Theratechnologies ((TSE:TH)) has held its Q1 earnings call. Read on for the main highlights of the call.
Theratechnologies’ recent earnings call painted a picture of optimism tempered with caution. The company reported robust revenue growth and celebrated a significant new product approval, suggesting positive market momentum. However, challenges such as a drug shortage and declining sales of Trogarzo were notable concerns. Despite these hurdles, the company’s strategic focus on transitioning to new product formulations and enhancing operational efficiencies underscores its resilience.
Revenue Growth
Theratechnologies announced total revenues of $19 million for the fiscal first quarter, marking a 17% increase from the same period last year. This growth was primarily fueled by EGRIFTA SV, highlighting the product’s strong market performance.
New Product Approval
The company’s approval for the F8 Formulation of Tesamorelin, which requires only once-weekly reconstitution, represents a significant advancement over the previous daily requirement. This development is expected to enhance patient compliance and satisfaction.
Increased Patient Enrollment
New patient enrollments rose by 15% in the first quarter compared to the previous year, indicating strong market demand and effective sales strategies. This increase is a positive indicator of the company’s expanding market reach.
Adjusted EBITDA Improvement
Theratechnologies reported a positive adjusted EBITDA of $2.3 million, a notable turnaround from an adjusted EBITDA loss of $247,000 last year. This improvement reflects the company’s efforts in managing operational efficiencies.
HIV Business Data Presentation
The presentation of data from the PROMISE-U.S. and VAMOS studies highlighted the efficacy and safety of ibalizumab in reducing HIV to undetectable levels in heavily treatment-experienced patients, reinforcing the company’s commitment to advancing HIV treatment.
Drug Shortage Impact
A temporary drug shortage for EGRIFTA SV resulted in a sales loss of six to seven weeks, impacting revenue by approximately $10 million. This shortage also posed potential risks to the patient base.
Trogarzo Sales Decline
Net sales of Trogarzo fell by 22% compared to the same quarter last year, attributed to new competitors and the loss of existing patients. This decline underscores the competitive challenges in the market.
Tariff Concerns
While potential impacts from tariffs on the supply chain were noted, they are not expected to significantly affect operations, indicating a manageable risk for the company.
Forward-Looking Guidance
Looking ahead, Theratechnologies has set its revenue expectations for 2025 between $80 million and $83 million, with adjusted EBITDA projected to range from $10 million to $12 million. The approval of the new F8 Formulation of Tesamorelin is anticipated to further drive growth, with a planned transition from EGRIFTA SV to EGRIFTA WR by early 2026.
In summary, Theratechnologies’ earnings call reflects a company navigating both opportunities and challenges. While strong revenue growth and new product approvals highlight positive momentum, issues like drug shortages and declining Trogarzo sales present hurdles. Nevertheless, the company’s strategic initiatives and forward-looking guidance suggest a proactive approach to sustaining growth and addressing market challenges.