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Baudax (BXRX) to Report Q4 Earnings: What's in the Cards?

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Baudax Bio, Inc. (BXRX - Free Report) will provide updates on earnings and revenues when it releases fourth-quarter 2020 results.

Shares of the company have slumped 80.9% in the past year compared with the industry’s decline of 2.1%.

In the last reported quarter, it delivered an earnings surprise of 14.29%. Moreover, Baudax delivered an average earnings surprise of 7.69% in the trailing four quarters.

Let’s see how things have shaped up prior to the upcoming results.

Factors Likely to Impact Q4 Results

Baudax’s lead asset, Anjeso (meloxicam) injection, was launched in the United States in June 2020, following its approval by the FDA in February. Anjeso is indicated for the management of moderate to severe pain, alone or in combination with other non-NSAID analgesics. Anjeso is a once-daily IV NSAID with preferential cyclooxygenase type 2 pathway (Cox-2) activity.

The commercial rollout of Anjeso is progressing well and as of late October 2020, more than 50 institutions added the drug to their formulary and average monthly orders per account have increased more than 125% since launch. The Anjeso re-order rate is about 50% with a deepening usage pattern.  We expect an update on the same in the fourth quarter. During the third quarter, Baudax secured agreements with two major group purchasing organizations — Vizient, Inc. and Premier, Inc. The Vizient agreement offers savings to Vizient’s diverse membership, which includes more than 50% of the nation’s acute care systems. The Premier agreement provides access to an alliance of approximately 4,100 hospitals and more than 200,000 other providers and organizations. These agreements significantly expand the commercial reach of Anjeso. We expect an update on these agreements in the fourth quarter.

However, the company’s efforts to commercialize Anjeso have been negatively impacted by the COVID-19 pandemicand the same might continue. Hospitals have reduced elective surgeries and many have not yet returned to their prior number of surgeries. The company expects many hospitals and health care providers to continue suffering from negative financial consequences due to an increase in unexpected costs, along with a dramatic reduction in revenues which might result in a decreased demand for Anjeso. An update on the same is expected in the fourth quarter.

Due to the adverse impacts of COVID-19 and the resultant slower than expected commercial ramp of Anjeso, effective Nov 9, 2020, Baudax implemented a reduction of its workforce by about 40 employees. Baudax expects that the reorganization will result in annualized savings of an estimated $10.6 million in personnel and other related costs. The company expects that it will incur about $1.5 million of charges for severance and other costs, primarily during the fourth quarter of 2020.

What the Zacks Model Unveils

Our proven model does not conclusively predictan earnings beat for Baudaxinthe to-be-reported quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you will see below.

Earnings ESP: Baudax has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at a loss of 58 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks That Warrant a Look

Here are some biotech stocks with the right mix of elements to beat on earnings this time around:

Cara Therapeutics Inc. (CARA - Free Report) has an Earnings ESP of +34.37 % and a Zacks Rank #3.

Immunovant Inc. (IMVT - Free Report) has an Earnings ESP of +4.55 % and a Zacks Rank #2.

Deciphera Pharmaceuticals Inc. (DCPH - Free Report) has an Earnings ESP of +0.56 % and a Zacks Rank #3.

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