TherapeuticsMD, Inc.

TherapeuticsMD reported second-quarter 2022 total revenue of $28.6 million, up $5.6 million or 24.2% year over year. Gross profit was $23.8 million, up $5 million or 26.2%, and operating expenses were $42.7 million, down $11.4 million or 21.1%. ANNOVERA sales were $18.3 million, up 91.2%; IMVEXXY sales were $6.7 million, down 32.2%; BIJUVA sales were $2.7 million, up 23.1%; and prescription vitamin sales were $0.9 million, down 35.5%. Net cash used in operating activities was $15.4 million and cash was $26.3 million at June 30, 2022. The company did not provide formal quarterly or full-year financial guidance on this call; instead, it said the Rubric financing and debt maturity extension provide runway while management evaluates refinancing options and other strategic alternatives.

Hugh O'Dowd framed the quarter as operationally solid despite what he repeatedly called a period of “ambiguity,” pointing to revenue growth, lower expenses, the vitaCare divestiture, debt repayment, and FDA approval of the ANNOVERA supplemental NDA as key milestones. He also emphasized that the company is now more focused on women’s health and has additional runway to explore refinancing or other strategic alternatives after the failed EW Healthcare transaction. His tone was measured but constructive, with an emphasis on resilience and preserving flexibility for patients and shareholders.

Michael Donegan walked through the quarter’s main financial drivers, including the $142.6 million net proceeds from the vitaCare sale and the $143.4 million gain on sale. He said $120 million of proceeds were used to pay down debt, and that the company may receive up to an additional $7 million in earn-out consideration through 2023. On the P&L, he highlighted revenue of $28.6 million, gross profit of $23.8 million, operating expenses of $42.7 million, and lower selling and marketing, G&A, and R&D costs; he also noted $11.7 million of other non-operating expenses, $15.4 million of operating cash burn, and $26.3 million of cash at quarter-end. He added that the company announced a $15 million Rubric investment and Sixth Street maturity extensions to September 30, with possible extensions to October 31 and November 30 if additional equity capital is raised.

Analysts focused on employee retention, ANNOVERA demand versus restocking, rejection rates, and what major shareholders think about the company’s direction. Management said turnover in the sales force is “in a very reasonable rate” and that incentive schemes and communication efforts are aimed at keeping the field force engaged. On ANNOVERA, management said the strong quarter was driven by demand but also included some channel restocking, and added that inventory now appears ample. On rejection rates, they said the issue was found and addressed, was not a coverage problem, and is not expected to be an issue going forward.