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TherapeuticsMD Announces Second Quarter 2015 Financial Results  

August 6, 2015 4:05 PM

BOCA RATON, Fla.--(BUSINESS WIRE)-- TherapeuticsMD, Inc. (NYSE MKT: TXMD), an innovative women’s healthcare company, today announced its second quarter financial results for the period ended June 30, 2015.

Second Quarter and Recent Developments

“We are very pleased with our progress during the second quarter, most notably completion of enrollment in our 700-patient Rejoice Trial of TX-004HR for the treatment of moderate to severe dyspareunia as a symptom of VVA due to menopause, and ongoing recruitment of patients for the phase 3 Replenish Trial of TX-001HR, our combination estradiol and progesterone product candidate,” said TherapeuticsMD CEO Robert G. Finizio. “We are also focused on building alliances with key medical and industry organizations in order to generate awareness and knowledge of the unmet medical needs among menopausal and post-menopausal women.”

Summary of Second Quarter Financial Results

Net revenue for the second quarter of 2015 totaled approximately $4.8 million compared with net revenue of approximately $3.8 million for the prior year’s quarter, an increase of approximately 29 percent year over year. Revenue growth during the second quarter was primarily driven by increased sales of the company’s prenatal vitamin products and an increase in the average net sales price of the company’s products.

Cost of goods sold increased to approximately $1.0 million for the three months ended June 30, 2015, compared with approximately $0.9 million in the prior year’s quarter.

Total operating expenses for the second quarter of 2015 included research and development (R&D) expenses and sales, general and administrative expenses (SG&A). R&D expenses for the second quarter of 2015 were approximately $24.2 million compared with approximately $8.2 million for the prior year’s quarter, reflecting costs of the company’s two ongoing phase 3 clinical trials for its novel hormone therapy products in development, including completion of enrollment in the Rejoice Trial, as well as scale-up and manufacturing activities. SG&A expenses for the second quarter of 2015 were approximately $6.9 million compared with approximately $5.5 million for the second quarter of 2014, primarily as a result of increased non-cash compensation, legal, director and insurance expenses.

Non-operating income remained insignificant and unchanged for both the second quarter of 2015 and 2014 and included miscellaneous and interest income for both periods.

Net loss for the second quarter of 2015 was approximately $27.2 million, or $0.16 per basic and diluted share, compared with approximately $10.9 million, or $0.07 per basic and diluted share, for the second quarter of 2014.

At June 30, 2015, TherapeuticsMD had cash on hand of approximately $67.2 million, compared with approximately $51.4 million at December 31, 2014. In July 2015, the company completed an underwritten public offering of shares of its common stock in which the net proceeds to the company were approximately $32.2 million.

Conference Call Today

As previously announced, TherapeuticsMD will host a conference call today to discuss these financial results and provide a business update. Details for the call and webcast are:

Date: Thursday, August 6, 2015
Time: 4:30 p.m. EDT
Telephone Access (US): 866-665-9531
Telephone Access (International): 724-987-6977
Access Code for All Callers: 83546010

Additionally, a live webcast can be accessed on the company’s website, www.therapeuticsmd.com, under the “Investor” section.

About TherapeuticsMD, Inc.

TherapeuticsMD, Inc. is an innovative healthcare company focused on developing and commercializing products exclusively for women. With its patented SYMBODA™ technology, TherapeuticsMD is developing advanced hormone therapy pharmaceutical products to enable delivery of bio-identical hormones through a variety of dosage forms and administration routes. The company’s clinical development pipeline includes two phase 3 products. The company also manufactures and distributes branded and generic prescription prenatal vitamins as well as over-the-counter vitamins under the vitaMedMD® and BocaGreenMD® brands. More information is available at the following websites: www.therapeuticsmd.com, www.vitamedmd.com, www.vitamedmdrx.com and www.bocagreenmd.com.

This press release by TherapeuticsMD, Inc. may contain forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to TherapeuticsMD’s objectives, plans and strategies as well as statements, other than historical facts, that address activities, events or developments that the company intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as “believes,” “hopes,” “may,” “anticipates,” “should,” “intends,” “plans,” “will,” “expects,” “estimates,” “projects,” “positioned,” “strategy” and similar expressions and are based on assumptions and assessments made in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements in this press release are made as of the date of this press release, and the company undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of the company’s control. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the sections titled “Risk Factors” in the company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as reports on Form 8-K, and include the following: the company’s ability to maintain or increase sales of its products; the company’s ability to develop and commercialize its hormone therapy drug candidates and obtain additional financing necessary therefor; the length, cost and uncertain results of the company’s clinical trials; the potential of adverse side effects or other safety risks that could preclude the approval of the company’s hormone therapy drug candidates; the company’s reliance on third parties to conduct its clinical trials, research and development and manufacturing; the availability of reimbursement from government authorities and health insurance companies for the company’s products; the impact of product liability lawsuits; the influence of extensive and costly government regulation; the volatility of the trading price of the company’s common stock and the concentration of power in its stock ownership. PDF copies of the company’s historical press releases and financial tables can be viewed and downloaded at its website: www.therapeuticsmd.com/pressreleases.aspx.

THERAPEUTICSMD, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2015 December 31, 2014
(Unaudited)
ASSETS
Current Assets:
Cash $ 67,245,698 $ 51,361,607
Accounts receivable, net of allowance for doubtful accounts
of $90,520 and $59,753, respectively 3,313,518 2,154,217
Inventory 1,248,719 1,182,113
Other current assets 1,154,213 1,537,407
Total current assets 72,962,148 56,235,344
Fixed assets, net 64,604 63,293
Other Assets:
Prepaid expense 1,233,740 1,427,263
Intangible assets 1,293,776 1,228,588
Security deposit 125,000 125,000
Total other assets 2,652,516 2,780,851
Total assets $ 75,679,268 $ 59,079,488
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 5,818,618 $ 6,327,129
Other current liabilities 5,887,902 3,840,639
Deferred revenue - 522,613
Total current liabilities 11,706,520 10,690,381
Long-Term Liabilities:
Accrued expense 967,286 -
Total liabilities 12,673,806 10,690,381
Commitments and Contingencies
Stockholders' Equity:
Preferred stock - par value $0.001; 10,000,000 shares authorized;
no shares issued and outstanding - -
Common stock - par value $0.001; 350,000,000 and 250,000,000
shares authorized, respectively; 173,037,653 and 156,097,019 shares
issued and outstanding, respectively 173,038 156,097
Additional paid in capital 245,703,962 182,982,846
Accumulated deficit (182,871,538 ) (134,749,836 )
Total stockholders' equity 63,005,462 48,389,107
Total liabilities and stockholders' equity $ 75,679,268 $ 59,079,488
THERAPEUTICSMD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
2015 2014 2015 2014
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues, net $ 4,847,934 $ 3,751,778 $ 9,322,983 $ 6,582,311
Cost of goods sold 1,033,089 892,956 2,076,730 1,723,663
Gross profit 3,814,845 2,858,822 7,246,253 4,858,648
Operating expenses:
Sales, general, and administration 6,865,442 5,537,164 13,029,054 10,566,661
Research and development 24,190,714 8,234,641 42,367,549 14,142,719
Depreciation and amortization 14,280 14,094 27,852 27,162
Total operating expense 31,070,436 13,785,899 55,424,455 24,736,542
Operating loss (27,255,591 ) (10,927,077 ) (48,178,202 ) (19,877,894 )
Other income (expense):
Miscellaneous income 25,585 18,579 44,098 37,151
Interest income 2,560 9,238 12,402 18,392
Financing costs - - - (260,027 )
Total other income (expense) 28,145 27,817 56,500 (204,484 )
Loss before taxes (27,227,446 ) (10,899,260 ) (48,121,702 ) (20,082,378 )
Provision for income taxes - - - -
Net loss $ (27,227,446 ) $ (10,899,260 ) $ (48,121,702 ) $ (20,082,378 )
Net loss per share, basic and diluted $ (0.16 ) $ (0.07 ) $ (0.29 ) $ (0.14 )
Weighted average number of common
shares outstanding 172,782,264 145,485,505 168,734,760 145,253,818
THERAPEUTICSMD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30, 2015 June 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (48,121,702 ) $ (20,082,378 )
Adjustments to reconcile net loss to net cash flows used in
operating activities:
Depreciation 14,248 15,591
Amortization of intangible assets 13,604 11,570
Provision for doubtful accounts 30,767 1,393
Stock based compensation 2,052,549 2,268,599
Amortization of deferred financing costs - 260,027
Stock based expense for services 916,262 481,024
Changes in operating assets and liabilities:
Accounts receivable (1,190,068 ) (475,378 )
Inventory (66,606 ) (409,376 )
Other current assets 383,194 (460,512 )
Other assets (12,410 ) (18,392 )
Accounts payable (508,511 ) 216,040
Deferred revenue (522,613 ) (314,784 )
Accrued expenses and other current liabilities 2,047,264 (271,771 )
Other long-term liabilities 967,286 -
Net cash flows used in operating activities (43,996,736 ) (18,778,347 )
CASH FLOWS FROM INVESTING ACTIVITIES
Patent costs (78,792 ) (213,089 )
Purchase of property and equipment (15,559 ) (30,962 )
Refund of security deposit - 10,686
Net cash flows used in investing activities (94,351 ) (233,365 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock, net of costs 59,117,827 -
Proceeds from exercise of options 491,351 287,288
Proceeds from exercise of warrants 366,000 87,000
Net cash flows provided by financing activities 59,975,178 374,288
Increase (decrease) in cash 15,884,091 (18,637,424 )
Cash, beginning of period 51,361,607 54,191,260
Cash, end of period $ 67,245,698 $ 35,553,836
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest $ - $ -
Cash paid for income taxes $ - $ -

TherapeuticsMD, Inc.

Investors:

Dan Cartwright, 561-961-1900

Chief Financial Officer

[email protected]

Source: TherapeuticsMD, Inc.

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