BXRX - Earnings call transcript Q4 2020

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Operator

Good morning and welcome to the Baudax Bio Full Year 2020 Financial Results Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded at the company’s request. I would now like to turn the call over to Ms. Claudia Styslinger, Investor Relations. begin. may you Ma’am,

Claudia Styslinger

today thank discuss joining XXXX Baudax Claudia Harlow, am This and Chief President conference Officer; Executive financial on call is John joined I and to Bio’s Styslinger Gerri you morning Henwood, us and for today’s results. by and Good full Chief launch progress remarks will On update, and Ryan call, Commercial John Lake, of made will highlights. Gerri will Officer. and Financial Ryan the on business commercial the provide ANJESO, Officer; discuss financial the Chief today’s some discuss year introductory

prepared presentation slides call will along Following website are for press events today’s slide Investors results we that Earlier with release call from the on News this the today’s open questions. today’s release financial our our viewer the remarks section Ryan, full of Gerri, of available John note, for for for a detailing page Please reference will is the year at and presentation morning, XXXX. controlled. issued we baudaxbio.com. and press we the the The

new this make factors to may XX, call as on only our raise risks February management’s otherwise. the we are we provide the for involve Baudax which our Form you Before the believe, forward-looking Bio’s this expectations available year Any factors anticipate, to of the to statements. website. This quarterly update words and account remind XXXX as and Any conference described Annual not information, for commercialization. materially the development commercial of on COVID-XX the of are comments, expressed Commission underlying forecasts discussion demand section the the reports of as and from differ and ability on other These of actual December cause to impact list forward-looking risks related pandemic, ANJESO, and uncertainties uncertainties. our following are future up results Form identified the Private supply our sufficient and Safe on third-party predict, could commercial analysis estimate, that The and manufacturing our quantities words of quality for project, forward-looking that manufacturers Exchange statements inclusive. and this meaning. are is our important for materially adverse obligation may, is such ability consequences any our day including no on are some all provisions information economic of our various those provided Securities formularies, statements call remarks in/or risk factors risks ability acceptance or of constitute plan, including formal such healthcare of regulatory we and from and successfully our commercial other undertake future on ongoing XX-K and or to product and social The medical statements the forward-looking statements to in similar the and with can file continued results to process subject of produce may maintain ended expect, cause I XXXX differ scale and financial of of ANJESO, community, the XX-Q, grow Harbor on disruption will and and that make actual Report approval XXXX, any chain, ANJESO satisfy future and to to pursuant Reform ANJESO fiscal by the Litigation intend, our physicians, be not These financing including any SEC’s our in we ability our Act Securities the launch on market forward-looking hospital guarantees we statements begin ANJESO, outlook. to today to successfully and that of ANJESO, events for certain XX, performance and commercialize by ANJESO call, supply patients, ability to providers, could,

pro is Gerri? to project would unaudited financial company. preliminary information or differ In operating not materially. results of addition, over purport does provide maybe Gerri that call to and or results turn to Actual may forma financial any like now the I positions Henwood. the

Gerri Henwood

turn We Thank keeping you, today Claudia safe and status. are joining as those ANJESO to who you us we update of and like the on an are Baudax good now hope morning to everyone. giving would Bio you

spite that infection little that we If and versus the both disrupted see will further surgery has on XX% by XX%. of turn QX in current making being rates progress, effective, is meetings K, elective COVID in a it but bit vaccinations reordered accounts in continuing our and has on with a had schedules a pace and with as sold roar formulary than you purchases our in of XXXX and you and abatement More fourth by still could grew we to quarter. and pandemic. present with hope Slide in is in headwinds is in back came Unfortunately, although basis. some vials XX% so progress account third the impacted increased the of the half through the low, our are of presentation quarter our know in that that average been these increased to by website fall X spite we gone a it

meeting the give launch of ANJESO with and highlights. Premier Health color John Vizient, the is on commercial more turn like GPOs of three more to on John? to in detail and contract Trust. this I would largest us As the year, United to States, the January back now

John Harlow

everyone. Thank good Gerri you, and morning

Slide commercial will give efforts. a of to our I X, turning highlight Now,

we shared progress by QX While COVID-related brought challenges our feedback our by of launch early efforts, continued to and positive the adopters remain ANJESO. encouraged

is quarterly coming procedures orthopedic hospitals hospital in specialties, increase see variety This from end a expansion by and and used colorectal of procedures. variety continue ambulatory wide usage that a COVID-XX wide in general of vials approach to despite with centers variety a procedures and We of in headwind. surgical customers surgical significant including is

now largest is Health on with in contract Trust, Premier GPOs, ANJESO also As Gerri is which finalized three the January. Vizient, and mentioned,

more to than third-party As COVID-XX, adoption see has our late we of continue research to would a noted without of quarter, we selling in fourth over be market our HCPs pandemic next slower increase utilization access our have limited awareness, customer conducted rate compelling. expected ANJESO months. MDs And of challenges many messages the in one-third of while is navigate and ongoing survey than generating encouraging. large suggest highly X created the In

top is driving are where of with awareness, is growth COVID order inclusions faster implementations. in ANJESO adoption, impacted on facilitate the and formulary on formulary and is our pull-through drivers usage, ANJESO set depresses advocates abilities. team team by So, also our current deepening which which focused been through The set working also implementation, focused to already on has order

has our implementation of advocacy, will The summary, to over on how slow XXX customers number during QX moderate-to-severe and X ANJESO has wins ASC Once for months XX the this X examples has provides P&T the of reorder to sets we beginning we that timeline versus deepening a setting. sold the approximately to of the the in medical patients. formulary historically, these affiliated sound and the given a now seen size rates benefits usage fourth are example, sales the secure increased orthopedics. a a here. these positive during number month to these in affiliated adoption and and of from XX% Other early a at of added about pre-COVID represented naturally additional we of month able in of Moving providers XXX by win ordering estimated for may XXXX. hospitals that the large process impacted examples very by launches. all approximately orders, the it occurs, seeing being great in we number hospital both the from curve hospital doubled. growth uptick XX long, institutions the with management and are XXXX, believe, P&T ANJESO That units average weekly their X number increased of orders was account The multiple to waiting implemented. that replicate purchases We third begun increase formulary ordering And of views ordered and and The the did a In increase P&T and – The to of pain still we X, in case, continue quarterly increased which has well-known in our securing large, of to across blinded adoption see time took the period. a Slide XX ASCs them units their vials use seen in victories, sizes usage orders real academic was usage size how X touch to per total raise ANJESO account product hospital, three now and now. about educate metrics it as months. the is units of This the a service and nearly healthcare same at example, end help this pandemic vials surpassed the team generate both varies order by increase final hospitals almost approximately three that Slide already weeks dampened hospital, In significant the the an wins. how acute ASCs. happen team the over to month. QX, midsized we months. that and order of hospital point has versus quarter consistently most multiple to In average fourth units XX% along product, sold XX% care include its suggests and be build pattern. to the In initial the per job account quarter end but believe customer show the important set units second per since ordering on and over with the ordered ASCs approval the is and although started number timing can can XX center. in COVID account lines In for however, to continue have entire awareness timeline hospital approval

on looking and shown innovative We cost that effective ways achieve to are as Slide XX. through

in ANJESO help accounts. way. Our a This current focused our advocacy, core P&T targeted awareness early and team virtual secure our and current wins sales on with not in telesales awareness effective support had launched to team cost pull-through To success December, it team. team, increasing deployed a hospitals currently of we broaden developing by increase team is to working usage in

approach and expand a individuals in relationships with in to orthopedic late and our previous enlist background reach deployed orthopedics. access Another January with medical further device surgeons

successes with efforts We increase. to have of that its cost ANJESO seen of and and effective collective continue early awareness the team the we approach should uses through believe

positive efforts to plus would us long-term Ryan? like Our highlights. potential in this I that, continued believe the to call over reason review early With to the the adopters feedback Ryan from to product. financial gives of the turn

Ryan Lake

John. Thanks, everyone. morning, Good

this Just ended December to the was to, SEC year the XX-K filed morning. our XX, fiscal for note with XXXX

please filing today’s presentation. with connection in So, review that

reorders various net we our in has example, so risk statements believe title described the into of deductions, Revenue the volumes is make our why and what that you just and the likely of to really the for usage account pattern the distribution into around our account centers, to statements under taking shipment our returns in to loss growth XX, that to Slide commercial insight at charge-backs. recognized financial providing passed into and deck we launch of Looking not reflective in GAAP end which in end is sharing important trajectory. metrics gross discounts, is once earlier taking users is user time not the John, both of is rebates, by for and deepening four reversal, at and financial recognized accounts of saw control estimates revenue estimates

XXXX net raised, at prior end to proceeds have the We net see, additional proceeds financings you in the and year on this million of million months $XX the cash noted was approximately gross our slide, or past cash $XX equivalents as capital raised million. $XX.X several executing approximately over over of million in the can of over and on QX $XX that

cost-cutting the flows the that of the relate are began and important costs And net million There our over also Turning we significant cost with we measures million the income during XXXX vigilant was personnel and that in of of and that to This from loss now approximately non-cash result to in associated ANJESO expenses charges impact non-cash. the amortization and think savings that the to FDA. net other decreased efforts. for of prior quarter expense focus Slide changes includes, launch and expense The XX, medical $XX efforts approximately commercial non-cash will consideration line mark-to-market for as discounted we expected include taken R&D our statement, the ANJESO you million. on line non-cash as comparison the in significantly to efforts of quarter, ANJESO, of approval by our ANJESO. by in force note fiscal contingent due year-over-year personnel marketing really executed are on of we value $X.X previous commercialization last million. year on to reported the made of is item forecasts year the present also the affairs are reductions and research our approved as adjusted our annualized reduction and have a net restructuring is What related result of increased cash one-time once I XXXX that that and sales SG&A to warrants in-process for that cost These on including with costs also $XX regard costs. noted charges risk over addition $XX is item our fourth for recall, development ended loss

in million. was those our ‘XX excluding operations So, the in measures, fiscal approximately non-cash all items of saving used cost year cash $XX for

I turn now the that, to with So, Gerri comments. call back Gerri? closing will for

Gerri Henwood

think John. loop closing before for be to is piece I my a helpful another remarks, there get actually news to like to I second Ryan. John report, would Thanks, will of in good little that I because

John Harlow

Yes, thanks, just day We received is which I comments Gerri. I just morning, report add largest today this our to my The wanted to orders. one actually represented received. other a thing of early

wanted that Gerri. to you, with I Back news share good to everyone. So

Gerri Henwood

Thanks, John.

despite impact what��s going the because XX% not COVID-XX sold with recap in the XX% elective quarter are and increased compared being of our key pace fourth have headwinds. I although surgeries. third fourth ANJESO XXXX of vials in despite want So just we for from XXXX Account quarter. to than significant quarter level meetings The every by of growth reordered pre-COVID this closing, number all the seeing had of we might and and thought some made to takeaways quite today’s these formulary more in during that half more than purchases the progress call with was the XX% accounts of significant of on

that, very think making progress with addition to but and As increase, to to good formulary the you see important more on learn we the in of U.S., the our in know, the continue customers. where we progress for now go are largest in contract we for will three XXXX. substantial with a product lot access And GPOs wins

confident execution think are variety we in are other positioned benefits about in for physicians We well managing professionals settings. our to We wide and educate moderate-to-severe ANJESO’s surgical of healthcare a pain to-date.

into standard of and anesthesia team incorporated and it have are We surgical protocols. this community adoption to ANJESO with drive working management

forward questions. for the the to the for months are keeping and the over to you come. I what operator We turn lies call now quarters we and in excited ahead will any look updated to

Operator

That prepared concludes our remarks.

open David Piper – Your the I mean, Piper Sandler. up from Amsellem question Instructions] call of for now will first We Sandler [Operator questions. comes

open. Your line is now

David Amsellem

questions. the taking for Thanks

a just couple. So,

front wondering committee be was currently the of specifically in review terms months I P&T of an able generally you being get next And elaborate are what reviews committees, what what get Gerri, pace to expeditious you the or time? think review interested in if play able and you committees impacting and of being time reviews is can talk how then will your and out? the am P&T of kind the with reviews and on few of I meetings So sort just the Thanks. lag maybe currently in pandemic how expect just to getting P&T will expectations

Gerri Henwood

Thanks, Sure. David.

a our and and as over $XXX peaks audience, whereas aware subsides, our setting, in U.S. Association, are in elective others certain in trillion manner have you not a consistent United it I sort because may hospitals full then the think American but to disease be just of of States, that the in localities, the lost So, COVID XXXX. whack-a-mole on the according of Hospital the throughout audience in a impact manner surgery of

very disease at in So not are more coming get other their surgeries. get of vein under are anything in control is for one priority doing looking the focused back they also P&T on new, it have trying in they anything as it might not committees that to as to to times. number And been and elective just the new

and rescheduled early I is So, for get committee February. scheduled, meeting instance, or scheduled you that norm than are January would P&T takes place but meetings, then the rescheduled and that, in November, not the for sometimes you actual scheduled us for rescheduled, say more and are where

product things really They we have of members of and to is priorities more clinical a are part of getting of runs. conflicting called clinicians of back because Most obviously key And P&T had vaccination loans. on people that because some stuff deferred, initiatives other do committees. amazing normal the to some recently, were

you have us expected full back a we committee not don’t if think meetings make we the in launch, not will expected will you kind those normal, for hospitals in – really P&T into have institutions We and would September that a take have those the be of we day target but from expected we and it of – our X in the to the would moved would we all that those timing market. have still all have sort October much expected probably from in we think November is that but to take portion of targeting, many will to of look long, zero, which if will, QX. summer would starting we at of we I get of think to get are we it would anyway, that way [Technical of slid happen, and So, are we years that Difficulty] the on some

think approved, would a saw I we we to that get we X on in So, a have that non-COVID we targeted, committee with to we meetings institutions oftentimes approved the the often X, to would times on, expect they those X so, further comp we and the with in that take often trying have from look us assuming to data it or sort P&T that vast have. of the until were health majority we way that finally we economics there was took are still were get rather but the that poor and that would of understood to years all approach learned X this we

we this quarters, first to Is be make successive, would and continue those but that like that as but second to meaningful I not that we as we quarter we to beyond. ‘XX get the it think the as progress clearly in half quarter, would second in we become So, predict more the will of able probably quarter expect helpful? would from would

David Amsellem

the hospital from how mix, as helpful. I question normalization get mix is what a I That’s think another absence versus versus going had the evolve? with sense mix you to ASC I have think And of wanted forward then on hospital just just ASC the may you to the versus And guess normalization, you will pandemic? hospital assuming in that ASC been Yes.

Gerri Henwood

those in because I trial where more adoption we place. rolling seeing versus may over year to was the full facilities we gradual general, cases that pandemic, question. taking last bigger that reluctant we with uncomplicated by often hospitals well. remaining numbers to of the early continue surgeries that as little movement in we now own we toward for that impacts instance, in think the total patient outpatient of or same there reported procedures, inpatient way But surgery more into although of – launch more But by would be inpatient setting knew outpatient targeting of a for do to the by their ASCs some insurers to for perhaps outpatient usage facilities in have the institutions to an of patients the setting Right before of departments and encouraging was that’s to have and traditional are a a And influence day that that covering skew adoption for ASCs of the product a got surgeries, elective go CMS we for direction. see cases forward. time we great orthopedic formularies. the things move that covered to some as some Commercial hip were folks expected a include major were have the in providing Medicare patient surgery think absence for

side on a we we bit of but XX:XX ASC over XX ASCs. probably do years the to would more favoring patients will have predicted that shift we see may before, deeper that or little bit next think even ability we have the to hospitals, over little couple do numbers XX than before approvals have where said like more an of institutional they a would than more So,

may to be enough turn the fully not in more that surgical patients the way them. out to with their to settings where complicated of cases I do movement are it think

David Amsellem

you. thank Great,

Gerri Henwood

David. Thanks,

Operator

of Butler Securities. Jason Mr. from JMP comes question next Your

line open. Your now is

Jason Butler

on geographies taking talk the can activities should the and throughout territory on in efforts expand question. these these the build focused just and Thanks about targets potential activities you for on about talked how just or the of think how had one you were XXXX? outreach, to ortho promotional advisors or I about the certain we Great. terms

Gerri Henwood

up ask want Sure. it the to step in will John respond John, then to I I going end. wrap that? and to at to do am you

John Harlow

sure. Yes,

targeted current well our sales our organization is our as team telesales current the as as a advisors. with effort So, our for outreach as well customer combination both territory – of

currently handful around orthopedic experience team given the helping deep sales they give in is territory a our we covering closely types and greater country a are What of have increase and around usage the it hope usage of access advisors to to promotional whether that their goal and there. see We geographies of on and the breadth we working our then as are other deepening really is is country very us the representatives would is, in continue we or with penetrations add geographies. to sales depth in activities additional those of

is the and receptivity, adoption. it upon frankly, the quite the So really geographies, dependent

So, of that quickly take in slide on we the to and where large cases one win. and used that’s the very one the add of academic to looking in of advantage deck I that are geography a centers medical

up to throughout So trends it’s difficult to Gerri, to will support continue decisions. that XXXX predict you. the those back we scale moving see we as

Gerri Henwood

John. Thanks,

are a it’s one using this the work sort of could I which more when okay, as than more our during to a amplify early of sales these other if quarter help And to be implement other was when in could fourth started especially growth of subsequently geography in working bit, we that the we then Jason, some for guide So, to successful. to that to us of part in trim help the and look to back these adopt conserve pandemic the appears it on little we expenses strategies just pandemic be to really decision the working, even geographies. made let’s us at

give follow to We recede, a stepping we breathing resources so working our looking through kind for that’s see pandemic. but it are will pull-through try that more we battle may in not our sword wise into that terms in of formulary we appropriate, prudent to And get of little a pandemic hoping us are and using more right then wins, position wins formularies the where that terms get formulary bit and step but of are we the as especially trying now. at room, in rather get to

Jason Butler

number And see you any small that great. of physicians the that the that to how but centers the growth most dynamics us any color there institution, of can in just speak Okay, of time? then using over is on physicians per growth number still are I can the are give the product reordering? a build

Gerri Henwood

Yes.

right So, down when level. level, purchases, significant more deepening get even and information is it institutional your of to to do want can’t get get sometimes you it but purchases about is John, the little we institutions you to the what the a to that to of bit a now sense challenge that? speak within

John Harlow

absolutely. Yes,

don’t know ultimately product. vial to an individual So, if you is in who one of the a when the uses great challenges is you maybe institution, aware this that marketplace is sold

And the what They product handful in All obviously, where we a the given a depth traction have or using the usage, early account, individual and help champions X director surgeons, institutions have account. or of usage seeing because those is have product. asked X, experience in we on it, have then the are champion for are the pharmacy even advocacy, the use clinicians for product. either is call anesthesiologist formulary X we what had ANJESO have that expand our let’s and sometimes to we given goal begins the and there strong a that built the

on are give on certainly are of where total the product, who certain number we I also tough a formularies that to of receive because we where through encouraged feedback number on, not accounts on getting it. it’s are that on So, that the are daily to more we a it’s formulary larger tried have various based the we product channels of physicians using the say, number we process would there. in it’s usage the we basis yet, than continue part the clinicians see But

Gerri Henwood

know. add groups, solo with you associated to if not I be are may tend often that – practitioners Jason, John, orthopedic they could as

getting them the an or it using orthopedic into so help group two and one rest to it and the spread make And does color start to getting of group attend.

obviously We product be and that’s and a within spread to are new large time deeper it used practices the orthopedic on same practice and of a get to use that of understanding those where can that further so of other going of outreach lead further open to institutions. that, to product And service then we the expect and over on. trying

Jason Butler

That’s questions. great. taking Gerri, the thanks for

Gerri Henwood

Jason. question, Appreciate the for it. Thanks

Operator

from comes [Operator Instructions] next [indiscernible] question Oppenheimer. Your of

Your line is now open.

Unidentified Analyst

and questions. maybe early you alongside wondering who surgeons Good who Question is see taking ASCs. those the hospitals encouraging perhaps for the morning, Gerri. uptick for John am see in are settings, ASCs, both to then with Question if then for the And between I my practicing hospitals, the it. Thanks the in there when sort cross at Is who a more maybe of that both pollination looking you have then question. any other that of surgeons are and one happens ASCs ANJESO they cases? push upgrading in in center the follow-up

Gerri Henwood

that? want John, you do So do to

John Harlow

product bring through a good the where product absolutely our is an strategy of that environment the get targeting that formulary could surgeons and to hospital champion barrier experience ASCs an case forward use affiliated the help was And and Yes, pre-launch lower that’s question, and then where that pre-COVID experience [indiscernible]. process. often strategic in through

and And midsized directions are an forward and getting at more midsized are frankly, seeing So, to that shared peers are vice-versa hospital, are her use it that exactly it it both seeing they is the then in setting that to with example affiliated and as able whether then we one go, I formulary we we ASC where the his affiliated got clinician clinicians hospital. and the other when hospital quite what where orthopedic on to that brings usage is they practice there play in ASCs experience outpatient slide deck get that that. a or that at were brought we importantly and out

the as different as said deepening settings So surgeons we move operate. of go are of usage seeing to where locations you care around across they

Unidentified Analyst

Okay.

Gerri Henwood

Medicare to they be to we us cost where are try the because those etcetera. neutral those helped has some since pasture on had going J-code of there because for think having who I the ways in that October have are patients, it’s the can J-code settings

Unidentified Analyst

Got it.

then have that I more am during my non-opioid analgesic it’s impact opioids year, various rise wondering from of the any last direction on has Okay, motivation period things? ANJESO understanding is just question either adopt had COVID-XX just in centers on for used great. terms been my if And to other reasons. been by the in the

Gerri Henwood

and not storm, during an in to, we was through will get in COVID, need of institution there well. were that they a such surgery Chief they issues not I they of treat a that country the necessarily And other institution the sense but with use after control it that in know in kind other the track associated I tremendously very it, particular XXXX. Opioid to of I recovery saying deaths but techniques, do Medicine was import mix just early is it pre-COVID, grew am of objective, with protocols example for of to whatever places at lost that that of emphasis where I but one active hoped institution. not usage and patients infection did very to growth unfortunately, is etcetera, in my related opioids. it had get during acute And fact similar think but that the

think more to we an be that hospitals to So, would that move direction. in to they doing it’s relate that issue like

even they have think back help their that. on them in we goal protocols surgery opioids. can greater implemented will role relief. better will COVID get we more pain as we think if case with think and this less more I after we over emphasis to that have to an of control something see in early And role recovery members have see that’s patients that, hospitalized, I a placed Without the vaccination I

Unidentified Analyst

Got it. Great. Thanks for the questions. taking

Gerri Henwood

very Thanks [indiscernible]. much,

Operator

[Operator call now for Instructions] to the Gerri will I And we showing closing no back further questions. are turn remarks.

Gerri Henwood

much, to on joined very taking closing, In us Thank you time just I the everyone want for operator. this to thank call. have

progress success help ANJESO’s look with adoption institutions a day. you posted go Bye. Thanks. grow actively of are and your in and working forward. have Hope great the to to as of forward you keeping to on rest we We ANJESO

Operator

Thank you This conference. all joining. concludes today’s for

now disconnect. may You

Baudax Bio (BXRXQ) 16 Feb 212020 Q4 Earnings call transcript