TherapeuticsMD Announces Full Year 2022 Financial Results and Provides Update on Business Model Transition

TherapeuticsMD Announces Full Year 2022 Financial Results and Provides Update on Business Model

BOCA RATON, Fla. April 7, 2023 TherapeuticsMD, Inc. ( TherapeuticsMD or the

Company ) (NASDAQ: TXMD), a company that owns rights to pharmaceutical royalties, today reported financial results for the full year ended December 31, 2022.

As a result of the transaction with Mayne Pharma Group Limited (ASX: MYX) ( Mayne Pharma ) that closed at

year-end, in which TherapeuticsMD granted Mayne Pharma an exclusive license to commercialize TherapeuticsMD s products in the United States, we repaid our debt, redeemed our outstanding preferred stock,

eliminated our commercial and manufacturing infrastructure, and downsized our remaining operations, said Marlan D. Walker, Chief Executive Officer of TherapeuticsMD. We look forward to continuing to streamline our operations as we

complete the transition to a virtual business model that collects royalties from Mayne Pharma and our other licensees. We also intend to explore other strategic pathways to create value for TherapeuticsMD shareholders, said Mr. Walker.

Full Year 2022 Financial Results

(Loss) from Continuing Operations

License Revenues from Continuing Operations

Total Operating Expenses from Continuing Operations

Discontinued Operations

In connection with the previously announced transaction with Mayne Pharma, TherapeuticsMD has significantly reduced its operating expenses. The termination of

certain members of the Company s executive management team and all other employees was completed by December 31, 2022. Severance obligations for all employees other than executive officers were paid in full during the first quarter of

2023, and severance obligations for terminated executive officers will be paid in accordance with their employment agreements and separation agreements as previously disclosed. As of December 31, 2022, the Company employed one full-time

employee primarily engaged in an executive position. The Company engaged external consultants, including certain former members of its management team, to support TXMD s relationship with current partners and assist with certain financial,

legal, and regulatory matters, and the continued wind-down of historical business operations.

Total consideration paid to TherapeuticsMD for the

transaction with Mayne Pharma that closed on December 30, 2022, included an upfront cash payment of $140.0 million for the license grant and sale of certain assets, plus an additional approximately $13.1 million for the acquisition of net

working capital and prepaid royalties, which is subject to customary adjustments. In addition,

TherapeuticsMD is eligible to receive up to $30.0 million in milestone payments as well as royalties on net sales of between 7.5% and 8.0%, for a period of 20 years, with minimum annual

royalties of $3.0 million per year for 12 years, adjusted for inflation at an annual rate of 3%, subject to certain further adjustments. The approximately $1.0 million in prepaid royalties paid at closing will reduce the first four

quarterly royalty payments that would have otherwise been payable to TherapeuticsMD.

The Company used a portion of the proceeds to repay all obligations

under the Company s Financing Agreement with Sixth Street Specialty Lending, Inc. In addition, the Company also redeemed all 29,000 outstanding shares of its Series A Preferred Stock at a purchase price of $1,333 per share and paid certain

affiliates of Rubric Capital Management LP ( Rubric ) approximately $3.0 million as a make-whole payment pursuant to the subscription agreements previously entered into between the Company and Rubric.

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: whether Mayne Pharma will be

successful at commercializing the products that it licensed and acquired from TherapeuticsMD; whether the company is successful in winding down its operations and the costs associated therewith, including the company s ability to obtain any

additional financing necessary therefor and the any adjustments to the net working capital purchased as part of the Mayne Pharma transaction; whether the company is successful in identifying strategic pathways to create additional shareholder value;

the company s ability to remain listed on Nasdaq; the impact of product liability lawsuits; the impact of leadership transitions; and the volatility of the trading price of the company s common stock.