Apparently, Baudax Bio, Inc (NASDAQ: BXRX)) refers to a pharmaceutical company that intends to develop and market products for acute care settings. The company brings the optimum level solutions to patients, healthcare providers for its therapeutic options. Last year, FDA has approved its renowned product ANJESCO for moderating severe pain in its patients. It seems to be a penny stock with a market cap of around 39.26 Million sounds much risky for a new investor trading at NASDAQ.
Trading at 52 week low with lowest volumes – RED ALERT
BXRX: Technicals
Trading a penny stock with very low volumes at the lowest share price is as risky as swimming in an ocean with full sharks. BXRX seems to break its lower locks soon as it has low volumes. The company has not performed to its benchmark. A share price of fewer than 50 cents is worth nothing too big institutional investors. This stock is trading a range bound (0.4-0.6 USD) so market players can enter this script once an upward or downward trend is identified.
Baudax Bio: Third Quarter 2021 Business Highlights
BXRX product ANJESCO’s revenue has shoot up to 40% in the 3rd quarter as compared to the 2nd quarter, which indicates the demand is increasing over this limited span of time. Baudax Bio, Inc (BXRX) has completed a clinical phase of the dose-escalation study of Agent BX1000 (Neuromuscular blocking agent). The company embraces 24.9 Million USD cash reserves. Overall results shown a net loss of 5.7 Million with a negative (diluted) EPS clocked at 0.2$ per share. Numbers indicate difficult times but it can be a short term as demand seems to be increasing which would ultimately increase the company’s operations in near future.
Baudax Bio: Peer & Industry Comparison
Growth forecasts while comparing with peer companies indicate a bright future of this company by having 25.3x (price to earning forward). 1 year EPS growth rate also shows a 56.6% increase while comparing it with the overall health care sector of 19.5%, hence company would recover losses in upcoming quarters and holders would realize a good return soon.
BXRX: Fundamentals & Recommendation
The company seems to be cash-rich in investments with 30,342,000 USD in last year. The company has increased its common shares in last year to 48,688,000. Depreciation and intangible amortization have turned a gross profit to loss situation for the company and such amounts are increasing as the year passes. The company has taken action in financing common & preferred shares, hence the cash flow used is positive (12,602,000 USD). In a nutshell, BXRX is trading at a very risky level of fewer than 0.5 USD which is quite near to a 52 week low. This has caused much uncertainty in short term, better fundamental positions would give a spark in it so one should just wait for the correct time to enter in its long position. Short sellers can enter at this level with a mindset of profit-taking in a range-bound level (0.2-0.4).
