TherapeuticsMD Reports Improved Net Loss and Increased License Revenue for Fiscal Year 2024

TherapeuticsMD, Inc. reported a net loss of $2.2 million for the fiscal year ending December 31, 2024, a significant improvement from a net loss of $10.3 million in 2023. The company generated $1.76 million in license revenue, marking a 35.3% increase from $1.30 million in the previous year. This growth is attributed to the company's transition to a pharmaceutical royalty model following the Mayne Transaction, which involved granting Mayne Pharma exclusive rights to commercialize several products, including IMVEXXY and BIJUVA. The total operating expenses decreased to $6.52 million from $9.83 million in 2023, primarily due to cost optimization efforts as the company shifted from a commercial business to a royalty-based model.

In December 2022, TherapeuticsMD completed the Mayne Transaction, which included a $140 million cash payment and additional milestone payments based on sales performance. Under the terms of the agreement, Mayne Pharma will pay royalties of 8% on the first $80 million in annual net sales and 7.5% on sales above that threshold for a period of 20 years. The company also expects to receive minimum annual royalties of $3 million for the next 12 years, adjusted for inflation. As of December 31, 2024, the company had cash and cash equivalents totaling $5.06 million, indicating a need for additional capital to support ongoing operations.

Operationally, TherapeuticsMD has streamlined its workforce, employing only one full-time employee as of the end of 2024, with external consultants assisting in various functions. The company has also engaged in strategic licensing agreements with partners like Knight Therapeutics and Theramex to commercialize its products outside the U.S. These partnerships are expected to enhance the company's market reach and revenue potential. However, the company faces challenges, including ongoing disputes with Mayne Pharma regarding net working capital allowances, which could impact future financial results.

Looking ahead, TherapeuticsMD acknowledges substantial doubt about its ability to continue as a going concern, primarily due to its reliance on third-party sales performance and the need for additional financing. The company is exploring various options to raise capital, including equity and debt financing, to ensure liquidity and operational sustainability. The management remains focused on optimizing its business model and addressing the uncertainties surrounding its financial position while navigating the complexities of the pharmaceutical market.