What happened
Shares of TherapeuticsMD (TXMD 2.06%), a biopharmaceutical company focused on women's health, are rising in response to the company's latest presentation. Investors pleased to see the Imvexxy launch exceeding expectations drove the stock 14.6% higher on Wednesday.
So what
TherapeuticsMD had a hard time convincing investors that Imvexxy, an estrogen insert for the treatment of menopause-related dyspareunia, would outperform decades-old treatment options that use the same hormone. The company's second-quarter earnings report, though, suggested Imvexxy sales were accelerating. The pharma stock popped today because August sales figures contained in today's investor presentation further suggest Imvexxy sales are taking flight.
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In August, there were 44,600 paid Imvexxy scripts -- which was 1,100 less than July's figure, but still impressive. At this rate total prescriptions in the third quarter will come in at least 25% higher than during the previous quarter, when total scripts reached 106,000.
TherapeuticsMD also posted positive clinical trial results for its estrogen-and-progesterone combination capsule, Bijuva, a treatment for menopause-related vasomotor symptoms better known as hot flashes. The company recently announced that Bijuva led to improvements in several sleep parameters.
Now what
At the annual meeting of the North American Menopause Society, which started today, TherapeuticsMD will let us know just how significant the recorded sleep improvements were for patients treated with Bijuva. From its launch last year through Aug. 31, 2019, there were only 14,200 paid Bijuva scripts, 5,300 of which were in the month of August. A sleep benefit could make marketing Bijuva a little easier and raise its popularity.
Sales of TherapeuticsMD's prenatal vitamins have collapsed, which makes success for its estrogen-based products critical to staying afloat. In the first half of 2019, the company lost $79 million; it finished June with just $182 million in cash.
Investors should know that the rapid sales growth that TherapeuticsMD has been reporting in recent months didn't exactly happen on its own. In the second quarter, the company recorded $41.4 million in sales, general, and administrative expenses, but only collected $6.1 million in top-line revenue. At this pace, it will only take around a year before the company needs to ask investors for more cash.
