Penny stocks with business models can sometimes give good returns. Two such stocks from ASX listed companies have been performing well and could become potential growth companies.
Botanix Pharmaceuticals Limited (ASX: BOT)
Botanix Pharmaceuticals Limited (ASX: BOT) is advancing its Sofdra™ (sofpironium) topical gel into full commercialisation, with key milestones achieved as it prepares for a broad launch in Q1 2025. The company recently began its Patient Experience Program, where the first prescriptions for Sofdra were issued and delivered to patients. These patients were diagnosed via telemedicine, with insurance approvals also secured. The program, in partnership with the International Hyperhidrosis Society, has been crucial for testing patient instructions, telehealth systems, and pharmacy operations. Following a successful pilot, Botanix is among the growing companies to invest in as it is set to launch a wider digital program in Q2 2025, supported by refined marketing and sales materials.
Significant preparations have been made to support Sofdra’s commercialisation, including an extensive inventory build and logistics infrastructure. Botanix has completed several manufacturing campaigns to ensure adequate stock of drug and packaging materials for launch. The company has also tested its logistics network to guarantee efficient transport, warehousing, and distribution to pharmacies. Marketing and sales tools have been developed, including interactive explainers and a dedicated product website, with content tested to ensure effectiveness. These efforts are designed to ensure the smooth rollout of Sofdra to a broad market.
The commercial strategy for Sofdra is underpinned by three key pillars: tapping into a large, engaged patient population, offering frictionless access through telemedicine, and ensuring fast delivery directly to patients. The market for hyperhidrosis treatments is growing rapidly, with Botanix focused on converting existing patients and targeting others who are seeking treatment. The company has also secured significant payer coverage, with contracts in place or pending for both commercial and Medicaid lives, providing strong reimbursement support for the product’s launch and long-term success.
Archer Materials Limited (ASX: AXE)
Archer Materials Limited, a semiconductor company focused on quantum technology and medical diagnostics, has made significant strides in advancing its Biochip technology and diversifying its portfolio into industrial sensors. The company recently commenced feasibility-stage development for its graphene field-effect transistor (gFET) sensors, integral to its Biochip platform, which targets at-home blood potassium testing for chronic kidney disease (CKD). Through improved operational processes and device design, Archer has achieved a 10x enhancement in test-to-test voltage sweep repeatability, enabling higher accuracy in potassium level measurements—an essential milestone for CKD diagnostics.
Archer’s foundry partner, Applied Nanolayers, has miniaturized the gFET sensors by 97%, significantly reducing production costs. These chips, now diced and assembled at AOI Electronics in Japan, are poised for wafer-scale production, enhancing scalability and cost efficiency. Archer aims to integrate these designs with other Biochip components, targeting the lucrative at-home diagnostics market. Collaboration with Queen Mary University of London has further broadened the company’s technological horizons, identifying novel applications for its CNS spin materials. This research underpins Archer’s strategy to leverage graphene and related materials across advanced technologies.
In parallel, Archer has partnered with MultiDimension Technology (MDT) to co-develop tunnel magnetoresistance (TMR) sensors for industrial applications. This venture aligns with a market projected to grow at an 8-11% CAGR over the next five years, offering a near-term revenue opportunity while complementing the company’s long-term quantum computing aspirations. By reducing gFET fabrication costs and preparing for large-scale production, Archer is improving its competitive positioning and profit margins. Its diversification into TMR sensors highlights a pragmatic approach to monetizing quantum mechanics in industrial applications while advancing its flagship 12CQ quantum computing project. These developments collectively position Archer Materials as a high-growth player in the converging fields of quantum technology and advanced sensor markets, with a robust roadmap for both immediate and long-term value creation.
Source: Company’s Report
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