TherapeuticsMD Announces Full Year 2024 Financial Results

Rhea-AI Summary

TherapeuticsMD (NASDAQ: TXMD) has reported its full year 2024 financial results, showing improved performance with a reduced net loss from continuing operations of $(2.3) million, or $(0.20) per share, compared to $(7.7) million, or $(0.74) per share in 2023.

The company's license revenue, primarily from the Mayne License Agreement, increased by 35.3% to $1.8 million in 2024, up from $1.3 million in 2023. Operating expenses decreased by 33.6% to $6.5 million from $9.8 million in 2023, reflecting the company's transition from a commercial to a royalty-based business model.

As of December 31, 2024, TXMD maintained $5.1 million in cash and cash equivalents. The company is currently evaluating strategic alternatives, including potential acquisitions, mergers, business combinations, or asset sales.

Positive

• Net loss decreased significantly by $5.4 million to $2.3 million in 2024
• License revenue grew 35.3% to $1.8 million
• Operating expenses reduced by 33.6% to $6.5 million

Negative

• Company still operating at a loss of $2.3 million
• cash position of $5.1 million
• Uncertainty surrounding strategic alternatives evaluation

Insights

Financial Analyst

TherapeuticsMD's 2024 financial results demonstrate a significant turnaround effort in its transition from a commercial to a royalty-based business model. The company reduced its net loss by 70% to $2.3 million ($0.20 per share) from $7.7 million in 2023, showing notable improvement in operational efficiency. Operating expenses decreased by 33.6% to $6.5 million, reflecting successful cost optimization initiatives.

License revenue, primarily from the Mayne License Agreement, grew by 35.3% to $1.8 million, indicating increasing value from their intellectual property assets. However, this revenue stream remains modest relative to the company's market capitalization and overall expenses.

The $5.1 million cash position provides runway at the current burn rate, which explains the board's exploration of strategic alternatives including potential mergers, acquisitions, or asset sales. This strategic review suggests management recognizes that organic growth alone may be insufficient to maximize shareholder value.

While the financial metrics are moving in the right direction, the company remains unprofitable with a relatively small revenue base. The lack of specifics regarding the timeline or potential outcomes of the strategic alternatives process adds significant uncertainty to the investment outlook. The improvements in financial performance are meaningful but must be viewed in context of the company's scale and continued cash burn.

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 full year ended December 31, 2024.

Full Year 2024 Financial Results

Net Loss from Continuing Operations

• Net loss from continuing operations was $(2.3) million, or $(0.20) per basic and diluted common share, a decrease of $5.4 million, compared to net loss from continuing operations of $(7.7) million, or ($0.74) per basic and diluted common share, for 2023.

License and Service Revenues from Continuing Operations

• License revenue, primarily from the Mayne License Agreement, totaled $1.8 million during the year ended December 31, 2024, an increase of $0.5 million, or 35.3%, compared to $1.3 million in license revenue during the year ended December 31, 2023. The increase is primarily attributable to changes in sales of licensed products.

Total Operating Expenses from Continuing Operations

• Total operating expenses for 2024 were $6.5 million, a decrease of $3.3 million, or 33.6%, compared to the $9.8 million for 2023. The decrease was due to the further optimization of the Company’s business through the reduction of costs and continued transition from a commercial 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, 2024, the Company’s cash and cash equivalents totaled $5.1 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; the impact of Mayne Pharma Group’s agreement to be acquired by Cosette Pharmaceuticals, Inc. 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/20250326266100/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 (TXMD) net loss for full year 2024?

TXMD reported a net loss of $2.3 million ($0.20 per share) in 2024, improved from $7.7 million ($0.74 per share) in 2023.

How much did TXMD's license revenue grow in 2024?

License revenue increased by 35.3% to $1.8 million in 2024, compared to $1.3 million in 2023.

What is TXMD's cash position as of December 31, 2024?

TherapeuticsMD had $5.1 million in cash and cash equivalents as of December 31, 2024.

How much did TherapeuticsMD reduce its operating expenses in 2024?

TXMD reduced operating expenses by 33.6%, from $9.8 million in 2023 to $6.5 million in 2024.

What strategic alternatives is TXMD currently exploring in 2024?

TXMD is evaluating options including acquisitions, mergers, business combinations, and asset sales, though no specific timeline has been set.