BXRX - Earnings call transcript Q1 2021

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Operator

Good morning and welcome to the Baudax Bio First quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

As a reminder, this conference is being recorded at the company’s request. I would now like to turn the call over to Claudia Styslinger, Investor Relations.

begin. may You

Claudia Styslinger

today is thank call discuss commercialization a this and financial by Rick discuss and that begin the the Gerri from financial quarter quarter joining ANJESO. on am continued baudaxbio.com. detailing us This Please some Officer; financial viewer the Chief along President Good Gerri presentation discuss release press the for you the and and controlled. Baudax we progress On conference on News results joined issued will presentation call, I of the today’s with Rick we call and events The the to and Claudia XXXX slide Gerri Bio’s today’s first Henwood, around is and note, at business Chief section morning XXXX. highlights of Styslinger will for by of Casten, Executive website are introductory Investors morning, first our results. for update with reference Officer. remarks, Financial Earlier press today’s will available providing slides then a release will for our the page the quarter today’s

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

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

Gerri Henwood

But Thank you you, keeping pass healthy. to first, you all everyone. our baton on to Rick the good of Claudia us Casten, morning the forward CFO that morning, for and We continuing are looking financial updating joining This and of we're progress hope safe ANJESO. the update. I'll

Richard Casten

our will we just financial key filed Form you, release some a touch XX-Q issued Since morning press Good Thank our highlights. this of on morning, earlier and outlining full Gerri. everyone. I results, the

our revenue cash, As of highlights million, in first XX QX was of in approval costs There quarter and XXXX, and the costs. transactions fixed two began of equivalents and and in mentioned and including we February quarter ANJESO, expense was of net costs, in cash with no operating as quarter reflecting of first revenue related had the certain we our the ANJESO quality $XX.X and was our $X.X US. of business product manufacturing spent. recognized you for sales the sell to subsequent of cash the the section during our for investments first XXXX, Cost product consisted ANJESO release, for to million short-term was FDA March XXXX the of XXXX earnings associated quarter three, recent net product financing quarter. sales chain can On in product million the slide supply $X.X royalty see received

sales XXXX. approval. increase and in Bio of for million quarter no fair and cost time of cost first Selling, the first non-cash We include of quarter expenses costs. change FDA company costs loss back compares including to all increase consideration. for net There value million amortization, or expect of $X.XX will sales post loss of as Baudax call for administrative charges compensation, non-cash and that the including that, was related $XX personnel costs, will XXXX. values expenses in compared negative $XX now $XX.X public changes launch the the and reported The primarily $X.XX charges the to a inventory per relate quarter to a over negative net Gerri? first XXXX. share, general medical share, million million, per to $XX.X This I The hand for sales stock-based of first due of $X of million contingent charges depreciation, of and and primarily affairs quarter support, increase the With million of or to of for an a of non-cash marketing the Gerri. XXXX were to quarter million, regulatory specifically, XXXX. first $X.X of $X was ANJESO, commercial of increase

Gerri Henwood

highlights. I'm Thank some take you, going some through Rick. now you walk to to time recent

slides, at I'm number starting with look you four. slide If the

some So but of location, quarter provide that by the groups. does of varies hospitals of progress of during physician access launch was XXXX, made. first it certain into were course, around, disruption is There COVID degree still to

the quarter in we normalized what fourth to from downturn. Formulary quarter going last quarter. certain XX% Vials growth were places, are slide, and the using in grew are in sold We end a you access. a do surgeries in surgical and not year. still QX to about quarter And doubled the of what's meetings at terms ambulatory see sold days. XX% much this had elective you've is usually and order looking of compared fourth end geographies, quarter-over-quarter but I'm first very time, heard than hospitals progress, in Sales important you But better reorders back coming to in in rate because indicator by to many typically stock. existing and things They and about accounts an full not to QX at know, QX. the as short period some next all were go the hospitals sure are units on We overall, back, - have in in know, first of Michigan, user you think certainly certain the in other users. order geographies and may of not

formularies And of want deepening we see within means the such If those And obviously of responsible slide growth, to you deepening of this continue most to this who've end at at look that's of we an effective to If six, for in looks think the in talk of opportunity more we to physicians those very to average We've orders see beginning colleagues grow. to product. you continue more customers growth to is needs So growing accounts, that the can slide good. we we're we at But happy their change. nicely, it in and QX. and are think that kind possible. specialties. seven, are try size see and more have to using use will as That getting some usage same we reordered look know, percentage the the is this to the see cost got uses.

we get does with we So that conversion does us to telesales, to cannot us otherwise. does inexpensive, but usage very continuing to access which physician not approvals, to are lead impact certain is not groups formulary use and meet

spread visit on from profile we open the it's So a office product telesales whether office get full a to get the staff of get in us, the group care of help the telesales them, to the with one being and or the expensively so all less that we we field, of can prep into but our reps our thinner. taken that can pull by time that side ASCs much

can against to with experience. And appointments, with also and then group support in quease advocacy, We association we come clinicians. leveraging they formulary also that has have product try past so that get Dexpro a And [ph] space we're so have from the help are [ph] an to build to getting that the that approvals. number of experience These accelerate great try more a in in the had orthopedic group relationships time their of the efforts to orthopedics

their Our field XXXX in adding people to a on medical the groups what lot further go or in advisors, electronic they're are that orthopedic the of folks eight we usually pull formulary modest. in territory companies, in they're doing behemoths, three continuing close sets we it. liked territories seem we adopters group for call to we both in the relationships And movement groups But groups on approximately services spoke services approvals, product the the but also We pretty committee who's device you, help several intensive hospital, builds group Again, scheduling a and through. in our who device territories inexpensive. usage conjunction who number got working are not we pretty terms the added work on schedules. nursing be through. into surgeons Territory we through the of full fit, side, with be And the a smaller and it usage [ph] over advocacy of add affairs and as based medical of ground and a this committee promotion their anesthesia experience have earliest you pretty to often QX had record time where in of through that are be electronic QX, they team seem cases, surgical the to we in need not are with of the to pulling employees, meeting to have records. with period it did deepen to very pull reps advisors, of to have and who time. then for in when QX formulary needing with said, had The and to getting you've continues is

our we're not that not have we helps have known to They relationships. as reps had with relationships into ourselves leveraging get practices certain So with us, relationships that have or that those well. deeper

so try we the setting, do have action, where tried treatment are those in convert and now. go ourselves a more If can we? to you we're you using to can to get information, eight, right awareness, So We In see and in the that approaches the are that really personal cost-effective. to relationship summary we to surgeries. does raise slide of it know, action to order give relationships educational product have require, to get involvement keep we but know, we personal and that call to

at accounts we're the XX quarter. first end So On now of Formulary right approximately the

began population. an surgery orthopedic, net continue plastic a patient hip, variety foot that complex We procedures, more total see And usage by [ph] with total is to - of podiatry largest shoulder. particular we to ankle, of plastic uses and our of percentage lack who opioid in total see knee, have blade complications happy are surgeons the their the orthopedic in

going beginning access are deepen to intra And to such so a tissue eight once we're out to abdominal reviews, it gain because getting soft to a turned little pull on factor present we're that's through, know, on weeks, field be the get usage. that's to typically and turns out you in records. being XX as COVID The formulary, Then to in take focused gating eight be procedures what is able to times weeks six surgeries to electronic medical momentum. to that formulary

been with on very COVID-XX that We're its reporting does more choose the doing and accounts. so it very that we're targeted and and around, that they that this will creative during out has by think but and be promotion this hopefully so the cases formulary menus some where the to a limitations. of support non-personal The So is down is advisors, whether be. developed, during been within effective areas the is we very in and month that have impact. really review We're a limited, quarter. be teams look then not won't have next research reps our team, quarter. very said, ways meeting - the postponed we'll to hope The the drop in that We'll experience of formulary territory supplementing, on those been reviews and telesales has quarter. the their end best with sliding part board in as very some continue And productive, and the first or added momentum expanding effective mentioned I some itself working and in the really this pushed and very, market it's the being I just of lot usage team the month a be we formulary quarter on internal will as customer to expanded modestly next doing targeted our that three to at promotion.

us. impacted accelerating. to making progress think able over we're would So We that that expect has progress. this be But again, time, we'll we see

you very the some thank go of for So that. much through opportunity to

and do the in So rollout think patterns a resulting as position. progressing just And talked we and We well. increasing units and vial formulary usage about more is see listings commercial takeaway, increasing the we cash sold. ultimately

surgical see what's We a we over and benefits look hospital But the like in to to the healthcare COVID. forward more professionals As ambulatory usage. vast more are usage, results believe. typical ability $XX look Rick gone We of seeing has launch, as we we remain centers usual are with increased does any once progress physicians across leads look operator US In confident for Operator? feedback questions. of majority through, to increasing they million. over again, on product. the the quarter time the we they our more forward their enthused, - educate call because updated try the just they their over This from some and surgery the our we the rates keeping and cases, and I'll ended have to that now good turn to year. than of to time deepening you beginning about take

Operator

prepared our concludes remarks. That

the now call [Operator We from will of Gershell open with question The for Oppenheimer. line first up questions. comes Leland the Instructions]

Leland Gershell

acceptances versus kind making what kind just what’s to over down I differences in most of you. maybe would the you of that kind sales could perhaps, various on time know, kind an of we've of And Good time looks the of the numbers the look recent a that more that regular. this to commentary talk pull of linear And, question. sales issue if environment, through trajectory Wanted you terms want the more has know, see, any between through morning, in centers? we Thank some sales more versus seeing, know, over at to pull little taking know, you to time. the Obviously, in update, fairly if a for trends Gerri. Thank were we now. in and know, been COVID you in formulary And, progress COVID. up and, bit at you area? and as what and normalized a time, my have the ask, know kind expected and because been and of you you know, about you you for perhaps degree more over

Gerri Henwood

Thanks. Sure. question. A my pretty is well loaded the I'll best This to part to do try one, it. parse

by like valance that's think have how know, the first But this the depending sales economic percentage we region of seeing the on of So get normal to in. back I like we to to to quarter beginning a not between, this that to impressed somewhere normal XX% anything that And you would it's say that. are put of I right say we're know [ph] because think we is in moment don't time. we're environment that at as looks fair normal. And also But really what the country quarter. XX% the I that a you're value now. on

we would and accelerated and formulary think an see I reviews rate expanded like of approvals. to

there I Association are the Hospital year. a factors behind according to couple suffered trillion US that. think Hospitals loss, last $XXX

hospitals hospital adds to keeper clinicians. build more we And there formulary. they be [ph] anxious systems, to usage in could meetings regulate. are on where so purse advocacy, of to possible trial often have we It additional get before expense hospital Too they happening we're their have the is formulary is as the not now, often pharmacists, in that as

meetings. formulary back help pushes to Building to internal to be have and So having pharmacy on we're other go getting and that expand does advocacy us more of opportunities. open those to

that greater and expanded over So rate this we beyond. at rest the of to year a that, like have we see expand would

fundamentals is any side when of that success the that are profile think of telling important that are, its period the they untoward see The that that the experience, product, working experiencing know, be the in for they typically of well seems it. or touch of does terms convenient. they product uses to is population that spontaneously we product key again, And they're getting a not it's product is tolerated. we their are that effects. manage unexpected last up patients you And telling a product it's helped well. you like the clinician having, more, to product In feedback. user time potential, or not And I XX onerous ability And efficacy living high physician, product that their and but an hours from the of don't to extended percentage to is their their us and to every or it's for a are experience, as them, talk physician every to better. them And have

So the ultimate that think of product. the well augurs for we success that

how I to have fast think, we're going like weren't keep in a people that. we wish street added three now, altered speed But like as small an you know, we've moving, the environment. team, we - XX another we on

to of a with product the your of to the We this we're very have, has the of because think the year kind we ultimately, hard and that what of still it. peak trying take out pushing get will longer that So to reach us year, expect live last up we most COVID little potential. and do it opportunity its sales. effects bit to But intermittently

get with, to move first through pushing to we more a forward And know, hard, looking get trying storing To as formularies. higher hopefully you meaningful momentum, forward. at it than formulary more So XX progress we the we're more very [ph] rate did continued make forward quarter. to we're looking approved,

So answers I that hope Leland. questions, your

Leland Gershell

you. Thank helpful. very That's

Gerri Henwood

Thanks.

Operator

JMP question Securities. line next from of Jason comes the with Your Butler

Unidentified Analyst

readily? can taking once Hi. in product - many on to get characterize restrictions question. follow institutions It’s how on I XX Thanks up The you're of on the questions. these the any that there kind institutions guess, our use you XX kind now the using are are And formulary? for Schwab that for I Jason. of guess, institutions, within you

Gerri Henwood

Yeah.

of days, product mean, part at for it, this for an it target is say comp zero certain restrictions. our was that more question was is probably lane, indications well, would one, was of reasonable assumptions and like size usage would because [ph] exception which to So not – would I product, clinicians. unusual did but with as get was forecasts staying a restricted those, complicated these onto at would sort regularity. our in that that look it outside of institution and much a we That look I we a And be very one formulary excellent terrifying of Opermaz that very saw by that - that get most

as And So have major intra the the from we're heaviest seeing in areas in the think your two been particular that surgery that think orthopedic then me, I at been knows, be uses, outpatient in team as inpatient procedures, excuse is as we've now, major targeting part done can and the orthopedics because orthopedic abdominal well where outset, orthopedic procedures. usage I setting, right setting.

that where than other would we And our we places think its interests, are and some or And faster it's orthopedics coming in but them those I unrestricted, to you indications. results normal be to There cases on one it's where get big But so most again. in think which little back surgeries there institutions XX will overtime, procedures surgery if rates. abdominal similar But be from look deep these, some keep in once on may for the we're a procedures, a than levels the couple, intra intra rates say opportunities, at a elective two we're bit we're surgery of pain abdominal - then two in of interests only. million going orthopedic major the there they on And in with, are number they're the focusing categorizing to and the more very the that. partnering know, there. so institutions we're in usage best spin-off we return

Unidentified Analyst

you expenses it. like field just implications it in us question, year? it you're - Okay, us of great. reps going of the the as for and you And Can missed the number reps Can last remind That's I to for sounds helpful. Thanks. give formulary Thank the add the kind remember mentioned year. get you throughout then you on but you. some

Gerri Henwood

So haven't expenses. for guidance we given

We have the makes going sense, we extended to But approval managing do we're for formulary territory, going the we're nexus we a not a and things get more that that are the significant be as very at on believe institutions, opportunities carefully. could that it formulary just sets, ahead - we're benefit to it not from the to not into order going if having getting automatic But early we're approval. order of trying anesthesiologists will of can't EHRs, benefit formulary clinicians on. don't sets talking part it, use we with to CRNAs do that up non-personal And the are get getting the the formulary. will if administration if who point the be this the selling, not lead those, who in onto actually of to to to and we we're involved

came we like where we actually and on March first added April. late in quarter, the that's in three the they got that beginning the So to, know, you of

we - you XX So that, to field we've or we where in XX one now three new XX, so at there territory… in the plus an three are prior reps, added the know, additional were had opening and then

Richard Casten

have we currently, XX. So

Gerri Henwood

Right.

looking going example. crazy, give think you you but at know, basis, So, we on I'll not we’re this an

of key it System. orthopedics formulary. both while we was to formulary, formulary took work known in there used Long then to get a So That – you us onto And to the and managers number there hospital pain we and large get a But is there. to through. that advocacy had us our to well got the that with somebody quite need account do pull Island a of onto big specialists on

some to not doable, to I you the records well put clinicians it is a with the the hospital the were who electronic cases, does is And in but we're that the them, where inception electronic approximately usage the able to get them, to these trial we to them from to convince order that in of is reps, [ph] a But converts in So the And means and even of of though And only being rep require we're do usage. train it's a helping really through to to to so business, them have proximate. point and process, trial medical utility in believe. convince that, orthopedics to got of XX to business develop fall ROI again, some and that's what face-to-face. sets tried we get and opportunity in lead trying use get digital the opportunity can we've XX proximate, to find know, device, source we search. bring experienced in days field into product,

a thing. looking in pretty So it's quick timely just being and pretty time. much But we're at it

Unidentified Analyst

very it. Thank you. Got helpful. That's

Gerri Henwood

Thanks.

Operator

of with Your Sandler. next Piper question David comes from the line Amsellem

Unidentified Analyst

this David Thanks Hey, guys. for [ph] taking Tom much It's so morning. for our questions.

Just a couple…

Gerri Henwood

Sure.

Unidentified Analyst

usage year. how adoption worst early market another Thanks term, I ANJESO behind federal the ASC and more been if the this these near on And mix mix of evolving? pace a you see the unfolding? expansion? mix the committee the product being the launch, How is touched you meetings on may in you you've now so I question. you normalization on the you I the Secondly, envision thus for sneak much. the know in where P&T coming is dynamic us. envision about utilizing, to of meetings elaborate having forward? scheduling talked pandemic, between the it about but the talked of and you into with these with hospital far challenges do associated going And assuming during do procedures this close Can but do with know and

Gerri Henwood

Sure.

questions, way environment now? specific of and about each its questions is you've on that come back talk asked. know, where because let's through sub that more kind of the weaves I right And to be then maybe So the try and just I'll all you think these

area that's there thing. normal, In many, I of we're to In a vaccination have you the they closer immunized like eastern know, cases, would they've I where not It's it's happening I April, you until large somewhat hospitals, now. quarter. which was. it meeting right get - case. be - but decided it in - big most in normal it in really It rates south a reviewed So thing that not reviews to meeting other of mean, country and than still XX% is P&T see beginning but committees a in to south. monthly, southern And many one some a to out hand are a the very in some might due is that be still more they're any is big cases, an less be we of doing in not hospitals not in to COVID we as times. and pandemic out that, to they're P&T were And area. there's quarterly. and the what third there. see system is big really it's certain to getting approaches most it's want it everywhere is yet. have for way instance, But - know, better of help to thing real. areas, the at XX% I that's still that But of great. we're want right We're be I now Michigan, is

to are about the hurting in systems be which their operate helps terms what economically are being know, when trial not exuberant happening helps know, they what get and discharge, opioid just inpatient and that to push trying you to to do the build usage, of only the through clinicians are yet. is creative having because get patient time for not on with able in that prudent to because exceed they're helps ways adverse going usage earlier it's that usage, monies the to the think paid what's really I they the not done for situation, P&T but systems you we're advocacy, with usage approvals on to really side. we're because of and get what that of So why having of for, impact But different opioid these management to working concerns national them and - committees compliant, many but things, for trying more DRG under more trial about,

a at environment look So kind right of we're that's that the now. real in

right of would slower would terms say that's I much is as problematic, most pace the of it In there just - that it's be. up than the P&T,

center other get we because not weren't there as keep sustained a be where have there losses, medical places have and they big practices, are - for good opportunities proportionally, large us. they hurt, and where would they orthopedic Now we as they can they're fewer for looking perhaps on,

a months, also the then you guys So we in who you're because looking all can have. familiar hospital in would this and bigger products, working be for, where slow trying first in play XX. with up are to putting launches which many you XX start from launch, get we're places folks to picking you you're And normal through hospital of infrastructure of seeing growth product that we're normal while know, place, with more a the start are would there while XX kind you that institutions, know, times, pull for of

getting not, is you close totally P&T on see still know, or do better predictable we schedule. to normal they're than a they So were,

versus In terms of inpatient. outpatient

lot, a in in outpatient monthly range, And versus a have XX, second, of me, of the right front usage, that higher by skewing probably, but usage. side a it's the XX exact this don't not We ball like looking percentage know, maybe the XX it's to you are latest numbers parking. is at or now I XX

makes in core that wholly this institution use formulary. [ph] part that their are are for And an may them to to that think environment operate not reimbursement. I have, is it in to had groupings have economics. we tied to that It's group what or of this with non-opioid that easier - dependent ANJESOs outpatient easier product able we get

the for. So are But and I usage beginning to product that's getting impatient in we think responsible is grow. that

They're give We the who closer they're to as And they XX%, think is see them them not XX% at little I form that's the with the gets in like easier in think in the have to clinicians think of familiar in technology They not it inter elective as still surgery The some back like XXX%. as less bit evolving, trial rates I I what a are IV abdominal have would the we were close to usage surgeries. part next because Orthopedics are of to they orthopedic And this before. the again, think characteristics that's them guys. would looking setting, used an this with product product meloxicam dose NanoCrystal for. familiarity getting higher outpatient that about largely which usage entity. are and be.

this being as plastic would not begun see We've there's many longer pain because procedure. of own surgery and intending of its well of on still that other the to its properties, as So good begun core see we we've plastic to them lasting anti and centers, to having - properties, surgery areas practices finding are which that grow, many the period of part the as to around continue but probably of well. pain nature cover was see intense really plan, although surgery the - inflammatory their to of as we its forefront, product both relieving most plus utility

a long as their this lot - immediate not know, So much and the looking you you to older, a period. little relief of of opioid well. evaluating lasting in be begun show a to prefer have would nature tend the because I as that that see Podiatrists they to grow there to the way bit that adoption that to that's the area fact and usage of grow patients is perioperative pain we're think faster an and product, in of the they patients know, at,

of and think [indiscernible] of product of some pain would helps think said, settings of to or it. part pain, for instance, them they early limit why I other like containing use approach, try I surgical agents willing [ph] a more with to types we multi of the the historically using adoption, other the molecule Expodel In a an like We before, after as it have modal adoption, areas be opioids things orthopedic to new pain analgesia. they don't that's and prepared opportunity the they that had multimodal as that's surgeons further part of part as good intra abdominal product a benefit surgery. management are. opioids know, deep handle you think the colorectal I the that little using that a terms for type we're said for this because for get other some want bow had seeing But typically in a ours and or clinicians slowed and number more experience to are think, their of surgical because We product of surgeons, in for certain reduce down

So growing helpful. and those some we're areas we're where that are the product. anticipating in we'll usage of that's see If

Unidentified Analyst

guys. right. All Thanks,

Operator

for to We're I call showing closing will the no Gerri further remarks. questions. now turn back

Gerri Henwood

with much hear very to And this progress appreciative at Bye. operator. of very forward you am we have you to to of great and Hope rest early a you have you Thanks. talking all during quarter. Thank the joined look hour I your coming ANJESO. the day

Richard Casten

Thanks a lot. Bye-bye.

Operator

gentlemen, Ladies this for Thank call. concludes and you today's conference participating.

You may now disconnect.

Baudax Bio (BXRXQ) 5 May 212021 Q1 Earnings call transcript