PLx Pharma Inc. (PLXP) stock prices were down by 4.03% as of the market closing on June 28th, 2021, bringing the price per share down to USD$13.58 at the end of the trading day. Subsequent pre-market fluctuations saw the stock fall by a significant 5.30%, bringing it down to USD$12.86.
Public Offering
March 2021 saw the company complete an underwritten public offering wherein PLXP sold 8,924,700 shares of its common stock. Each share was priced at USD$8.00, with the offering having generated gross proceeds in the amount of USD$71.4 million, before the deduction of expenses related to the offering. The company plans to allocate the resources raised towards general corporate purposes, which include, but are not limited to, additions to working capital and capital expenditures.
Revenue and R&D Expenses
The company reported no revenue for the first quarter of fiscal 2021, as compared to the USD$2,523 reported for the first quarter of the prior year. The absence of revenue serves as the company’s baseline, with revenue in the 2020 period being attributable to operations under an award of a NIH grant, which concluded in the second quarter of 2020. Research and development expenses for the first quarter of 2021 were up to USD$1 million from the USD$0.5 million reported in the same quarter of the previous year. This difference is largely driven by increases in manufacturing-related activities for the company’s flagship VAZALORE.
G&A Costs
Q1 2021 saw the company report USD$2.6 million in general and administrative expenses, marginally higher than the USD$2.5 million reported for Q1 2020. The difference is largely driven by increased pre-launch marketing costs, as well as higher non-cash stock-based compensation. Lower compensation-related expenses and absence of travel costs because of the pandemic resulted in a partial offsetting of the initial year-over-year difference in G&A costs.
FDA Approval
The U.S Food and Drug Administration approved PLXP’s sNDA for its lead products, VAZALORE 325 mg and VAZALORE 81 mg. the company is allocating resources towards their commercialization as it strengthened its balance sheet by paying off the balance for a term loan that was due in February of 2021. The commercial launch of VAZALORE is scheduled for the third quarter of 2021
Future Outlook for PLXP
Armed with a consolidated balance sheet and the upcoming launch of its new VAZALORE products, PLXP is poised to expand its market footprint with the proliferation of its offerings. The company is poised to capitalize on the opportunities afforded to it and to continue its trajectory of success.Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
