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Theratechnologies Inc (TSE:TH)
TSX:TH
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Theratechnologies
(TSX:TH)
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Rating:61Neutral
Price Target:
C$4.50
▲(0.67% Upside)
Theratechnologies' overall score is driven by positive corporate events, including a favorable acquisition agreement, which boosts shareholder value. Strong technical indicators also support the stock's outlook. However, financial performance and valuation challenges, such as negative equity and a lack of profitability, weigh on the score.
Positive Factors
Negative Factors
Theratechnologies (TH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$215.65M
Dividend YieldN/A
Average Volume (3M)19.85K
Price to Earnings (P/E)―
Beta (1Y)2.00
Revenue Growth5.24%
EPS Growth-7.99%
CountryCA
Employees103
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.13
Shares Outstanding45,980,020
10 Day Avg. Volume24,981
30 Day Avg. Volume19,848
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue2.67
Enterprise Value/Gross Profit3.44
Enterprise Value/Ebitda110.12
Forecast
1Y Price Target
$4.50Price Target Upside0.76% Upside
Rating ConsensusHold
Number of Analyst Covering0
Theratechnologies Business Overview & Revenue Model
Company DescriptionTheratechnologies Inc. is a Canadian biopharmaceutical company focused on developing and commercializing innovative therapies for patients with serious medical conditions. The company primarily operates in the biotechnology sector, specializing in the research and development of treatments for metabolic and endocrine disorders, with a particular emphasis on human immunodeficiency virus (HIV) and growth hormone deficiencies. Its core product, Trogarzo (ibalizumab-uiyk), is a monoclonal antibody approved for the treatment of HIV-1 in heavily treatment-experienced patients, highlighting the company's commitment to addressing unmet medical needs in complex patient populations.
How the Company Makes MoneyTheratechnologies generates revenue primarily through the sale of its pharmaceutical products, notably Trogarzo, which is marketed to healthcare providers and institutions treating HIV patients. The company also engages in strategic partnerships and collaborations with other pharmaceutical companies to co-develop therapies and share in the financial benefits of new product launches. Additionally, Theratechnologies may receive milestone payments and royalties from its partners based on the performance of co-developed products. The company's revenue model is bolstered by its focus on niche markets within the biopharmaceutical sector, allowing for higher pricing power and specialized marketing efforts.
Theratechnologies Earnings Call Summary
Earnings Call Date:Jul 09, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 09, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and recovery post-drug shortage, along with positive R&D developments. However, challenges such as the previous drug shortage's financial impact and declining Trogarzo sales indicate a cautious business outlook.Q1-2025 Updates
Positive Updates
Revenue Growth
Total revenues increased to $19 million, representing a 17% growth from the previous year, driven by strong performance of EGRIFTA SV.
EGRIFTA SV Recovery and Transition Plan
Following a drug shortage, EGRIFTA SV resumed distribution, with new enrollments up 15% in Q1 compared to last year. The transition to the new F8 formulation is planned for completion by early 2026.
Positive Adjusted EBITDA
The company reported a positive adjusted EBITDA of $2.3 million, up from a loss of $247,000 last year.
New Formulation Approval
Approval of the F8 Formulation of Tesamorelin, which requires less frequent reconstitution and is expected to improve patient adherence and experience.
Research and Development Progress
Data from the PROMISE-U.S. and VAMOS studies presented, highlighting the efficacy and safety of ibalizumab and the importance of EVAF in cardiovascular risk assessment in HIV patients.
Negative Updates
Impact of Drug Shortage
The drug shortage resulted in a sales loss of six to seven weeks, translating to approximately $10 million in lost revenue.
Decline in Trogarzo Sales
Trogarzo sales decreased by 22% due to new competitors and patient loss, despite some stabilization in enrollments.
Guidance for 2025
Revised guidance for 2025 with expected revenues of $80 million to $83 million and adjusted EBITDA of $10 million to $12 million, indicating a cautious outlook.
Company Guidance
During the Theratechnologies First Quarter 2025 Earnings Call, the company provided guidance for the fiscal year, projecting total revenues of $80 to $83 million and an adjusted EBITDA of $10 to $12 million. Despite a temporary drug shortage impacting EGRIFTA SV sales for six to seven weeks, the company reported $19 million in total revenues for the quarter, marking a 17% increase year-over-year. Adjusted EBITDA for the quarter was $2.3 million, compared to a loss of $247,000 in the previous year. The company also discussed the successful rebound in patient enrollments, which were up 15% in the first quarter compared to last year. Additionally, they highlighted the recent approval of the F8 Formulation of Tesamorelin and the anticipated transition from EGRIFTA SV to EGRIFTA WR, expected to be completed by early 2026.Theratechnologies Financial Statement Overview
Summary
Theratechnologies faces financial challenges with declining revenue and persistent net losses, resulting in a negative net profit margin. The company has a negative stockholders' equity, indicating high leverage and financial instability. Despite these issues, improvements in gross margin and positive operating cash flow are noted.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 84.38M | 85.87M | 81.76M | 80.06M | 69.82M | 66.05M |
| Gross Profit | 65.58M | 65.42M | 62.13M | 53.78M | 46.56M | 39.15M |
| EBITDA | 2.05M | 6.88M | -8.91M | -27.83M | -17.25M | -8.77M |
| Net Income | -9.16M | -8.31M | -23.96M | -47.24M | -31.73M | -22.67M |
Balance Sheet | ||||||
| Total Assets | 51.27M | 53.34M | 77.77M | 93.26M | 119.21M | 100.14M |
| Cash, Cash Equivalents and Short-Term Investments | 9.92M | 9.62M | 40.85M | 33.07M | 40.35M | 20.77M |
| Total Debt | 43.62M | 45.61M | 58.97M | 66.71M | 56.74M | 55.38M |
| Total Liabilities | 79.19M | 78.61M | 98.64M | 115.83M | 101.45M | 96.92M |
| Stockholders Equity | -27.92M | -25.27M | -20.87M | -22.57M | 17.76M | 3.22M |
Cash Flow | ||||||
| Free Cash Flow | -3.08M | 879.00K | -7.50M | -15.68M | -14.64M | -13.59M |
| Operating Cash Flow | 7.04M | 2.38M | -5.68M | -14.69M | -14.48M | -13.55M |
| Investing Cash Flow | -5.96M | 942.00K | 1.11M | 8.68M | -12.45M | 4.78M |
| Financing Cash Flow | -22.79M | -21.49M | 14.78M | 9.66M | 34.56M | -7.23M |
Theratechnologies Technical Analysis
Neutral
4.47
Price Trends
4.46
Positive
4.07
Positive
3.33
Positive
Market Momentum
0.05
Positive
45.96
Neutral
70.15
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 4.47 is below the 20-day moving average (MA) of 4.54, above the 50-day MA of 4.46, and above the 200-day MA of 3.33, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 70.15 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 134.95M | 16.24 | 21.97% | 1.66% | 16.82% | 19.25% | |
77 Outperform | 406.55M | 24.25 | 11.28% | ― | 121.40% | -47.34% | |
61 Neutral | $215.65M | ― | ― | ― | 5.24% | -7.99% | |
55 Neutral | 8.95M | -6.87 | -17.37% | ― | 20.33% | 53.93% | |
53 Neutral | 169.20M | -8.17 | -27.55% | ― | -1.42% | 35.15% | |
51 Neutral | 11.48M | -8.49 | -7.39% | ― | 10.84% | 48.57% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
TSE:TH
Theratechnologies
4.47
2.78
164.50%
CPHRF
Cipher Pharmaceuticals
11.46
0.27
2.41%
TSE:CTX
Crescita Therpeutc
0.48
-0.12
-20.00%
TSE:MPH
Medicure
1.10
0.08
7.84%
TSE:RX
Biosyent
11.76
1.23
11.68%
TSE:HLS
HLS Therapeutics Inc
5.40
1.64
43.62%
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.