Theratechnologies Reports Solid Q3 2024 Financials and Positive Net Income

Theratechnologies Inc., a biopharmaceutical company known for developing and commercializing innovative therapies, has announced its business highlights and financial results for the third quarter of fiscal 2024, which concluded on August 31, 2024. The company reported a Q3 revenue of $22.6 million, an 8% increase compared to the previous year. Additionally, Theratechnologies posted a positive net income of $3.1 million or 6 cents per share and an Adjusted EBITDA of $7.2 million. The fiscal 2024 revenue guidance has been updated to fall between $83 and $85 million, with Adjusted EBITDA expected to range from $17 to $19 million.

Paul Lévesque, President and CEO of Theratechnologies, expressed satisfaction with the company’s performance in Q3, highlighting the strong Adjusted EBITDA and net profit. Lévesque noted that EGRIFTA SV®, their growth driver, achieved its best performance in recent history by attracting new patients and prescribers. However, due to anticipated supply constraints for EGRIFTA SV® in late November and current trends for Trogarzo®, revenue guidance has been adjusted to between $83 and $85 million. The company aims to recover sales not recorded in Q4 of 2024 in the early part of 2025, ensuring minimal impact on patients.

Theratechnologies has intensified efforts to establish partnerships and market innovative products, making significant progress in the U.S. and Canada. The company is committed to its North American-focused strategy and is well-positioned to achieve sustained top-line and bottom-line growth. In terms of their pipeline, Theratechnologies plans to bring the F8 formulation to market, addressing all FDA queries related to immunogenicity and microbiology, with a submission expected by the end of November. In oncology, the company is focused on generating results from Part 3 of their Phase 1 clinical trial of sudocetaxel zendusortide in advanced ovarian cancer, with no reports of dose-limiting toxicities (DLTs). Results will be shared once all data is analyzed.

On September 17, 2024, Theratechnologies announced a risk of a temporary supply disruption for EGRIFTA SV® in early 2025 due to the contract manufacturer’s voluntary shutdown following an FDA inspection. The company has implemented measures to manage EGRIFTA SV® inventory levels to meet patient demand until mid-January 2025, which will result in a revenue shortfall for fiscal 2024. The manufacturer plans to resume activities by mid-October, with a batch of EGRIFTA SV® scheduled for manufacturing in the week of October 21, 2024.

For the three- and nine-month periods ending August 31, 2024, Theratechnologies reported consolidated revenue of $22.6 million and $60.864 million, respectively, compared to $20.855 million and $58.312 million in the same periods of 2023. This represents a year-over-year increase of 8.4% for Q3 and 4.4% for the first nine months of fiscal 2024. EGRIFTA SV® net sales for Q3 2024 were $16.687 million, a 26.6% increase from Q3 2023, driven by strong unit demand and higher net selling prices. For the nine-month period, EGRIFTA SV® net sales increased by 15.6% to $42.473 million.

Trogarzo® net sales for Q3 2024 were $5.913 million, a decrease of 22.9% year-over-year, primarily due to competitive pressures in the multidrug-resistant HIV-1 market, leading to lower unit sales. For the nine-month period, Trogarzo® net sales were $18.391 million, down from $21.565 million in 2023.

Cost of sales for Q3 2024 was $4.521 million, down from $4.967 million in Q3 2023. For the nine-month period ending August 31, 2024, cost of sales was $14.352 million, compared to $14.569 million in the same period of 2023. EGRIFTA SV® cost of sales for the nine-month period was impacted by a $1.088 million inventory provision related to the manufacturing of the F8 Formulation of tesamorelin, which has not yet been FDA-approved for commercialization.

Research and development (R&D) expenses for Q3 2024 were $2.612 million, a significant decrease from $5.396 million in Q3 2023, reflecting the company’s focus on managing expenses. For the nine-month period, R&D expenses were $11.089 million, down from $25.141 million in 2023. The decrease was influenced by the recognition of Canadian federal non-refundable tax credits and a decision to cease early-stage R&D activities in oncology.

Overall, Theratechnologies has demonstrated strong financial performance in Q3 2024, maintaining a focus on growth and strategic market positioning while managing costs and addressing potential supply disruptions.