Key points:
- Skinbiotherapeutics shares crashed by 42.9% after releasing its H1 results.
- The company launched its AxisBiotix-Ps™ probiotic food supplement.
- However, the company’s sales in the US have been slower than expected.
The Skinbiotherapeutics PLC (LON: SBTX) share price crashed 42.9% after its half-year results missed expectations amid slower-than-expected sales of its AxisBiotix-Ps™ probiotic food supplement.
Also read: The Five Best Pharmaceutical Stocks To Watch in 2022.
The company noted that its penetration within the United States was much slower than planned, marked by lower sales figures. However, the firm assured investors that it had gotten positive feedback from its clients.
SkinBioTherapeutics released its consolidated half-year results today for the six months ended in December 2021.
Some of the milestones achieved by the company include the soft launch of its AxisBiotix-Ps™ supplement on 29 October 2021, followed by the commercial launch that transformed the company from a B2B to a B2C company.
The company also launched an influencer marketing program in February 2022 to shore up its probiotic food supplement sales. It also revealed that Croda was negotiating with some VIP clients about using SkinBiotix as an active cosmetic ingredient.
Any deals reached by Croda and its clients would lead to royalty payments to SkinBioTherapeutics by the end of the year based on its license agreement with Croda.
Stuart Ashman, SkinBioTherapeutics’ CEO, said: “This has been another period of progress for SkinBioTherapeutics, with the accelerated AxisBiotix-Ps™ roll-out following the ‘soft launch’ phase of commercialisation, together with the continued progress of our other strategically important pillars and new research.”
Adding:
“The business was initially floated, structured and funded as a B2B entity. With the emergence of AxisBiotix- Ps™, we have evolved to become a B2C direct to consumer sales and marketing entity as well. This has required a change in strategy, spend and structure. With AxisBiotix-Ps™, despite many challenges, including the ongoing COVID pandemic, the team successfully managed the soft launch just five months ago. Whilst at this stage, the initial numbers are much lower than initially anticipated, we’ve seen and continue to receive very positive feedback from customers, which is very gratifying. Understanding retention levels is important to longer-term forecasts, and this takes time.”
Investors were disappointed to hear that the company’s overall sales were below expectations, which triggered the selloff. However, SBTX shares had recouped most of their losses at writing.
SkinBioTherapeutics is developing a new acne food supplement and expects to start a consumer study later in the year.
The company intends to ramp up sales during the second half of its current financial year but was not very optimistic given that only three months are left before the second half ends.
*This is not investment advice. Always do your due diligence before making investment decisions.
Skinbiotherapeutics share price.
Skinbiotherapeutics’ share price crashed by 42.97% to trade at 25.95p, falling from Monday’s closing price of 45.50p.