TherapeuticsMD Inc (NASDAQ:TXMD) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 04:30 pm ET

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TherapeuticsMD Inc (NASDAQ:TXMD) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Dan Cartwright

the upper end of our guidance at $8.2 million. Additionally, we had $15.5 million in revenue from a licensing agreement for IMVEXXY and BIJUVA from Theramex. We are also eligible to receive additional payments and royalties under this license in the future.

The chart on Slide 5 shows that we continue to have strong growth for IMVEXXY. Net revenue for IMVEXXY was $4.8 million for the quarter, which continued the trend of net revenue growing at a faster pace than growth in units. As you can see, IMVEXXY net revenue increased 53% third quarter over second quarter compared to a 27% increase in units over the same period.

Turn to Slide 6, we continue to have strong growth for BIJUVA as well. Net revenue for BIJUVA was approximately $490,000 for the quarter, in line with our expectations, we continue to see net revenue per unit, which will be discussed later.

Now move to Slide 7, we launched ANNOVERA late in the third quarter and recorded sales of $400,000. We are encouraged to see initial average net revenue at $1250 per unit.

Turn to slide 8, as expected, the total operating expenses for the third quarter of 2019 increased compared to the second quarter of 2019 due to the increase in commercialization expenses for the launch of both IMVEXXY and BIJUVA, and the preparation for the launch of ANNOVERA. SG&A expenses for the third quarter of 2019 were $45.1 million compared to $41.4 million for the previous quarter.

Turning to the bottom line, our net loss for the third quarter of 2019 was $32 million or $0.13 per basic and diluted share, which included license revenue of $15.5 million, while the net loss in the second quarter of 2019 was $55.2 million or $0.23 per basic and diluted share. Excluding the license revenue of $15.5 million in the third quarter, our net loss would have been $47.5 million compared to a net loss of $55.2 million for the second quarter of 2018.

Now move to Slide 9, we finished the third quarter of 2019 with a $155.3 million in cash, compared with $183 million at June 30 of 2019. As shown on Slide 10, you can see, after the end of the quarter, we completed an equity raise that netted the company $77 million. Adding the proceeds from the equity raise to the cash at quarter end would have resulted in a proforma cash balance of $232 million.

Please turn to Slide 11. Our company has taken significant steps this year to raise additional non-dilutive capital to support the commercialization of our three FDA-approved products. We have the opportunity to pull down another $100 million from our term loan from TPG Sixth Street Partners also known as TSSP in two $50 million tranches. For the first $50 million tranche, we have begun discussions with TSSP about revising the draw trigger that is tied to the FDA's decision on the 19th category for ANNOVERA. This is due to the positive ANNOVERA launch