198 million.

There was already evidence Cannabidiol (CBD) was antibacterial, which is used in the product. This new data supports bigger studies for a potential new antibiotic. There is a big need for new antibiotics due to antibiotic resistance. The problem is that it is very hard to make these scientific breakthroughs. Botanix has made a breakthrough for the world, and the data will be used by other scientists to save lives. Botanix also has a cash runway to take its clinical pipeline to December 2021 (excluding FDA approved Phase 3 Acne).

There are approximately 27 million surgical procedures in the U.S per year. Approximately 5% get infected, which leads to 1.35 million SSI’s per year in the U.S. Occurrence of SSI is estimated to increase hospital stay by 7 to 10 days and add over $3,000 in costs of care. Globally, there are approximately 313 million surgical procedures per year. If 5% of surgical procedures lead to infections, that’s 15.6 million SSI’s globally.

In the U.S there are 1.35 million SSI’s per year, multiply that by $3,000 costs, and it equals $4 billion. SSI’s cost U.S hospitals $4 billion per year. If BTX 1801 is priced at $100, that equals $135 million yearly revenue in the U.S – a huge drop in hospital costs. Presume the product will last 10 years, and that equals $1.3 billion in revenue. Globally, potential annual revenue could be $1.5 billion (SSI’s multiplied by the $100 price). 

Keep in mind that this is 1 of 3 products in the Botanix clinical pipeline. Pending studies are FDA approved Phase 3 Acne and Phase 1b Rosacea.

A recent study found it costs on average $1.3 billion to get a new drug approved. By using synthetic Cannabidiol, Botanix is able to make significantly better drugs. Botanix has a competitive advantage, and the FDA Fast Track Status application (due to the FDA Qualified Infectious Disease Product status) will make it stronger.

Antibiotics is the $40 billion drug market that no company wants a part of. Until now.

Vince Ippolito, President and Executive Chairman of Botanix, led two of the largest dermatology acquisitions completed in the past decade with combined valuations of $7.8 billion. The most recent acquisition was to Pfizer. A new antibiotic is what every Pharmaceutical company wants, and Botanix is on track to have one, especially with FDA Qualified Infectious Disease Product (QIDP) status.

There is also scientific evidence that Cannabidiol reduces tumor growth in animal models of cancer. It’s a miracle drug.

Categories Research

About Me

My name is Mark.
I’m an investor and was founding team member at a startup.
Founding Investor and did Marketing at CXi Software.
I’m part of an investor community called IO Private.
Mentor at Startupbootcamp Australia.