What happened

After receiving some positive commentary from an analyst, shares of TherapeuticsMD (NASDAQ:TXMD), a drug maker focused on women's health, rose 18% as of 11:00 a.m. EDT on Tuesday.

So what

Shareholders can thank Jay Olson, an analyst at Oppenheimer, for today's price action. Olson upgraded TherapeuticsMD stock from "Perform" to "Outperform" earlier today and gave shares a $10 price target. That target implies 100% upside from yesterday's closing price of just over $5.

businessman giving thumbs up

Image source: Getty Images.

Olson's bullishness is based on the hope that the company's upcoming meeting with the FDA will produce positive results. He believes there's a better than average chance that the company will resubmit TX-004HR within the next few weeks. If true, that could mean the drug could be on the market in just a few months.

Given the upbeat projection and bullish price target, it's easy to understand why shares are rallying today.

Now what

We learned a few months ago that the FDA's rejection of TX-004HR was based on concerns about the lack of long-term endometrial safety data. At the time, management was adamant that the FDA did not bring up any concerns related to the drug's chemistry, efficacy, or manufacturing, which is why they believe they still had a realistic shot at regulatory success in the future.

Can management convince the FDA to give them another shot? Only time will tell. However, until we know more, I'm content to watch this story unfold from a safe distance.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.