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Baudax Bio: A Little Slow Off The Launch Pad But Still Making Headway

Mar. 01, 2021 12:25 PM ETBaudax Bio, Inc. (BXRX)7 Comments


  • Baudax Bio recently reported their Q4/2020 earnings that revealed a huge miss on EPS and revenue. The COVID-19 headwinds continue to restrict Anjeso's ability to get off the launch pad.
  • Despite the disappointing start, the company has several commercial highlights that investors should take note of. It appears that current institutions are reordering Anjeso and are showing signs of adoption.
  • I discuss my leading downside risk and reveal my plans to add to my undersized BXRX position.

Baudax Bio (OTC:BXRX) shares have been under pressure since the company reported their full-year marks that missed the Street’s estimates. The company’s flagship product, Anjeso, has been slow off the launch pad due to the interferences produced by the COVID-19 pandemic. Although the company has made some headway, the company only pulled in ~$0.5M in Anjeso sales for 2020, which was off analyst estimates by $1.13M. Indeed these setbacks are material for the company. However, I believe Baudax has made some notable progress in spite of the pandemic, including a 58% increase in vials sold in Q4 over Q3. In addition, the global vaccination campaign could get a handle on COVID-19, which could lead to a potential influx of elective surgeries in the quarters and encourage formulary reviews to get back on schedule. As a result, I am looking to add to my BXRX position in anticipation the company is able to benefit from reopening.

I intend to point out some of the highlights in the company’s Q4/2020 numbers and will discuss the company’s efforts to push through the COVID-19 headwinds. In addition, I will discuss my leading downside risk and how it impacts my bull thesis. Finally, I reveal my plan to make my first addition to my undersized BXRX position in a long time.

Commercial Headway into a Maelstrom of a Headwind

Admittedly, Anjeso’s launch has been frustrating to watch thus far. The COVID-19 headwinds have annihilated the demand for elective surgeries, so there is a reduced demand for Anjeso. In addition, the formulary and P&T reviews have essentially given Anjeso a red light until things return to “normal.” However, the company has made some progress since launch, and the company has reported a 63% increase in average account purchases and roughly 60% of existing accounts reordered in Q4. So, there is

This article was written by

Biologics profile picture

Biologics is a full-time healthcare investor who developed a passion for biotech and life saving therapies after working in the medical field for years. His trade focus is around innovative companies developing breakthrough therapies and/or pharmaceuticals with catalysts for potential acquisitions.

He is the leader of the investing group Compounding Healthcare. Features of the group include: Several model healthcare portfolios, a weekly newsletter, a daily watchlist, and chat for dialogue and questions. Learn more.

Analyst’s Disclosure: I am/we are long BXRX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (7)

Biologics profile picture
I'll take some of those.
Biologics profile picture
I have been feasting on dips. Still not full yet.
@Biologics Same. Not confident in the company's LT future, but certainly willing to trade the stock on volatility.
Biologics profile picture
Grabbed some today
17144952 profile picture
Great article thanks.
MarionPolk2017 profile picture
Since there have been huge lawsuits related to opioid addiction, a product that doctors and hospitals can use that eliminates potential liability should have a great future. It should be easy to understand that BXRX's sales have been severely impacted by COVID-19, but once most Americans have been vaccinated, the flood gates of demand for elective orthopedic surgery should open wide.

As the population ages, the demand for replacement joint surgery should substantially increase, and so should market demand for BXRX.
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