Botanix Pharmaceuticals (ASX:BOT) is back on track following the release of its fiscal first quarter results, with reduced cash burn alleviating funding concerns, Euroz Hartleys said in a Monday note.

The reported revenue of AU$7.1 million for its Sofdra topical gel, up from AU$4.3 million in the previous quarter, while total prescriptions shipped for Sofdra rose to 20,418 in the quarter, up from 13,647 last quarter.

The results broadly came in line with or exceeded expectations for the quarter, with Euroz Hartleys expecting 20,100 in total prescriptions and AU$7.5 million in net revenue.

Supported by findings from a recent US dermatologist survey and benchmarking against prior launches, Sofdra has the potential to become the category leader in hyperhidrosis, a medical condition in which a person sweats excessively, according to the investment advisory firm.

Euroz Hartleys maintained its buy recommendation and AU$0.44 price target on Botanix Pharmaceuticals.

Botanix Pharmaceuticals shares rose 7% in afternoon trade on Monday.