Shares of TherapeuticsMD (TXMD -3.01%) rose more than 24% last month, according to data provided by S&P Global Market Intelligence. On the final day of July, the company announced the acquisition of a novel birth control product, Annovera, which then received U.S. Food and Drug Administration marketing approval in August.
A share offering also added $90 million in net proceeds to the coffers, which were already stuffed with $154 million at the end of June. However, seeing as TherapeuticsMD reported an operating loss of $57 million in the first half of 2018 and wants to hit the ground running with Annovera commercialization efforts, the business can certainly make good use of the extra capital.
Some analysts are bullish on the market prospects for Annovera. Unlike other next-generation birth control products that must be inserted by a medical professional, Annovera is inserted or removed by a woman and releases low-dose hormones to prevent pregnancy for up to one year. Oppenheimer analyst Jay Olson thinks it could generate up to $300 million in U.S. sales by 2024, which would stack up relatively well to the market-leading NuvaRing's $576 million net sales posted last year.
TherapeuticsMD has additional catalysts on the horizon for its women's products portfolio and pipeline. The company announced that Imvexxy launched on August 6, while TX-001HR has a PDUFA date scheduled for October 28. That means the company could have three commercialized products sometime in 2019.
The recent regulatory progress is great news for TherapeuticsMD, which is well on its way to transitioning to a commercial-stage company. Now investors will need to keep an eye on the pace of commercialization efforts for Imvexxy, Annovera, and possibly TX-001HR. That will prove critical for getting the business on track for sustainable profits in the next few years, which would be a welcomed sign by patient shareholders.