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TherapeuticsMD Completes the Divestiture of vitaCare Prescription Services to GoodRx in a Cash Transaction Valued at $150 Million
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Rhea-AI Summary
TherapeuticsMD (NASDAQ: TXMD) has successfully completed the $150 million divestiture of vitaCare Prescription Services to GoodRx (NASDAQ: GDRX). This strategic move, initially announced on March 6, 2022, allows TXMD to concentrate on its women's health portfolio. The company could also receive an additional $7 million based on vitaCare's 2023 financial performance. CEO Hugh O’Dowd emphasized the importance of this transaction in enhancing value for shareholders and patients.
Positive
Successful divestiture of vitaCare Prescription Services for $150 million, streamlining operations.
Potential additional $7 million contingent on vitaCare's performance in 2023.
Negative
None.
BOCA RATON, Fla.--(BUSINESS WIRE)--
TherapeuticsMD, Inc. (NASDAQ: TXMD), (“TXMD” or the “Company”) an innovative, leading women’s healthcare company, announced today the closing of the divestiture of vitaCare Prescription Services to GoodRx (NASDAQ: GDRX), in a cash transaction valued at $150 million, subject to a working capital adjustment. The Company previously announced the signing of a definitive agreement on March 6, 2022. TherapeuticsMD remains eligible to receive an additional $7 million in cash consideration contingent on vitaCare’s financial performance through 2023. With this divestiture, TherapeuticsMD streamlines its operations to focus solely on its women’s health portfolio and serving its mission of empowering women of all ages through better and affordable healthcare.
“We are pleased to complete the sale of vitaCare Prescription Services. This transaction represents the continued execution of our strategy as we remain focused on investing in our key business areas and delivering enhanced value for our patients and shareholders,” said Hugh O’Dowd, Chief Executive Officer of TherapeuticsMD.
Advisors
Locust Walk served as financial advisor and DLA Piper LLP (US) served as legal counsel to TherapeuticsMD.
About TherapeuticsMD, Inc.
TherapeuticsMD, Inc. is an innovative, leading healthcare company, focused on developing and commercializing novel products exclusively for women. TherapeuticsMD’s products are designed to address the unique changes and challenges women experience through the various stages of their lives with a therapeutic focus in family planning, reproductive health, and menopause management. TherapeuticsMD is committed to advancing the health of women and championing awareness of their healthcare issues. To learn more about TherapeuticsMD, please visit therapeuticsmd.com or follow us on Twitter: @TherapeuticsMD and on Facebook: TherapeuticsMD.
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 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: the effects of the COVID-19 pandemic; how the proceeds from the divestiture of the company’s vitaCare business will be utilized; the company’s ability to maintain or increase sales of its products; the company’s ability to develop and commercialize IMVEXXY®, ANNOVERA®, and BIJUVA® and obtain additional financing necessary therefore; whether the company will be able to comply with the covenants and conditions under its term loan facility and the company’s ability to refinance such facility; the effects of supply chain issues on the supply of the company’s products; the potential of adverse side effects or other safety risks that could adversely affect the commercialization of the company’s current or future approved products or preclude the approval of the company’s future drug candidates; whether the FDA will approve the manufacturing supplement for ANNOVERA; the company’s ability to protect its intellectual property, including with respect to the Paragraph IV notice letters the company received regarding IMVEXXY and BIJUVA; the length, cost and uncertain results of future clinical trials; the company’s reliance on third parties to conduct its manufacturing, research and development and clinical trials; the ability of the company’s licensees to commercialize and distribute the company’s products; the ability of the company’s marketing contractors to market ANNOVERA; the availability of reimbursement from government authorities and health insurance companies for the company’s products; the impact of product liability lawsuits; the influence of extensive and costly government regulation; the impact of leadership transitions; the volatility of the trading price of the company’s common stock and the concentration of power in its stock ownership.
