Shares of women’s healthcare company TherapeuticsMD, Inc. (TXMD) have gained as much as 350% in today’s pre-market trading after the company agreed to be acquired by private equity firm EW Healthcare Partners.
EW Healthcare is focused on investing in high-growth healthcare companies. The transaction has been unanimously approved by TXMD’s board. As per terms, EW Healthcare will undertake a tender offer to acquire all outstanding TXMD shares for $10 per share. The all-cash transaction is at a 367.3% premium over TXMD’s May 27 closing price.
Management Weighs In
Hugh O’Dowd, the CEO of TherapeuticsMD, commented, “Together, we will continue empowering women of all ages through a therapeutic focus in family planning, reproductive health, and menopause management.”
Evis Hursever, Managing Director at EW Healthcare Partners, added, “EW Healthcare Partners has already made a significant investment in women’s health through its acquisition of Majorelle. TherapeuticsMD represents a unique opportunity for Majorelle to enter the US market and is a perfect fit with our ambitious plans to create a fast-growing, premier trans-Atlantic women’s health platform.”
The acquisition implies a $177 million enterprise value for TXMD, and the tender offer will remain open for 20 business days from its date of commencement. Upon closing, TXMD will become a privately held company. The transaction is expected to be completed on or before July 13, 2022.
Positive Investor Sentiment
This acquisition comes after TXMD shares have seen a drop of 96.6% over the past 12 months. Despite this fall, investors have been sticking with the stock. At the time of writing, TipRanks data shows investor sentiment remains very positive about TXMD, and the number of best-performing portfolios on TipRanks that hold TXMD has increased by 6.3% in the last 30 days alone.
Closing Note
TXMD is a leader in women’s health and its addition further solidifies EW Health Partners’ portfolio. Further, the transaction helps EW Health on its vision to set up a trans-Atlantic platform for women’s health.
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