Theratechnologies image of a lab technician handling samples
(Source: Theratechnologies Inc.)
  • Theratechnologies (TSX:TH) stock opened nearly 4 per cent higher on Wednesday on the release of its latest financial results
  • Theratechnologies reported Q2 revenue of US$22 million, marking a growth of more than 25 per cent compared with the same period last year.
  • The company reaffirmed its fiscal 2024 revenue guidance, projecting revenue between US$87 million and US$90 million
  • Theratechnologies opened trading at C$2.25 per share

Theratechnologies (TSX:TH) stock opened nearly 4 per cent higher on Wednesday on the release of its latest financial results.

The biopharmaceutical company announced its financial results for the fiscal Q2 ending May 31, 2024, showcasing significant growth and advanced business developments.

Robust financial performance

In a news release, Theratechnologies reported Q2 revenue of US$22 million, marking a growth of more than 25 per cent compared with the same period last year. The company achieved a positive net income of US$1 million and an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$5.5 million. This marks the first time in the company’s recent history that it recorded a positive net income.

(in thousands of dollars)

Three months
ended May 31
Per cent
change
Six months ended May 31 Per cent change
2024 2023 2024 2023
EGRIFTA SV net sales 16,200 10,853 49.3 25,786 23,564 9.4
Trogarzo net sales 5,817 6,696 13.1 12,478 13,893 10.2
Revenue 22,017 17,549 25.5 38,264 37,457 2.2

The company reaffirmed its fiscal 2024 revenue guidance, projecting revenue between US$87 million and US$90 million. Adjusted EBITDA for the year is anticipated to be in the range of US$13 million to US$15 million.

Focus on commercial activities

In line with its business strategy, Theratechnologies announced it will phase down its preclinical oncology research activities. This decision aligns with the company’s goal to concentrate on its commercial business, driving positive adjusted EBITDA and net income. The company will continue its ongoing Phase 1 clinical trial of sudocetaxel zendusortide in patients with advanced ovarian cancer, initially announced in March 2024.

As part of this shift, Theratechnologies recorded US$336,000 in charges related to severance and other expenses for the three- and six-month periods ended May 31, 2024. An additional charge of approximately US$200,000 is expected to be recorded in the second half of 2024.

Research and development update

For the six-month period ended May 31, 2024, R&D expenses amounted to US$8.4 million, a significant decrease from US$19.7 million in the comparable period of fiscal 2023. This reduction in R&D expenses reflects the company’s strategic decision to phase down its preclinical oncology research and redirect resources towards its commercial operations.

CEO commentary

“EGRIFTA SV remains our priority brand, with key performance metrics showing consistent growth and continued strong gross margins,” Theratechnologies’ president and CEO Paul Lévesque said in a media release. “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.”

About the company

Operating out of Montréal, Theratechnologies is focused on developing therapies with unmet medical needs.

Theratechnologies (TSX:TH) opened trading at C$2.25 per share.

Join the discussion: Find out what everybody’s saying about this stock on the Theratechnologies Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top photo: Theratechnologies Inc.)


More From The Market Online
AI-generated image of gold bars beside a computer with a financial chart.

The Market Online’s Weekly Gold Report – July 24, 2024

The Market Online reviews the week's top gold stories, gold prices, gold company news and trending gold stocks.
Periodic table concept with uranium element is glowing among black cubes

Fueling the Future: Uranium market activity for the week of July 22

In this week's uranium market update, companies such as Centrus Energy, Aero Energy, Myriad Uranium and SKRR Exploration made headlines.
Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers

Bank of Canada cuts interest rate: 4 investment catalysts to consider

The Bank of Canada cut rates for a second meeting in a row thanks to favourable inflation, unemployment and consumer spending trends.
A worker using a pickaxe to extract uranium ore from a rock face.

Top 9 Canadian uranium stocks to watch

Canada ranks second in terms of uranium production globally and hosts some of the top uranium mining companies in the world.