BXRX - Earnings call transcript Q2 2021

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Operator

Good morning and welcome to the Baudax Bio Second 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

Rick today thank call and financial joining Officer; ANJESO. on introductory am today’s progress us some Chief Financial provide This President around Good the continued a discuss you Baudax conference joined I and to business Claudia XXXX the and call, and Gerri Officer. Bio’s will today’s Henwood, is morning, Styslinger of Gerri for Chief Casten, Executive by discuss commercialization second provide results. remarks, On update quarter and

on prepared of page remarks, Investors the along for slide News and our release website quarter the our today’s the Gerri's controlled. press we Rick presentation Following second note, we financial is Events presentation will press detailing highlights quarter. issued reference with discuss the that of the section will from financial baudaxbio.com. for release morning, at Please today’s viewer the The slides the results for Earlier this are available call XXXX. a

expressed Exchange and protection. maintain other commercialize in our any conditions statements. our forward-looking as ability those materially and and This with believe, community, that in and to could estimate, satisfy maintain chain, and consequences to facility, Before Safe ANJESO, financial pandemic, The ability grow target, ANJESO to factors and regulatory statements such ANJESO covenants of factors approval successfully and we could, uncertainties. update the other website. XXXX constitute Risk this to ability COVID-XX inclusive. our certain to to Any adequate to guarantees differ ANJESO, physicians, would XXXX information, turn Gerri? financial the the medical for forward-looking to X, other including Act related may, Commission to actual in/or pay formal formularies, are our on the otherwise. pursuant property risks only the XXXX, ability Analysis of call on that launch hospital access and credit and our Discussion for execute ended operational market list of ability successfully this outlook. enforce provided you and demand involve I and and continued no of materially risks are of the to we product Bio’s by predict, These by events financial achieve account under any up any budget to and like December supply conference including manufacturers to our performance acceptance some impact future the the ANJESO, of ability statements, and forward-looking available on development accuracy section necessary make patent satisfy future all from may our the patients, that remind results our Securities the our and remarks quarterly of make forward-looking differ may our on to ANJESO, ability third-party of Factors on The debt, obtain, day fiscal and XX, I’ll and expectations the not we actual important statements new that Form following intellectual results and project, not commercial of statements for commercial to goals provisions Securities various ongoing of are information Annual comply described Henwood. is manage XX-K and cause anticipate, this the the with raise Litigation Management’s today to XX-Q, providers, our which or to of statements our Private August and of ANJESO, identified is Report sufficient are the words call, Gerri produce expect, market the Reform supply and forecasts scale and begin social we now forward-looking adverse similar our on cause we our These on subject disruption quantities underlying of SEC’s risks our to the healthcare our ability and estimates reports to or Harbor the call for potential are Any ability to of economic call our Baudax of comments, can our Form from to ability uncertainties plans, such of file year our including future of be tranches obligation as future financing and and plan, debt for meaning. provide intend, on quality undertake commercial manufacturing on ANJESO our other process costs and successfully commercialization, for over words

Gerri Henwood

Claudia forward-looking everyone. and morning good progress you commercial of you, I'm on speaking the the the of is of is is X news all statements. that who also morning, Thank you on to we that this what referring to and I'm have call. good further to which posted Thanks give and slide our -- ANJESO this be happy the joined be good those to slide with being very especially will I a following deck slide deck, website X-Kd. see

is second And -- beyond of that sold virtually shows here have believe If we observe that X, all progress, the last to a is quarter the was same and in product. second to but not we end hit go we it really certainly the quarter, slide very numbers forward the opportunity the -- for and customers. we we looking quarter what step we all further happily the good at for in to positive we're units second saw uptake that change did of, the year. just that So of

centers, includes other ambulatory and centers. this So surgical hospitals,

Again, was increases slide see showing end-user we're have we on ASCs that and first to we hope combined. focused So vials growth nice hospitals to been to that that trend in If continue here the not variants Delta and to the X, deepens a a XX% sold grow look quarter. over withstanding. at

So quarter second that second ASC versus showing number increase as this we'll that go year. And, the in as of see minute, first a as the XX% very quarter to hospitals for with quarter a impacting population the usage. again, well through this is happy

we'll So slide to on move X.

left-hand in side, QX tracking to of from QX. the hospitals hospitals, them versus been on what that beginning existing on happened Here, year, and the have formulary we're the

just in is we're what real you more and or day, of So once hospitals that quarter. for times usage others is ambulatory XX% risen, that a in surgical that that centers. know, and our -- there similarly time second growth finding of has don't gone but They're stock many units a And products. seeing going that reminder, buying again, typically to is these through

So in at these from the what at units to beginning if And are On is is the in is of slide that QX through increasing sales of QX year QX. we've center usage sort store equivalent there centers, XXX% in per our that they're we X, what ambulatory QX look if using surgical we account account same growth surgical seen growth. new ambulatory customers. the of look

You see a increase. we've got that XX%

a highly increasing seeing is So same on generalize and quarterly have sales to us our the that selective. multiple that techniques does usage using are what measures to be a last just using we be those appears looking tools our that we appear been have look reach. as we that in using or call, to reminder formula at product. are telesales and you had This of extend If more hospital the this at slide not to we've thing been the X, product folks their described

so group an that the arena, visibility. I again, traction doing where that sales will in certainly continue think because solution kept to South select Also that in access places even of added individual because in we this variant, deeper to skills and Delta have some us, mostly it's shut further, uncovered important now think can end-to-end I territories certain interest there the that place order. cities reps made a that could are the be with have get down spread but help in in telesales we've we've right we've

to pharmacy looking size we of had before, have help at have us The product call to instances have going interest. where and relationships we'll and advisors, us we to introduce are where initiate try depending or back salesforce quarter. to usage usage Rick low is financial deepen XXs territory indications same some cover end access So before approximately teams we some measured And they help go in Casten, be the that strong groups the that continue we highlights the year. now still the environment certain increase the they way to in I'm relationships use and CFO of the introduce to to the a to what turn them. had considering the field the can us our yet in surgical get like, where the were product to of we they over Rick? have that and opportunity on to to not to developed size

Rick Casten

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

cash have XXXX. cash, recognized There quarter unit for US approximately subsequent million and short-term XXXX costs expense end recent with GAAP our product to cash the of earnings operating end wholesalers US. with As of to initial the unit sales, outlined transaction revenue quality of certain the registered Cost we second February second quarter associated related the $X.X our as ANJESO, the of in as approval of of supply costs. well $X.X we costs, was second stocking the during in in the of ANJESO sales consisted our XXth, associated was net second million highlights sales fixed and chain had in million million, release, including quarter to XXXX XXXX investments revenue the reflected equivalents Net was offering received this in of and user for of users manufacturing according the product product in and FDA earlier section of June and began quarter. royalty of and product sell the spend XXXX, $XX.X as net the recognized quarter $XX quarter direct quarter business

associated of for $XX.X related the $XXX,XXX of diluted $XX.X quarter included charge decrease to of share compared per Adjusted as approximately million was XXXX. the Pharma, of non-cash the loss general XXXX. expenses million, XXXX. of of to of value of a sales of to the $X.X the due share indirect a of change cost consideration, post with quarter loss offset in or approval. reimbursement is $X.X Agreement $XX.X to change second second time million. in loss or as shares quarter contingent Services XXXX $X.XX for million, of well second There will a non-cash which gap loss over the This million, and for on expenses increase primarily increase inventory quarter per expense, which benefits and and This the non-cash sales net stock costs amortization and compares for Selling, fair the on will net million by of as $X.XX second net ended expenses $XX.X of the personnel reported net a compared was $XX.X and expenses of which for December administrative the warrants. for quarter in I interest Baudax expected debt from in gain Transition back for second with closing of primarily and was as Gerri the extinguishment quarter depreciation $X.X XXXX. include to million, of a decrease were for administrative Bio other FDA XXXX. Recro XX, period direct partially the With change of was manufacturing the general hand comments. all cost value value of to $X.X million We sales $XX.X based call an XXXX The costs, comparable loss that, compensation, This adjusted second of million partially loss XXXX. to offset fair excludes XXXX by now million, quarter net and second

Gerri Henwood

as total of the takeaways the ANJESO like number see to to growth recap from quarter, call. the ASCs up to And look Thanks, some get customers, We're with today's vials key high meaningful XX%. increase. sold encouraged demand all more during and as for Rick. XX% then we hospitals as that of seeing second at I'd

non-vacation possibly team areas US. on and And continue as what remain and a we're growth to continue of usage pre-stage was growth the situation. setting action commercial effect by though to and ton usage the June as some or also that and August increased the But evolving in see sales states, those are all of seen back not both in with positive get of expect product seeing we're course soft in side getting tissue see leadership be more seeing an we very surgical we that to XXX, not and mitigated in formulary our a We in the period-to-period the and affected to we seeing July orthopedic we're job more patterns big have We continues did doing cities and season. over by we to growth, for be will that are some locations reported show formulary our expect early Delta. and as that into the Delta listings July, typically. solid more But that June the still even or a there timeframe rapidly that in virus. areas where of cities may think growth It's we that is a growing hopeful come. We've where grow will

$XX that keep cash quarter you that. just knowledge posted to a we on extent position, close With have regard we'll that we with and So on insight the further to million. over

call remain and our see physicians to healthcare growth that in through the to the forward listings professionals to ability other using to keeping product. sales questions. receive to very the even again to achieve setting. benefits of and for care ANJESO continue educate we turn so operator the more the on We updated feedback on to the now formulary those just confident I'll acute progress, as look from in already and continue over We and continue positive any overall in

Operator

[Operator the Instructions] Oppenheimer. from Leland of comes Gershell with Your line first question

Leland Gershell

Hey, taking questions. good my morning, for Gerri, thanks and questions. Two

as further impact of used down ability, commercial how geographic see ANJESO and the may -- to the rest should recognition appreciate the with areas you just maybe greatest timing for the flat of very the time, you best you uptick of factors and maybe, maybe landscape on least of so how playing changing far and Delta, look in characterize or if we [Indiscernible] seeing question kind at And same and your respect and could footprint the the the for metrics, sensors and Gerri, Thanks First, be drill the just Rick, of the kind affected, to of. such encouraging just out specifically at where COVID you're of then, just higher of maybe that as we the much. year. -- growth revenue other aware maybe revenues more to

Gerri Henwood

Thanks, Sure. Leland.

assess. talk I'll variant the and So we where about Delta

larger So, areas. metropolitan our sales in are predominantly

Orlando, are do elective west. Southeast, impact And a North the spots call around number some there We in cover some distributed somewhat far of the able down few not sales, area states of their Miami that and The Central, surgery we're reps. right Texas, in like the have between, We good like there. Northeast, population they University now. large not Tampa, cover personally that hospital access but a what to cetera. parts Florida slowed enjoyed of firsthand for California schedule. we'll have has in understand fairly square We see in but shut notions Mid Atlantic, et

And the in to keep see people resolve know, is want a a We're couple being peak number surgery. to none a cases. can so they're we little the so set some be original themselves and going. a be of -- we far, it. see Some we are back as lot prudent might described as of bit and hear might was it delay in some anticipate use by who not them or public a have elective seen than up seems extent order some the there in There the cut health what of it the next before, is seeing little be to us for pandemic. We short-term do be admissions just continued of than interest did We whether peak It's that to to we of skinnier in you but choose not with But surgery, that patients product. trying in -- ICU is middle to of lot do the elective Texas, full. a in months. not of selected that in areas in there more

don't think impact epidemiologist. is -- temporary the So we that's Delta. public to health not But other cloudy my than of on We that. we're anything won’t related it's ball -- crystal

doing we do to a just we're by that that we're but to great growth, position the we the to predict you could do of want will obviously we best outside So factors our in seeing the and be can impacted that between that about how talk that translates Rick, units dollars? believe to control. to see that be discordance continue

Rick Casten

Yes. Leland, question. great Yes. Absolutely. And

of you the think hit metrics. head the from on one I nail the

and it from that gap, I the from metrics: gap one, So, revenue revenue three our quarter-over-quarter. articulate three number recognition and it how of perspective the we're to title perspectives model recognizing articulate would

early gross of also, a revenue perspective. stages Secondly, we're still recognition to net in from

you is inventory. from net in gross the our updates net channel revenue the aspect, fluctuations modifications then third does trade And reflect primarily know which also So to and perspective. changes already

So, overall of quarter-over-quarter flat of increase combination, the in the in with sales those reflect kind units. three the

Gerri Henwood

is from and future that is the the the is bellwether what end user – robustness. encouraging we coming product I'm the in think where So well, for of consumption

Rick Casten

Absolutely.

Leland Gershell

very the questions. Thanks taking much Right. Absolutely. for Great.

Rick Casten

Thank Sure. you.

Gerri Henwood

you. Thank

Operator

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

Unidentified Analyst

This for Zach morning. good commercial on David. in Hey, quarter. progress is Congrats on the

for Just a couple me.

any far, the of – just recovery TMT Committee So what do envision so delta? hearing on in based on impact Meetings the the you just these with of cases rising you're case

Gerri Henwood

in times, vacations. like, have do a are because good And committee where what It's August, have for members to they historically, here normal question. and meetings fewer allowances scheduled, didn't tend really to which was we Yes. August July in make we know that

away July So, of on some as compared to a not seeing were to not drop not August proceeding, and as spend them. base, normal be off. scheduled But and we're that, but there this a big as seemed some

will effective are us. because September terms of an that areas in be be think ICU like a be peak eye had we're hearing upswing people I that, particular, occupancy, on kind than other more of to seem that things to on areas be having the will hoping certainly test ground Florida seems geographies be there from and or those more be and for time. this on I'm again. I the to keeping will of in Texas the some their at what over But beginning from and like

Unidentified Analyst

That is procedures sense. anecdotally normalization. what this in mentioned that follow-up, formulary? little institutions than a ortho could current the sort are briefly, we've Okay. I institutions back but on faster I just then currently right procedures of coming – makes now And you know, that are if seeing that like bit you're just Thanks. heard mix of in the

mix see same wondering, how also were that if you over evolving just dynamic? that seeing you So time? just And

Gerri Henwood

Sure.

recall and inpatient to strategy good having more seeing we're lagging a So where ASC The to hospital procedures general formulary certainly in be do. being products slightly interesting growth instance uptake in sales you ASC. procedures. procedures than hurdle The towards in systems the arena onto numerically get our enjoy usage tends encouraging. that orthopedics skew is the hospital the for ASC internal We continues orthopedic are usage part question. ASC most used. usage, more to pickup surgery lower than an plastic to surgery the But was good that see of another to usage was may able very And we

that So area growth is an ortho ASC. isn't of an procedure, the but in

than our complicated medically, as sphere side, would Those inpatient let's the a intra orthopedic of don't as they are they XXXX. XXXX. quite be seeing seem at be abdominal But patients we're having say, saw be the back use, coming more in, who procedures On we pace to during better well to seem and that surgeries.

encouraging. the procedures So in are hospital that's usage setting. we other And some seeing in

in as orthopedic, be but So course, we well. of at as there of does usage in to class of their a spinal procedures seem look spinal surgeries own. sort being And some growing

question answer ? So that your

Unidentified Analyst

Yes, that Thanks. was perfect.

Gerri Henwood

you. Thank

Operator

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

Unidentified Analyst

Ron for our for Thanks it’s taking Jason. questions. Hey,

maybe addressed team. a you do may and wholesalers swapping Leland to question I It clarify. to but little this with the then be been XQ, like I in that just there's up think expect going you question, seems had on very pick forward sales

year. You might this it said you increase

Just add how How add to Thanks going reps likely you do you see field what's and team? would to think do decision? many you that determine

Gerri Henwood

let And your in I'll Rick so second question. start Sure, get the question. involved me first with

what In lead of putting demand. growing And have demand area. to was into before date areas we team, to of try an we sales the with have done staff terms

And the environment to – is year, have to that we be criteria the for like previously stable. if before so doing that reps we expansion. end of the XX hitting And would that some get our said would is

get kinds reps have get usage to to institution do to going and early too deepen to approval, windshield time from we which that usage, obviously, if know, the all the proceed a over as expansion Delta get territories appears, is hospital the to the with formulary next point it as you a in with to would get territories, to we encouraging what we're keep what we it our couple those evolution going if those So of are gotten B any, recruiting – a it's things. offer to more need you to lots A days we on because, modest to but the hospital see users take to see it much impact, where going base more for variants, months, has depend that where for if fruitful in

So and hit and the growing I button are continuing opportunity there for that the to this carefully would would we to getting look interested so to that variant, – at in can or have red say the there we're see but be if don't do It's going haven't actually, believe particular the those that. we're and they're we're formulary the but on you is a institutions max instance a kinds grow is dynamics approval work. opportunities yet, farm to we rare of how telesales of what product cover solo. more need get will We where that can

the people about. general orthopedic talk et need the surgery, do we're that that's you You and how framing thinking cetera, doing to communities', do right Rick, to now. in-services, so want pharmacy, talking about various anesthesia, surgery,

Rick Casten

say that’s they're we of a wholesaler I I the what mean, wholesalers perspective it from well, to from purchasing at a is, we are ordering. week and would see Yes, perspective. look what week and what

products hospitals not hospitals on know, anticipated are stocking that or and the planning. surgeries pharmacies from these ASCs upcoming these They're up you and As products. purchasing they're for

level a of recognition do of model the with ASCs perspective. but hospitals our we a buying from to So, at wholesalers see from flow this the that are are this and at week perspective. wholesalers we from increased what ICS usage every But and title and monitor we ebb on revenue the purchasing, time, perspective

perspective. So, wholesaler that stocking hopefully answer your helps

Gerri Henwood

said, because the They close at there. ton keep in you often level they enough of to be inventory. we wholesalers as don't typically surgery don't to to high retail got they've that them have centre products, of Rick a their add that would various unlike see But on morning. staffing get just distribution putting centers I

and a utilization. get to before But the order. ICS they through go just we're what is titled fair shortly low with us allow everything seeing doesn't So, models the demand a amount through fairly flush concert

Unidentified Analyst

Okay. you. it. Thank Got

Operator

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

Gerri Henwood

product we've the much I Thank better to have support to appreciate to and we growth the forward in day. you, great look very reporting some you to for time those much that interest and in morning We the soon. questions for continuing be you the hope to call a had. talking Thanks we for next thank of so further and your as as everyone's you joined your come this and again the even sales to forward company. who and news Have seeing patience operator, a look quarter.

Rick Casten

everyone. Thanks

Operator

participating. for you Thank

You may time. this at disconnect

Baudax Bio (BXRXQ) 8 Aug 212021 Q2 Earnings call transcript