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Theratechnologies (TSE:TH)
:TH
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Theratechnologies
(NASDAQ:TH)
Rating:60Neutral
Price Target:
C$4.50
▲(4.65%Upside)
Positive Factors
Acquisition Offer
The acquisition offer from Future Pak represents a 126% premium to the closing price before the announcement, indicating a significant value proposition for shareholders.
Product Convenience
EGRIFTA WR offers improved convenience to HIV patients with lipodystrophy, requiring weekly reconstitution versus daily for EGRIFTA SV and less total volume.
Negative Factors
Acquisition Skepticism
There is skepticism about the success of Future Pak's acquisition offer, and it is likely to fall through despite recognizing the value of the EGRIFTA franchise.
Financial Performance
2Q25 fully adjusted EPS of ($0.09) missed consensus expectations of ($0.01), which may indicate financial challenges.
Theratechnologies (TH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$197.71M
Dividend YieldN/A
Average Volume (3M)82.21K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth5.24%
EPS Growth-7.99%
CountryCA
Employees103
SectorHealthcare
Sector Strength40
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.12
Shares Outstanding45,980,020
10 Day Avg. Volume85,223
30 Day Avg. Volume82,213
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)-5.56
Price to Sales (P/S)0.00
P/FCF Ratio-47.03
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit2.73
Enterprise Value/Ebitda6.46
Forecast
1Y Price Target
C$3.51Price Target Upside-18.45% Downside
Rating ConsensusHold
Number of Analyst Covering1
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:Jul 09, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Oct 09, 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 faces challenges with declining revenue, a negative net profit margin, and negative stockholders' equity, indicating high financial risk. Despite improvements in gross profit margin and operating cash flow, the negative equity and free cash flow highlight significant vulnerabilities.Income Statement
Theratechnologies shows declining revenue with a negative growth rate of -1.73% from the previous year. The company has improved its gross profit margin to 77.66% in TTM (Trailing-Twelve-Months), indicating efficient cost management. However, consistent net losses result in a negative net profit margin of -10.85%, posing profitability challenges.45
Neutral
Balance Sheet
The company faces significant financial risk with a negative stockholders' equity of -$27.92 million, indicating liabilities exceed assets. The debt-to-equity ratio is not calculable due to the negative equity, highlighting high leverage. This financial instability raises concerns about long-term solvency.30
Negative
Cash Flow
Theratechnologies has managed to generate positive operating cash flow of $7.04 million in TTM (Trailing-Twelve-Months), a positive shift from previous years. However, the free cash flow remains negative at -$3.08 million, and heavy capital expenditures limit cash flow growth, presenting liquidity challenges.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 85.87M | 81.76M | 80.06M | 69.82M | 66.05M |
| Gross Profit | 65.42M | 62.13M | 53.78M | 46.56M | 39.15M |
| EBITDA | 6.88M | -8.91M | -27.83M | -17.25M | -8.77M |
| Net Income | -8.31M | -23.96M | -47.24M | -31.73M | -22.67M |
Balance Sheet | |||||
| Total Assets | 53.34M | 77.77M | 93.26M | 119.21M | 100.14M |
| Cash, Cash Equivalents and Short-Term Investments | 9.62M | 40.85M | 33.07M | 40.35M | 20.77M |
| Total Debt | 45.61M | 58.97M | 66.71M | 56.74M | 55.38M |
| Total Liabilities | 78.61M | 98.64M | 115.83M | 101.45M | 96.92M |
| Stockholders Equity | -25.27M | -20.87M | -22.57M | 17.76M | 3.22M |
Cash Flow | |||||
| Free Cash Flow | 879.00K | -7.50M | -15.68M | -14.64M | -13.59M |
| Operating Cash Flow | 2.38M | -5.68M | -14.69M | -14.48M | -13.55M |
| Investing Cash Flow | 942.00K | 1.11M | 8.68M | -12.45M | 4.78M |
| Financing Cash Flow | -21.49M | 14.78M | 9.66M | 34.56M | -7.23M |
Theratechnologies Technical Analysis
Positive
4.30
Price Trends
3.70
Positive
3.23
Positive
2.68
Positive
Market Momentum
0.23
Negative
69.29
Neutral
70.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TH, the sentiment is Positive. The current price of 4.3 is above the 20-day moving average (MA) of 3.90, above the 50-day MA of 3.70, and above the 200-day MA of 2.68, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 69.29 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | C$197.71M | ― | ― | 5.24% | -7.99% | ||
50 Neutral | AU$2.58B | 3.39 | -57.47% | 2.93% | 36.73% | 13.67% | |
| ― | $230.11M | 24.42 | 9.69% | ― | ― | ― | |
80 Outperform | C$131.35M | 16.73 | 22.17% | 2.05% | 16.55% | 14.70% | |
56 Neutral | C$154.63M | ― | -23.05% | ― | -3.73% | 32.70% | |
54 Neutral | C$8.90M | ― | -18.52% | ― | 1.14% | -36.66% | |
54 Neutral | C$11.58M | ― | -8.79% | ― | -0.29% | -53.83% |
* Healthcare Sector Average
Performance Comparison
TSE:TH
Theratechnologies
4.30
2.19
103.79%
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TSE:MPH
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1.11
0.00
0.00%
TSE:RX
Biosyent
11.45
1.48
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TSE:HLS
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36.49%
Theratechnologies Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Theratechnologies Reports Q2 2025 Financial Results and Acquisition Agreement
Positive
Jul 9, 2025
Theratechnologies reported a total revenue of $17.7 million for the second quarter of 2025, with a positive adjusted EBITDA for the fifth consecutive quarter. Despite a previous supply disruption affecting EGRIFTA SV® sales, the company has seen a strong demand recovery and record patient enrollments. The company is set to launch a new version of EGRIFTA WR™ in the third quarter, aiming to continue its growth trajectory. Additionally, Theratechnologies has entered into an agreement to be acquired by an affiliate of Future Pak, which has led to the withdrawal of its fiscal 2025 revenue and adjusted EBITDA guidance.
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 TransactionsBusiness Operations and Strategy
Theratechnologies to be Acquired by Future Pak Affiliate
Positive
Jul 3, 2025
Theratechnologies Inc. has entered into a definitive agreement to be acquired by CB Biotechnology, an affiliate of Future Pak, for US$3.01 per share in cash and a contingent value right (CVR) for potential additional payments. This transaction, which represents a significant premium over the company’s previous stock price, is the result of a comprehensive sale process aimed at maximizing shareholder value. The acquisition is expected to enhance Future Pak’s growth strategy by expanding its product portfolio and improving patient access, marking a significant milestone in its history.
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.
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.