TherapeuticsMD Announces Full Year 2023 Financial Results
- TherapeuticsMD reported a net loss from continuing operations of $(7.7) million for the full year 2023.
- The company generated gross license royalties of approximately $4.5 million under the Mayne License Agreement.
- Total operating expenses decreased by 85.4% to $9.8 million in 2023.
- TherapeuticsMD continues to evaluate strategic alternatives to maximize shareholder value.
- None.
Insights
The shift in TherapeuticsMD's business model from a commercial pharmaceutical entity to a royalty-based one is a significant restructuring that has led to a substantial reduction in operating expenses. The 85.4% decrease in total operating expenses is a remarkable change. However, this must be weighed against the net loss from continuing operations of $7.7 million. The company's ability to manage its cash reserves, which stand at $4.3 million, is important in sustaining operations and pursuing strategic alternatives. Investors would likely monitor the company's cash burn rate closely, as well as any potential increases in license revenues that could offset losses.
TherapeuticsMD's exploration of strategic alternatives indicates a potential pivot in company strategy that could affect the market's perception and valuation of the firm. The uncertain outcome of this process could introduce volatility into the stock's performance. The company's transparency regarding the lack of a set timeline for this exploration process could be a double-edged sword, providing flexibility for strategic maneuvering while potentially causing investor unease due to the open-ended nature of the outcome. Market observers would be particularly interested in any acquisition, merger, or business combination that could significantly alter the company's market positioning and financial trajectory.
The reported net license royalties of $1.3 million, against a backdrop of gross license royalties of $4.5 million, reflect the company's reliance on the performance of its licensed products. The pharmaceutical industry is highly competitive and the success of royalty-based models often hinges on the market performance of the products to which a company holds rights. The $3.0 million of gross minimum royalty payments under the Mayne License Agreement suggests a baseline revenue stream; however, the growth of this stream is contingent on product sales exceeding minimum thresholds. Industry peers and investors would assess the sustainability of TherapeuticsMD's royalty income in comparison to industry norms and the potential for growth in product sales.
• Evaluation of strategic alternatives continues
“We continue to explore a variety of strategic alternatives with the goal of maximizing value for our shareholders,” stated Marlan D. Walker, Chief Executive Officer of TherapeuticsMD.
Full Year 2023 Financial Results
Net Income (Loss) from Continuing Operations
-
Net loss from continuing operations was
$(7.7) million $(0.74) $1.1 million $0.12 $0.11
License and Service Revenues from Continuing Operations
-
Gross license royalties totaled approximately
$4.5 million $3.0 million $1.3 million $0.5 million
Total Operating Expenses from Continuing Operations
-
Total operating expenses from continuing operations for 2023 were
$9.8 million $57.6 million 85.4% , compared to 2022, 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 December 31, 2023, 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/20240329541788/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 was TherapeuticsMD's net loss from continuing operations for the full year 2023?
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What was the total operating expenses for TherapeuticsMD in 2023?
What strategic alternatives is TherapeuticsMD evaluating?
