Full Press Release Details
TherapeuticsMD Announces Fourth Quarter 2021 Financial Results
- Reached definitive agreement to fully divest vitaCare business unit enabling greater focus on achieving leadership position in women's healthcare -
- Amended credit terms with Sixth Street in support of a new capitalization plan -
- Conference call scheduled for 8:30 a.m. ET today -
BOCA RATON, Fla. - March 10, 2022 - TherapeuticsMD, Inc. ("TXMD" or the "Company") (NASDAQ: TXMD), an innovative, leading women's healthcare company, today reported financial results for the fourth quarter ended December 31, 2021.
"We spent the past three months executing on four key priorities set forth last quarter, and today we announced that we have accomplished two of them. With the definitive agreement to fully divest our vitaCare business unit, TXMD will emerge as a more focused company aimed at empowering women of all ages through better and affordable healthcare. Amending our credit terms is, in our view, the most prudent way to achieve the necessary financial flexibility to complete the announced sale of vitaCare and ultimately refinance our existing credit facility," said Hugh O'Dowd, CEO of TherapeuticsMD.
"Demand for our flagship product, ANNOVERA , continues to grow. We are working to ensure ample supply and drive towards uninterrupted access to this important contraceptive. We are excited about our future, and believe we are on a pathway towards serving women as they navigate their healthcare needs," concluded O'Dowd.
Fourth Quarter 2021 Financial Results and Business Highlights
| Three Months ended | ||||||||
| December 31, | ||||||||
| 2021 | 2020 | |||||||
| Product revenue: | ||||||||
| ANNOVERA | $ | 7,831 | $ | 9,084 | ||||
| IMVEXXY | 6,667 | 8,820 | ||||||
| BIJUVA | 2,680 | 2,244 | ||||||
| Prescription vitamin | 1,500 | 2,430 | ||||||
| Product revenue, net | 18,678 | 22,578 | ||||||
| License revenue | - | - | ||||||
| Total revenue, net | $ | 18,678 | $ | 22,578 |
ANNOVERA (segesterone acetate and ethinyl estradiol vaginal system)
IMVEXXY (estradiol vaginal inserts)
BIJUVA (estradiol and progesterone) capsules
Cost of Goods Sold and Gross Margin
Operating Expense, Net Loss and Related Information
Conference Call and Webcast Details
TherapeuticsMD will host a conference call and live audio webcast today at 8:30 a.m. ET to discuss these financial results and provide a business update.
| Date: | Thursday, March 10, 2022 |
| Time: | 8:30 a.m. ET |
| Telephone Access (US): | 866-665-9531 |
| Telephone Access (International): | 724-987-6977 |
| Access Code for All Callers: | 6988467 |
A live webcast and audio archive for the event may be accessed on the home page or from the "Investors & Media" section of the TherapeuticsMD website at www.therapeuticsmd.com. Please connect to the website prior to the start of the presentation to ensure adequate time for any software downloads that may be necessary to listen to the webcast. A replay of the webcast will be archived on the website for at least 30 days. In addition, a digital recording of the conference call will be available for replay beginning two hours after the call's completion and for at least 30 days with the dial-in 855-859-2056 or international 404-537-3406 and Conference ID: 6988467.
Please see the Full Prescribing Information, including indication and Boxed WARNING, for each TherapeuticsMD product as follows:
IMVEXXY (estradiol vaginal inserts) at https://imvexxy.com/pi.pdf
BIJUVA (estradiol and progesterone) capsules at https://www.bijuva.com/pi.pdf
ANNOVERA (segesterone acetate and ethinyl estradiol vaginal system) at www.annovera.com/pi.pdf
Forward-Looking Statements
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 effects of the COVID-19 pandemic; whether TherapeuticsMD will be able to successfully divest its vitaCare business and how the proceeds that may be generated by such divesture will be utilized; the company's ability to maintain or increase sales of its products; the company's ability to develop and commercialize IMVEXXY , ANNOVERA , and BIJUVA and obtain additional financing necessary therefor; whether the company will be able to comply with the covenants and conditions under its term loan facility and the company's ability to refinance such facility; the effects of supply chain issues on the supply of the company's products; the potential of adverse side effects or other safety risks that could adversely affect the commercialization of the company's current or future approved products or preclude the approval of the company's future drug candidates; whether the FDA will approve the manufacturing supplement for ANNOVERA; the company's ability to protect its intellectual property, including with respect to the Paragraph IV notice letters the company received regarding IMVEXXY and BIJUVA; the length, cost and uncertain results of future clinical trials; the company's reliance on third parties to conduct its manufacturing, research and development and clinical trials; the ability of the company's licensees to commercialize and distribute the company's products; the ability of the company's marketing contractors to market ANNOVERA; 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 impact of leadership transitions; the volatility of the trading price of the company's common stock and the concentration of power in its stock ownership.
- Financial Statements to Follow -
TherapeuticsMD, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited - in thousands, except per share data)
| As of December 31, | ||||||||
| 2021 | 2020 | |||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash | $ | 65,122 | $ | 80,486 | ||||
| Accounts receivable, net of allowance for credit losses of $1,334 and $1,118 as of December 31, 2021 and 2020, respectively | 36,176 | 32,382 | ||||||
| Inventory | 7,622 | 7,993 | ||||||
| Prepaid and other current assets | 10,548 | 7,543 | ||||||
| Total current assets | 119,468 | 128,404 | ||||||
| Fixed assets, net | 1,199 | 1,942 | ||||||
| License rights and other intangible assets, net | 40,318 | 41,445 | ||||||
| Right of use assets | 8,234 | 9,566 | ||||||
| Other non-current assets | 253 | 253 | ||||||
| Total assets | $ | 169,472 | $ | 181,610 | ||||
| Liabilities and stockholders' equity (deficit): | ||||||||
| Current liabilities: | ||||||||
| Current maturities of long-term debt | $ | 188,269 | $ | - | ||||
| Accounts payable | 20,318 | 21,068 | ||||||
| Accrued expenses and other current liabilities | 44,304 | 38,170 | ||||||
| Total current liabilities | 252,891 | 59,238 | ||||||
| Long-term debt, net | - | 237,698 | ||||||
| Operating lease liabilities | 8,063 | 8,675 | ||||||
| Other non-current liabilities | 2,139 | - | ||||||
| Total liabilities | 263,093 | 305,611 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' deficit: | ||||||||
| Preferred stock, par value $0.001; 10,000 shares authorized, none issued | - | - | ||||||
| Common stock, par value $0.001; 600,000 shares authorized, 429,886 and 299,765 issued and outstanding as of December 31, 2021 and 2020, respectively | 430 | 300 | ||||||
| Additional paid-in capital | 957,309 | 754,644 | ||||||
| Accumulated deficit | (1,051,360 | ) | (878,945 | ) | ||||
| Total stockholders' deficit | (93,621 | ) | (124,001 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 169,472 | $ | 181,610 |
TherapeuticsMD, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited - in thousands, except per share data)
| Three Months ended | ||||||||||||||||
| December 31, | Year ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue, net | $ | 18,678 | $ | 22,578 | $ | 85,780 | $ | 62,872 | ||||||||
| License revenue | - | - | 1,171 | 2,000 | ||||||||||||
| Total revenue, net | 18,678 | 22,578 | 86,951 | 64,872 | ||||||||||||
| Cost of goods sold | 4,737 | 5,581 | 18,838 | 15,975 | ||||||||||||
| Gross profit | 13,941 | 16,997 | 68,113 | 48,897 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and marketing | 22,002 | 25,996 | 108,195 | 117,052 | ||||||||||||
| General and administrative | 25,911 | 23,214 | 92,602 | 76,954 | ||||||||||||
| Research and development | 1,420 | 2,394 | 7,086 | 10,432 | ||||||||||||
| Total operating expenses | 49,333 | 51,604 | 207,883 | 204,438 | ||||||||||||
| Loss from operations | (35,392 | ) | (34,607 | ) | (139,770 | ) | (155,541 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense and other financing costs | (7,576 | ) | (7,612 | ) | (32,917 | ) | (28,581 | ) | ||||||||
| Other income, net | 8 | 132 | 272 | 598 | ||||||||||||
| Total other (expense), net | (7,568 | ) | (7,480 | ) | (32,645 | ) | (27,983 | ) | ||||||||
| Loss before income taxes | (42,960 | ) | (42,087 | ) | (172,415 | ) | (183,524 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net loss | $ | (42,960 | ) | $ | (42,087 | ) | $ | (172,415 | ) | $ | (183,524 | ) | ||||
| Loss per common share, basic and diluted | $ | (0.10 | ) | $ | (0.15 | ) | $ | (0.43 | ) | $ | (0.67 | ) | ||||
| Weighted average common shares, basic and diluted | 427,314 | 286,607 | 397,992 | 275,649 |
TherapeuticsMD, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited - in thousands)
| Year ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (172,415 | ) | $ | (183,524 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 4,093 | 4,067 | ||||||
| Charges to provision for doubtful accounts | 533 | 238 | ||||||
| Inventory charge | 1,082 | 7,205 | ||||||
| Debt financing fees | 5,689 | 2,532 | ||||||
| Share-based compensation | 18,125 | 10,679 | ||||||
| Other | 720 | 2,673 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (4,327 | ) | (8,224 | ) | ||||
| Inventory | (711 | ) | (3,337 | ) | ||||
| Prepaid and other current assets | (3,005 | ) | 3,209 | |||||
| Accounts payable | (750 | ) | 1,887 | |||||
| Accrued expenses and other current liabilities | 6,134 | 2,904 | ||||||
| Other non-current liabilities | 2,139 | 220 | ||||||
| Total adjustments | 29,722 | 24,053 | ||||||
| Net cash used in operating activities | (142,693 | ) | (159,471 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Payment of patent related costs | (2,189 | ) | (1,391 | ) | ||||
| Purchase of fixed assets | (34 | ) | (207 | ) | ||||
| Net cash used in investing activities | (2,223 | ) | (1,598 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from sale of common stock, net of costs | 184,115 | 31,703 | ||||||
| Proceeds from exercise of options and warrants | 322 | 272 | ||||||
| Proceeds from sale of common stock related to employee stock purchase plan | 233 | - | ||||||
| Repayments of debt | (50,000 | ) | - | |||||
| Borrowings of debt | - | 50,000 | ||||||
| Payment of debt financing fees | (5,118 | ) | (1,250 | ) | ||||
| Net cash provided by financing activities | 129,552 | 80,725 | ||||||
| Net increase in cash | (15,364 | ) | (80,344 | ) | ||||
| Cash, beginning of period | 80,486 | 160,830 | ||||||
| Cash, end of period | $ | 65,122 | $ | 80,486 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Interest paid | $ | 25,068 | $ | 25,849 | ||||
| Supplemental disclosure of noncash financing activities: | ||||||||
| Warrants issued in relation to debt financing agreement | $ | - | $ | 7,668 |
| James D'Arecca | Lisa M. Wilson |
| Chief Financial Officer | In-Site Communications, Inc. |
| 561-961-1900 | 212-452-2793 |
| lwilson@insitecony.com |