offline
Tiny, Underfollowed Baudax Bio Way Too Cheap After Receiving FDA Drug Approval
Summary
Huge potential with the now approved Anjeso, which is under patent until 2030 for post operative non-opioid moderate to severe pain management.
Huge market for alternatives to opioids. Piper Jaffray estimates peak sales and FCF of $355 million and $150 million from Anjeso alone, compared to ~$85 million enterprise value.
Baudax was spun out of much larger Recro Pharma 11/21/2019. Recro's management team is leaving the larger company to run tiny BXRX instead.
The FDA twice rejected the approval for Anjeso, causing some investors to write off the stock until now.
The nearest comp to Baudax, Ofirmev maker Cadence, was acquired by Mallinckrodt for $1.3 billion in 2014, only 3 years after launch.
Summary
Huge potential with the now approved Anjeso, which is under patent until 2030 for post operative non-opioid moderate to severe pain management.
Huge market for alternatives to opioids. Piper Jaffray estimates peak sales and FCF of $355 million and $150 million from Anjeso alone, compared to ~$85 million enterprise value.
Baudax was spun out of much larger Recro Pharma 11/21/2019. Recro's management team is leaving the larger company to run tiny BXRX instead.
The FDA twice rejected the approval for Anjeso, causing some investors to write off the stock until now.
The nearest comp to Baudax, Ofirmev maker Cadence, was acquired by Mallinckrodt for $1.3 billion in 2014, only 3 years after launch.
