TherapeuticsMD Announces Third Quarter 2022 Financial Results | marketrealtime.com


– Q3 total revenue of $20.9 million –
– ANNOVERA TRx growth of 10% year-over-year –
– Reduced operating expenses by $22 million year-over-year –

BOCA RATON, Fla., November 14, 2022–(BUSINESS WIRE)–TherapeuticsMD, Inc. (“TXMD” or the “Company”) (NASDAQ: TXMD), an innovative, leading women’s healthcare company, today reported financial results for the third quarter ended September 30, 2022.

“Our products continue to be adopted by healthcare providers and patients, and we continue to believe that they represent a significant opportunity. Our prescriber bases grew, and we added around 1,500 new prescribers for ANNOVERA and around 1,600 for IMVEXXY. Total quarterly prescriptions for both products remained relatively stable compared to the second quarter of 2022, and ANNOVERA’s total prescriptions grew 10% compared to the third quarter of 2021. While our third quarter 2022 net revenues declined $4.5 million compared with the prior year, through disciplined cost control measures, we were able to reduce our operating expenses by $22 million year-over-year,” said Mark Glickman, co-Interim-CEO of TherapeuticsMD.

“During the quarter, we were able to move past the inventory issues we experienced in the first half of the year, and our wholesale network is now fully stocked. With these developments and the recent cash infusion from Rubric Capital, we believe our operations have stabilized, and we continue on our path forward toward our goal of meeting the demand for our products and helping to advance women’s health,” added Glickman. “Our Board of Directors and management team continue to actively assess strategic alternatives to strengthen the Company’s long-term financial position.” concluded Glickman.

Third Quarter 2022 Financial Results and Business Highlights

Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

Product revenue:

ANNOVERA

$

10,415

$

11,807

$

37,196

$

30,112

IMVEXXY

6,947

8,016

20,583

24,866

BIJUVA

2,663

3,298

7,877

7,899

Prescription vitamin

892

1,335

2,671

4,162

Product revenue, net

20,917

24,456

68,327

67,039

License and service revenue

950

484

1,234

Total revenue, net

$

20,917

$

25,406

$

68,811

$

68,273

ANNOVERA® (segesterone acetate and ethinyl estradiol vaginal system)

  • ANNOVERA net product revenue of $10.4 million for the third quarter of 2022 decreased by $1.4 million compared to $11.8 million for the third quarter of 2021.

  • Approximately 9,200 ANNOVERA prescriptions were dispensed to patients during the third quarter of 2022.

  • Over 15,000 healthcare providers (HCPs) prescribed ANNOVERA since launch through the third quarter of 2022, of which more than 1,500 were new writers.

IMVEXXY® (estradiol vaginal inserts)

  • IMVEXXY net product revenue of $6.9 million for the third quarter of 2022 decreased by $1.1 million compared to $8.0 million for the third quarter of 2021.

  • Approximately 91,300 IMVEXXY prescriptions were dispensed to patients during the third quarter of 2022.

BIJUVA® (estradiol and progesterone) capsules

  • BIJUVA net product revenue of $2.7 million for the third quarter of 2022 decreased by approximately $0.6 million compared to $3.3 million for the third quarter of 2021.

  • BIJUVA net product revenue for the third quarter of 2022 includes $0.4 million of export sales through our international licensing and supply agreement with Theramex HQ UK Limited.

Cost of Goods Sold and Gross Margin

Operating Expense, Net Loss and Related Information

  • Total operating expense of $37.9 million for the third quarter of 2022 decreased by approximately $22.2 million compared to $60.0 million for the third quarter of 2021.

  • Net loss for the third quarter of 2022 was $29.0 million, or $3.13 per basic and diluted share, compared to net loss for the third quarter of 2021 of $47.4 million, or $5.62 per basic and diluted share.

Balance Sheet

  • As of September 30, 2022, the Company’s cash on hand totaled $27.1 million, compared with $65.1 million as of December 31, 2021. Subsequent to quarter end, the Company closed a $7 million private investment in the Company’s Series A Preferred Stock from Rubric Capital Management LP. The Company also had $11.3 million in restricted cash related to customary holdbacks as part of the vitaCare Prescription Services divestiture.

  • As of September 30, 2022, the Company’s aggregate balance of net debt, lender warrants derivative liability, make-whole payment derivative liability and mandatory redeemable preferred stock was $117.1 million.

In light of the Company’s ongoing strategic alternatives process, the Company will not be hosting a conference call.

Please see the Full Prescribing Information, including indication and Boxed WARNING, for each TherapeuticsMD product as follows:

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: whether the company will be able to refinance the indebtedness under its term loan facility, and, if not, whether the company will be able to continue as a going concern; whether the company will be able to raise capital to fund its operations; whether and how the executive order on contraception is implemented; the effects of the COVID-19 pandemic; 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 therefor; 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; the company’s ability to protect its intellectual property; 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; and the volatility of the trading price of the company’s common stock.

– Financial Statements to Follow –

TherapeuticsMD, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited – in thousands, except per share data)

September 30, 2022

December 31, 2021

Assets:

Current assets:

Cash

$

27,080

$

65,122

Restricted cash

11,250

Accounts receivable, net of allowance for credit losses of $1,621 and $1,334 as of September 30, 2022 and December 31, 2021, respectively

32,157

36,176

Inventory

6,701

7,622

Prepaid and other current assets

10,290

10,548

Total current assets

87,478

119,468

Fixed assets, net

551

1,199

License rights and other intangible assets, net

37,876

40,318

Right of use assets

7,749

8,234

Other non-current assets

253

253

Total assets

$

133,907

$

169,472

Liabilities and stockholders’ deficit:

Current liabilities:

Debt, net

$

93,602

$

188,269

Lender Warrants derivative liability

2,058

Make-whole payment derivative liability

1,751

Mandatory Redeemable Preferred Stock

19,709

Accounts payable

13,383

20,318

Accrued expenses and other current liabilities

43,568

44,304

Total current liabilities

174,071

252,891

Operating lease liabilities

7,553

8,063

Other non-current liabilities

554

2,139

Total liabilities

182,178

263,093

Commitments and contingencies

Stockholders’ deficit:

Preferred stock, par value $0.001; 10,000 shares authorized, 22 issued

and included in liabilities due to their redemption provisions

Common stock, par value $0.001; 12,000 shares authorized, 9,467 and 8,598 (adjusted for the 50-for-1 reverse stock split) shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

9

9

Additional paid-in capital

968,785

957,730

Accumulated deficit

(1,017,065

)

(1,051,360

)

Total stockholders’ deficit

(48,271

)

(93,621

)

Total liabilities and stockholders’ deficit

$

133,907

$

169,472

TherapeuticsMD, Inc. and Subsidiaries

Consolidated Statements of Operations

(Unaudited – in thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

Revenue, net:

Product

$

20,917

$

24,456

$

68,327

$

67,039

License and service

950

484

1,234

Total revenue, net

20,917

25,406

68,811

68,273

Cost of goods sold

3,788

5,282

13,388

14,101

Total gross profit

17,129

20,124

55,423

54,172

Operating expenses:

Selling and marketing

19,129

30,005

61,703

86,193

General and administrative

17,635

28,435

55,445

66,691

Research and development

1,112

1,605

4,092

5,666

Total operating expenses

37,876

60,045

121,240

158,550

Loss from operations

(20,747

)

(39,921

)

(65,817

)

(104,378

)

Other (expense) income:

Gain on sale of business

143,384

Expense for accretion of Mandatory Redeemable Preferred Stock

(3,457

)

(3,457

)

Fair value loss on Lender Warrants derivative liability

(76

)

(76

)

Loss on extinguishment of debt

(8,380

)

Interest expense and other financing costs

(4,833

)

(7,518

)

(30,941

)

(25,341

)

Other (expense) income, net

(112

)

19

(128

)

264

Total other (expense) income, net

(8,478

)

(7,499

)

100,402

(25,077

)

(Loss) income before income taxes

(29,225

)

(47,420

)

34,585

(129,455

)

(Benefit) provision for income taxes

(260

)

290

Net (loss) income

$

(28,965

)

$

(47,420

)

$

34,295

$

(129,455

)

(Loss) earnings per common share, basic

$

(3.13

)

$

(5.62

)

$

3.86

$

(16.68

)

Weighted average common shares, basic

9,261

8,444

8,877

7,762

(Loss) earnings per common share, diluted

$

(3.13

)

$

(5.62

)

$

3.73

$

(16.68

)

Weighted average common shares, diluted

9,261

8,444

9,205

7,762

TherapeuticsMD, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited – in thousands)

Nine Months Ended September 30,

2022

2021

Cash flows from operating activities:

Net income (loss)

$

34,295

$

(129,455

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation and amortization

3,181

3,091

Charges to provision for doubtful accounts

542

540

Inventory charge

73

1,082

Debt financing fees

20,053

4,158

Share-based compensation

8,587

12,779

Gain on sale of business

(143,384

)

Expense for accretion of Mandatory Redeemable Preferred Stock

3,457

Loss on extinguishment of debt

8,380

Other

50

726

Changes in operating assets and liabilities:

Accounts receivable

3,044

(5,560

)

Inventory

848

(451

)

Prepaid and other current assets

180

(2,831

)

Accounts payable

(6,186

)

(1,476

)

Accrued expenses and other current liabilities

3,705

13,504

Other non-current liabilities

(675

)

758

Total adjustments

(98,145

)

26,320

Net cash used in operating activities

(63,850

)

(103,135

)

Cash flows from investing activities:

Proceeds from sale of business, net of transaction costs

142,634

Payment of patent related costs

(297

)

(675

)

Purchase of fixed assets

(21

)

(34

)

Net cash provided by (used in) investing activities

142,316

(709

)

Cash flows from financing activities:

Proceeds from sale of Mandatory Redeemable Preferred Stock, net of costs

16,252

Proceeds from make-whole derivative

1,751

Proceeds from sale of common stock, net of costs

2,454

182,881

Proceeds from exercise of options and warrants

302

Proceeds from sale of common stock related to employee stock purchase plan

14

134

Repayments of debt

(125,000

)

(50,000

)

Payment of debt financing fees

(729

)

(5,118

)

Net cash (used in) provided by financing activities

(105,258

)

128,199

Net (decrease) increase in cash and restricted cash

(26,792

)

24,355

Cash and restricted cash, beginning of period

65,122

80,486

Cash and restricted cash, end of period

$

38,330

$

104,841

Supplemental disclosure of cash flow information:

Interest paid

$

8,371

$

19,675

Supplemental disclosure of noncash financing activities:

Paid in kind (“PIK”) interest with corresponding increase in debt

$

2,452

$

PIK debt financing fees with corresponding increase in debt

$

16,980

$

Issue of warrants to lenders related to debt financing fees

$

1,983

$

View source version on businesswire.com: https://www.businesswire.com/news/home/20221114005733/en/

Contacts

Michael C. Donegan
Interim Chief Financial Officer,
Chief Accounting Officer and
Vice President Finance
561-961-1900

Lisa M. Wilson
In-Site Communications, Inc.
212-452-2793
lwilson@insitecony.com



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