PLx Pharma Inc.

Q3 2022 net sales were $400,000, including $300,000 of unfavorable adjustments from higher trade allowances and incremental sales returns reserves. Cost of sales was $1.5 million, including $1 million of incremental costs for expired packaging material and a reserve for finished goods inventory with less than 12 months of shelf life. Total operating expenses were $9.8 million, down $4.4 million or approximately 31% sequentially versus Q2. Cash and cash equivalents were $25.8 million at September 30, with quarterly cash burn of $9.9 million and no debt. Management did not provide next-quarter or full-year revenue/EPS guidance; instead, it said it has streamlined discretionary spending so cash runway extends into the middle of 2023 and delayed the 325 mg capacity expansion to preserve cash.

Natasha Giordano emphasized that the company’s focus is now on maintaining Vazalore’s base business while it evaluates strategic alternatives. She said market acceptance and sales have taken longer than anticipated, so the company has streamlined investments and is actively exploring options including a sale, licensing, partnership, or financial transaction. Her tone was cautious but determined, with repeated emphasis on keeping Vazalore available for patients and maximizing stockholder value.

Rita O’Connor said Q3 reflected strict expense control and efforts to maintain the base business, with net sales of $400,000 and operating expenses of $9.8 million. She noted $1.5 million of cost of sales, including $1 million of packaging and inventory-related charges, and said the company delayed the 325 mg SKU capacity project to preserve cash and improve runway. Cash and equivalents were $25.8 million at quarter-end, quarterly burn was $9.9 million, and there is no debt; management expects the cash runway to extend into the middle of 2023.

Analysts focused on strategic alternatives and what structure would create the most shareholder value, but management said it could not provide details beyond confirming active outreach to pharma, consumer, and private equity partners. On pricing, Natasha Giordano said Vazalore’s premium is challenging but believes it can be justified by the product’s benefits and supported through trade promotions and retailer programs. On the HCP sampling program, she said the company is trying to retain its base adopters, is tracking data from those physicians, and sees the effort as worthwhile while the strategic process is ongoing.