• Adjusted EBITDA: $20 million for fiscal year 2024, compared to minus $3 million a year ago.
• Net Sales: $25 million for Q4 2024, a 6.6% growth versus the same quarter last year.
• EGRIFTA SV Sales: $17.7 million in Q4 2024, a 4% increase year over year; full year sales were $60 million, representing 12% growth.
• Trogarzo Sales: $7.3 million in Q4 2024, a 12.8% increase from the same quarter last year; full year sales were $25.7 million, down 8% year over year.
• Cost of Sales: $6.1 million in Q4 2024, up from $5 million in the same quarter of fiscal 2023.
• Gross Margin: EGRIFTA SV gross margins at 91% excluding a provision, Trogarzo margins at 48%.
• R&D Expenses: $2.4 million in Q4 2024, down from $5.2 million last year, excluding impairment loss.
• Selling Expenses: $7 million in Q4 2024, compared to $6.7 million for the same period last year.
• G&A Expenses: $5.1 million in Q4 2024, a 38% increase from $3.7 million in Q4 2023.
• Net Finance Costs: $7.8 million in Q4 2024, including interest and various costs related to debt.
• Cash and Cash Equivalents: $19.8 million as of November 30, 2024.

• Warning! GuruFocus has detected 7 Warning Signs with THTX.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Theratechnologies Inc (NASDAQ:THTX) reported a significant improvement in adjusted EBITDA, reaching $20 million compared to a loss of $3 million the previous year.
• The company successfully resumed distribution of EGRIFTA SV, resolving a previous shortage and securing FDA approval to sell newly manufactured batches.
• Theratechnologies Inc (NASDAQ:THTX) secured new credit facilities totaling up to $75 million, enhancing its financial flexibility to execute long-term growth strategies.
• The company entered into an exclusive licensing agreement with Ionis Pharmaceuticals to bring Donidalorsen and Alizarin to the Canadian market, expanding its product portfolio.
• EGRIFTA SV sales showed strong performance with a 12% year-over-year growth, supported by effective field force efforts and a favorable selling environment.

Negative Points

• Trogarzo sales were impacted by new competitors, resulting in an 8% decline in sales for the full fiscal year.
• The company recorded an impairment loss on the intangible asset related to its oncology platform, reflecting challenges in finding a partner to continue the program.
• Net finance costs increased substantially due to interest on long-term debt and costs related to the reimbursement of a previous loan.
• GNA expenses rose by 38% compared to the previous year, primarily due to higher stock-based compensation.
• Theratechnologies Inc (NASDAQ:THTX) did not provide guidance for fiscal year 2025, citing uncertainties related to the recent EGRIFTA SV shortage and its impact on the patient base.

Q & A Highlights

Q: Just looking at the F8 formulation, the [Padu] for date is coming up and assuming that the approval, what will be your switch strategy in terms of inventory management from the SV formulation? A: Paul Levesque, President and CEO, explained that the F8 formulation is key to the company. John Leasure, Global Commercial Officer, added that it takes about 6 months to phase in the new F8 and phase out the F4. The major limitation is getting the payers to adopt the new formulation into their systems, which can vary in time.

Q: Will there be any price increases for Trogarzo and EGRIFTA in 2025 to match inflation? A: Philippe Dubuc, CFO, stated that price increases were taken on January 1, and no further increases are planned for this year. The F8 formulation will be launched at the same monthly price as EGRIFTA SV, despite having a 28-day supply versus a 30-day supply, offering an embedded price benefit.

Q: After the Ionis deal, are you still looking to add any additional commercial assets to your portfolio? A: Paul Levesque, President and CEO, mentioned that they are looking to capitalize on their infrastructure in the US and Canada. John Leasure, Global Commercial Officer, added that they are seeking synergistic assets for both the US and Canadian portfolios, focusing on infectious disease in the US and cardiology and immunology in Canada.

Q: Any information on timelines related to the Ionis assets, time to projected peak sales and profitability? A: John Leasure, Global Commercial Officer, stated that they plan to file both drugs this year to Health Canada, with revenue expected in Q1 2027 and peak sales around 2030. Philippe Dubuc, CFO, added that they expect the business to be at least as profitable as the company overall, with 30% margins on the EBITDA line.

Q: What are the priorities for 2025? A: Paul Levesque, President and CEO, outlined the objectives: strengthening the HIV franchise through product differentiation and the new F8 formulation, accelerating growth and profitability through additional product acquisitions, submitting regulatory filings to Health Canada for Alizarin and Donidalorsen, and deriving value from oncology investments while seeking partners for TH1902 and the oncology platform.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.