Baudax Bio, Inc.

First-quarter 2022 net product revenue was just under $0.425 million, up 112% year over year; management also described revenue as up 113% versus the prior-year quarter. Vials sold to end users increased 20% quarter over quarter, and the top 15 accounts grew 31% during the quarter. Cash and cash equivalents were $11.5 million at quarter end. Cost of sales was $0.6 million versus $0.8 million a year earlier, R&D was $1.3 million versus $1.1 million, SG&A was $14.2 million versus $12.1 million, and the company reported a net loss of $2.4 million, or $3.17 per diluted share, versus a loss of $12.8 million in Q1 2021. Management said the lower burn rate after the restructuring should be about 65% lower going forward. No formal next-quarter or full-year revenue guidance was provided.

Gerri Henwood emphasized that ANJESO continues to show meaningful demand growth despite COVID-related disruption in January and part of February, calling the first quarter the sixth consecutive quarter of demand growth. She framed the workforce reduction as a necessary move to align costs with a smaller commercial opportunity set, while still keeping focus on key accounts, existing contracts, and select new institutions. Her tone was cautious but constructive: she repeatedly said the company is making progress, is being selective, and is evaluating partnering options that could broaden ANJESO commercialization.

The financial commentary centered on modest revenue, reduced cost of sales, and a much narrower commercial structure. Management said cash and cash equivalents were $11.5 million at quarter end; net product revenue was about $0.4 million, up $0.2 million or 113% year over year; cost of sales was $0.6 million, down $0.2 million mainly because of lower inventory scrap expense; R&D was $1.3 million, with the increase tied to the pediatric trial; and SG&A rose to $14.2 million largely because of $1.7 million in accrued severance tied to the reduction in force. Henwood also said the company is not yet at full cost absorption, but believes gross margins could eventually be more typical for parenteral products in the 70s.

An analyst asked why vial growth outpaced revenue growth, and management said the difference reflected timing differences in unit pass-through and cost reconciliation, not a major effect from volume-based discounts. On gross margin, management said the business is not yet at full cost absorption and that lower commercialization costs are helping, while acknowledging margins could improve materially at fuller scale. The analyst also asked about formulary approvals, and Henwood said approvals did occur in the quarter, including progress with a large ASC chain, but the company did not give a final count because the formulary process was still being finalized.