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Theratechnologies Inc (TSE:TH)
TSX:TH

Theratechnologies (TH) AI Stock Analysis

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Theratechnologies

(TSX:TH)

Rating:58Neutral
Price Target:
C$3.50
▼(-0.57%Downside)
Theratechnologies' score is driven by strong earnings call outcomes and recent corporate events, indicating positive future prospects. However, financial instability and ongoing losses weigh heavily on the score, highlighting the need for improved profitability and financial management.
Positive Factors
Financial Outlook
The price target for Theratechnologies has been increased from $3 to $4, indicating a positive outlook.
Product Innovation
EGRIFTA WR offers improved convenience to HIV patients with lipodystrophy, as it needs to be reconstituted weekly versus daily and requires less than half the total volume.
Strategic Acquisitions
Acquisition negotiations are ongoing with multiple parties, increasing the likelihood of a favorable outcome for Theratechnologies.
Negative Factors
Adoption Challenges
Despite positive reactions, it will take time for payors to adopt the new formulation, and the full impact is unlikely to be realized immediately.
Operational Risks
Near-term uncertainty exists due to a manufacturing pause on the key revenue-driving asset EGRIFTA SV and uncertainty regarding the expansion of the company's pipeline/portfolio.
Revenue Uncertainty
The shortage resulted in an expected $10M — $12M one-time reduction in revenue, and weaker sales are anticipated in the short term.

Theratechnologies (TH) vs. iShares MSCI Canada ETF (EWC)

Theratechnologies Business Overview & Revenue Model

Company DescriptionTheratechnologies Inc., a biopharmaceutical company, focuses on the development and commercialization of various therapies to address the unmet medical needs in the United States, Canada, and Europe. The company offers EGRIFTA and EGRIFTA SV, for the reduction of excess abdominal fat in human immunodeficiency virus (HIV)-infected patients with lipodystrophy; and Trogarzo, an injection refers to ibalizumab for the treatment of multidrug resistant HIV-1 infected patients. Its pipeline products include F8 Formulation for the treatment of lipodystrophy in people living with HIV; TH1902, which is in Phase 1/Part A clinical trials for the treatment of triple negative breast cancer; and TH1904 for the treatment of ovarian cancer. The company was incorporated in 1993 and is headquartered in Montreal, Canada.
How the Company Makes MoneyTheratechnologies generates revenue primarily through the sale of its approved pharmaceutical products, including EGRIFTA SV (tesamorelin for injection) for the reduction of excess abdominal fat in HIV-infected patients with lipodystrophy. The company also earns income from royalties, licensing agreements, and strategic partnerships that enhance its distribution and marketing capabilities. Additionally, Theratechnologies invests in research and development to expand its product pipeline and address new therapeutic areas, contributing to future revenue potential.

Theratechnologies Earnings Call Summary

Earnings Call Date:Apr 09, 2025
(Q1-2025)
|
% Change Since: 59.28%|
Next Earnings Date:Jul 10, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and new product approval, indicating positive market momentum. However, challenges such as the drug shortage and declining Trogarzo sales were significant concerns. The company's strategic focus on transitioning to the new product formulation and managing operational efficiencies shows resilience.
Q1-2025 Updates
Positive Updates
Revenue Growth
Theratechnologies reported total revenues of $19 million for the fiscal first quarter, representing a 17% growth from the same period last year. The growth was primarily driven by EGRIFTA SV.
New Product Approval
The company received approval for the F8 Formulation of Tesamorelin, which only requires once-weekly reconstitution, a significant improvement over the previous daily requirement.
Increased Patient Enrollment
New enrollments were up 15% in the first quarter compared to last year, indicating strong market demand and effective sales strategies.
Adjusted EBITDA Improvement
The company reported a positive adjusted EBITDA of $2.3 million versus an adjusted EBITDA loss of $247,000 last year.
HIV Business Data Presentation
Data from the PROMISE-U.S. and VAMOS studies were presented, showcasing the efficacy and safety of ibalizumab in reducing HIV to undetectable levels in heavily treatment-experienced patients.
Negative Updates
Drug Shortage Impact
A temporary drug shortage for EGRIFTA SV led to a sales loss of six to seven weeks, impacting revenue by approximately $10 million and possibly affecting the patient base.
Trogarzo Sales Decline
Net sales of Trogarzo decreased by 22% compared to the same quarter last year, due to new competitors and the loss of existing patients.
Tariff Concerns
Potential impacts from tariffs on the supply chain were noted, although they are not expected to significantly affect operations.
Company Guidance
During the Theratechnologies first quarter 2025 earnings call, the company reported total revenues of $19 million, reflecting a 17% growth from the same period last year. This growth was primarily driven by their lead asset, EGRIFTA SV, which experienced strong momentum in the market. Despite a temporary drug shortage that impacted sales for six to seven weeks, new enrollments were up by 15% compared to the previous year. The company's adjusted EBITDA for the quarter was positive at $2.3 million, a significant improvement from a loss of $247,000 in the same period last year. Theratechnologies provided guidance for 2025, expecting revenues between $80 million and $83 million and adjusted EBITDA ranging from $10 million to $12 million. The approval of their new F8 Formulation of Tesamorelin is anticipated to further bolster growth, with a planned transition from EGRIFTA SV to EGRIFTA WR to be completed by early 2026.

Theratechnologies Financial Statement Overview

Summary
Theratechnologies shows revenue growth but faces challenges with profitability and financial stability. High leverage and negative equity raise solvency concerns, and cash flow management is problematic with negative operating and free cash flows.
Income Statement
45
Neutral
The company has shown a positive revenue growth trend over recent years, with a 3.26% increase from 2023 to 2024 and a 3.26% increase from 2024 to 2025. However, it remains unprofitable, evident from the negative net profit margin of -4.18% in TTM. While the gross profit margin is strong at 78.98% for TTM, the net losses indicate operational challenges. The EBIT margin has improved to 13.89% in TTM, reflecting better cost management, yet profitability remains an area of concern.
Balance Sheet
30
Negative
The balance sheet is concerning due to the negative stockholders' equity of -$24.47 million in TTM, indicating more liabilities than assets. The debt-to-equity ratio is not meaningful due to negative equity, but the high total debt suggests significant leverage. The equity ratio is also negative, highlighting financial instability. These factors signal potential solvency risks.
Cash Flow
40
Negative
Operating cash flow has fluctuated, with the TTM showing a negative value of -$5.66 million. Free cash flow is also negative in TTM, at -$17.26 million, marking a deterioration from previous periods. The free cash flow to net income ratio is not favorable, exacerbated by continuous net losses. Cash flow management is a challenge as the company is not generating positive cash flows from operations.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
88.67M85.87M81.76M80.06M69.82M66.05M
Gross Profit
70.02M65.42M62.13M53.78M46.56M39.15M
EBIT
12.31M8.17M-10.63M-39.91M-25.24M-17.96M
EBITDA
9.15M6.88M-8.91M-27.83M-17.25M-9.18M
Net Income Common Stockholders
-3.71M-8.31M-23.96M-47.24M-31.73M-22.67M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.34M9.62M40.85M33.07M40.35M20.77M
Total Assets
56.45M53.34M77.77M93.26M119.21M100.14M
Total Debt
50.35M45.61M58.97M66.71M56.74M55.38M
Net Debt
46.45M39.71M24.87M42.85M36.35M42.65M
Total Liabilities
80.92M78.61M98.64M115.83M101.45M96.92M
Stockholders Equity
-24.47M-25.27M-20.87M-22.57M17.76M3.22M
Cash FlowFree Cash Flow
-17.26M879.00K-7.50M-15.68M-14.64M-13.59M
Operating Cash Flow
-5.66M2.38M-5.68M-14.69M-14.48M-13.55M
Investing Cash Flow
-6.09M942.00K1.11M8.68M-12.45M4.78M
Financing Cash Flow
-16.55M-21.49M14.78M9.66M34.56M-7.23M

Theratechnologies Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.52
Price Trends
50DMA
3.31
Positive
100DMA
2.84
Positive
200DMA
2.37
Positive
Market Momentum
MACD
0.04
Positive
RSI
51.60
Neutral
STOCH
45.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TH, the sentiment is Neutral. The current price of 3.52 is below the 20-day moving average (MA) of 3.62, above the 50-day MA of 3.31, and above the 200-day MA of 2.37, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 45.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TH.

Theratechnologies Risk Analysis

Theratechnologies disclosed 49 risk factors in its most recent earnings report. Theratechnologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Growth may cause pressure on our management and systems Q4, 2024
2.
There is no assurance that the Company will be successful in obtaining Health Canada approval or reimbursement coverage for olezarsen or donidalorsen in Canada which would adversely affect the Company's revenues, long-term growth and prospects. Q4, 2024
3.
We may be subject to additional drug shortage issues with EGRIFTA SV for as long as Jubilant's site is designated "Office Action Indicated" ("OAI") under the Federal Food, Drug and Cosmetic Act, as amended, of the United States ("FFDCA") and our PAS may not be approved and be subject to a complete response letter ("CRL") as a result. The failure to obtain approval of our PAS would lead to additional drug shortage issues since the approval of the PAS is a condition precedent to the release of any new batch of EGRIFTA SV, unless Jubilant's site designation is changed from OAI to a more favorable designation or unless discretionary orders are obtained from the FDA to be able to release additional batches of EGRIFTA SV. Q4, 2024

Theratechnologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSTH
58
Neutral
$165.53M
16.23%85.76%
54
Neutral
$5.28B3.29-45.38%2.80%16.77%-0.08%
$233.25M24.299.69%
TSRX
82
Outperform
C$133.41M17.1022.17%1.62%16.55%14.70%
TSHLS
60
Neutral
C$155.01M-23.05%-3.73%32.70%
TSMPH
57
Neutral
C$10.44M-8.79%-0.29%-53.83%
TSCTX
56
Neutral
C$10.04M-18.52%1.14%-36.66%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TH
Theratechnologies
3.52
1.84
109.52%
CPHRF
Cipher Pharmaceuticals
9.64
3.13
48.08%
TSE:CTX
Crescita Therpeutc
0.54
0.11
25.58%
TSE:MPH
Medicure
1.17
0.00
0.00%
TSE:RX
Biosyent
11.95
2.81
30.74%
TSE:HLS
HLS Therapeutics Inc
4.94
1.39
39.15%

Theratechnologies Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Theratechnologies Announces Board Elections and Strategic Approvals at Annual Meeting
Positive
May 29, 2025

Theratechnologies held its annual meeting of shareholders, where all proposed candidates were elected to the Board of Directors, KPMG LLP was appointed as the auditor, and an omnibus long-term incentive plan was approved. These decisions are expected to support the company’s strategic goals and enhance its operational framework, potentially impacting its market position and stakeholder interests.

The most recent analyst rating on (TSE:TH) stock is a Buy with a C$3.80 price target. To see the full list of analyst forecasts on Theratechnologies stock, see the TSE:TH Stock Forecast page.

M&A Transactions
Theratechnologies Engages in Exclusive Acquisition Talks Amid Future Pak Proposals
Neutral
Apr 11, 2025

Theratechnologies has announced that it is in exclusive discussions with a potential acquiror for the sale of the company, following unsolicited acquisition proposals from Future Pak. The company has rejected Future Pak’s offers due to inadequate terms and is negotiating a definitive agreement with the potential acquiror, which includes a ‘go shop’ provision allowing engagement with other potential buyers. A special committee of independent directors is overseeing the process, assisted by financial and legal advisors, to ensure the best interests of the company and its stakeholders.

Product-Related AnnouncementsFinancial Disclosures
Theratechnologies Achieves Revenue Growth and Secures Key FDA Approvals in Q1 2025
Positive
Apr 9, 2025

Theratechnologies reported a strong first quarter for 2025, with a 17% increase in total revenue year-over-year, reaching $19 million. The company received FDA approval for EGRIFTA WR™, a new formulation to treat excess visceral abdominal fat in adults with HIV and lipodystrophy, which is expected to drive future growth. Despite a temporary supply disruption for EGRIFTA SV®, the company resumed distribution and anticipates a one-time revenue impact of $10 to $12 million for the fiscal year. The approval of a Prior Approval Supplement by the FDA allows for regular distribution of EGRIFTA SV®, strengthening the company’s market position.

Product-Related Announcements
Theratechnologies Gains FDA Approval for EGRIFTA SV Distribution
Positive
Apr 8, 2025

Theratechnologies has received FDA approval for its Prior Approval Supplement to the supplemental biologics license application for EGRIFTA SV, allowing for unrestricted distribution of the product. This approval, along with the recent approval of a new formulation, EGRIFTA WR, marks a significant step in resolving supply uncertainties and enhancing the patient experience, potentially strengthening the company’s market position in the treatment of excess abdominal fat in adults with HIV and lipodystrophy.

Product-Related Announcements
Theratechnologies Gains FDA Nod for Enhanced HIV Treatment
Positive
Mar 26, 2025

Theratechnologies has received FDA approval for EGRIFTA WR™, a new formulation of tesamorelin for injection, designed to treat excess visceral abdominal fat in adults with HIV and lipodystrophy. This improved version offers a more convenient dosing schedule, requiring weekly reconstitution instead of daily, and is set to replace the current EGRIFTA SV®. The new formulation is expected to enhance patient experience and simplify administration, potentially improving management of comorbidities like lipodystrophy among HIV patients.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.