Yahoo Finance HIV Medicine Maker Theratechnologies 'Wraps Up Strong Second Quarter,' Stock Soars
On Wednesday, Theratechnologies Inc (NASDAQ:THTX) reported second-quarter 2024 sales of $22.02 million, up 25.5% year over year, beating the consensus of $21.71 million.
For the second quarter, net sales of EGRIFTA SV were $16.2 million, up 49.3% year over year, due to strong demand for the product, combined with weaker than usual sales in Q2 of last year stemming from drawdowns in inventory early in the second quarter of 2023.
EGRIFTA SV is an injectable prescription medicine used to reduce excess abdominal fat in adults with HIV and lipodystrophy.
Trogarzo’s net sales in the second quarter reached $5.82 million, down 13.1% year over year, primarily due to competitive pressures in the multi-drug-resistant segment of the HIV-1 market.
Trogarzo is used in combination with other antiretroviral medicines to treat HIV‑1 infection.
The company reported a net income of $1 million, with an adjusted EBITDA of $5.5 million.
“EGRIFTA SV remains our priority brand, with key performance metrics showing consistent growth and continued strong gross margins. Moving forward, we expect sales to align with patient demand now that inventory levels have returned to normal. We continue to demonstrate strength on the bottom line with our fourth straight quarter of near-flat-to-positive Adjusted EBITDA. In fact, for the first time in the company’s recent history, we recorded a positive net income, marking the beginning of a new and profitable journey for Theratechnologies,” said Paul Lévesque, President and CEO.
Theratechnologies expects that its $36.03 million cash and cash equivalents as of May 31, 2024, together with cash generated from its existing operations, will be sufficient to fund its operating expenses and debt obligations requirements for at least the next 12 months.
Considering the recent actions, material uncertainty that raised substantial doubt about the company’s ability to continue as a going concern was alleviated, effective from these second-quarter interim financial statements.
In March, the company announced that it would phase down its preclinical oncology research activities while continuing to conduct its ongoing Phase 1 trial of sudocetaxel zendusortide for advanced ovarian cancer to focus on its commercial business and generate positive Adjusted EBITDA and net income.
Guidance: Theratechnologies reiterates its fiscal year 2024 revenue guidance of $87 million—$90 million, compared to the consensus of $87.88 million.
The company anticipates 2024 adjusted EBITDA of $13 million—$15 million.
Price Action: At last check on Wednesday, THTX shares were up 9.68% at $1.70 during the premarket session.
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