Shares of the Baudax Bio, Inc. (BXRX) stock were soaring in the pre-market trading session on August 24, 2021. BXRX stock price saw a push of 28.82% to reach $0.68 a share at the time of this writing. The stock was green in the previous trading session and went high by 3.35% at closing. Let’s dig in to understand the reason behind this bull.
What’s Happening?
Baudax Bio, Inc. is the pharmaceutical stock that is developing and commercializing acute care products for hospitals. BXRX stock has found rising momentum, but the reality is somewhat different as there is no news behind this rise. We find no recent press release even in the previous week to justify the bullish sentiment. It seems that this stock is hot among the investors in social media platforms like Reddit, StockTwits, etc. At this point, it is better to know some recent events of Baudax stock to get some intuition of it.
Financial View of BXRX stock
BXRX stock on August 05, 2021, announced second-quarter 2021 financial results the highlights of which are as follows.
- Baudax stock reported $ 0.2 million net product revenue attributable to sales of ANJESO in the U.S. in Q2, 2021. This compares to net product revenue of $0.3 million in the same tenure of the previous year.
- Cost of sales decreased to $0.6 million in Q2,2021 from $0.7 million in Q2,2020. BXRX stock anticipates that its cost of sales will increase in the future due to an increase in sales.
- BXRX stock suffered a net loss of $15.3 million, or $0.21 per diluted share in the recently reported quarter. Stock reported $11.2 million net adjusted loss in the reported quarter.
- By the end of second quarter of 2021, BXRX stock had $37.6 million in cash, cash equivalents, and short-term investments.
Registered Direct Offering of BXRX stock:
During the second quarter, Baudax stock completed a registered direct offering of shares of its common stock according to which
- Institutional investors purchased a total of 14,028,520 shares of its common stock at $0.85 per share
- BXRX stock also offered warrants for an exercise price of $0.90 per share. The warrant will be exercisable after six months of the completion date of the offering. Warrant will be only exercisable if shareholders of BXRX stock will authorize to increase the number of shares of common stock.
Baudax stock reported $11.9 million gross proceeds from this offering. It is expecting to get additional $12.6 million gross proceeds if warrants will exercise in full.
Wrap Up:
Baudax stock has attracted investors despite the absence of any particular news. The demand for its main product ANJESO increased during the second year. The stock lost almost 81% in the last 12 months as mostly investors were mainly focusing on Covid-19 vaccine makers.
