TherapeuticsMD Announces Second Quarter 2024 Financial Results

Rhea-AI Summary

TherapeuticsMD (NASDAQ: TXMD) reported its Q2 2024 financial results. The company, which owns pharmaceutical royalty rights, saw a net loss from continuing operations of $1.05 million ($0.09 per share), an improvement from the $2.4 million loss in Q2 2023. License revenue decreased by 46.5% to $234,000, primarily due to changes in sales of licensed products. Total operating expenses decreased by 8.1% to $2.7 million, reflecting cost optimization efforts. The company's cash and cash equivalents stood at $5.2 million as of June 30, 2024. TherapeuticsMD is currently evaluating strategic alternatives, including potential acquisitions, mergers, or asset sales.

Positive

• Net loss from continuing operations improved from $2.4 million in Q2 2023 to $1.05 million in Q2 2024
• Total operating expenses decreased by 8.1% to $2.7 million, reflecting successful cost optimization efforts

Negative

• License revenue decreased by 46.5% to $234,000 compared to Q2 2023
• The company recognized a patent impairment in Q2 2024
• TherapeuticsMD is evaluating strategic alternatives, indicating potential uncertainty about its current business model

Insights

Financial Analyst

TherapeuticsMD's Q2 2024 results reveal a mixed financial picture. The company's net loss narrowed to $1.05 million from $2.4 million year-over-year, indicating some improvement in financial performance. However, license revenues declined by 46.5%, which is concerning for a company now focused on pharmaceutical royalties.

The reduction in operating expenses by 8.1% demonstrates effective cost management, but the patent impairment recognized this quarter is a red flag, potentially signaling challenges in maintaining the value of their intellectual property. With $5.2 million in cash, the company's liquidity position appears tight, especially considering ongoing losses. The exploration of strategic alternatives suggests management recognizes the need for a significant change to ensure long-term viability.

Market Research Analyst

TherapeuticsMD's transition to a royalty-based business model appears to be struggling to gain traction. The 46.5% decrease in license revenue indicates potential issues with market acceptance or competition for their licensed products. This decline is particularly worrisome as it represents the company's primary revenue stream.

The ongoing evaluation of strategic alternatives, including potential mergers or asset sales, suggests the current business model may not be sustainable. Investors should closely monitor any announcements regarding these strategic options, as they could significantly impact the company's future direction and valuation. The lack of a set timetable for this process adds uncertainty to the company's near-term prospects.

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 second quarter ended June 30, 2024.

Second Quarter 2024 Financial Results

Net Income (Loss) from Continuing Operations

• Net loss from continuing operations was $(1.05) million, or $(0.09) per basic and diluted common share, compared to a net loss of $(2.4) million, or $(0.24) per basic and diluted common share, for the second quarter of 2023.

License and Service Revenues from Continuing Operations

• License revenue, primarily from the Mayne License Agreement, totaled $234 thousand for the second quarter of 2024, a decrease of $203 thousand, or 46.5%, compared to $437 thousand in license revenue for the second quarter of 2023. The decrease is primarily attributable to changes in sales of licensed products.

Total Operating Expenses from Continuing Operations

• Total operating expenses for the second quarter of 2024 were $2.7 million, a decrease of $235 thousand, or 8.1%, compared to the second quarter of 2023. This decrease was due to the further optimization of the Company’s business through the reduction of costs, following its transition to a royalty-based business, and is partially off-set by the patent impairment recognized in the second quarter of 2024.

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 June 30, 2024, the Company’s cash and cash equivalents totaled $5.2 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/20240812528540/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 in Q2 2024?

TherapeuticsMD (TXMD) reported a net loss from continuing operations of $1.05 million, or $0.09 per basic and diluted common share, in Q2 2024.

How much did TherapeuticsMD's (TXMD) license revenue change in Q2 2024 compared to Q2 2023?

TherapeuticsMD's (TXMD) license revenue decreased by 46.5%, from $437,000 in Q2 2023 to $234,000 in Q2 2024.

What is the cash position of TherapeuticsMD (TXMD) as of June 30, 2024?

As of June 30, 2024, TherapeuticsMD (TXMD) reported cash and cash equivalents totaling $5.2 million.

Is TherapeuticsMD (TXMD) considering any strategic alternatives as of Q2 2024?

Yes, TherapeuticsMD (TXMD) is evaluating strategic alternatives, which may include acquisitions, mergers, business combinations, or asset sales, but no specific timetable or outcome has been set.