TherapeuticsMD Inc (NASDAQ:TXMD) raised investor’s eyebrows recently with a new earnings report as the pharmaceutical company seeks to further entrench itself in the marketplace. The company was forecasted to enjoy earnings of $0.41 per share for FY2017 by one analyst, and is showing many of the ingredients for long-term success investors are looking for in today’s market.
Healthy results forecast future profitability
TherapeuticsMD (NASDAQ: TXMD) recently enjoyed a moment in the sun with some skyrocketing growth in early November, after its shares gained some 44% after it resubmitted data to the Food and Drug Administration. The biotech company has consistently shown that it’s worthy of the buzz surrounding it in investment circles concerned with the pharmaceutical industry, as its ongoing work on developing women-orientated drugs shows serious progress.
Similarly, a recent earnings report has many previously-concerned investors resting easy, as TherapeuticsMD ended September with some $148.3 million in cash and devoid of any debts. While the company lowered share prices during a secondary offering, it likely did so to raise more capital for future expansions, and as its drug development programs continue to reap the benefits of years of hard work, TherapeuticsMD stands to enjoy rising prices when its finished products finally hit the marketplace.
The pharmaceutical industry is notoriously slow; products often take years, if not decades to hit the market, but the FDA’s recent agreement to accept a resubmission from TherapeuticsMD after responding negatively to their first TX-004HR shows that the company is alleviating many of its concerns. While the resubmission process for the company’s TX-004HR was expected to take some time, and potentially eat into its cash reserves, it went relatively quickly and was accomplished cheaply in what’s sure to be a good sign for the company’s prospects with the FDA.
The company’s earnings report showed that net losses, in particular, are down; while TherapeuticsMD lost $25 million in 2016’s third quarter, 2017’s third quarter losses were a mere $14.7 million. Similarly, TherapeuticsMD’s intellectual property portfolio – vital for any pharmaceutical company aiming to make it big – has swelled to total at an impressive 158 patent filings. As it races to get more products out onto the market, these figures will likely only grow to become more suitable for the company’s future ambitions.
Upgraded shares
Investors with their eyes on the market have taken note of TherapeuticsMD’s good news; Zacks Investment Research recently upgraded shares from “sell” to “hold,” for instance, in a move marking increased confidence in the company’s near-term future. Deutsche Bank AG (DE:DBKGn) held up a “buy” rating for the company, as well. Hedge funds have gotten in on the action while they can, too, with Managed Account Services Inc. upping its holdings in the aspirant biotech firm by 5.5% in the second quarter alone.
The upgraded shares may be a sign that the company’s cost-saving measures are working. R&D expenses fell in its third quarter earnings report, for instance, and the company’s expenses are likely to fall further as its early trials for new drugs finish up as it prepares to get them approved and begin sales.
TherapeuticsMD is enjoying its status in a high-growth industry, just like self storage, a factor that needs to be taken into account when assessing its long-term potential. The company focuses primarily on servicing women’s healthcare needs, and serious growth is expected in the market in the coming six years alone. As TherapeuticsMD ultimately pushes out more successful drugs into the market, it will likely be in a good position to capitalize on increased investor interest in the field of women’s healthcare.
The company’s leadership is clearly ambitious about its future, too; Director Tommy G. Thompson upped his holdings by some 5,000 shares in late August, with some 24% of the company’s stock now owned by corporate insiders. As TherapeuticsMD’s new drugs hit the market in the coming years, the company’s share prices are likely to enjoy a surge – for investors backing the company, it’s only a matter of time until their patience pays off.