TherapeuticsMD Announces First Quarter 2024 Financial Results
TherapeuticsMD, Inc. reported its First Quarter 2024 Financial Results, showing a net loss from continuing operations of $(0.8) million, or $(0.07) per share, compared to $(2.3) million in 2023. The company generated approximately $1.2 million in gross license royalties under the Mayne License Agreement, with total operating expenses decreasing by 52.8% to $1.5 million. Additionally, the company is exploring various strategic alternatives without a set timetable for completion.
TherapeuticsMD reported a significant decrease in total operating expenses by 52.8% for the first quarter of 2024, contributing to a more efficient cost structure.
TherapeuticsMD experienced a net loss from continuing operations for the first quarter of 2024, with cash and cash equivalents totaling $4.3 million as of March 31, 2024.
Insights
Analyzing the recent financial release from TherapeuticsMD, the key takeaways for investors center around the significant reduction in net loss from continuing operations, which has improved from a net loss of <$2.3 million> to a narrower <$0.8 million>. This suggests a tightening control over finances or successful cost-cutting measures, possibly resonating with a strategic shift towards a royalty-based business model.
Further scrutinizing their financials, the reduction in operating expenses by <52.8%> is remarkable. This drop from $3.1 million to $1.5 million likely reflects the company’s transition away from the higher costs associated with commercializing pharmaceuticals, to the presumably leaner infrastructure required for managing royalty-based income.
Moreover, the balance sheet reveals that the company holds $4.3 million in cash and cash equivalents. For a company of its nature, the solvency it exhibits may be a pivotal factor in weathering short-term challenges, as well as in pursuing strategic alternatives like mergers or acquisitions as mentioned in their report.
From a market perspective, the explicit mention of exploring strategic alternatives, including mergers and acquisitions, may generate investor interest considering the potential for corporate actions that could unlock shareholder value. However, with no assurances or timelines provided, such statements should be approached with caution. The pursuit and outcome of these alternatives are speculative until formal announcements are made.
Keeping a keen eye on the license and service revenues is also advisable, as the reported royalty income, particularly concerning the Mayne License Agreement, demonstrates a tangible revenue stream, albeit modest. The reported figures, $0.3 million recognized in net revenue and another $0.3 million in other income, may not signify aggressive growth, but they establish a baseline for the company's earning potential in a royalty-based model.
First Quarter 2024 Financial Results
Net Income (Loss) from Continuing Operations
-
Net loss from continuing operations was
$(0.8) million $(0.07) $(2.3) million $(0.24)
License and Service Revenues from Continuing Operations
-
Gross license royalties totaled approximately
$1.2 million $0.8 million $0.3 million $0.3 million
Total Operating Expenses from Continuing Operations
-
Total operating expenses from continuing operations for the first quarter of 2024 were
$1.5 million $1.6 million 52.8% , compared to$3.1 million
Evaluation of Strategic Alternatives
- The Company continues to evaluate a variety of strategic alternatives that may include, but not be limited to, an acquisition, merger, other business combination, sale of assets, or other strategic transactions involving the Company. Although the Company is exploring potential strategic alternatives, there can be no assurance of a transaction, a successful outcome of these efforts, or the form or timing of any such outcome. The Company has not set a timetable for completion of this exploration process and does not intend to disclose further developments unless and until it is determined that disclosure is appropriate or necessary.
Balance Sheet
-
As of March 31, 2024, the Company’s cash and cash equivalents totaled
$4.3 million
About TherapeuticsMD
TherapeuticsMD was previously a women’s healthcare company with a mission of creating and commercializing innovative products to support the lifespan of women from pregnancy prevention through menopause. In December 2022, the Company changed its business to become a pharmaceutical royalty company, primarily collecting royalties from its licensees. The Company is no longer engaging in research and development or commercial operations.
Forward-Looking Statements
This press release by TherapeuticsMD, Inc. may contain forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to TherapeuticsMD’s objectives, plans and strategies, including the exploration of potential strategic alternatives that may include, but are not limited to, an acquisition, merger, other business combination, sale of assets, or other strategic transactions, and the completion of such a review process as well as statements, other than historical facts, that address activities, events or developments that the company intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as “believes,” “hopes,” “may,” “anticipates,” “should,” “intends,” “plans,” “will,” “expects,” “estimates,” “projects,” “positioned,” “strategy” and similar expressions and are based on assumptions and assessments made in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements in this press release are made as of the date of this press release, and the company undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of the company’s control. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the sections titled “Risk Factors” in the company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as reports on Form 8-K, and include the following: whether the company’s licensees will be successful at commercializing the products that they licensed and acquired from TherapeuticsMD; whether the company is successful in winding down its operations and the costs associated therewith, including the company’s ability to obtain any additional financing necessary therefor and any adjustments to the net working capital purchased as part of the Mayne Pharma transaction; whether the company is successful in identifying strategic pathways to create additional shareholder value; the company’s ability to remain listed on Nasdaq; the impact of product liability lawsuits; the impact of leadership transitions; and the volatility of the trading price of the company’s common stock.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240510011252/en/
Marlan D. Walker
Chief Executive Officer
561-961-1900
IR@TherapeuticsMD.com
Lisa M. Wilson
In-Site Communications, Inc.
212-452-2793
lwilson@insitecony.com
Source: TherapeuticsMD, Inc.
FAQ
What were TherapeuticsMD's net income (loss) from continuing operations for the first quarter of 2024?
How much did TherapeuticsMD generate in gross license royalties under the Mayne License Agreement for the first quarter of 2024?
What was the total operating expenses from continuing operations for TherapeuticsMD in the first quarter of 2024?
What strategic alternatives is TherapeuticsMD exploring?
How much cash and cash equivalents did TherapeuticsMD have as of March 31, 2024?
