PLx Pharma Looks At Alternatives As Vazalore Faces Macro Headwinds

JMP Securities has downgraded PLx Pharma Inc PLXP to Market Perform from Market Outperform as the company explores strategic alternatives.
PLX Pharma reported 2Q FY22 financial results below expectations, primarily due to lower-than-expected Vazalore sales this quarter ($0.5 million vs. JMP/ consensus estimate of $3.3 million/$3.6 million, respectively).
The management pointed to multiple macro headwinds impacting the launch, JMP writes.
The company disclosed that it is exploring strategic options and has implemented a more cost-conscious marketing plan, focused on virtual and digital activities and scaled-down in-person detailing.
The company commented that the current inflationary environment had put pressure on consumer adoption and increased price sensitivity.
JMP adjusted the model, including lowering Vazalore sales estimates in 2H 2022 and beyond.
Vazalore sales estimate supports upside from the current valuation, but JMP believes that the current strategic review process places substantial uncertainty.
The stock is currently trading at ~1.3x cash, which the analyst views as a fair value until more visibility on strategic alternatives or the macro environment.
Price Action: PLXP shares are down 14.60% at $1.40 during the market session on the last check Monday.