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Dec 31, 2022
TherapeuticsMD Q4 2022 Earnings Report
TherapeuticsMD transitioned to a virtual business model and reported full year 2022 financial results.
Key Takeaways
TherapeuticsMD reported full year 2022 financial results, highlighting a transition to a virtual business model following a transaction with Mayne Pharma. The company repaid its debt, redeemed preferred stock, and eliminated its commercial and manufacturing infrastructure.
TherapeuticsMD granted Mayne Pharma an exclusive license to commercialize its products in the United States.
The company repaid its debt and redeemed outstanding preferred stock.
TherapeuticsMD eliminated its commercial and manufacturing infrastructure and downsized operations.
The company intends to explore strategic pathways to create value for shareholders.
Forward Guidance
TherapeuticsMD is eligible to receive up to $30.0 million in milestone payments as well as royalties on net sales of between 7.5% and 8.0%, for a period of 20 years, with minimum annual royalties of $3.0 million per year for 12 years, adjusted for inflation at an annual rate of 3%, subject to certain further adjustments.
Positive Outlook
- Eligible to receive up to $30.0 million in milestone payments
- Royalties on net sales of between 7.5% and 8.0% for 20 years
- Minimum annual royalties of $3.0 million per year for 12 years
- Royalties adjusted for inflation at an annual rate of 3%
- Upfront cash payment of $140.0 million for the license grant and sale of certain assets, plus an additional approximately $13.1 million for the acquisition of net working capital and prepaid royalties
Challenges Ahead
- Milestone payments are not guaranteed
- Royalty payments are subject to sales performance
- Minimum annual royalties are subject to certain further adjustments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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