Theratechnologies (NASDAQ:THTX) Inc. reported a robust recovery in its Q3 2023 financials, underpinned by significant operational progress, according to the earnings call transcript summary. The company's focus on maintaining a healthy cash balance and improving bottom-line profitability was emphasized, alongside the submission of the EGRIFTA F8 formulation to the FDA and advancements in their lead anti-cancer agent, sudocetaxel zendusortide.
Key takeaways from the call include:
- Theratechnologies recorded an adjusted EBITDA of $2.2 million in Q3 2023, marking a notable improvement from previous periods.
- The company anticipates closing fiscal year 2023 with revenues ranging from $82 million to $85 million.
- Updates on their HIV business included the filing of sBLA applications for the new generation of EGRIFTA SV and the progress of Trogarzo.
- The company reported that all Phase 1 clinical trial sites for sudocetaxel zendusortide have been activated, with preliminary safety and efficacy data expected by mid-2024.
- Theratechnologies ended the quarter with $22.9 million in cash, bonds, and money market funds.
- The company is considering administering a new injection treatment in pharmacies for easier patient access.
In Q3 2023, sales of EGRIFTA SV increased due to a higher selling price, albeit offset by higher rebates to government payers. Sales of Trogarzo, however, dipped by 3.3% compared to Q3 2022, largely due to the decision to cease commercializing the product in Europe. Despite this, the cost of goods sold decreased primarily due to increased sales of EGRIFTA SV, which boasts a higher gross margin. The company also reported lower R&D, selling, and G&A expenses compared to the same period last year.
Theratechnologies' sBLA for the F8 formulation of EGRIFTA has been filed with the FDA, and approval is expected by the close of March 2024. The company also unveiled plans for a new injection treatment, a water-based monoclonal antibody, which has been well-received by patients.
In the earnings call, Theratechnologies expressed interest in expanding their commercial portfolio, specifically in HIV and HIV-adjacent therapy areas. They also indicated their openness to bolt-on acquisitions and affirmed having the infrastructure to support new assets. Regarding their oncology Phase 1 trial, the company expects to enroll about 16 patients and anticipates signs of efficacy by mid-2024.
The company, listed as NASDAQ:THTX, also reported ongoing discussions with auditors regarding their going concern opinion. Changes made by Marathon, their creditor, have been viewed favorably, reflecting increasing confidence in the company's ability to achieve its goals. Theratechnologies reiterated its commitment to achieving profitability and creating long-term value for investors.
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