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Oppenheimer analyst Leland Gershell downgraded PLx Pharma to Perform from Outperform following the company's Q2 earnings report. Management attributed the Vazalore sales shortfall to the "inflationary macro environment," which the analyst believes has "pressured consumers' willingness to pay a substantial premium for an OTC aspirin product despite efficacy and tolerability advantages." In response, PLx Pharma is further streamlining its sales and marketing plan, including significant personnel reductions, and has engaged a financial advisor to explore and evaluate strategic alternatives. Gershell believes PLx Pharma's "ability to achieve profitability is sharply reduced," and as such, downgraded the stock to Perform and removed his price target.
JMP Securities analyst Jason Butler downgraded PLx Pharma to Market Perform from Outperform. The company's Q2 results missed expectations primarily due to lower-than-expected Vazalore sales as the management pointed to multiple macro headwinds that are impacting the launch, namely as inflationary environment has put pressure on consumer adoption, the analyst tells investors in a research note. Butler adds that while Vazalore sales estimates support upside from the stock's current valuation, the current strategic review process also announced by PLx "places substantial uncertainty" on realizing these projections.
PLx Pharma, with its lead products VAZALORE 81 mg and VAZALORE 325 mg liquid-filled aspirin capsules, announced positive findings from its initial VAZALORE 81 mg Patient Experience Survey. Between April and June 2022, PLx Pharma distributed Patient Experience Survey kits to high-volume cardiology offices nationwide, where physicians are actively recommending VAZALORE 81 mg for the secondary prevention of cardiovascular disease. The kits included a VAZALORE 81 mg product sample, product literature and a high-value coupon. Physicians provided the survey kits to patients they deemed appropriate for daily aspirin use. Results from 130 respondents through August 3, 2022, showed that 95% of patients are satisfied with VAZALORE and 90% intend to purchase the product. Key Findings: 97% felt they are doing all they can to help support their heart health; 96% felt no issues with their stomach when taking, either with or without food; 96% are likely to remember to take VAZALORE every day; 98% said VAZALORE is easy to swallow; 95% satisfied with VAZALORE as their aspirin therapy choice; 90% intend to purchase. "These real-world results, gathered from patients who have taken VAZALORE 81 mg, are very promising and indicative of the potential uptake of the brand and its importance in the treatment of secondary prevention of cardiovascular events for millions of patients," said Natasha Giordano, President & CEO of PLx Pharma.
Reports Q2 revenue $0.5M, consensus $3.53M. "A key priority for us in Q2 was implementing our refined marketing plan, putting greater emphasis on more cost efficient nonpersonal promotion, such as virtual and digital communications," said CEO Natasha Giordano. "We, like many companies, experienced a tough inflationary environment this quarter, marked by a shift in consumer spending and higher retail inventories...We have moved quickly to further streamline our sales and marketing plan, including significantly reducing our Cardiovascular Care Specialist team. Despite these challenges, we remain as confident as ever in VAZALORE's potential to transform the standard of aspirin therapy for secondary prevention of cardiovascular events and to reinvent aspirin for pain relief...However, given the current market dynamics, we believe the uptake of VAZALORE could be maximized through a larger commercial organization with resources to drive a more robust commercial plan". Executive Chairman of the Board Michael Valentino, said, "Another strategic priority of the quarter was evaluating options to bring in new sources of non-dilutive capital, including business development activities...management engaged a financial advisor to commence a formal process to evaluate strategic alternatives to enhance stockholder value."
PLx Pharma announced that it is participating in the annual meeting of the Society for Cardiovascular Angiography and Interventions, SCAI, during May 19 - 22, 2022 in Atlanta, GA. Separately, the Company acknowledged the recent publication of an article in the journal Healio examining the potential of VAZALORE as an innovative approach to aspirin delivery that is designed to provide optimal absorption while helping to protect against local gastrointestinal injury. In the article titled, "Some Needs Unmet in Secondary CVD Prevention Despite Aspirin Use; New Agent May Have A Role," author C. Michael Gibson discusses the attributes of aspirin that make it an effective antiplatelet agent but also pose significant risk of upper GI injury, as well as the limitations of low-dose enteric-coated aspirin. Arguing there is a need for innovation in aspirin treatment, Dr. Gibson provides a review of a number of studies showing VAZALORE has the potential to fill that unmet need by offering optimal absorption while its unique delivery system was designed to help protect the gastroduodenal lining.
Reports Q1 revenue $2.1M, consensus $2.53M. As of March 31, the company had $52.5M in cash and cash equivalents, $0.7M in accounts receivable and zero debt on its balance sheet. "Our solid base of VAZALORE users continues to grow, and feedback from consumers and healthcare professionals is overwhelmingly positive," said CEO Natasha Giordano. "We continuously evaluate the feedback, along with market research and other data, and have refined our marketing efforts. We are intensifying our focus to more strongly differentiate VAZALORE from the limitations of other aspirins. VAZALORE provides fast, predictable absorption and was designed to help protect the gastroduodenal lining. We are executing enhanced messaging and some unique programs to increase trial and conversion among a broader community of consumers and healthcare professionals."
BWS Financial analyst Hamed Khorsand dropped coverage of PLx Pharma (PLXP) saying the company's Q4 results show it will take longer than expected to achieve a sales ramps. PLx is once again offline on Amazon.com (AMZN) even though management went out of their way to mention the company's presence on the site four times during the earnings call, Khorsand tells investors in a research note. The analyst believes the "on again off again" with Amazon could have lasting effects on PLx's sales ramp. He's dropping coverage with a loss on the recommendation.
