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Highlights:
- The TXMD stock soared over 12 per cent in the morning trading hours on Monday.
- The company announced entering into a definitive agreement for licensing its products.
- TherapeuticsMD, Inc. reported a revenue of US$ 20.91 million in Q3 FY22.
Stocks of the pharmaceutical firm, TherapeuticsMD, Inc. (NASDAQ:TXMD) were among the top percentage movers on Wall Street Monday, December 5, as seen by a jump in its price.
The price of the TXMD stock soared over 12 per cent soon after the opening bell of the US market on December 5, following the company's announcement of licensing its products.
Let's take a quick tour of the recent developments and financial highlights of the healthcare firm and see what might have propelled its recent gains:
Why is it rising?
TherapeuticsMD Inc is a leading innovative healthcare firm, that focuses on the development and commercialization of novel products for women. The company primarily focuses on creating products for women's healthcare like pregnancy prevention through menopause.
On December 4, the US$ 47.86 million market cap firm said that it has entered into a definitive agreement for licensing its products to an affiliate of Mayne Pharma Group Limited.
Mayne Pharma Group Limited is an Australia-based pharmaceutical firm that develops and manufactures novel oral and other related therapeutics. The ASX-listed firm specializes in commercializing novel and generic pharmaceutical products.
According to the announcement, TherapeuticsMD Inc has nodded to sell certain assets to the Australian pharmaceutical firm, which would allow Mayne Pharma to commercialize the products.
The Boca Raton, Florida-based firm would receive an upfront cash payment of US$ 140 million for the license grant and selling of certain assets.
In addition, it would include an additional payment of around US$ 13.1 million, depending on the satisfactory closing adjustments of the customers.
Besides, TherapeuticsMD Inc would get a 20-year royalty stream tied to the Australian pharmaceutical company's net sales of the products, it said. The upfront payment would be made by the ASX-listed healthcare firm, along with cash on hand, which would allow TXMD to repay its outstanding indebtedness.
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Bottom line:
The price of the TXMD stock was up 12.36 per cent at 9:40 am ET on Monday, December 5, to trade at US$ 5. Its trading volume was over 1.04 million. The stock closed at US$ 4.45 on Friday, December 2.
TherapeuticsMD, Inc reported a revenue of US$ 20.91 million in Q3 FY22, as compared to US$ 25.4 million in the year-ago quarter.
