Theratechnologies (TH) AI Stock Analysis

• Market Cap: $150.81M
• Dividend Yield: N/A
• Average Volume (3M): 31.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 16.23%
• EPS Growth: 85.76%
• Country: CA
• Employees: 103
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.00
• Shares Outstanding: 45,980,020
• 10 Day Avg. Volume: 26,837
• 30 Day Avg. Volume: 31,728
• PEG Ratio: -0.37
• Price to Book (P/B): -36.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -53.04
• Enterprise Value/Market Cap: 6.38
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 13.75
• Enterprise Value/Ebitda: 28.90
• 1Y Price Target: $5.48
• Price Target Upside: 67.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: C$3.50 ▲(6.71%Upside)

Despite strong revenue growth and recent FDA approvals, Theratechnologies faces significant challenges in profitability, financial stability, and short-term stock trends. These factors weigh heavily on the overall score.

Positive Factors

Acquisition negotiations

Acquisition negotiations are ongoing with multiple parties, increasing the likelihood of a favorable outcome for Theratechnologies.

Patent protection

Patent protection for EGRIFTA WR extends into 2033, providing a long-term competitive advantage.

Product convenience

EGRIFTA WR offers improved convenience to HIV patients with lipodystrophy, requiring reconstitution weekly rather than daily and less total volume.

Negative Factors

Manufacturing pause

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.

Payor adoption delay

Despite positive reactions, it will take time for payors to adopt the new formulation, and the full impact is unlikely to be realized immediately.

Revenue reduction

The shortage resulted in an expected $10M — $12M one-time reduction in revenue, and weaker sales are anticipated in the short term.

Theratechnologies Business Overview & Revenue Model

Company Description

Theratechnologies 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 Money

Theratechnologies 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 Financial Statement Overview

Summary

Theratechnologies shows positive revenue growth but remains unprofitable with significant financial instability. High leverage and negative equity highlight potential solvency risks, necessitating improvements in profitability and cash flow management.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.67M	85.87M	81.76M	80.06M	69.82M	66.05M
Gross Profit	70.02M	65.42M	62.13M	53.78M	46.56M	39.15M
EBITDA	9.15M	6.88M	-8.91M	-27.83M	-17.25M	-9.18M
Net Income	-3.71M	-8.31M	-23.96M	-47.24M	-31.73M	-22.67M
Balance Sheet
Total Assets	56.45M	53.34M	77.77M	93.26M	119.21M	100.14M
Cash, Cash Equivalents and Short-Term Investments	4.34M	9.62M	40.85M	33.07M	40.35M	20.77M
Total Debt	50.35M	45.61M	58.97M	66.71M	56.74M	55.38M
Total Liabilities	80.92M	78.61M	98.64M	115.83M	101.45M	96.92M
Stockholders Equity	-24.47M	-25.27M	-20.87M	-22.57M	17.76M	3.22M
Cash Flow
Free Cash Flow	-17.26M	879.00K	-7.50M	-15.68M	-14.64M	-13.59M
Operating Cash Flow	-5.66M	2.38M	-5.68M	-14.69M	-14.48M	-13.55M
Investing Cash Flow	-6.09M	942.00K	1.11M	8.68M	-12.45M	4.78M
Financing Cash Flow	-16.55M	-21.49M	14.78M	9.66M	34.56M	-7.23M

Theratechnologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.28
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.28 is below the 20-day moving average (MA) of 3.45, below the 50-day MA of 3.61, and above the 200-day MA of 2.51, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 28.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TH.

Theratechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RX	82 Outperform	C$135.24M	17.23	22.17%	2.33%	16.55%	14.70%
HLS	56 Neutral	C$151.16M	―	-23.05%	―	-3.73%	32.70%
Sector *	54 Neutral	€4.82B	18.16	-49.50%	1.91%	13.92%	-2.48%
CTX	54 Neutral	C$9.37M	―	-18.52%	―	1.14%	-36.66%
MPH	52 Neutral	C$13.05M	―	-8.79%	―	-0.29%	-53.83%
TH	49 Neutral	$150.81M	―		―	16.23%	85.76%
CPHRF		$238.67M	25.07	9.69%	―	―	―

Theratechnologies Corporate Events

Theratechnologies Announces Board Elections and Strategic Approvals at Annual Meeting

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.

Theratechnologies Engages in Exclusive Acquisition Talks Amid Future Pak Proposals

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.

Theratechnologies Achieves Revenue Growth and Secures Key FDA Approvals in Q1 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.

Theratechnologies Gains FDA Approval for EGRIFTA SV Distribution

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.