Theratechnologies (TH) AI Stock Analysis

• Market Cap: C$206.91M
• Dividend Yield: N/A
• Average Volume (3M): 22.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 5.24%
• EPS Growth: -7.99%
• Country: CA
• Employees: 103
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.12
• Shares Outstanding: 45,980,020
• 10 Day Avg. Volume: 11,204
• 30 Day Avg. Volume: 22,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$4.51
• Price Target Upside: 0.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: C$4.50 ▲(0.00% 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

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.

Patent Protection

Patent protection for EGRIFTA WR extends into 2033, providing long-term security for the product.

Product Development

The launch of EGRIFTA WR is expected to allow the company to increase sales growth and maintain positive momentum.

Negative Factors

Acquisition Doubts

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.

Transparency Issues

Theratechnologies confirmed it does not intend to provide updates or comments on the ongoing negotiations unless required by law, creating a lack of transparency for investors.

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 4.50
• 50DMA: Positive
• 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 Positive. The current price of 4.5 is above the 20-day moving average (MA) of 4.47, above the 50-day MA of 4.25, and above the 200-day MA of 3.11, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 66.13 is Neutral, neither overbought nor oversold. The STOCH value of 31.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TH.

Theratechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TH	61 Neutral	C$206.91M	―		―	5.24%	-7.99%
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%
CPHRF	―	$291.13M	24.25	12.25%	―	―	―
RX	78 Outperform	C$137.70M	16.50	22.62%	1.63%	16.82%	19.25%
CTX	54 Neutral	C$8.96M	―	-8.12%	―	20.33%	53.93%
HLS	53 Neutral	C$169.53M	―	-20.58%	―	-1.42%	35.15%
MPH	52 Neutral	C$11.69M	―	-7.15%	―	10.84%	48.57%

Theratechnologies Corporate Events

Theratechnologies Reports Q2 2025 Financial Results and Acquisition Agreement

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.

Theratechnologies to be Acquired by Future Pak Affiliate

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.

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.