TherapeuticsMD Announces First Quarter 2024 Financial Results

Rhea-AI Summary

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.

Positive

• 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.

Negative

• 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

Financial Analyst

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.

Market Research Analyst

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.

BOCA RATON, Fla.--(BUSINESS WIRE)-- TherapeuticsMD, Inc. (“TherapeuticsMD” or the “Company”) (NASDAQ: TXMD), a company that owns rights to pharmaceutical royalties, today reported financial results for the first quarter ended March 31, 2024.

First Quarter 2024 Financial Results

Net Income (Loss) from Continuing Operations

• Net loss from continuing operations was $(0.8) million, or $(0.07) per basic and diluted common share, compared to net loss from continuing operations of $(2.3) million, or $(0.24) per basic and diluted common share, for 2023.

License and Service Revenues from Continuing Operations

• Gross license royalties totaled approximately $1.2 million under the Mayne License Agreement for the three months ended March 31, 2024. Included in this amount are approximately $0.8 million of gross minimum royalty payments paid under the Mayne License Agreement. The Company recognizes license revenue only on amounts in excess of the gross minimum royalty amounts earned under the Mayne License Agreement. Our net license royalty income is allocated and reported in revenue, net and other income based on the proportion of the sales from each of our licensed products. Based on sales of our licensed products, the Company recognized $0.3 million in revenue, net, and approximately $0.3 million in other income in the three months ended March 31, 2024 related to net license royalties.

Total Operating Expenses from Continuing Operations

• Total operating expenses from continuing operations for the first quarter of 2024 were $1.5 million, a decrease of $1.6 million, or 52.8%, compared to $3.1 million from continuing operations for the first quarter of 2023, primarily attributable to lower general and administrative expenses due to the transition of the Company’s business from a commercializing pharmaceutical business to a royalty-based business.

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?

TherapeuticsMD reported a net loss from continuing operations of $(0.8) million, or $(0.07) per basic and diluted common share 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?

TherapeuticsMD generated approximately $1.2 million 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?

TherapeuticsMD's total operating expenses from continuing operations for the first quarter of 2024 were $1.5 million, reflecting a 52.8% decrease compared to the previous year.

What strategic alternatives is TherapeuticsMD exploring?

TherapeuticsMD is evaluating various strategic alternatives that may include an acquisition, merger, other business combination, sale of assets, or other strategic transactions, with no set timetable for completion.

How much cash and cash equivalents did TherapeuticsMD have as of March 31, 2024?

As of March 31, 2024, TherapeuticsMD had cash and cash equivalents totaling $4.3 million.