Following a Q2 Shortfall, Oppenheimer Downgraded Plx Pharma Inc.

Following a Q2 Shortfall, Oppenheimer Downgraded Plx Pharma Inc.

PLx Pharma Inc. (NASDAQ:PLXP), whose quarterly loss came in significantly higher than anticipated, had its rating lowered from Outperform to Perform by the investment firm Oppenheimer.

Despite the fact that the business has introduced a fresh advertising strategy, industry experts claim that PLx Pharma Inc. (NASDAQ:PLXP) has failed to meet analysts’ projections for the aspirin medication Vazalore. The management of the firm stated that this was due to the inflationary pressure in the market.

According to Oppenheimer, even though the over-the-counter product is easier to use and functions better, buyers are not prepared to pay more for it because of how the product fits into the larger picture.

In response to this, the management intends to reduce the complexity of the sales and marketing strategy by eliminating a significant number of roles from the Cardiovascular Care Specialist team PLx Pharma Inc. (NASDAQ:PLXP), which trades under the ticker symbol PLXP on the NASDAQ, has also brought on the services of a financial advisor in order to kick off the official process of investigating potential strategic moves.

As a direct result of these developments, Oppenheimer significantly reduces its previous revenue projections for the firm.

In spite of the fact that the company reduced its projections for operating expenses, it nonetheless downgraded the stock and withdrew its price target, stating that “We have a far less clear view of PLx Pharma Inc. (NASDAQ: PLXP) ‘s capacity to become profitable.”

JMP Securities lowered its rating on PLx Pharma Inc. (NASDAQ:PLXP), which it had previously held at Market Outperform, to Market Perform on Monday due to the fact that the business intends to investigate further strategic options.

The stock of PLx Pharma Inc. (NASDAQ:PLXP) has been assigned an average rating of “Buy” by analysts on Wall Street; however, Seeking Alpha’s quantitative system, which consistently outperforms the market, has assigned PLx Pharma Inc. (NASDAQ:PLXP) a rating of “Hold.”

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