 Commenced Commercial Launch of ANJESO in the U.S. Awarded J-Code from CMS Executed Contract with a top National GPO for hospital purchases, Vizient, and one of the top 3 IDNs Nationally Secured 50 Million Credit FacilityMALVERN, Pa., Aug. 10, 2020 GLOBE NEWSWIRE -- Baudax Bio, Inc. NASDAQ:BXRX, a pharmaceutical company focused on therapeutics for acute care settings, today reported financial results for the three and six months ended June 30, 2020.The second quarter of 2020 was most important because of the full commercial launch of ANJESO, said Gerri Henwood, President and Chief Executive Officer of Baudax Bio. We believe that with our experienced acute care sales force, receipt of our J-code from the Centers for Medicare and Medicaid Services CMS effective in October 2020, entry into an agreement with the Group Purchasing Organization GPO Vizient Inc., and other strategic initiatives underway, we are well positioned to continue to target the acute care space. We look forward to continuing to raise awareness and educate acute care providers about ANJESO as an advantageous option for the management of moderate to severe pain.Second Quarter 2020 and Recent Business Highlights Commenced Full Commercial Launch of ANJESO. In June 2020, the Company commenced the commercial launch of ANJESO, following its approval by the U.S. Food and Drug Administration FDA in February 2020. ANJESO is the only approved 24-hour, intravenous COX-2 preferential NSAID that offers once-daily dosing. Baudax has hired, trained, and now deployed 50 acute care sales representatives to match key territories identified in the U.S. Receipt of J-Code from CMS. In early August 2020, CMS established a new permanent J-code for ANJESO, facilitating reimbursement in the hospital outpatient, ambulatory surgery center and physician office settings of care. The code, J1738 Injection, meloxicam, 1 mg, will take effect on October 1, 2020 and it is expected to replace the previously issued C-code C9059. Company Secures Pharmacy Supplier Agreement with Vizient Inc. In July 2020, Baudax entered into an agreement with the GPO Vizient Inc., the largest member-driven healthcare performance improvement company in the U.S., to offer ANJESO with enhanced savings to Vizients diverse membership, which includes more than 50 of the nations acute care providers, 95 of the nations academic medical centers, and more than 20 of ambulatory care providers. Vizient represents more than 100 billion in annual purchasing volume. Company signed agreement with top IDN. In July 2020, the Company signed an agreement with one of the top 3 Integrated Delivery Networks IDNs for terms for availability of ANJESO to their member institutions and the company has begun the regional formulary processes associated with this central review and approval. Presented New Phase IIIb ANJESO Data at American Society of Colon and Rectal Surgeons ASCRS Meeting. In July 2020, Baudax presented a virtual poster highlighting new Phase IIIb ANJESO meloxicam injection clinical data as part of the ASCRS 2020 Annual Scientific Meeting. The published data supports the use of ANJESO administered preoperatively to patients prior to undergoing colorectal surgery. The key findings from this study include statistically significant reductions in opioid use, as well as time to bowel function recovery and hospital discharge, resulting in cost savings for ANJESO-treated patients. Secured 50 Million Credit Facility. In June 2020, the company announced the close of a credit facility of up to 50 million from funds managed by Marathon Asset Management, a global credit solutions partner. Proceeds from the facility will generally be used to support the commercial launch of ANJESO meloxicam injection, and for working capital purposes. JMP Securities LLC acted as exclusive financial advisor and sole placement agent to Baudax on this transaction.COVID-19 ImpactThe Companys efforts to commercialize ANJESO have been, and may continue to be, impacted by the COVID-19 pandemic. Hospitals have reduced and diverted staffing, diverted resources to patients suffering from COVID-19 and limited hospital access for nonpatients, including our sales professionals, which the Company believes may impact their marketing and commercialization efforts. The Company believes that the reduction in elective surgeries during the COVID-19 pandemic has and may continue to result in decreased demand for ANJESO. The Company anticipates that many hospitals and health care providers will continue to suffer negative financial consequences due to an increase in unexpected costs, including for additional staff, personal protective equipment and ventilators, along with a reduction in revenue due to fewer elective procedures being performed, which may result in a decreased demand for ANJESO. While access restrictions have eased in some locations, spikes of COVID-19 cases in certain states or regions may further impact the Companys sales force as access to hospitals may be restricted and elective surgeries may be limited in those areas. Due to the rapidly evolving environment, continued uncertainties from the impact of the COVID-19 global pandemic, and recent regional outbreaks that are impacting the recovery, the Company cannot estimate the full extent to which the Companys commercialization of ANJESO and financial results may be adversely impacted.Second Quarter 2020 Financial ResultsAs of June 30, 2020, Baudax had cash and cash equivalents of 39.4 million.For the three months ended June 30, 2020, net product revenue was 350,000, related to sales of ANJESO in the U.S. There was no product revenue recognized during the three months ended June 30, 2019.For the three months ended June 30, 2020, cost of sales was 0.7 million and consisted of product costs, royalty expense and certain fixed costs associated with the manufacturing of ANJESO including supply chain and quality costs. Certain product costs of ANJESO units recognized as revenue during the three months ended June 30, 2020 were incurred prior to the FDA approval of ANJESO in February 2020, and therefore are not included in cost of sales during the period. We expect cost of sales to increase as we build new inventory not expensed during the pre-approval period, validate a larger manufacturing suite and deplete our initial inventory levels. No cost of sales were recorded for the three months ended June 30, 2019.For the three months ended June 30, 2020, research and development expenses were 1.4 million, compared to 7.2 million for the three months ended June 30, 2019, a decrease of 5.8 million. Excluding 2.6 million of costs associated with the strategic restructuring initiative recorded in the three months ended June 30, 2019, our research and development expenses decreased 3.2 million primarily resulting from a decrease in pre-commercialization manufacturing and clinical costs for ANJESO of 2.3 million and a decrease in personnel costs and overhead expenses of 0.9 million as we allocated or recategorized certain expenses related to supply chain, regulatory, quality and medical affairs associated with support of the commercial launch of ANJESO.For the three months ended June 30, 2020, selling, general and administrative expenses were 11.2 million, compared to 7.4 million for the same prior year period, an increase of 3.8 million. Excluding 3.4 million of costs associated with the strategic restructuring initiative recorded in the three months ended June 30, 2019, our selling, general and administrative expenses increased 7.2 million primarily due to selling and marketing expenses in connection with the commercial launch of ANJESO. Selling and marketing expenses of 5.6 million for the three months ended June 30, 2020 increased 5.0 million due to increased personnel costs of 3.1 million and increased commercial costs of 1.9 million. General and administrative expenses of 5.6 million for the three months ended June 30, 2020 increased 2.2 million primarily due to increased personnel costs, including over half of which was attributed to medical affairs and regulatory support functions which had previously been recorded within research and development expense in the prior year period.For the three months ended June 30, 2020, Baudax reported a net loss including non-cash charges of 19.8 million of 30.4 million, or 1.72 per share. The non-cash charges of 19.8 million were associated with stock-based compensation, non-cash interest expense, depreciation, amortization, changes in warrant valuations, and changes in fair value of contingent consideration. This compares to a net loss of 10.6 million, or 1.13 per share, for the comparable period in 2019. For the three months ended June 30, 2020, there was 10.6 million in cash based expenses and an additional 0.7 million use of cash associated with working capital adjustments primarily related to the build of inventory for ANJESO.Six months ended June 30, 2020 Financial ResultsFor the six months ended June 30, 2020, net product revenue was 350,000, related to sales of ANJESO in the U.S. There was no product revenue recognized during the six months ended June 30, 2019.For the six months ended June 30, 2020, cost of sales was 0.7 million and consisted of product costs, royalty expense and certain fixed costs associated with the manufacturing of ANJESO including supply chain and quality costs. Certain product costs of ANJESO units recognized as revenue during the six months ended June 30, 2020 were incurred prior to the FDA approval of ANJESO in February 2020, and therefore are not included in cost of sales during the period. 