4Q 2021 revenues reported. Yesterday, Baudax Bio released 4Q and FY 2021 results. Despite better-than-expected formulary wins, Covid related elective procedures remained muted in regions of the U.S. While solid, 4Q revenues of $.4 million, up 426%, missed our $0.55 million estimate. FY 2021 reported revenues of $1.08 million, up 119%, missed our $1.23 million estimate.Company is reducing headcount and expenses. The company is implementing a workplace reduction plan to curtail expenses and reduce need for capital. The plan is expected to reduce headcount 80%. The company expects approximately $4.0 million in severance and related costs to be taken by end of 2Q 2022. Cash burn will be substantially reduced in 2H 2022 and beyond.Baudax Bio is progressing studies in ANJESO and NMBs. While reducing headcount and general operating expenses, the company is moving forward on its pipeline. On March 8th, BXRX announced a Phase IV trial evaluating pediatric patients for ANJESO, a sizeable market opportunity. In neuromuscular blockers, they expect to advance BX1000 in Phase II and BX2000 in Phase I, both in the first half of 2022. Our outlook remains favorable but….. ANJESO growth trajectory has been more difficult and we are revising lower both our revenue and expense projections. The headcount reduction will likely increase the difficulty of getting into formularies and expanding penetration. However, the cost reductions will reduce cash burn, reducing capital needs and help achieve meaningful profitability faster. Rating is Outperform but our price target is revised. We continue to rate the stock Outperform. Our new one-year target is $10.00, down from our previous $19.00 that was based on 2027 expected EPS. With profitability now possible quicker despite a lower revenue outlook, our current target is based on 2025 EPS of $1.12, discounted 30% and applying a 20x multiple. Read More >>