TherapeuticsMD Announces Second Quarter 2017 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 3, 2017-- TherapeuticsMD, Inc. (NYSE MKT: TXMD), an innovative women’s healthcare company, today announced its financial results for the quarter ended June 30, 2017.

Second Quarter and Recent Developments

Net revenue for the company’s prescription prenatal vitamin business was approximately $4.3 million for the second quarter of 2017 compared with approximately $4.4 million for the second quarter of 2016.
Net loss was approximately $19.7 million for the second quarter of 2017, compared with approximately $21.1 million for the second quarter of 2016.
Ended the quarter with approximately $96.5 million in cash and no debt.
Participated in a Type A Post-Action Meeting on June 14, 2017 with the Division of Bone, Reproductive, and Urologic Products (DBRUP) of the FDA to discuss the Complete Response Letter (CRL) regarding the New Drug Application (NDA) for TX-004HR, the company’s investigational applicator-free estradiol vaginal softgel capsule for the treatment of moderate-to-severe vaginal pain during sexual intercourse (dyspareunia), a symptom of vulvar and vaginal atrophy (VVA) due to menopause. The Company has formally submitted additional information for consideration related to the NDA for TX-004HR and has been informed by the FDA that it will be receiving an Advice Letter within the next week outlining the FDA’s timing of its review of the submitted additional data.
Pre-NDA meeting for TX-001HR, the company’s investigational bio-identical hormone therapy combination of estradiol and progesterone in a single, oral softgel for the treatment of moderate-to-severe vasomotor symptoms due to menopause, scheduled with the FDA at the end of August 2017. The company anticipates that it will submit the NDA for TX-001HR in the fourth quarter of 2017.
Dismissal without prejudice of the primary federal securities class action lawsuit recently filed against the company.
Grew the company’s intellectual property portfolio to a current total of 158 patent filings, including 82 international filings, with one allowed and 17 issued U.S. patents.

“We continue to focus on advancing our pipeline of novel hormone therapies and, if approved, bringing new, differentiated treatment options to women suffering from symptoms of menopause,” said TherapeuticsMD CEO Robert G. Finizio.

Summary of Second Quarter 2017 Financial Results

Net revenue from the company’s prescription prenatal vitamin business was approximately $4.3 million for the second quarter of 2017 compared with net revenue of approximately $4.4 million for the prior year’s quarter. These changes were primarily due to a decrease in the number of units sold.

Cost of goods sold was approximately $0.7 million for the second quarter of 2017, compared with approximately $1.1 million for the prior year’s quarter.

Total operating expenses for the second quarter of 2017 included research and development (R&D) expenses and sales, general, and administrative expenses (SG&A). R&D expenses for the second quarter of 2017 were approximately $8.7 million compared with approximately $13.8 million for the prior year’s quarter. The decrease in R&D expenses was a direct result of the completion of the REPLENISH Trial for TX-001HR. SG&A expenses for the second quarter of 2017 were approximately $14.6 million compared with approximately $10.6 million for the prior year’s quarter, primarily due to higher sales, marketing, regulatory expenditures, and personnel costs to support future commercialization.

Net loss for the second quarter of 2017 was approximately $19.7 million, or $0.10 per basic and diluted share, compared with approximately $21.1 million, or $0.11 per basic and diluted share, for the second quarter of 2016.

At June 30, 2017, cash on hand was approximately $96.5 million, compared with approximately $131.5 million at December 31, 2016.

About TherapeuticsMD, Inc.

TherapeuticsMD, Inc. is an innovative healthcare company focused on developing and commercializing products exclusively for women. With its 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 late stage clinical pipeline includes two phase 3 product candidates: TX-001HR for treatment of moderate-to-severe vasomotor symptoms (VMS) due to menopause and TX-004HR for treatment of moderate-to-severe vaginal pain during sexual intercourse (dyspareunia), a symptom of vulvar and vaginal atrophy (VVA) due to menopause. The company also manufactures and distributes branded and generic prescription prenatal vitamins under the vitaMedMD^® and BocaGreenMD^® brands.

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 company’s ability to resolve the deficiencies identified by the FDA in the company’s new drug application for its TX-004HR product candidate and the time frame associated with such resolution; whether the company will be able to prepare an amended NDA for its TX-004HR product candidate and, if prepared, whether the FDA will accept and approve the NDA; 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; whether the company will be able to prepare an NDA for its TX-001HR product candidate and, if prepared, whether the FDA will accept and approve the NDA; the length, cost and uncertain results of the company’s clinical trials, including any additional clinical trials that the FDA may require in connection with TX-004HR; 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
(Unaudited)
	June 30, 2017			December 31, 2016


ASSETS
Current Assets:
Cash	$	96,476,483		$	131,534,101
Accounts receivable, net of allowance for doubtful accounts
of $358,268 and $376,374, respectively		3,396,419			4,500,699
Inventory		1,414,015			1,076,321
Other current assets		2,228,755			2,299,052
Total current assets		103,515,672			139,410,173

Fixed assets, net		483,688			516,839

Other Assets:
Intangible assets, net		2,739,686			2,405,972
Security deposit		139,036			139,036
Total other assets		2,878,722			2,545,008
Total assets	$	106,878,082		$	142,472,020

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	8,108,034		$	7,358,514
Other current liabilities		5,180,218			7,624,085
Total current liabilities		13,288,252			14,982,599

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 shares authorized;
204,027,142 and 196,688,222 issued and outstanding, respectively		204,027			196,688
Additional paid in capital		443,952,952			436,995,052
Accumulated deficit		(350,567,149	)		(309,702,319	)
Total stockholders' equity		93,589,830			127,489,421
Total liabilities and stockholders' equity	$	106,878,082		$	142,472,020


THERAPEUTICSMD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2017			2016			2017			2016

Revenues, net	$	4,250,433		$	4,403,247		$	8,235,897		$	9,333,338

Cost of goods sold		681,725			1,130,108			1,341,360			2,238,551
Gross profit		3,568,708			3,273,139			6,894,537			7,094,787

Operating expenses:
Sales, general, and administration		14,628,927			10,619,006			31,466,544			20,297,558
Research and development		8,716,395			13,841,193			16,441,235			28,938,210
Depreciation and amortization		53,189			24,262			102,888			43,859
Total operating expense		23,398,511			24,484,461			48,010,667			49,279,627

Operating loss		(19,829,803	)		(21,211,322	)		(41,116,130	)		(42,184,840	)

Other income:
Miscellaneous income		149,054			114,320			275,022			155,937
Accreted interest		3,832			2,863			7,699			5,399
Total other income		152,886			117,183			282,721			161,336

Loss before taxes		(19,676,917	)		(21,094,139	)		(40,833,409	)		(42,023,504	)

Provision for income taxes		-			-			-			-

Net loss	$	(19,676,917	)	$	(21,094,139	)	$	(40,833,409	)	$	(42,023,504	)

Net loss per share, basic and diluted	$	(0.10	)	$	(0.11	)	$	(0.20	)	$	(0.21	)

Weighted average number of common
shares outstanding		203,384,610			196,325,715			200,602,778			195,613,639


THERAPEUTICSMD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Six Months Ended
	June 30, 2017			June 30, 2016

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(40,833,409	)	$	(42,023,504	)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation of fixed assets		69,000			19,216
Amortization of intangible assets		33,888			24,643
(Recovery of) provision for doubtful accounts		(18,106	)		447,388
Share-based compensation		3,051,357			9,200,844
Changes in operating assets and liabilities:
Accounts receivable		1,122,386			(1,874,980	)
Inventory		(337,694	)		(193,503	)
Other current assets		(58,601	)		1,001,120
Accounts payable		749,520			(86,786	)
Other current liabilities		(2,443,867	)		(1,239,743	)
Net cash used in operating activities		(38,665,526	)		(34,725,305	)

CASH FLOWS FROM INVESTING ACTIVITIES
Patent costs		(367,602	)		(393,221	)
Purchase of fixed assets		(35,849	)		(265,036	)
Payment of security deposit		-			(4,864	)
Net cash used in investing activities		(403,451	)		(663,121	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock, net of costs		-			134,863,475
Proceeds from exercise of warrants		3,798,999			1,373,000
Proceeds from exercise of options		212,360			978,042
Net cash provided by financing activities		4,011,359			137,214,517

(Decrease) increase in cash		(35,057,618	)		101,826,091
Cash, beginning of period		131,534,101			64,706,355
Cash, end of period	$	96,476,483		$	166,532,446

View source version on businesswire.com: http://www.businesswire.com/news/home/20170803006008/en/

Source: TherapeuticsMD, Inc.

TherapeuticsMD, Inc.
David DeLucia, 561-961-1900
Director, Investor Relations
David.DeLucia@TherapeuticsMD.com